Microinitiatives and Macrobehaviours 1981 Semiconductors Manufacturing and Research Action Plan of...

SINCE 1981 Semiconductors Manufacturing and Research

BUCHAREST BUSINESS FORUMAction Plan of the EU Strategy for the Danube Region

ManuFuture Village®

Dr.ing. Liviu JALBAMicroelectronica S.A.

Microinitiatives and Macrobehaviours

“Fortune favours the prepared minds.” - Louis Pasteur

Monday, October 18, 2010



1. The crucial importance of Manufacturing for Industry, Research and Education

2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing

3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube

Content




1. The crucial importance of Manufacturing for Industry, Research and Education (I) - Political importance

“ A sector which employs 34 million people and attracts more than 80

per cent of all EU private sector research and development expenditure? A sector which the services sector depends on for much of its own growth?

That sector, as you have no doubt guessed, is manufacturing. And I can assure you that the Commission is fully committed to maintaining and improving the competitiveness of European manufacturing. The continuing dynamism of the European economy depends on it.”

José Manuel Barroso

President of the European Commission




1. The crucial importance of Manufacturing for Industry, Research and Education (II) -Economic importance

Key economy - Around 230 000 European manufacturing enterprises with 20 and more employees provide 27 million people with jobs. In 2001, the last available reporting year, the value added by manufacturing amounted to more than €1 300 billion. Some 70% of this total was derived from six main areas – automotive engineering, electrical and optical equipment, foodstuffs, chemicals, basic and fabricated metal products, and mechanical engineering.

Leading the world - European manufacturing is a dominant force in international trade. In 2002, the EU’s share of total global manufacturing trade was 18%, while the US had 12% and Japan 8%. In some key sectors such as automobiles, mechanical engineering and certain categories of telecommunications equipment, EU companies have achieved global leadership. These show above-average competitiveness and account for 42% of total manufacturing exports, although mechanical engineering and chemicals alone account for 31%.




1. The crucial importance of Manufacturing for Industry, Research and Education (III) - Historical importance

Contribution to Global Output

Shares of World Manufacturing Output by Civilisation or Country, 1750-2000 (in percentages. World=100%)

0%

25%

50%

75%

100%17

50

1800

1850

1900

1950

2000

ChinaJapanIndia/PakistanRussia/USSRBrazil & MexicoOthersWest




1. The crucial importance of Manufacturing for Industry, Research and Education (IV) - Value added importance




1. The crucial importance of Manufacturing for Industry, Research and Education (IV) - Value added importance

(billion Euro)

1 535(41,5 %)

157 (4,3 %)

145 (4,1 %)

515 (13,8 %)

392 (10,5 %)

878 (23,8 %)

71 (2 %)

34,0(30,4 %)

1,5(1,3 %)

11,8(10,2 %) 26,5

(23,2 %)7,5(6,7 %)

10,6(9,8 %)

20,2(17,8 %)

0,7(0,6 %)

(million)

JobsValue Added

ManufacturingWholesale and retail trade; repair of motor vehicles, motor-cycles and personal and household goodsTransport, storage and communicationConstruction

Electricity, gas and water supplyHotels and restaurantsMining and quarryingReal estate, renting and business activities



BUCHAREST BUSINESS FORUMAction Plan of the EU Strategy for the Danube RegionThis slide is very important!

1. The crucial importance of Manufacturing for Industry, Research and Education (V) - Share of manufacturing, trends




(Overall) R&D% by country

Business Government EducationGermany 1.75 0.33 0.41Italy 0.56 0.17 0.33 (2000)France 1.36 0.36 0.41UK 1.16 0.18 0.39Spain 0.58 0.17 0.32Poland 0.17 0.23 0.19Romania 0.22 0.14 0.04Czech R. 0.81 0.27 0.19Netherlands 1.02 0.25 0.50Portugal 0.17 0.23 0.19Sweden 2.75 0.12 0.86Ireland 0.77 0.90 0.33Belgium 1.32 0.15 0.43Hungary 0.37 0.26 0.22

1. The crucial importance of Manufacturing for Industry, Research and Education (VI) - R&D importance




Who’s doing the R&D?

0

0.5

1

1.5

2

2.5

3

EU-25 Japan US

Academic

Government

Business

% GDP R&D

This slide is also very important!

1. The crucial importance of Manufacturing for Industry, Research and Education (VII)




1. From resource-based to knowledge-based manufacture - to concentrate its capabilities not only in terms of product satisfaction, but also in meeting environmental and social expectations.

2. From linearity to complexity - industrial enterprises must re-examine their organisational structures in the light of a ʻmanufacturing engineeringʼ strategy.

3. From individual to system competition - single companies working in isolation wonʼt be able to respond to challenges; whole countries will find problems in mustering the necessary human and financial resources. Co-operation is essential: individual entities do not compete against one another.

4. From mono- to trans-disciplinarity - innovation processes centered on single competences will give way to multicompetence and multidisciplinary innovation.

