innovation -driving force for economic development
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INNOVATION -DRIVING FORCE FOR ECONOMIC DEVELOPMENT. Dr. Janis Stabulnieks, Latvian Technological Center 4th EVITA Project Meeting , Riga, June 7, 2010. Partly Financed by European Commission. INNOVATION ?. Innovation is doing things differently in the realm of economic life. - PowerPoint PPT PresentationTRANSCRIPT
INNOVATION -DRIVING FORCE FOR ECONOMIC DEVELOPMENT
Dr. Janis Stabulnieks, Latvian Technological Center
4th EVITA Project Meeting , Riga, June 7, 2010
Partly Financed by European Commission
Innovation is doing things differently in the realm of
economic life
J.Schumpeter, “Business Cycles”, 1939
20 years
SIX WAVE ?
Pac
e of
inno
vatio
nCritical point2005/10
The Economist, 1999
Three mutually reinforcing priorities:• SMART GROWTH – developing an economy based on knowledge and innovation
• SUSTAINABLE GROWTH – promoting a more resource efficient, greener and more competitive economy
•INCLUSIVE GROWTH – fostering a high-employment economy delivering social and territorial cohesion
Seven Flagship Initiatives ( 3 of them directly relates to the priority “Smart Growth”):
“INNOVATION UNION” – to improve framework conditions and access to finance for research and innovation so as to ensure that innovative ideas can be turned into products and services that create growth and jobs
1
Seven Flagship Initiatives ( 3 of them directly relates to the priority “Smart Growth”):
“YOUTH ON THE MOVE” – to enhance the performance of education systems and to facilitate the entry of young people to the labor market
2
Seven Flagship Initiatives ( 3 of them directly relates to the priority “Smart Growth”):
• “A DIGITAL AGENDA FOR EUROPE” – to speed up the roll-out of high-speed internet and reap benefits of a digital single market for households and firms
3
Esko Aho, speach on the Openning Conference of the European year of Creativity and Innovation, Prague, January 7, 2009
EUROPEAN COMMISSION HAS ANNOUNCED THE YEAR 2009 AS A YEAR OF CREATIVITY AND INNOVATION
• creativity and innovation are the key elements of the future of Europe
• it’s very important to understand that the crisis we are just facing now is simultaneously a great opportunity to make reforms necessary for the future of Europe• education is a key factor for creation of the knowledge-driven society in Europe; our education system is still tailored for industrial society and it is important to reform radically our education system so that it can meat the requirements of knowledge- based society
Esko Aho, 2009
THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 1/4
• it will be major mistake if the investments in R&D and education will be cut in today’s economic situation; cutting R&D spending in these circumstances is like eating seed potatoes – it is a big mistake to start eating seed potatoes since investments in education and innovation are necessary for the future
• we need more collaboration and more partnerships between academia-business –government (triple helix)
Esko Aho, 2009
THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 2/4
• innovation includes always a risk – doing things in a different way includes always a risk and the fact is that in Europe we have a long tradition to underestimate the risks related with the present decisions and action plans and we are overestimating the risks related with the implementation of new methods of doing things and new processes in the future
Esko Aho, 2009
THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 3/4
• One of my favorite interpretations or explanation what is a real essence of innovation is the story I heard from Sweden VINNOVA president used that phrase, he said that there is one major difference between R&D spending and innovation. R&D spending is actually transforming money to knowledge and innovation is transforming knowledge to money, but not only money but well being and good human life as well. It is very important to understand that when promoting creativity and innovation, we are not only creating basis for better material life but we are simultaneously making a progress for better human life on a whole.
Esko Aho, 2009
THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 4/4
Knowledge
Research
Science
Education
Commercialization of knowledge
Entreprenurship
Market
Economy
Kn
ow
led
ge
Mon
ey
Creation of knowledge
Utilization of
knowledge
Gobal knowledge flow
Idea / Business plan
Prototyping / Testing
Production Market entry
R&D services
Idea generation
Design
Organisation Marketing
Maintenance
Transport
Distribution / Sales
Q M
WINNOVATION, Austria
Technology Transfer
e-commerce
INNOVATION SUPPORT PROGRAMMES IN LATVIA – 1/2
• development of new products and technologies • business incubators • technology transfer contact points
• pre-seed funding
• attracting high-skilled experts
Existing to-day:
INNOVATION SUPPORT PROGRAMMES IN LATVIA – 2/2
• innovation motivation and popularization
• centers of competence
• technology transfer centers
• Riga Science/Technology Park (-s)
Will be introduced in 2010:
4 Development Stages
Time
Cash flow
II III IVIVC
TT
Cent. Comp
BI
MoRe
GA
Mentors
EC funds
“Strategic focus” “Systems building”
“Start-up”
Ideas cup
“Corporate management”
Source: Presentation on the IASP Conference by Prof. Jerome S. Engel, University of California at Berkeley, Lester Center for Entrepreneurship and Innovation
Pre-seed
Global Competitiveness Index (GCI)Global Competitiveness Index (GCI)
2
3
4
5
6Institutions
Infrastructure
Higher Education and Training
Goods market efficiency
Labor market efficiency
Financial market sophistication
Technological readiness
Market size
Business sophistication
Innovation
Latvia (54)
Lithuania (44)
Estonia (32)
2008
LATVIAN
TECHNOLOGICAL
CENTER
International projects to promote the development of the Innovation System
Partly Financed by European Commission
Facts about LTC:
The first innovation support structure in Latvia
Established in June 3, 1993supported by Ministry of
Education and ScienceLegal Status – non-profit Ltd, Foundation (2006 - )
15 years - LTC
93 companies ( success rate 90%)
