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Why is Oslo not Innovative? A Review of the Constraints & Challenges

Why is Oslo not Innovative? A Review of the Constraints & Challenges. PD Phil Cooke, Director, Centre for Advanced Studies, Cardiff University ; Development Studies, Aalborg University ; & Management School, University of Florence.

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Why is Oslo not Innovative? A Review of the Constraints & Challenges

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  1. Why is Oslo not Innovative? A Review of the Constraints & Challenges PD Phil Cooke, Director, Centre for Advanced Studies, Cardiff University; Development Studies, Aalborg University; & Management School, University of Florence

  2. Competitiveness 2009-10Sources: WEF Global Competitiveness Report, 2010-2011 and IMD World Competitiveness Yearbook 2011

  3. European Innovation PerformanceSource: Innovation Union Scoreboard (IUS) 2010 (SII Summary Innovation Index)

  4. European Union Innovation ScoreboardSource: The 2007 Summary Innovation Index (SII)

  5. EU Interpretation of Innovation Groupings • Estonia, Australia, Norway, Czech Republic, Slovenia, Italy, Cyprus and Spain are the moderate innovators with SII scores below that of the EU27. • Sweden, Switzerland, Finland, Israel, Denmark, Japan, Germany, the UK and the US are the innovation leaders, with SII scores well above that of the EU27 and most other countries. Sweden has the highest SII of all countries, but its leading position is mostly based on strong inputs. • Luxembourg, Iceland, Ireland, Austria, the Netherlands, France, Belgium and Canada are the innovation followers,

  6. Technology Intensity in Total Value Added by SourceSource: OECD

  7. Technology Intensity • This means that countries are ranked according to total business technology intensity • Table shows that the share of own R&D activity of business enterprises is about one-half of the total business R&D content in countries with a relatively high level of GDP per capita • It is below this share in countries with lower level of income.

  8. Norway’s GDP to Innovation is a low Ratio • The ration of GDP level to innovation performance is moderate • For unclear reasons high GDP is not translated into high innovation • This can have three sources: • Low investment of high GDP by business in innovation • Low government investment in innovation • Low production of innovation by other institutions e.g. universities

  9. On investigation of the input-output ratio of Norwegian effort seems to give poor returns • All countries spend more on inputs than they get back in innovation outputs, • However, Norway gets a bit less than half the investment in innovation returns • Other countries, nearer the top of the performance range e.g. Switzerland and Germany, get more innovation input for output

  10. Selected European Knowledge Economy Disparities

  11. Interpreting Knowledge Economy Indicators • Knowledge –intensive business services plus high tech manufacturing • Oslo and Norway’s other main cities have very high KIBS ratios • All cities and regions have much smaller HTM than KIBS • KIBS are not occupations but sectoral employment, (e.g. banking, administration, management, consultants) • Many such posts are routine rather than ‘innovative’

  12. Oslo’s Innovation Advantages and Challenges • Karlsson 2001, Isaksen, 2003 and Aslesen 2007 found Oslo to be competitive, export-minded and innovative in software engineering • In software, Oslo was more export and innovation-minded than Stavanger or Trondheim • Characteristic of Oslo software were some university Internet start-ups, venture capital and consultancies selling services to larger Oslo firms • Oslo had no greater intensity in R&D investment than some medium cities on turnover from exports and percentage of turnover invested in innovation

  13. Oslo’s Challenge • Could it be that Oslo’s innovators occupy ‘bloody red water’ of high competition for low margins? • We know Oslo suffers from high overhead costs, so can enjoy only limited innovation margins except in very high value-added activity • Notice the ‘smiling curve’ of added value in the following slide

  14. The ‘smiling curve’ of added value in ICT Global Innovation Networks (GINs)

  15. Territorial Innovation Systems In ICT GIN Chipset Design & Advanced GIN Logistics How did the ‘smiling curve’ happen?

  16. Västra Götaland region’s ‘Iconic Projects’ resilience to ‘eco’ and ‘healthcare’ shocks Tunnel Infrastructure Medtech Health Imaging Sustainable City Digital Signals Processing Visioning Green Procurement GU/CH Research Biodiagnostics Green Logistics Recycling Goteborg BIO Renewable Fuels Auto Safety ICT Medtech Forest Plastics Environment Healthcare Pharma Petroleum & Health Green- shipping Smart Textiles Recycling

  17. Complex Systems: What’s Going On? • Regional Innovation Systems are helping firms find innovative partners outside their sector • Innovative firms are seeking ‘relatedness’ from ‘strange attractors’ • Policy ‘emergence’ from below up to the global (Gothenburg model of Lisbon Agenda) • Innovation by Cross-pollination • Inkjet printer now used in Clothing, Ceramics, and Shoes clusters/industries

  18. Discussion & Conclusions • Norway is wealthy in narrowly specialised fields • These are related, too, but are big and independent, oil, offshore engineering, shipping, energy • Innovation comes from ‘recombination of knowledge’ (Schumpeter) • Innovator city-regions are ‘thinking laterally’ not only ‘vertically’

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