5. From macro- to micro- to nano-scale - breakthrough research will be needed for providing continuity and stability to the different actions.

6. From top-down to bottom-up production - it is essential for industry and educational organisations to form strategic alliances to ensure complete staff skilling as part of human resource development.

1. The crucial importance of Manufacturing for Industry, Research and Education (VIII) - Change will occur in six main areas:




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (I)

I met a vineyard owner once. He was, he told me, trying to squeeze every cent of margin out of his product “in order to develop my winery as fast as possible”. “Do you plan to get very much bigger?” I asked. “Oh, I don’t want to grow bigger”, he replied, “I want to grow better”. To do that, he needed better equipment, better vines, better people - not more.




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (II)

There are still very few initiatives for real growing SMEs, while there are lots of SMEs initiatives for general growth.

There is surprisingly little co-operation between public and private initiatives. All initiatives are strongly focused on technology. The focus is as well very much made on the academic and university spin-offs (less on industry spin-offs).

Real growing means years of consecutive growing - it is easy for a very small firm to achieve impressive relative growth rates without actually growing much.




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (II)




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (III)

Government’s behaviour versus SMEs There is a difference of the entrepreneurial activity by economic development: the most entrepreneurial countries on the earth are Peru, Uganda and Ecuador. The reasons for this high level of activity is the subsistence entrepreneurship.

Consequently, there is a difference between the overall entrepreneurial activity and the “high-expectation” activity (there is an anatomy of entrepreneurship).

The governments measures can hardly raise the overall entrepreneurial activity but they can influence the anatomy of this activity (support growth).




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (III)

Government’s behaviour versus SMEs




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (IV)

SMEs Universe: flexible, agile, light and easily adaptable internal structures (quickly following the changes of the market, enable technics etc.)

SMEs drawbacks: size and lack of critical mass regarding the resources (dimension is important for globalized business); access to growth capital and funding at competitive rates (it is seen as high risk); market entry barriers; access to information and knowledge (due to scarce financial and human resources); dependence on a small number of large client companies; no access to the results of research;




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (V)

the Government doesn’t understand that policy regarding something is not a collection of measures, but a correlated action (mutual relationships or connections in which one thing affects or depends on another);

the SMEs policy is not related to the general measures for the society (SME is a “strange animal”, it is seen only as a good tax payer, or “not big deal if it disappears”);

Key words for SMEs: failure, persistence, survival !




2. SMEs - Creators of Sustainable Business Environment and the most dynamic Vectors of Manufacturing (VI)

We saw different problems of SMEs, we saw a big segmentation (different types), some of them are “gazelles”, which grow anyway (public support is superfluous), some of them do not want any help (public support is of no use), and for the rest (different “shapes and sizes”) technology-based start-ups, campus companies, spin-outs, high-potential start-ups, high-potential growth companies, mergers and kickstarts, how to identify a set of instruments to help them?

The task is to establish a trusted relationship between Public Authorities and the SMEs that need support. This takes time, but this is the way the companies become open to listen to the advises.




3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (I)

Factory means “making goods”, processing the raw materials, based on the Research we are contributing to, as well.

Research is embedded in the Production.

Knowledge - means education (formal way of acquainting organized information) and experience (non-formal way for knowledge acquisition).

Knowledge becomes the “seed capital” of the new production, but it doesn’t mean we move the production from the factory to the office.

Manufacturing still needs screwdriver more than PowerPoint presentation.




•

Research is specifically centered on the knowledge basis (the education is only part of the knowledge).

Applied Research is an economic activity by its nature. Consequently, Research is a social problem by its nature. Research has a double nature: economic and social, both of the

same importance.✦ Recognizing Research as an economic activity means it should provide

profit, recognizing it as social activity means it should provide something else-than-profit.

✦ So that, Research entity should be neither “for-profit” organization, nor “not-for-profit” entity, but “more-than-profit” one.

3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (II)




“Public Social Private Partnership (PSPP) more-than-profit Enterprise”

Go beyond pure monetary return

Profit-making business set-up to tackle a social need (for instance Research)

Social return on investment (recognition of a social problem: “lack of employment is not only an economic problem”

BUSINESS ANGEL

PPP - PUBLIC PRIVATE PARTNERSHIP FOR PRODUCTION

SOCIAL ENTERPRISE -Research Entities (including Academia)

3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (III)




3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (IV)

What is more precisely ManuFuture Village ?

1. A lobby group for Manufacturing in the South East Europe, with the strong support of European Developed Countries.

2. A thematic network also for Manufacturing gathering in a bottom-up approach SMEs, Institutes, Associations, Large Companies, from private and State: Dacia, Renault, ComputerLand, Microelectronica, University of Belgrade, TUBITAK Turkey, Suprex Hungary, Laser Slovakia etc.

3. A fractal structure




3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (V)

ManuFutureVillage as a fractal structure

Fractal = a structure that reiterates at successively smaller scale what it displays at larger one.

