turning technology into business lessons from asia and southern europe bob hodgson zernike (uk)...

TURNING TECHNOLOGY INTO BUSINESS

Lessons from Asia and Southern Europe

Bob HodgsonZernike (UK) Limited

Santiago de ChileMarch 2004

ZERNIKE (

UK)

Transforming innovation systems: strategies and institutions

ZERNIKE (

UK)

It’s an accelerating escalator

Key lessons

Stress the interaction more than the infrastructure

Integrate the instruments at delivery point

Create a unified and shared vision

Have the highest quality of management

Be market oriented for sustainability

Bob HodgsonSantiago de Chile, March 2004

ZERNIKE (

UK)

Remember the golden rule!

Some recent developments from the UK

Regional venture funds – filling a gap

Entrepreneurship in education – all levels

Cluster mania – positive but overdone

University challenge and local solutions Cambridge-MIT alliance Leeds IPR model EMSEN network


ZERNIKE (

UK)

Necessity of interaction

TURNING technology into business

Some underlying models

Bridging institutions

Differentiation


ZERNIKE (

UK)

Underlying models: classic systemic models


Performanceor Production

Problems

DevelopmentTechnology

CommercialApplication

PureScience

AppliedScience

Research &Development

ProductEnhancement

Need/demandChanges

MARKETPULL

SCIENCEPUSH

ZERNIKE (

UK)

Underlying models: Kline-Rosenberg


R E S E A R C H

K N O W L E D G E

C O R P O R A T E

Potentialmarket

Invent Design Produce Market

R E S E A R C H

K N O W L E D G E

C O R P O R A T E

Potentialmarket

Invent Design Produce Market

ZERNIKE (

UK)

Underlying models: Callon et al


ActorsFinancial servicesMinistries ....

ActorsDevelopment andDesign Dept

ActorsMarketing DeptManufacturingDept .......

ActorsLaboratoriesCollective R&Dcentres .....

ActorsAcademic lab.Industrial researchcentres ....

ActorsFirmsCustomers....

SCIENCE POLE

TRANSFER POLE

FINANCIAL POLE

MARKET POLE

DEVELOPMENT POLE

TECHNOLOGICAL POLE

ActorsFinancial servicesMinistries ....

ActorsDevelopment andDesign Dept

ActorsMarketing DeptManufacturingDept .......

ActorsLaboratoriesCollective R&Dcentres .....

ActorsAcademic lab.Industrial researchcentres ....

ActorsFirmsCustomers....

SCIENCE POLE

TRANSFER POLE

FINANCIAL POLE

MARKET POLE

DEVELOPMENT POLE

TECHNOLOGICAL POLE

ZERNIKE (

UK)

Linking technology and business

Bridging institutions

OTRI model – industrial liaison, reactive style

Competence Centre approach – Taguspark

Network development – inside and outside, EMSEN

Region wide – Oslo technopole Tomsk network


Committee of S & T Management

Secretariat

Innovation Association

TomskTechnopark

OtherAcademicInstitutions

TSU

TPU

Business School

AG

MorosovCentre

OtherRIs

TSCC

Expert Group

Info Hub

Training

InformationCentres

Chamber ofCommerce

SeverskTechnopark

Figure 5.1: Tomsk S&T Management System

Abbreviations

TSU Tomsk State UniversityTPU Tomsk Politechnic UniversityRIs Research InstitutesAG AcademgorodokTSCC Tomsk Science Coordinating Centre

ZERNIKE (

UK)

One size does not fit all

Differentiation and focus

Market dynamic – innovate and die v innovate or die

Technology imperative – bio compared to ICT

Purchasing dynamic – security and health

Sustaining the support


ZERNIKE (

UK)


Differential research intensity

10%

0%

20%

30%

40%

50%

60%

70%

80%

90%

20% 40% 60% 80% 100%0%

Proportion of firms undertaking R&D

Ave

rage

pro

port

ion

of tu

rnov

er d

evot

ed to

R&

D

More extensive R&D

Mor

e in

tens

ive

R&

D

Biotechnology

Software R&D Consultancy

Instrumentation

Telecomms Services

ZERNIKE (

UK)

