• Albuquerque, New Mexico

• Austin, Texas

• Baden-Württemberg, Germany

• Bangalore, India

• Bavaria, Germany

• Boston

• Cambridge, England• Campinas, Brazil

• Chicago

• Dublin, Ireland

• El Ghazala, Tunisia

• • Gauteng, South Africa

• Glasgow-Edingburgh, Scotland• Helsinki

• Hong Kong

• Hsinchu, Taiwan

• Inchon, South Korea

• Israel

• Kuala Lumpur, Malaysia• Kyoto, Japan• London• Los Angeles• Malmö, Sweden-Copenhagen, Denmark• Melbourne, Australia• Montreal• New York City

• Oulu, Finland• Paris• Queensland, Australia• Raleigh-Durham-Chapel Hill, North Carolina• Salt Lake City, Utah• San Francisco• Santa Fe, New Mexico• São Paulo, Brazil• Saxony, Germany• Seattle•

PRODUCT PRICE WEIGHT in pounds

PRICEper pound

Pentium III 800MHz microprocessor $851.00 0.01984 $42,893.00Viagra (tablet) $8.00 0.00068 $11,766.00Gold (ounce) $301.70 0.0625 $4,827.00Hermès scarf $275.00 0.14 $1,964.29Palm V $449.00 0.26 $1,726.92Cigarettes (20) $4.00 0.04 $100.00Mercedes-Benz E-class four-door sedan $78,445.00 4,134.00 $19.98Chevrolet Cavalier four-door sedan $17,770.00 2,630.00 $6.76Hot-rolled steel (ton) $370.00 2,000.00 $0.19Potatoes ------- ------- $0.13

BRAINPOWER WEIGHS IN AND … MARKETING BRAINPOWER WEIGHS IN AND … MARKETING

Fortune, 22-03-2000Martin Hinoul

April 2000

New Economy New Economy vs Old Technologyvs Old Technology

Value Added Scientific Expertise Critical Technology Changes New forms of Management Speed Role Models Brain Power (human capital) Value Creating Alliance Networks ...

Martin Hinoul

April 5, 2000

Characteristics for high technology regions

The Cambridge Phenomenon• Sources of Innovation• Availability of Funding• Excellence of Management• Global Marketing/Selling Skills• Healthy Fiscal & Cultural Environment• Indigenous growth vs Inward Investment

- a balancesource: Jim Martin, 3iGroup

MH/LRD/1APRIL99

THE EUROPEAN 20-26 JULY 1998:

Studie• 1994 180 science parks

• 1998 300 science parks

Characteristics for high technology regions

Silicon Valley• Entrepreneurs with marketable ideas and products• Quality management teams• Universities and centres of academic excellence• Business angels and established seed funds• Supportive infrastructure• Access to capital markets• Affordable space for growing businesses• Attractive living environment and accommodation • Core of successful large companies

source: Gibbons - Stanford University 1998 MH/LRD/1APRIL99

Bij het begin van het nieuwe millenium is

Silicon Valley de nexus van kapitaal,

spitstechnologie en brainpower, de intellectuele incubator van de

“digital race”.

M. Hinoul - Silicon Valley

Martin Hinoul K.U.Leuven Research & Development

Silicon Valley? (5th decade)Silicon Valley? (5th decade)

Biotech Valley? (3rd decade)Biotech Valley? (3rd decade)

Silicon Bio? Silicon Bio? (1st decade)(1st decade)

Regional economic development is a complex, multidimensional challenge.

MH/LRD/24nov 99

Four (4) forces shaping an economic community

1. New Globalism 3. Changing Demographics

2. Information Technology 4. Political Devolution

Economy Community

MH/LRD/24nov 99

Clusters of Specialisation

Economy Community

ClustersCompetencies

SweepersMH/LRD/24nov 99

Creating a dynamic high-tech region is not a matter of combining ingredients. It is one of building institutions and relationships - both locally and nationally - that support the development of innovative enterprises … (Leuven.Inc)

It is these relationships between the individuals, firms, institutions in the region that matter - NOT their simple presence.

The important part is not just the ingredients, the important part is the recipe for how the ingredients fit together.

MH/LRD/24nov 99

Key community processes for the new economy

• Technology Innovation• Workforce Education• Business Creation

(early stage financing, entrepreneur support, culture)

• Global Trade (specialised facilities, international networks)

• Physical Infrastructure and Planning (transportation, infrastructure, advanced communication, housing)

• Regulation and Taxation• Quality of Life

(recreation, culture, homes)

MH/LRD/24nov 99

Life at 1 billion transistors per chip

Moore’s law is not a law of physics but it results from the close interplay between technology and business.

Life at 100 giga (billion) bits per second

• 1844 5 bits per secondMorse

• 1876 2000 bits per secondGraham Bell

• 1956 1.152.000 bits per secondTransatlantic cable (Newfoundland Scotland)

• 1983 45.000.000 bits per secondCharly KAOOptical fibres

• 1996 40.000.000.000 bits per second (40 giga)2.5-gigabit fibers MCI

• 1997 100.000.000.000 bits per second (100 giga)Ciena

Gilder’s Law: Bandwith triples every year

Apply “new tools” to

maintain and improve the

creativity and innovation of

scientists throughout the

R&D organization

Martin Hinoul

April 5, 2000

Efficient ManagingEfficient Managing

The University-Industry technology Interface has

never been more important than now

Martin Hinoul

April 5, 2000

Entrepreneurship, belief in new ideas and their

valorization, belongs to the most important strategic advantages of the U.S.

