digital innovation in vietnam: is it possible?

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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

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By Vu DUONG (JVN) during OffiTalk discussion on Jul 19, 2013

TRANSCRIPT

Page 1: 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

Page 2: Digital Innovation in Vietnam: is it possible?

“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,

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

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)

Page 3: Digital Innovation in Vietnam: is it possible?

What made me thought so?

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

What made me thought so?

Page 4: Digital Innovation in Vietnam: is it possible?

What made me thought so?

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

What made me thought so?

M. Truong Trong Thi and

the world’s first personal computer

Page 5: Digital Innovation in Vietnam: is it possible?

What made me thought so?

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

What made me thought so?

Trung Dung and the Webcrawler

OnDisplay acquisition by Vignette Corp. In 2000

Page 6: Digital Innovation in Vietnam: is it possible?

What made me thought so?

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

What made me thought so?

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

Page 7: Digital Innovation in Vietnam: is it possible?

What made me thought so?

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

What made me thought so?

Well, I even did some quite relevant inventions,

eg. Airborne Separation Assistance Systems

Page 8: Digital Innovation in Vietnam: is it possible?

Reality at work is sometimes cruel.

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

Reality at work is sometimes cruel.

Can you translate “Innovation” into Vietnamese?

Page 9: Digital Innovation in Vietnam: is it possible?

Innovation in Vietnam?

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

Innovation in Vietnam?

Sustainability doesn’t seem to be the major concern

Page 10: Digital Innovation in Vietnam: is it possible?

Innovation in Vietnam?

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

Innovation in Vietnam?

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

Page 11: Digital Innovation in Vietnam: is it possible?

Innovation in Vietnam?

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

Innovation in Vietnam?

The fault is ignorance? Or superficiality?

Page 12: Digital Innovation in Vietnam: is it possible?

So... What’s Happening?

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

So... What’s Happening?

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

Page 13: Digital Innovation in Vietnam: is it possible?

So... What’s Happening?

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

So... What’s Happening?

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.

Page 14: Digital Innovation in Vietnam: is it possible?

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Page 15: Digital Innovation in Vietnam: is it possible?

So... What’s Happening?

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

So... What’s Happening?

“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)

Page 16: Digital Innovation in Vietnam: is it possible?

SWOT (Vietnam Innovation Profile, World Bank July 2013)

• Political stability provides foundation for future foreign investments

• Continued economic growth

• Diminishing poverty levels

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

• Diminishing poverty levels

• Strong agricultural sector

• Strong export trade in rice and coffee

• Access and proximity to large indigenous & global markets

• Abundant labor force

Page 17: Digital Innovation in Vietnam: is it possible?

SWOT (Vietnam Innovation Profile, World Bank July 2013)

• Poor overall economic infrastructure

• Poor innovation infrastructure

• Weak policy focus on research and innovation

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

• 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

Page 18: Digital Innovation in Vietnam: is it possible?

SWOT (Vietnam Innovation Profile, World Bank July 2013)

• Young population and sizable diaspora

• Stronger focus on an improved higher education sector

• Increased FDI and an expanding MNE base

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

• 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

Page 19: Digital Innovation in Vietnam: is it possible?

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

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

• 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

Page 20: Digital Innovation in Vietnam: is it possible?

So... Are we Hopeless?

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

So... Are we Hopeless?

Page 21: Digital Innovation in Vietnam: is it possible?

Innovation?

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

Innovation?

= invention + commercialization/societal adaption

A crucial key for sustainable growth in knowledge-based economy

Is the generator of dynamics in the ecosystem

Page 22: Digital Innovation in Vietnam: is it possible?

Ecosystem as Energy Dynamics (Deborah Jackson, NSF 2011)

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

(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)

Page 23: Digital Innovation in Vietnam: is it possible?

EntrepreneurshipIsn’t it the vital force driving innovation?

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

Isn’t it the vital force driving innovation?

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

Page 24: Digital Innovation in Vietnam: is it possible?

Innovation Ecosystemsas Economics Dynamics to Enable Technology Dev & Inno

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Page 25: Digital Innovation in Vietnam: is it possible?

Traditional Innovation & Entrepreneurship Continuum

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Page 26: Digital Innovation in Vietnam: is it possible?

Fostering the ChangeInnovation Centers as Platform Nurturing Ecosystems

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Page 27: Digital Innovation in Vietnam: is it possible?

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Page 28: Digital Innovation in Vietnam: is it possible?

Innovation Framework

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Page 29: Digital Innovation in Vietnam: is it possible?

Innovation Ecosystem Framework

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Page 30: Digital Innovation in Vietnam: is it possible?

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Page 31: Digital Innovation in Vietnam: is it possible?

Building an Innovation Ecosystem at VNUHCM?

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

Building an Innovation Ecosystem at VNUHCM?

Page 32: Digital Innovation in Vietnam: is it possible?

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

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Page 33: Digital Innovation in Vietnam: is it possible?

“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.”

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Page 34: Digital Innovation in Vietnam: is it possible?

Pioneering Ecosystem for Change at VNU-HCM

InnovationInnovation

IndustryPeople

LabLab

ResearchResearchEducationEducation

IndustryPeople

Page 35: Digital Innovation in Vietnam: is it possible?

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

Page 36: Digital Innovation in Vietnam: is it possible?

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

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

Acceleration is possible with serious fundings.

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

Hope, hope, and pray!

Page 37: Digital Innovation in Vietnam: is it possible?

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

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

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.

Page 38: Digital Innovation in Vietnam: is it possible?

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

Is that leadership-for-change?

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

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.

Page 39: Digital Innovation in Vietnam: is it possible?

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Leadership Triangle

Knowledge & Vision

Page 40: Digital Innovation in Vietnam: is it possible?

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

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

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

Page 41: Digital Innovation in Vietnam: is it possible?

You have the power to change the world

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

You have the power to change the world

The country needs you!

Page 42: Digital Innovation in Vietnam: is it possible?

Thank you for your attention

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

Thank you for your attention