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Driving Innovation: Characteristics of High-Tech Regions

Explore the key factors shaping tech hubs like Silicon Valley, Cambridge, and more. Discover the importance of brainpower, strategic alliances, and management excellence. Learn how innovation, global marketing, and supportive ecosystems drive success in these cutting-edge regions to stay ahead in the new economy.

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Driving Innovation: Characteristics of High-Tech Regions

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  1. Albuquerque, New Mexico Austin, Texas Baden-Württemberg, Germany Bangalore, India Bavaria, Germany Boston Cambridge, England Campinas, Brazil Chicago Dublin, Ireland El Ghazala, Tunisia Gauteng, South Africa Glasgow-Edingburgh, Scotland Helsinki Hong Kong Hsinchu, Taiwan Inchon, South Korea Israel Kuala Lumpur, Malaysia Kyoto, Japan London Los Angeles Malmö, Sweden-Copenhagen, Denmark Melbourne, Australia Montreal New York City Oulu, Finland Paris Queensland, Australia Raleigh-Durham-Chapel Hill, North Carolina Salt Lake City, Utah San Francisco Santa Fe, New Mexico São Paulo, Brazil Saxony, Germany Seattle The high tech hot spots Flanders, Belgium Silicon Valley, California

  2. BRAINPOWER WEIGHS IN AND … MARKETING Fortune, 22-03-2000 Martin Hinoul April 2000

  3. New Economy vs Old Technology • Value Added Scientific Expertise • Critical Technology Changes • New forms of Management • Speed • Role Models • Brain Power (human capital) • Value Creating Alliance Networks • ... Martin Hinoul April 5, 2000

  4. Characteristics for high technology regionsThe Cambridge Phenomenon • Sources of Innovation • Availability of Funding • Excellence of Management • Global Marketing/Selling Skills • Healthy Fiscal & Cultural Environment • Indigenous growth vs Inward Investment - a balance source: Jim Martin, 3iGroupMH/LRD/1APRIL99

  5. THE EUROPEAN 20-26 JULY 1998: • Studie • 1994  180 science parks • 1998  300 science parks

  6. Characteristics for high technology regionsSilicon Valley • Entrepreneurs with marketable ideas and products • Quality management teams • Universities and centres of academic excellence • Business angels and established seed funds • Supportive infrastructure • Access to capital markets • Affordable space for growing businesses • Attractive living environment and accommodation • Core of successful large companies source: Gibbons - Stanford University 1998 MH/LRD/1APRIL99

  7. Bij het begin van het nieuwe millenium is Silicon Valley de nexus van kapitaal, spitstechnologie en brainpower,de intellectuele incubator van de “digital race”. M. Hinoul - Silicon Valley

  8. Silicon Valley? (5th decade) • Biotech Valley? (3rd decade) • Silicon Bio? (1st decade) Martin Hinoul K.U.Leuven Research & Development

  9. Regional economic development is a complex, multidimensionalchallenge. MH/LRD/24nov 99

  10. Four (4) forces shaping an economic community 3. Changing Demographics 1. New Globalism Economy Community 2. Information Technology 4. Political Devolution MH/LRD/24nov 99

  11. Clusters of Specialisation Community Economy Competencies Clusters MH/LRD/24nov 99 Sweepers

  12. Creating a dynamic high-tech region is not a matter of combining ingredients. It is one of building institutions and relationships - both locally and nationally - that support the development of innovative enterprises … (Leuven.Inc) • It is these relationships between the individuals, firms, institutions in the region that matter - NOT their simple presence. • The important part is not just the ingredients, the important part is the recipe for how the ingredients fit together. MH/LRD/24nov 99

  13. Key community processes for the new economy • Technology Innovation • Workforce Education • Business Creation(early stage financing, entrepreneur support, culture) • Global Trade(specialised facilities, international networks) • Physical Infrastructure and Planning(transportation, infrastructure, advanced communication, housing) • Regulation and Taxation • Quality of Life(recreation, culture, homes) MH/LRD/24nov 99

  14. Life at 1 billion transistors per chip Moore’s law is not a law of physics but it results from the close interplay between technology and business.