Martin HinoulMartin Hinoul 22-03-2000

Start small. Small successes are the platforms for big

successes.Source: Leading the revolution: Gary HamelSource: Leading the revolution: Gary Hamel

THE GREATEST RISK THE GREATEST RISK

IS NOT TAKING ONEIS NOT TAKING ONE

CULTURE

All things are possible attitude

Repeaters(Reinvention)

Risk Taking Scott McNealy - Sun

Based on Meritocracy

Time for the next big thing

Jumping on the Next Curve (Oracle)

Cross-pollination

Stock options

Co-competition

State of mind

Cross-investmentsNetworking

Inflection Point (Andy Grove)

Failure Badge of Merit

Products & Services of the CenturyProducts & Services of the Century

Telefoon

CD

TV

Encyclopedia Brittanica

LegoBoeing 707

Microwave

GSM

ProzacDe pil

DNA structuur

Antibiotica

InsulineAuto

Aspirine

Intel microprocessor

Film

Fax

WWW

GPS

Nylon3M notes

PC

VCR

The New Economy is a process of The New Economy is a process of creation and destructioncreation and destruction

Destruction

• 1768 Edinburg

• 1920 Overname Sears Roebuck

•1990 650 million $

•2000 CD ROM 50 $

Destruction and creation

• Film

• TV

• VCR

• Film

Creation of SmartMove, Septentrio, … smart cars

Creation of a Silicon-Biotech Industry (Celera, HGS, …)

Martin Hinoul

November 2000

Inflection versus jumping the next curveInflection versus jumping the next curve

5,51

9,99

14,28

16,92

19,44

02468

101214161820

Total Shareholder

Return

Bottom ofInnovativeCompanies

Middle Tier Top Tier

Innovative Behavior

Shareholder Return Versus Shareholder Return Versus Innovative Behavior *Innovative Behavior *

* 500 companies

010002000300040005000600070008000

Nokia

WirelessIndustryAverage

Nokia Shareholder Returns vs Industry Average 1992-1998

NOKIA HAS BECOME A SOURCE OF NOKIA HAS BECOME A SOURCE OF THOROUGHLY INNOVATIVE PRODUCTS.THOROUGHLY INNOVATIVE PRODUCTS.

Martin Hinoul

April 2000

In miljard dollar BEURSKAPITALISATIE OMZET NETTOWINST

1 Microsoft 557,9 19,7 7,8

2 General Electric 537,1 111,6 10,7

3 Cisco 527,7 12,2 2,1

4 Intel 440,7 29,4 7,3

5 MTT Docomo 400,3 26,2 1,7

6 Vodafone Airtouch 336,2 5,4 1,0

7 Exxon Mobil 280,1 160,9 7,9

8 Deutsche Telecom 270,6 44,9 2,6

9 Nokia 266,1 19,8 2,6

10 Wall-Mart Stores 261,7 137,6 4,4

Trends, 6 april 2000

Martin Hinoul

April 2000

BEURSKAPITALISATIE

(in miljard Euro)

OMZET

(in miljoen Euro)

NETTOWINST

(in miljoen Euro)

UCB 5,47 1840 220

Bekaert 1,09 1800 80

Lernout & Hauspie 5,96 347 (42)

Ubizen 1,62 9 (4)

Martin Hinoul

April 2000

Trends, 6 april 2000

Evaluation CriteriaEvaluation Criteria

People IP and other assets Business Model

value added milestones what kind of revenues, when adaptable business plan

$-aspect - financial engineering

Martin Hinoul

April 5, 2000

ICT

Agro

BIOTECH Med. Devices

PharmaNEW MATERIALS

BIO INFORMATICS

•Utimaco

•Eyetronics

•Ubizen

•ICOS

•Data4S

•OMP

•Synes

•Option International

•LANT (X-planation)

•METALogic

•Falex

•LMS

•Materialise

•Metris

•Tigenix

•Kime

•Thrombo-Gene

•Data4S

•Algonomics

•Molecular Logic

Sucess stories ! ?

• Oulu Technopolis - Finland

• Tampere - Finland

• Sophia Antipolis - France

• Mjardevei Park - Denmark

• Alba Centre - Scotland

• Silicon Fen - Cambridge

• Flanders - Belgium?

• FillFactory

•Septentrio Satellite Navigation

• AnSem

•SmartMove

•SmartPen-LCI

•CoWare

•Target Compiler Technologies

•Easics

•Frontier Design

•Soltech

•Sirius Communications

•Matrix Europe

•JSR Electronics

•Data4S

•LMS International

• Frontier Design

• ICOS Vision Systems

•Memry Europe

•Data Analysis Products

•KRYPTON Electronic Engineering

•Materialise

•Symore

•Thromb-X

•METALogic

•I.M.O.-Leuven

•Hypervision

•Interpoint

•Easics

•ELiAS

•Utimaco Safeware Belgium

•TriconsultC

•Telinfo

•Option International

•LANT

•Cargill

•Amylum

•Raychem

•Heraeus-Sensornite

•Mazak

•Terumo

•Honeywell

•METRIS

•OptiDrive

•AnSem

•Eyetronics

•Metis

•MEC

•ISW

•Synes

•MCR

•Falex Tribology

•AlgoNomics

•KIME

•MEAC

•ISMC

•Tigenix

•Ubizen

“The biggest limitation we face is how fast we can innovate. We’re constrained by how fast our brains can work.”

Jerry Yang