digital innovation in vietnam: is it possible?

Digital Innovation in Vietnam Is it possible?

John von Neumann Institute, Vietnam National University Ho Chi Minh City

OFFYTalk July 19, 2013

Vu Duong

John von Neumann Institute – Vietnam National University HCM

“I have had a dream...”

“A dream that one day Vietnam will become a world-class leader in Technologies,

and that our children would be able to access to knowledge from anywhere in the world, not only to acquire them, but also to build them,

anywhere in the world, not only to acquire them, but also to build them, to construct the knowledge, and to

make breakthrough innovations not only to make changes to society, but also to promote catalytic disruptions.”

(inspired from Sir Martin Luther King’s speech 1963)

What made me thought so?

M. Truong Trong Thi and

the world’s first personal computer

Trung Dung and the Webcrawler

OnDisplay acquisition by Vignette Corp. In 2000

Mr. Lu in Australia with his carbon-body bicycles..

Well, I even did some quite relevant inventions,

eg. Airborne Separation Assistance Systems

Reality at work is sometimes cruel.

Can you translate “Innovation” into Vietnamese?

Innovation in Vietnam?

Sustainability doesn’t seem to be the major concern

Copying what everyone else is doing and being “inventive” on price and brands..

The fault is ignorance? Or superficiality?

So... What’s Happening?

Patents (1995-2010): 9047 among which 1326 by foreigners, 294 Vietnamese

Global Innovation Index (WIPO & INSEAD): Vietnam ranks 76th/141 (2012),

51st/125 (2011), and 71st/125 (2010)

Within ASEAN & Ociania, Vietnam ranks 12th 17

Among lower middle income countries, we are 7th/36.

“Some of Vietnam’s greatest weaknesses are its institutions and its ease of protecting investors. Underdeveloped human capital and research, especially in

tertiary education, are problematic.”

(VNHelp, 2013)

SWOT (Vietnam Innovation Profile, World Bank July 2013)

• Political stability provides foundation for future foreign investments

• Continued economic growth

• Diminishing poverty levels

• Strong agricultural sector

• Strong export trade in rice and coffee

• Access and proximity to large indigenous & global markets

• Abundant labor force

• Poor overall economic infrastructure

• Poor innovation infrastructure

• Weak policy focus on research and innovation

• Weak higher education system

• Low levels of research & development, especially in private sector

• Low productivity levels

• Limited access to finance for innovation and starts-up

• Absence of links between foreign and domestic firms

• Underdeveloped capacities of R&D statistics and indicators and of strategic intelligence

• Young population and sizable diaspora

• Stronger focus on an improved higher education sector

• Increased FDI and an expanding MNE base

• Expanding IT sector

• Improving innovation infrastructure and policy emphasis

• Good innovation potential given stage of development

• Opportunity to exploit its Technology Transfer Fund

SWOT(Vietnam Innovation Profile, World Bank July 2013)

• Global financial situation

• Lack of administrative and legal reforms

• Failure to tackle banking system reform and level of corruption

• Entrenched public research system

• Strong regional competitors (e.g., ASEAN Economic Community 2015)

• High trade and tariff barriers for imports

• Increasing brain drain

So... Are we Hopeless?

Innovation?

= invention + commercialization/societal adaption

A crucial key for sustainable growth in knowledge-based economy

Is the generator of dynamics in the ecosystem

Ecosystem as Energy Dynamics (Deborah Jackson, NSF 2011)

(Deborah Jackson, NSF 2011)

Energy – the fundamental entity of nature that is transferred between parts of a system in the production of physical change within the system (Quizzlet LLC, 2012)

Dynamics - the forces or properties that stimulate growth, development, or change within a system or process (Oxford Dictionaries, 2012)

EntrepreneurshipIsn’t it the vital force driving innovation?

Isn’t it the vital force driving innovation?

But again, can you translate “Entrepreneurship” into Vietnamese?

Innovation Ecosystemsas Economics Dynamics to Enable Technology Dev & Inno

Traditional Innovation & Entrepreneurship Continuum

Fostering the ChangeInnovation Centers as Platform Nurturing Ecosystems

Innovation Framework

Innovation Ecosystem Framework

Building an Innovation Ecosystem at VNUHCM?

Ecosystem to Foster Innovation and Entrepreneurship at VNU-HCM

University

•Innovation Capitalist

•Champion•Talents

Venture Capital

•Innovation Supporters

• Innovation Grants

Innovation

Environment

Industry

•Innovation Demanders

•Strategic Partnership with U.

Government

•Innovation Catalists•SO Corp•Research Grants

“Innovation Capitalist”(Nambisan & Sawhney, HBR 2007 vol. 3)

• Basic Idea:

• Companies sometimes need to source innovative product ideas from outside

• So, they turn to “Innomediaries” (Innovation Intermediaries) to separate the wheat from the chaffIntermediaries) to separate the wheat from the chaff

• Leads are Innovation Capitalists, which are firms or organizations with particular expertises

Research & Post-Graduate Educational Institutions (of major Research Universities) shall become Innovation Capitalists to transform Universities into Innovation Universities with Research as major activities. Doing “Innovative Research.”

Pioneering Ecosystem for Change at VNU-HCM

InnovationInnovation

IndustryPeople

LabLab

ResearchResearchEducationEducation

IndustryPeople

Example

• Innovation Environment of Ecosystem

• John von Neumann Institute

• Open Innovation Lab

• THP Innovation & Business Acceleration Center• THP Innovation & Business Acceleration Center

Processes:

• Partnerships with Industries (THP Group, DatViet VAC, Pose)

• Partnerships with Worldwide Institutions (EurecomInstitute, ParisTech, Poli Turino, UIUC, etc…)

• Affiliate Program to attract Talents from abroad

• Incorporation of Innovation & Entrepreneur courses in the major curriculum

• …35

The route is still long and rough. Acceleration is possible with serious fundings.

Acceleration is possible with serious fundings.

MoST and WB programs ramp up but yet for “tomorrow.”

Hope, hope, and pray!

Innovation is more than key for industrial competitionbut catalytic for social changes

but catalytic for social changes

“With catalytic innovations, social change is the primary object. It can exceed the statu quo to offer new solutions to social problems identified unsatisfactory.”

Christensen et al. (2006) “Disruptive Innovation for Social Change.” Harvard Business Review 2006(12) pp 94-101.

What would be the needed dynamics in the innovation ecosystem in Vietnam?

Is that leadership-for-change?

Creating the momentum at the beginning to turn the wheel of chicken-and-egg, and sustaining the growth when the system functions.

Leadership Triangle

Knowledge & Vision

Developing leadership capability in you,giving your life a real value, real sense of life…

giving your life a real value, real sense of life…

You have the power to change the world

The country needs you!

Thank you for your attention

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