The complexity Fractal comes from the fact that it exists a large number of different ways in which an iterative sequence may remain bounded (sometimes far from being obvious).




3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (VI)

Mandelbrot was the first to deduce that the ups and downs of an economic market over time have fractal properties. We suggest that the behaviour of a community should be studied based on fractal approach. (From simple “rules” dictating how individuals cells behave, we can deduce the global patterns into which they can form.) The failure of applied statisticians and social scientists account for the striking backwardness of their fields The traditional microeconomics theories of the firm have found themselves in a blind alley because of this neglect of the dynamic, ever-changing face of the labour market.




3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (VII)

The idea is to inject more realistic and less idealised description of human behaviour into the field (humans are seen as automata since there are no means of dealing with the indeterminacy of the human conducts).

This quest for equilibrium, reminiscent of that of the founders of statistical mechanics is more transparently misguided in today’s era of job-hopping. (unpredictable fluctuations and crashes)

A theory of the firm must necessarily be a non-equilibrium theory in which the future is never certain.




3. ManuFuture Village - Romanian contribution for implementing European Manufacturing paradigm along the Danube (VIII)

Our Microinitiatives are intended to move the Macrobehaviour fromhere to there




References1. Birch, D., (1979, “The Job Generation Process, MIT, Department of Urban Studies and Planning, unpublished MS2. Birch, D., (1989), Change, Innovation and Job Generation. Journal of Labour Research, 10(1): 33-393. Birch, D., (1987), Job Creation in America: How our Smallest Companies Put the Most People to Work, Free Press, New York.4. Birch, D., and Medoff, J. 1994. “Gazelles”, Labour Markets, Employment Policy and Job Creation, London5. OECD, (2002), High Growth SMEs and Employment.6. GEM (2004), Global Entrepreneurial Monitor, (www.gemconsortium.org ).7. Birch, D., (2002), Fortune Small Business, December 2002.8. Autio, Erkko, Hannele Wallenius, Arenius Pia, (1999), Finnish Gazelles: Origins and Impacts, 44th ICSB World Conference, 1999.9. Chappell C., Feindt S., (1999), “Gazelles and Gophers”, - SME Recommendations for Successful Internet Business, KITE Project10. Baghai M., Coley St., White D. (1999), The Alchemy of Growth-Kickstarting and Sustaining Growth in your Company, London.11. The Inc 500, (www.inc.com )12. Europe’s 500, (www.europes500.com ) 13. Fortune 2005, The Hot 100, America’s Hottest v100 Companies, Vol. 152, No. 4, September 5th, 2005.14. Enterprise Strategy Group, Ireland, 2004, Ahead of the Curve-Ireland’s Place in the Global Economy, Government of Ireland, 2004.15. Enterprise Ireland, 2004, Study on High Potential Growth Companies.16. E.C., 2002, Observatory of European SMEs, 2002—No 6, High Tech SMEs in Europe.17. E.C., 2002, SMEs in Focus, Main Results from the 2002 Observatory of European SMEs.18. European Patent Academy, 200519. HiGroSME - Creation of a European Support Network and Optimised Programme Framework to Promote the Technological and Business Development and Internationalisation of Innovative High-Growth-Potential SMEs. - Work Package 2 & Work Package 5 20. European HiGroSME conference, Nov. 2006, Madrid “Supporting High-Growth Potential Firm’s: The Policy Challenge of Building Tomorrow’s Winners”


http://www.gemconsortium.org

http://www.gemconsortium.org

http://www.inc.com

http://www.inc.com

http://www.europes500.com

http://www.europes500.com



Bibliography (Consulted Documents)Vision 2020 - ManuFuture HLGStrategic Research Agenda - ManuFuture HLGImplementation Plan - ManuFuture LeadershipHorizontal Interventions for Manufacturing - David J. Williams, Leadership, 2007SMEs in the 7th FP - Henrik Dam, Policy Officer Unit T4, 2007From the ARTEMIS ETP SRA to the ARTEMIS JU Research Agenda - Alun Foster, STMicroelectronics, 2008ARTEMIS JU - Tom Bo Clausen, Embedded Systems and Controls, EC, 2008JTI ENIAC - Implementation of a European SRA in Nanoelectronics - Dirk Beernaert, DG INFSO, 2008ENIAC JU Proposed Multi-Annual Work Plan - Fred van Roosmalen, AENEAS Board SG, 2008European IMS Newsletter - Issue 14, May 2008Micro&Nanosystems Project Portfolio - FP6, EC Information Society and Media, 2007The future of Manufacturing in Europe 2015-2020 (the challenge for sustainability) - I.Miles, M.Weber, K.FlanagenMit forschung gewinnen - Strategy of the German Council Presidency, 2007Long-term global economic challenges and opportunities for Europe - HM Treasury, 2005ICT JTI Information DayManuFuture JTI Task Force Meeting - G.Chryssolouris, 2008

All sculptures from exhibition of:




Thank you.

Dr.ing. Liviu JALBAMicroelectronica S.A.19 0ct.2010


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