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An Engine for Future An Engine for Future European Growth” European Growth” Economic and Social Development Economic and Social Development through Knowledge Intensive through Knowledge Intensive Service Enterprises Service Enterprises KIS Partnering Forum – Brussels 19 th February 2009 Professor Alan Barrell

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Page 1: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

“ “ An Engine for Future European An Engine for Future European Growth”Growth”

Economic and Social Development Economic and Social Development through Knowledge Intensive Service through Knowledge Intensive Service

Enterprises Enterprises

KIS Partnering Forum – Brussels 19th February 2009

Professor Alan Barrell

Page 2: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

A Preview

Context – The World TodayThe World Today – What’s Changed ?

Globalisation, Europe and the Service Globalisation, Europe and the Service ImperitiveImperitive

Lets ImagineImagine A World of Innovations Innovations and EntrepreneursEntrepreneurs Symbiosis,Symbiosis, Synergy,Synergy, Size,Size, ScaleScale – – and and

Service DeliveryService Delivery ModelsModels and RealitiesRealities FundingFunding Innovative Service Companies $$$$$$ A A New AgeNew Age of of Creativity and and Innovation

Page 3: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Casting an Eye on the World’s Financial Crisis – What’s changed ?

Page 4: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Who said these words and When

“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”

Page 5: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Who said these words and When

“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”

Thomas Jefferson 1778

Page 6: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

And what about these…

“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”

Page 7: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

And what about these…

“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”

Marcus Cicero 55 BC

Page 8: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

But - think BoomBoom ….not Gloom….many successful businesses startedstarted in

recessions….

“I started the Cobra Beer Company in a deep Recession – and it proved to be the best time for me….introducing something innovative and exciting changed the way people thought about Indian Food and Beer”

Lord Karan Bilimoria

Founder – Cobra Beer

Page 9: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

But the eye on the World shows lotslots of changes….its not just the finances….

Page 10: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

The Changing Horizon

EnvironmentIssues

The death ofdeference

New employmentpatterns

Organisations

Globalisation

Technology

Page 11: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises
Page 12: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Changes in Industrial Structure - UK% of Total Employment - UK Government Foresight Report

0

10

20

30

40

50

60

70

80

90

100

1971 1981 1991 2001 2011

Manufacturing

All Services

Page 13: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Changes in Industrial Structure - Europe% of Total Employment

0

10

20

30

40

50

60

70

80

90

100

1971 1981 1991 2001 2011

Manufacturing

All Services

Page 14: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Global Dynamics – Manufacturing has Migrated

Two fifths of the Worlds people live in the two fastest growing large economies – China and India

Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia

Growth in Asia is far ahead of Europe.

Dynamic Growth in Manufacturing Base

CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions of reserves

Labour and Material cost advantages +++++

Page 15: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Lets put CHINA into our picture and context….Some of China’s Achievements

• Compound growth of GDP at 9% since 1995, sixth in the world

• One of top 10 trading nations • The most popular FDI destination• The largest mobile phone market • The second largest PC market • The third largest advertising market

And we have no time to mention India, Brazil, Korea and others….

Page 16: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

The World’s Factory

China alone already produces:

70% of world’s toys 60% of world’s shoes 65% of world’s air-conditioners 65% of world’s microwave ovens

Now more cars, laptops, ICs, mobile phones…

Realities – labour and materials costs give great competitive advantage. Trends not reversible.

Page 17: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Sources of Competitiveness

Creativity Risk

Speed Reputation

Cost Values

Learning Information

Page 18: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Wherever Competition comes from….things can change fast – Today’s Peacock can be

Tomorrow’s Feather Duster !

Page 19: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

And then there is Technology - Impact of the Continuous Technology Revolution

Compared to an average DAY in 2003….

All international phone calls1971

All airline passengers1975

All mobile phones 1984

All emails 1992

All SMS1998

Source: Analysys, World Bank and ITU

Page 20: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

And Technologies are working together -Three Pervasive and ConvergingConverging Technology

Platforms

BIO TECHPharmaceuticals

DiagnosticsResearch/Info

ToolsIndustrial

GenomicsBioinformatics

Proteomics

INFO TECHHardwareSoftware

Communications

NANO TECHElectricalStructural

BiomedicalEnergy & Environment

BiosensorsBiochipsBioelectronics

MicrofluidicsNanobiotechnology

Drug Delivery

NanodevicesNanosensors

Nanoelectronics

Page 21: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Europe and The Service Imperative

If Services are to be the economic engine – how can we excel?

Exploring Creativity, Imagination, Enterprise and Entrepreneurship

From Imagination to Realities – Living Examples

Harnessing Technology – Applications Focus The Inspiration of Untapped Human Potential Emerging Sectors to Explore – e.g. Cleanech

Page 22: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Spirit of Enterprise and InnovationDiscovery and New Knowledge

Page 23: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

And - With this background….Let’s IMAGINE

Page 24: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Einstein on IMAGINATION….

“Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world”

Albert Einstein 1879 - 1955

Page 25: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises
Page 26: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Who ever heard of Albert-Szent-Gyorgyi ?

He, a Nobel Laureate said………

“Creativity is no more than looking at the same thing as everyone else and

thinking something different.”

Page 27: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

“You look at things and ask - why?

but I dream of things that never

were and ask -

George Bernard Shaw

why not?”

So - thinking of Imagination….What’s different about EntrepreneursEntrepreneurs ?

Page 28: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Europe’s Entrepreneurial Imperitive – Josef Schumpeter - 1911

“Entrepreneurs blow gales of creative destruction.”