What are the crucial technology sources

Turning TECHNOLOGY into business

UK approach to sources

building sustainability

Business sources

Role of universities

Public research institutes

Private sector dilemma


ZERNIKE (

UK)

A sustainable S&T system: ISTC, Russia


Internationally open & networkedInternationally open & networked Research ExcellenceResearch Excellence Economic Value of R&DEconomic Value of R&D Diversification of FundingDiversification of Funding Attraction of Young TalentAttraction of Young Talent Geared to National PurposeGeared to National Purpose Social ValueSocial Value

A dilemma in Poland knowledge economy assessment

ISTC framework:

ZERNIKE (

UK)

Where do firms look for technology and innovation?

Sources of innovative technologies

Customers Capital equipment suppliers Competitors Shows and exhibitions Peer professionals . . . . Public agencies Universities


ZERNIKE (

UK)

Avoid over emphasis on spin outs

Contributions in order of significance:

Universities – contribution and role

Graduates, and increasingly post graduates Knowledge reservoir Facilities and equipment Magnet and networks Social and cultural Research and development


ZERNIKE (

UK)

Need to pick most appropriate profit models

Research institutes

Core public funding – a declining source

Membership fee – ensuring the value added

Advanced services – developing the market

Asset management – physical and intellectual

Mixed model – what is the balance – Brodarski Institute, Croatia


ZERNIKE (

UK)

Case of the Turkish SMEs

Private sector technology dilemmas

Leaders and followers

Barriers to innovation awareness information cost skills risk

Creating a sustainable dynamic, shared cost grant schemes


ZERNIKE (

UK)

Leaders and followers - differential knowledge and interaction

Underpinning models: business drivers


leaderdistant invader

Core competence

gaps

gaps

close invader

distant invader

distant invader

ZERNIKE (

UK)

Markets are the driving perspective

Turning technology into BUSINESS

Armenian ICT strengths

Silicon valley linkages

Sterile market disconnection

Loss of dynamic when market turns down

Building the new ingredients


ZERNIKE (

UK)

Crucial to the creation of sustainable businesses

Picking the profit model

Capital growth

Service revenue

Product development

Market introduction

Milking assets

Mixed mode


> Market consolidation

> Market expansion

> Market penetration

> Product enhancement

> Sales & distribution

> Product development

> Marketing & research

> Prototyping

> Market definition

> Innovation & R&DTier 0 Tier 1 Tier 3 Tier 4 Tier 5Tier 2

Product Development Stage

The Commercialisation Cycle

Tier 3 - Post-incubation Funding Structuring Relationships etc

Tiers 4/5 - Commercial Maturity

Business Development Tiers

Risk Of FailureHIGH LOW

CommercialValue

R&DAngels/3F’s

Seed

VC/IIF

VC/Expansion

IPO/MBO/Trade Sale

SourcesOf Funding

Tiers 0/1 - Pre-incubation Direction Collaboration Guidance Resources etc Pre-Seed funding

Tier 2 - Incubation Mentoring Seed funding Contacts Consulting Clients

Fiscal approaches

ZERNIKE (

UK)

A process to develop high growth firms

Incubation and incubators

Climate and culture – valuing enterprise

Assistance pre launch – Incubator of Ideas

Launch and market

Harden and move on

Celebration and empowerment

Post graduate assistance and pay back


ZERNIKE (

UK)

Born or made?

Entrepreneurship

Illogical behaviour – an unreasonable belief in self

Knowledge and technical skills can be added

Challenge for the trainer

Enterprise in education – Oslo example

EMSEN internal and external networks


ZERNIKE (

UK)

Aligning the culture

Providing the infrastructure

Incentivising the actors

Developing the shared vision

Building the history

Finally: systemic approaches


turning technology into business lessons from asia and southern europe bob hodgson zernike (uk)...

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