25% exporting
30% international cooperation
5 turnover > 1milj. Euro
400 jobs
10 times recovery of the State investments
27 EU projects (FP6/7, EEN, IRC, RIS, Interreg (BSR), Leonardo da Vinci, etc.)
From business incubation to business acceleration
1993 2007
Activities:Activities:
• business incubation (till year 2007)
• business acceleration (from year 2007)
• innovation related projects
• international cooperation
• science communication
• expertize of the state programmes on innovation
Research project: How to evaluate innovative capacity and innovation degree of companies (2007 – 2010)
Market Oriented Reaserch Programme
Ministry of Education
and Science
INNOVATIVE COMPANYIndicators ** Minimum
value *
1. Number of new products introduced over the last 3 years (new goods, new technologies, new services, new marketing methods etc.)
1
2. Ratio of investments for development of new products to annual turnover, [%]
1
3. Current rate on sales of products taht have been intoduced in the previous 5 years, [%]
25
4. Increase of annual turnover due to sales of new products introduced over last 3 years, [%]
5
5. Gross profit on sales of new products (not older than 3 years) compare to gross profit on mature products, [%]
10
EEN LATVIA
Module b: Technology Transfer
Lead Partner: Investment and Development Agency of Latvia
Focus: development of competitive innovation environments in BSR non-metropolitan regions with a shared development view and by transnational cooperation
Duration: January 2009 - June 2011 Lead partner: The Baltic Institute of Finland Partners: regional authorities and development organizations
representing 12 non-metropolitan regions in Finland, Germany, Poland, Estonia, Lithuania, Latvia, Russia
Objective: EVITA strives to strengthen and support ICT products and services amongst Small and Medium Enterprises (SMEs) and to increase their competitiveness by improving their accessibility to the global digital economy and transferring successful policy practices from regions who have successfully adopted IT and e-business practices, to less-developed areas in European Union countries.
Duration: 2008 – 2011Lead Partner : Greek Research and Technology Network (GRNET) Partners: Greece, Spain, Sweden, France, Malta, Bulgaria, Slovenia, Latvia
Objective: to prepare the local companies for expansion into other Central Baltic markets through combination of activities: conducting market research, consultation services (market positioning, partner search, etc.), organizing international brokerage events, joint trainings, seminars and exhibition exchange
Duration: 2009 – 2011
Lead partner: Tallinn Technology Park – TEHNOPOL
Partners: Estonia, Sweden, Finland, Latvia
SMEDGE
Policies for Research and Innovation in Small Member States to advance the European Research AreaObjectives:
1.The development, improvement and use of The development, improvement and use of appropriate R&I indicators for more effective appropriate R&I indicators for more effective benchmarking of policiesbenchmarking of policies
2. A2. Adapting the use of public procurement to dapting the use of public procurement to stimulate research and innovationstimulate research and innovation
3. To create 3. To create information platform in accordance of Pro-Inno Trendchart, the ERAWATCH, the CREST OMC, etc.
Duration: 2009 - 2011Partners: Small countries - Malta, Estonia, Latvia,
Iceland, Slovenia with the assistace of UK, France, Sweden
OMC-PTPPublic Technology
Procurement(OMC - Open Method of Open Method of
Coordination Coordination ))
Objective: to provide a platform for exchanging past and present experiences and to draw up conclusions for good practices in PTP which will be brought together in a PTP Manual.
Lead Partner: Institute for the promotion of Innovation by Science and Technology in Flanders (IWT) - Belgium
Duration: 2007-2009 Partners: Belgium, Germany, The
Netherlands, Sweden, France, Latvia, Slovakia, Spain, UK, Romania.
Europe and its citizens should realize that their way of life is under threat but also that the path to prosperity through research and innovation is open, if large scale action is taken now by the leaders before it is to late
Aho Report “Creating an Innovative Europe”
January 2006
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