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Open Innovation –

Recommendations for future cohesion policy

“A new Regional Policy – Innovative ideas for the post-2013 reform”,

EPP-ED hearing, European Parliament, Brussels, November 8, 2007

Jan van den Biesen

VP Public R&D Programs, Philips Research

Source: NASA

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Royal Philips Electronics

• One of the largest global electronics companies with sales of € 26,976 billion in 2006

• Founded in 1891• Multinational workforce of 128,100

employees (October 2007)• Active in the areas of Consumer

Lifestyle, Healthcare and Lighting• Manufacturing sites in 28 countries,

sales outlets in 150 countries• 2006 R&D expenditure of € 1.7 billion

– 6.2 % of sales– 13,000 R&D staff in 25+ countries

• 80,000 patents; inventor of CD

Headquarters: Amsterdam, The Netherlands

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“… firms that can harness outside ideas to

advance their own business

while leveraging their internal ideas

outside their current operations

will likely thrive in this new era of open

innovation”

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From Closed to Open Innovation

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JvdB/07031 526 31-10-2005

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High Tech Campus Eindhoven

• World-class technology centre of

high tech companies working

together in development of new

technologies

• 910,000 m2

• 50 nationalities

• 40 companies and institutes

• 7,000-8,000 people by 2008

• € 500+ million invested by Philips

• Located in one of Europe’s most

innovative regions

EindhovenEindhoven

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• Letter of Intent 3 Mayors of Innovation 2004

• Letter of Intent and Task Force NL – VL 2004

• Letter of Intent and Task Force NL – NRWF 2005

• ELAt programme in Interreg IIIB 2004 - 2008

– Joint innovation strategy

• CROSSWORKS project Regions of Knowledge FP6 2005 – 2009

– Transnational collaboration with Helsinki, Tallinn

• Euregional Open Innovation ecosystem

• Triple Helix of government – industry – academia

• European top technology region 2010

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Today’s organisation for innovation: ecosystems

R&D Labs

Product Development Organizations

Innovation Ecosystems

people

1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

100,000,000

60's 70's 80's 90's 00's 10's

Source: Prof. Marco Iansiti, Harvard Business School, 2003

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Proximity matters in innovation

• Innovation is about networking

• Geographical proximity still matters

– Key for creative interaction and transfer of tacit knowledge to SMEs

– In spite of worldwide transfer of codified knowledge via ICT

• Regional dimension of innovation deserves proper policy attention

– New focus on Lisbon agenda in EU cohesion policy

– New “Regions of Knowledge” activities in FP6 and FP7

– New Dutch innovation programme “Pieken in de Delta”

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Knowledge triangle

• Key for global competitiveness

• Core of EIT concept

• Corners are addressed by multiple programmes

– EU: FP, CIP, SF, ...

– National and regional programmes

• Corners have different spatial characteristics

– Innovation: regional, with national and international aspects

– Education: national, with regional and international aspects

– Research: international, with regional and national aspects

Innovation

Education Research

Essential requirements for FP, CIP and SF beyond 2013

• Efficient allocation of management responsibilities

• Mutual coherence, also with national and regional programmes

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Europe in 2030?

Competitiveness-oriented scenario• More R&D and innovation • More economic growth

Cohesion-oriented scenario• Better territorial balance• Better environmental sustainability

Combine best of both in cohesion policy beyond 2013

1. Reinforce innovation clusters to develop leading-edge technologies

2. Stimulate R&D and innovation also through demand-side actions

- Innovative public procurement; governments as launching customers; lead markets; aggregation of demand; internal market integration

3. Apply technologies throughout EU to address societal challenges, mitigate negative agglomeration effects, ensure service availability

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Recommendations for R&D&I in future cohesion policy

1. Ensure policy coherence with other EU, national, regional programmes– Within knowledge triangle, with corners having different spatial characteristics

2. Stimulate R&D&I through supply-side and demand-side actions– For European competitiveness and cohesion

3. Promote common European goals rather than “closed” regional interests– Via open programmes, cross-border/transnational/interregional collaboration

4. Avoid segregation of SMEs, large firms and research organisations – As complementary actors in Open Innovation

5. Provide SMEs with innovation vouchers– For knowledge, advice or services from public or private R&D labs

6. Involve business sector in strategic planning– In Triple Helix approach

7. Make European Research Area multi-level Open Innovation ecosystem– With EU institutional and legal complexity as particular challenge

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