Transcript Innovation system in the global Economy

Training on Promoting
Innovation Systems in
Developing Countries
Dir. Jean Pacheco
Dir. Lydia Guevarra
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Innovation is new to the
firm not necessarily new to
the world
What is innovation?
How does it differ from invention?
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Definitions of innovation
Schumpeter(1930s-40s)
Innovation is “new combinations” of existing
resources
OECD (2005: p46)
“implementation of a new or significantly
improved product (good and service) or
process, a new marketing methods or a new
organizational methods in business practices,
workplace organization or external relations”.
“ A common feature of an innovation is that it
must have been implemented…it is when
introduced on the market… (p47)
“new to the firm” as minimum entry level. It
does not have to be “new to the market” nor
“new to the world”. (p56-57)
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Main types of Innovation
• Product innovation: new or significantly
Improved good and service
• Process innovation: production or delivery
methods, changes in techniques,
equipment and/or software
• Marketing innovation-implementation of
new marketing methods involving
significant changes in product design or
packaging product placement, product
promotion or pricing.
• Organizational innovation- organizational
methods in the firm’s business practices,
workplace organization or external
relations
build to order, Just in time production,
different ways to share knowledge
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What are the characteristics
of Innovation process?
• Knowledge creation and diffusion is
central
• Constantly changing
• Continuous and dynamic
• Uncertain
– risk oriented, resistance to
change, ‘lock in’
• Diverse process
– sector, country, regions….
• Require complementary assents
– cannot use certain technology
without infrastructure/HR
• Systemic
– looking at one part cannot really
understand the whole process
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Innovation Policy.
We read it.
We hear about it.
But do we understand it?
.
What is considered as
‘innovation activities’
• All activities intended to lead to the
implementation of innovation is
called Innovation activities that
includes following:
–
–
–
–
Science & Technological activities
Organizational activities
Financial and legistrative activities
Education, Entrepreneurship activities
etc
• Innovation policy covers wider
policy arena including science &
technology policy
S&T
Policy
Innovatio
n Policy
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Policy components
• Policy
institutions
–
–
–
–
–
• Education
– All levels (primary
to Higher)
– Life long learning
– Research
Infrastructure
Procurement
Priority setting
Standard setting • Migration
– Immigration policy
Public finance
– Foreign
• Developing
experience/knowle
banks, trade
dge
support
• Government
departments
• Health
– Nutrition
– Wellness
– Disease control
– Including
granting councils
• Monitoring and
– Knowledge and
evaluation
technology
– Policy learning and
transfer
change
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Philippine Innovation Policy
PDP 2011-2016
Chapter 3
Government shall pursue innovation as an
essential factor in harnessing culture of
competitiveness. Along these lines
government shall:
– review the role of higher education
institutions in the country’s innovative
system
– review investments in science, technology
and innovation (STI) human resources to
directly link them with strategies in
retaining the “best” and “brightest”
Filipino STI talents;
– promote a culture of multi-disciplinary
collaboration, knowledge sharing, open
dialogue and cross-fertilization of ideas as
extremely relevant and important in the
emerging global competitiveness
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Assessment:
State of innovation among Least
Developing Countries, the same.
The Philippines included.
.
3%
R&D Expenditure
share of GDP
Philippines 0.1%
What is innovation
systems?
Why does it matter?
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Some key definition of national
system of innovation
“The network of institutions in the public
and private sectors whose activities and
interactions initiate, import, modify and
diffuse new technologies” (Freeman,
1987)
“all parts and aspects of the economic
structure and the institutional set-up
affecting learning as well as searching
and exploring” (Lundvall, 1992)
“a set of institutions whose interactions
determine the innovative performance
of national firms” (Nelson, 1993)
“the set of institutions which jointly or
individually contribute to the
development and diffusion of new
technologies and which provides the
framework within which government
form and implement policies to
influence the innovation process.”
(Metcafe, 1995)
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Recipe to a successful
Innovation System
Ingredients:
•
•
•
Industry
Research institutions/Academe
Government
1. Nurture entrepreneurship
2. Ensure Absorptive Capacity
3. PromoteCapacity Building
4.Build Bridges between science and
industry
5.Remove barriers, reduce risks through
innovation policy
6.Set up innovation networks , IndustryScience research alliance
Innovation
Indicators:
Use or
Misuse?
That is the
Question.
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World Economic Forum
(WEF) Global
Competitiveness Index
2014
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Industry 4.0
High Tech Strategy
Leading Edge Clusters
Stop Thinking about
Global Value Chains.
Do It. Now.
BEST
PRACTICES
Startup
Academy
Steinbeis Technology Transfer
Center in Associations
Innovation networks
Technical pre-incubation
Eco-innovation
Design and Evaluation of
Innovation Policies
Best Practice
„Startup Academy“
ACCESS support to the creation of a Startup Academy
• 3-month training programme for 30 participants (2x per
year)
• Provision of relevant knowledge, skills and contacts to
empower graduates to become successful entrepreneurs
• Creation and development of a vibrant and encouraging
environment for growth of start-ups and start-up community
• Promotion of self-employment and entrepreneurship as
viable and attractive career paths amongst young
professionals
• Target Group: students of all faculties, young and
experienced IT professionals motivated to start their own
businesses
SEE ICT Startup Academy
INNOVATION.
Its not just DOST.
Its our
Responsibility too.
Chapter 3: Philippine Development Plan
Results Matrix:
Improved GVA arising from Innovation in
the I&S sector
• Industry 5.2% (2004-2010 average) 8.1-9.0% (2011-2016 average)
• Services: 6.1% - 7.0-7.9%
PARTICIPANTS
Training on Promoting Innovation Systems in
Developing Countries, 21-22 July 2014
Lydia Guevara
Director
Resource Generation and
Management Service (RGMS)
Mary Jean Pacheco
Director
Corporate Planning Service
DR VOLKER STEIGERWALD, not in phto
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