  15. 1844 5 bits per second Morse 1876 2000 bits per second Graham Bell 1956 1.152.000 bits per second Transatlantic cable (Newfoundland  Scotland) 1983 45.000.000 bits per second Charly KAO Optical fibres 1996 40.000.000.000 bits per second (40 giga) 2.5-gigabit fibers MCI 1997 100.000.000.000 bits per second (100 giga) Ciena Life at 100 giga (billion) bits per second Gilder’s Law: Bandwith triples every year

  16. Apply “new tools” to maintain and improve the creativity and innovation of scientists throughout the R&D organization Martin Hinoul April 5, 2000

  17. Efficient Managing The University-Industry technology Interface has never been more important than now Martin Hinoul April 5, 2000

  18. Entrepreneurship, belief in new ideas and their valorization, belongs to the most important strategic advantages of the U.S. Martin Hinoul Martin Hinoul 22-03-2000

  19. Start small. Small successes are the platforms for big successes.Source: Leading the revolution: Gary Hamel

  20. THE GREATEST RISK IS NOT TAKING ONE

  21. All things are possible attitude Risk Taking Scott McNealy - Sun Co-competition Stock options Repeaters(Reinvention) Based on Meritocracy CULTURE Time for the next big thing Inflection Point (Andy Grove) Cross-pollination Cross-investments Networking State of mind Jumping on the Next Curve (Oracle) Failure  Badge of Merit

  22. Products & Services of the Century Telefoon Encyclopedia Brittanica PC Aspirine TV Boeing 707 Lego GSM Auto Intel microprocessor Insuline VCR GPS Antibiotica CD Microwave WWW DNA structuur Film Prozac 3M notes Fax De pil Nylon

  23. The New Economy is a process of creation and destruction • 1768 Edinburg • 1920 Overname Sears Roebuck • 1990 650 million $ • 2000 CD ROM 50 $ Destruction

  24. Film • TV • VCR • Film Destruction and creation

  25. Creation of SmartMove, Septentrio, … smart cars

  26. Creation of a Silicon-Biotech Industry (Celera, HGS, …)

  27. Inflection versus jumping the next curve Martin Hinoul November 2000

  28. Shareholder Return Versus Innovative Behavior * * 500 companies

  29. NOKIA HAS BECOME A SOURCE OF THOROUGHLY INNOVATIVE PRODUCTS. • Nokia Shareholder Returns vs Industry Average 1992-1998 Martin Hinoul April 2000

  30. Trends, 6 april 2000 Martin Hinoul April 2000

  31. Trends, 6 april 2000 Martin Hinoul April 2000

  32. Evaluation Criteria • People • IP and other assets • Business Model • value added milestones • what kind of revenues, when • adaptable business plan • $-aspect - financial engineering Martin Hinoul April 5, 2000

  33. Agro BIOTECH Med. Devices Pharma NEW MATERIALS ICT • Utimaco • Eyetronics • Ubizen • ICOS • Data4S • OMP • Synes • Option International • LANT (X-planation) • METALogic • Falex • LMS • Materialise • Metris • Data4S • Algonomics • Molecular Logic • Tigenix • Kime • Thrombo-Gene BIO INFORMATICS

  34. Sucess stories ! ? • Oulu Technopolis - Finland • Tampere - Finland • Sophia Antipolis - France • Mjardevei Park - Denmark • Alba Centre - Scotland • Silicon Fen - Cambridge • Flanders - Belgium?

  35. KIME • MEAC • ISMC • Tigenix • Ubizen • Data4S • LMS International • Frontier Design • ICOS Vision Systems • Memry Europe • Data Analysis Products • KRYPTON Electronic Engineering • Materialise • Symore • Thromb-X • METALogic • I.M.O.-Leuven • Hypervision • Interpoint • Easics • ELiAS • Utimaco Safeware Belgium • TriconsultC • Cargill • Amylum • Raychem • Heraeus-Sensornite • Mazak • Terumo • Honeywell • Telinfo • Option International • LANT • METRIS • OptiDrive • AnSem • Eyetronics • Metis • MEC • ISW • Synes • MCR • Falex Tribology • AlgoNomics • FillFactory • Septentrio Satellite Navigation • AnSem • SmartMove • SmartPen-LCI • CoWare • Target Compiler Technologies • Easics • Frontier Design • Soltech • Sirius Communications • Matrix Europe • JSR Electronics

  36. “The biggest limitation we face is how fast we can innovate. We’re constrained by how fast our brains can work.” Jerry Yang

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