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Presentation to Digital Content Industries 29 th September 2004

Competing in the Global Economy: The Innovation Challenge. Presentation to Digital Content Industries 29 th September 2004. David Hughes FREng Director General Innovation Group, DTI. Global Security. Healthcare in an Aging Society. Our impact on the Environment.

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Presentation to Digital Content Industries 29 th September 2004

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  1. Competing in the Global Economy:The Innovation Challenge Presentation to Digital Content Industries29th September 2004 David Hughes FREng Director General Innovation Group, DTI

  2. Global Security Healthcare in an Aging Society Our impact on the Environment Technology: Driver & Solution Intelligent & Connected World Our world is changing

  3. Demand fluctuation Higherpeak Volume Fast ramp-up Maturity Ramp-up Intro-duction End of life 1 year 3-5 years Shorter time to market Development Dramaticend of life Conventional New Digital Consumer Source: Dr Tsugio Makimoto - Hitachi/Sony Dramatic Change in Life Cycle

  4. Hourly compensation costs, 2001, for production workers in manufacturing in US dollars 20 15 10 5 0 UK Hong Kong SAR Taiwan Increasing intensity of global competition Source: US Department of Labor

  5. The economic message • UK Businesses will only achieve long-term success in global markets by focusing on greater value added as their competitive edge. • Innovation is the key to achieving this. • And Businesses need to keep innovating to stay ahead of the competition.

  6. Government strategy - The Innovation Report ‘Competing in the global economy – the innovation challenge’ Published in December 2004 http://www.dti.gov.uk/innovationreport/index.htm “The challenge ... is to create the conditions where all our firms put innovation at the centre of their strategies for the future.” Rt. Hon. Tony Blair, Prime Minister

  7. What can government do to improve innovation performance? • Set an encouraging framework – macroeconomic stability, competition, IP framework, standards. • Strategic investments – science, government R&D, infrastructure. • Support innovative businesses – exploitation of science base, advice, partnerships, access to finance, incentives (e.g. R&D Tax Credit). • Ensure that procurement and regulation create opportunities for innovation – not barriers. • Align efforts at national and regional/Devolved Administrations.

  8. Intellectual Property: Awareness • Business Advice Open Days http://www.patent.gov.uk/about/marketing/thinkkit/index.htm

  9. Patents Act 2004 2004 Chapter 16 ME A Michael Edwards & Associates Consultants in intellectual property management and protection. Scoping Study: Report of the Patent Enforcement Project Working Group. - June 16th 2004 Intellectual Property: Crime and Enforcement

  10. SMEs and Entrepreneurship • Business Link support for Innovation • Upgrading SME management skills • Improved support for women’s enterprise “I’ve gained a lot of confidence from all the support I’ve received” Katieca Smith, Partner in Architectural Practice

  11. Research Councils dti Research Priorities Technology Strategy RDAs Science and Industry Councils Higher level SET skills Business support HEIs/ SET Base Culture change needed for better exploitation Business Regional Innovation

  12. New approaches to Procurement • £109bn pa goods/services purchased by Government in 2001/2002 • Strong Ministerial interest in joined up work across government • Capturing Innovation guidance for policymakers • Reinvigoration of Small Business Research Initiative underway • Joint DoH/DTI seminar on Innovation in the NHS for suppliers and buyers

  13. Increase Business Demand for New & Emerging Technologies Science & Innovation Investment Framework 2004-2014, July 2004 The Technology Strategy & Programme …… additional boost for technology Competing in the Global Economy – the Innovation Challenge, Dec 2003

  14. BUSINESS/USER • NETWORKS • Sector based networks • e.g. IGTs, IAP • CBI • Chambers of commerce • Trade associations • REGIONAL/DEVOLVED • ADMINISTRATION • NETWORKS • Science Industry • Councils • SEB NETWORKS • Research Council networks • Academic groups • Professional Institutes • RTOs • Technology Brokers • MIXED NETWORKS • OGD strategies • e.g. MoD, DoH • Faraday partnerships • Foresight Determining Strategic Technology Priorities Networks are fundamental to ensuring that the Technology Strategy reflects the demands and needs of business. TECHNOLOGYSTRATEGIC PRIORITIES

  15. Technology Strategy & Programme TECHNOLOGY STRATEGY IDENTIFICATION AND JUSTIFICATION OF TECHNOLOGY PRIORITIES NETWORKSfeed into decision making TECHNOLOGY PROGRAMME Collaborative R&D Knowledge Transfer Networks CUSTOMERS BI-ANNUAL CALLS FOR PROPOSALS

  16. Value added by knowledge based services and Industries G7 comparison, 2000 Finance, insurance, other business services, community, social and personal services Per cent of total value added Communication services High and medium-high tech 50 40 30 20 10 0 Germany UK France Japan US Canada* Italy Source: OECD The innovation challenge – create value in a knowledge economy …

  17. Contribution of creative industries % GDP, 2001 3 2.5 2 1.5 1 0.5 0 Crafts Design Software Art, antique Publishing Radio, TV Advertising Architecture Video, films arts fashion Music & Designer Software, computer games and electronic publishing …… the largest of the creative industries Source: Creative Industries Economic Estimates, July 2003

  18. Digital Content ‘Users’ • ‘Value added’ Opportunities - Health Care • Education for patients using medical devices • Medical devices not used correctly • Results in little or no benefit from device, maintenance • costs, adverse events and negligence claims • Training on how to use correctly is needed • Opportunity for digital content industries

  19. Digital Content ‘Users’ • More ‘Value added’ Opportunities • Convergence of games/films • - Machinima.com • E-learning Market • - Language-engineering technology • Development of next generation broadband • - BSG’s new initiative

  20. Challenges -- Technology Strategy • Active involvement of your sector in April competition for funding for Inter-Enterprise Computing • Now preparing for the November competition for funding • How can you be more engaged in the process?

  21. Challenges -- Procurement • Using public procurement to facilitate innovation: • Latest figures show £125bn goods and services procured per year • Around 55% of all spend in the UK on IT services and systems is in the public sector • Best practice guidelines for procuring broadband-type content and applications being drawn up • What are the big opportunities for DCI in Government procurement and how can we engage further?

  22. Measuring our success • Businesses see more value added from goods and services • Economy sees more productivity (e.g. output per hour). • Better public services - - Improved quality of life

  23. Competing in the Global Economy:The Innovation Challenge Presentation to Digital Content Industries29th September 2004 David Hughes FREng Director General Innovation Group, DTI

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