TURNING TECHNOLOGY INTO BUSINESS Lessons from Asia and Southern Europe Bob Hodgson Zernike (UK)...
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Transcript of 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
Bob HodgsonSantiago de Chile, March 2004
ZERNIKE (
UK)
Necessity of interaction
TURNING technology into business
Some underlying models
Bridging institutions
Differentiation
Bob HodgsonSantiago de Chile, March 2004
ZERNIKE (
UK)
Underlying models: classic systemic models
Bob HodgsonSantiago de Chile, March 2004
Performanceor Production
Problems
DevelopmentTechnology
CommercialApplication
PureScience
AppliedScience
Research &Development
ProductEnhancement
Need/demandChanges
MARKETPULL
SCIENCEPUSH
ZERNIKE (
UK)
Underlying models: Kline-Rosenberg
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
ZERNIKE (
UK)
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
ZERNIKE (
UK)
A sustainable S&T system: ISTC, Russia
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
ZERNIKE (
UK)
Leaders and followers - differential knowledge and interaction
Underpinning models: business drivers
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
> 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
Bob HodgsonSantiago de Chile, March 2004
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
Bob HodgsonSantiago de Chile, March 2004
ZERNIKE (
UK)
Aligning the culture
Providing the infrastructure
Incentivising the actors
Developing the shared vision
Building the history
Finally: systemic approaches
Bob HodgsonSantiago de Chile, March 2004