Role of the entrepreneur in transforming economies by developing:

New products New methods of production New ways of organizing Untapped raw materials Enhanced competitive performance

Just what EuropeEurope Needs to build that future Growth Engine – but add

“New Ways to Deliver Services”“New Ways to Deliver Services”

Page 29: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Timing can be everything….Is the time right?....

““There is nothing more powerful than There is nothing more powerful than an Idea whose time has come……”an Idea whose time has come……”

Jules Verne

Page 30: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

This strange looking team started in a recession….but got their timing right

Page 31: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

And in 30 years, became a powerful engine of Growth, Change and Service Innovation

Microsoft Corporation, 1978

Page 32: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Charles Darwin – “Natural Selection Adaptability and Survival” Darwin’s

Bicentenary this year

Page 33: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Natural Selection, Adaptation, Symbiosis Synergy and Service Delivery

Page 34: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises
Page 35: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises
Page 36: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

NHS Innovations East LtdSupporting vital Health Innovations

• NHS Innovations East Ltd is one of a national network of Innovation Hubs

• Funded by the Department of Health, the Department of Trade and Regional Agencies

• Provides Intellectual Property Services to NHS Organisations and Professionals in the East of England

• For the benefit of patients and the improvement of Healthcare

• Contributes to NHS revenue generation by Licensing Technology and Services

• Has Proof of Concept Fund for investment in Innovations

• Can help to spin-out and form new Companies from NHS

Page 37: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

• Also known as NHS Innovations East Ltd• One of 11 Health Enterprise Hubs in UK (9 in England)• A Not for Profit Service Company

• 15 Professionals helping Health Care

• Professionals Exploit Innovations

• 70% of Innovations are “Service Delivery”• 30% Technology based• Founded 4 years ago – more than 600 Service Delivery Innovations

identified and 250 supported in development• Annual Innovations Competition attracts more than 100 entries –

many Service Delivery Innovations

Page 38: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Completing the Jigsaw – putting technology to work

TechnologyCustomer

need

Innovative service

company

Page 39: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Completing the Jigsaw – Service Delivery Innovation

TechnologyCustomer

need

Innovative service

company

Page 40: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises
Page 41: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Proximity of Learning, Research and Practical Application

“The Innovation Campus”

R&D Education

Applications

Where open innovation and new service companies can thrive

Page 42: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Technology and Service Companies and Synergy – Open Innovation and the “Innovation Campus”

HEALTH

KNOWLEDGE CREATION

INFORMATION and COMMUNICATIONS

TECHNOLOGY

Basic Research

Sound & vision

Bio-pharmaceuticalsComputing

Publishing

Medicalservices

Bio-informatics

Medical devices and scientific instruments

University/ Research Institutes

Inkjet printing

Wireless

Telecoms

Networking

Technology ConsultingMedicalresearch

Education

Page 43: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Entrepreneurial Overlap – “Joined Up Thinking and Actions” – Coherence and Common Purpose in

Communities

EDUCATION&

RESEARCHincluding Universities

INDUSTRY&

BUSINESS

GOVERNMENTNational & Local

Page 44: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Funding Innovative Service Companies – “Show me the Money $$$$!”

Maturity

Risk

“Our Money”“Our Money”

Family and Friends and FoolsFamily and Friends and Fools

Business AngelsBusiness Angels

Early Stage VCEarly Stage VC

Expansion CapitalExpansion Capital

B

A

N

K

F

I

N

A

N

C

E

??

Seed FundsSeed Funds

Pre-IPOPre-IPO

Page 45: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

“How do we get to the money ? Where is the $$$$ trail ?” Connecting and Information

Points and Principles

Networks and Networking – importance +++++ Business Schools and Entrepreneurship Centres Region

wide and cross border Other Entrepreneurs / Support and Mentoring Structures Online Channels – numerous eg…. www.funded.com “Network Nodes” – Individual referrals Cross Border contacts Attitudes and Culture France and it’s Wealth Tax….Thank you M. Sarkosy !

Page 46: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Show me the MONEY! – So maybe we can we find Show me the MONEY! – So maybe we can we find investors hanging out here?....investors hanging out here?....

Page 47: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

The Early Stage Business Balance – what do investors look for? In ANY innovative

company ?

And they like to see experienced Chairman and Directors - Mentors for Innovative Service Companies

Inspired Leadership

Enthusiasm

Bullshit

Courage

OptimismVision

Creativity

Management

Research & Analysis

Caution

Process

Financial Control

Market Knowledge

Page 48: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

A New AgeNew Age of Creativity and Innovation – New Engines for Growth….

Knowledge Intensive Service Businesses – Knowledge Intensive Service Businesses – Catalysing the New European EconomyCatalysing the New European Economy

Seeking New Pathways to exploit potential for Seeking New Pathways to exploit potential for Knowledge and Wisdom Sharing – through Knowledge and Wisdom Sharing – through Open InnovationOpen Innovation

Harnessing Technology to Sustain and Harnessing Technology to Sustain and RenewRenew

Seeking Competitive Advantage through Seeking Competitive Advantage through Imaginative New Business FormationImaginative New Business Formation

Page 49: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

In In Pursuit of Excellence ! of Excellence !

“Excellence can be achieved, if we:Care more than others think is wise,Risk more than others think is safe,

Dream more than others think is practical,

Expect more than others think is possible.”

Deborah Johnson-Ross

Maybe Entrepreneurs think this way?....Innovative Service Companies need to if they are to Excel….

Page 50: An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises

Thank you for your attention….

More on my website –

www.alanbarrell.com

E-mail – [email protected]