Partnerships for Innovation : Fostering Industry-Science Relationships

1. PROINOV: Lisbon, 17/18 December 2001 • Partnerships for Innovation: • Fostering Industry-Science Relationships Manuel Heitor Center for Innovation, Technology and Policy Research, IN+ Instituto Superior Tecnico http://in3.dem.ist.utl.pt

2. Contents • 1. The Context: “away but fast!” • The Workshop: • Learning by comparing • Strategies and recommendations

3. The CONTEXT • Nathan Rosenberg (2001): • “unceartinty in the realms of both science and technology ... have enormously important consequences and a main concern is how organisations and incentives migth be modified to accommodate these uncertainties.” • Fonte: OECD(2001), “Social Sciences and Innovation” Chris Freeman (2001): “There is an irreducible uncertainty about future political, economic and market developments ....,technological innovations may actually increase it, since they add to the dimensions of general business uncertainty, the dimension of technological uncertainty.” Fonte: SPRU (2001)

4. Technological Change:materials, IPTS(1999) 1800 1960 10 000 BC 5000 BC 0 1000 1500 1900 1940 1980 1990 2000 2010 2020 GOLD COOPER METALS METALS BRONZE GLASSY METALS AL-LITHIUM ALLOYS DUAL PHASE STEELS MICROALLOYED STEELS IRON NEW SUPER ALLOYS DEVELOPMENT SLOW MOSTLY QUALITY CONTROL AND PROCESSING POLYMERS CAST IRON SKIN FIBRE GUMS STEELS ALLOY IVORY STEELS COMPOSITES RELATIVE IMPORTANCE SURFACE ENGINEERING LIGHT ALLOYS POLYMERS BRICKS (with STRAW) RUBBER WOOD SUPER ALLOYS CONDUCTING POLYMERS PAPER HIGH TEMPERATURE POLYMERS TITANIUM ZINCONIUM ETC STONE ALLOYS COMPOSITES FLINT HIGH MODULUS POLYMERS BAKELITE POTTERT CERAMIC COMPOSITES GLASS EPOXIES METAL-MATRIX NYLON CEMENT COMPOSITES POLYESTERS CERAMICS CERAMICS KEVLAR REFRACTORIES SUPERCONDUCTORS PORTLAND CEMENT TOUGH ENGINEERING CERAMICS FUSED SILICA CERMETS 10000 BC 0 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020 5000 BC

5. Technologicaal Change: perspectives TECHNOLOGIES • more technologies to produce each product PROCESSES TECHNOLOGY • more products produced from a given technology PROCESSES The Convergence: telecommunications and computers ... The QUESTION: scope and scale PRODUCT Source: von Tunzelmann (1999)) PRODUCTS

6. The question • In a context of increased uncertainty and accelerated rate of technological change, for which knowledge and innovation are critical factors for social and economical development, • Where does Portugal stands? • How to promote a System of Innovation and Competence Building? • ...fostering partnerships for innovation!

7. Average Annual Real Value Added Growth of knowledge Based Industries 14 Korea 12 10 8 Average Annual Real Value Added Growth of Knowledge Based Industries (1985-share year) Portugal** 6 UK* Denmark 4 Japan Mexico Austria Germany Canada NL* Greece* Spain*** US Italy France Belgium Sweden*** 2 Norway Denmark 0 0 10 20 30 40 50 60 Share in Business Sector Value Added of Knowledge Based Industries (share year 1996 except: *1995;**1993; ***1994) OECD(2000)

8. …perspectives for “Change”: Growth of Public and Private expenditure on R&D OECD, S&T databases, October 2001

9. Scale vs Intensity in R&D (OECD, 2000)

10. Innovation in EU source: Community Innovation Survey, OCT-PT

11. Business expenditure on innovation Community Innovation Survey: CIS 2 (Conceição & Ávila, 2001; CELTA) *only industry

12. Industry-dominated systems Balanced Industry+ /government systems Balanced Industry/government+ systems Government-dominated systems Share of R&D funding (OECD)OECD, S&T Databases, Sept. 2001

13. Industry-dominated systems Balanced industry/government systems with universities being more important performers than public research institutions Balanced industry/government systems with public research institutions being more importantperformers thanuniversities Government-dominated systems Share of R&D expenditure (OECD)OECD, S&T Databases, Sept. 2001

14. USA Irland Netherlands Spain Hungary Portugal Share of R&D funding and expenditure (OECD)OECD, S&T Databases, Sept. 2001

15. Productivity

16. Productivity and innovation...1 • While much attention has been given to digital technologies, • linking information technologies with increasing productivity remains to be explained, requiring processes of organizational change. • However: • it is unquestionable that the diffusion of computers and the internet is changing the way people and firms interact • the fundamental change is related with the increasing importance of knowledge accumulation for socio-economic development.

17. Productivity and innovation...2 • Increasing productivity remains dependent on the commercialization (at international levels...) of new products and systems with higher added value. • The analysis (e.g. Stockey, 1991, Quartely J. Economics) shows: • the need to evolve in the “value chain” • the increasing importance of knowledge accumulation for economic prosperity, promoting social capital.

18. The analysis • A dual society! • .... with considerably low levels of “thrust”, • ...in a context particularly influenced by low educational and training levels. 2. The “intensity effect” has been shown to dominate over “structural effects” on innovation; 3. Increase in productivity requires progressing in the “value chain”, producing more complex products and systems, together with a process of organizational change, beyond introducing new technologies; 4. The institutional development, as measured in terms of market liberalization and employment protection, does not favour innovation. The need to foster public/private partnerships for innovation!...

19. Contents • 1. The Context: “away but fast!” • The Workshop: • Learning by comparing experiences • Strategies and recommendations

20. Partnerships for Innovation Some critical aspects to be discussed 1.Inter-institutionalMobility; 2. Protecting Intelectual Property; 3. Fostering Entrepreneurship. Fonte: OECD(2000) – Industry-Science Relationships

21. Partnerships for Innovation Some critical strategies to be discussed • Fostering partnerships which promote the integration of policies, but also the diversification of actions: • Funding the quality of supply: knowledge production • Promoting new markets: knowledge diffusion • requires: • time: long-term perspectives • scope: national and/or international • context: specific sectorial and/or regional issues • value: promoting market strategies through“CLUSTERS” Fonte: OECD(2000) – Industry-Science Relationships

22. Promoting a System of Innovation and Competence Building: …withdiversified partnerships Networks of Scientific Cooperation Research Agendas Research NTBF´s Post-Grad Training Knowledge Knowledge diffusion Technology platforms Potential Markets Detailed design & Test Re-design & Production Distribution & market Invention/ analytical design Individual Mobility Thematic Mobilization Programmes Chain Linked Model of Innovation Kline & Rosenberg

23. Session 1: Learning by comparing experiences • Daniel Malkin, OECD • John Hurt, NSF - USA • Partnerships for Innovation: • Fostering Industry-Science Relationships • Session 2: Promoting the demand • Frieder Meyer-Krammer, ISI - D • Bob Hodgson, Zernick Group – NL/UK • Session 3: The role of Government • Jean-Pierre Contzen