APCTT

1. APCTT BINASIA-Iran National Workshop Tehran, Iran 08-09 November 2005 Innovation – Key to Competitiveness Asian and Pacific Centre for Transfer of Technology (APCTT)

2. APCTT Changing Global Scenario New realities the companies should consider to be competitive: Shortening life cycle of products Globalisation of world economies Globalisation of technologies Shift of emphasis from manufacturing to knowledge-based economies Postulate on new technology: If you understand it, it is obsolete

3. APCTT Product Market Idea & Concept Design & Prototype Globalising Knowledge-based Economies: Realities

4. APCTT Signals For Change The Innovation Imperative New orimproved productsor services Maintained orimprovedcompetitiveness TheOrganization New orimprovedprocesses

5. APCTT Develop. of new technology 0.68 Mang. company strategey 0.59 Financialmanagement skills 0.59 Increased exports 0.59 Government finan. Assist. 0.57 Key R&D talent 0.56 New sources of capital 0.48 Strategic alliances 0.39 Quality assurance 0.36 Skilled Labour 0.32 Technology Acquisiton Top success factors in global competitiveness....

6. APCTT Technology Acquisition Technology exchange - between companies Technology exploitation - from R&D to industry

7. APCTT • Search: • Information • Opportunities • Partners • Studies: • Technology • Feasibility • Market • Negotiation: • Technical • Financial • Commercial • Financing: • Loans • Venture Capital • Grants • Marketing: • Networks • Agents • Retailers TechnologyAcquisition Chain “The chain is no stronger than its weakest link” English proverb

8. APCTT OECD estimates that between 1970 and 1995 more than half the total growth in output of the developed world resulted from innovation, and the proportion is increasing as the economy becomes ever more knowledge-intensive New Reality - Knowledge-based Economy

9. APCTT Critical mass of commercially oriented research expertise New talents & new money Industrial technology users Investors and consultants, creating favourable conditions for the birth of fast-growing, high-tech companies Sustainable Innovation Environment

10. APCTT Innovation - conversion of new knowledge into new products and services • New products & services • Better ways for reaching customers • More efficient production techniques • Quality improvements • Novel cleaner production methods • Improved management systems • New approaches to gathering and dissemination of information • Better internal climate and services • New forms of employee & stakeholder participation Sustainable Innovation - Key to Success. And Survival. “Every organization-not just business-needs one core competence: innovation”Peter F. Drucker

11. APCTT The lifeblood of any successful innovation system is communication and interaction Information Sources Important for Innovation Source: EU Community Innovation Survey (CIS), 1999

12. APCTT Factors Preventing Introduction of Innovation at SMEs (EU Survey, 1998) Per cent of innovating companies with abandoned or delayed projects

13. APCTT Activities to Promote Innovation among SMEs

14. APCTT In the Information Technology industry, the recommended share of employees in the company ownership is around 30% Continuous Innovation: Motivation of all Employees Becomes Critical Innovation is not a one-off event, but a continuous response to changing circumstances. Ideally, it does not just solve a problem but creates new capacity, opening up opportunities for further innovation

15. APCTT Innovation Index • R&D spending by government & private sector • Quality of R&D institutions and S&T education • Cooperation between R&D sector and industry • Pioneering of own products & processes • Incentives for innovation • Access to venture capital • Ease of starting businesses • IPR protection Components Source: The Global Competitiveness Report 2000, World Economic Forum

16. APCTT Technology Index • Technological leadership on the global market • Aggressiveness in absorbing new technology Components Source: The Global Competitiveness Report 2000, World Economic Forum

17. APCTT Critical Issues for Entrepreneurial Activity: GEM 2000 Survey • Most often mentioned by experts 1 • Second 2 • Third 3 Source: GEM Report 2000

18. APCTT Critical Tasks in the Era of Globalisation, Innovation and Knowledge-driven Economies

19. APCTT Critical Tasks in the Era of Globalisation, Innovation and Knowledge-driven Economies

20. APCTT Russia Republic of Korea India Japan ! Advanced R&D ! R&D Commercialisation ! Advanced Biotechnology ! R&D Commercialisation Cross-border Technological Cooperation: Building on Mutual Strength - Examples ASEAN Countries ASEAN Industrial Projects ASEAN Industrial Complementation Programme ASEAN Industrial Joint Venture Programme

21. APCTT Critical Tasks in the Era of Globalisation, Innovation and Knowledge-driven Economies

22. APCTT Business incubation is a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the startup period when they are most vulnerable. Technology Business Incubation • hands-on management assistance • access to financing • business and technical support services • shared office space, access to equipment Incubators provide: Technology incubators nurture hi-tech start-ups and present a technology-oriented variant of business incubators

23. APCTT Links Generally linked to universities, research centres Established within a technology park or close to other sources of technological support Location Management & mentoring staff require specific expertise in dev’t of technology-led businesses Staff May require specific equipment (computing, testing, rapid prototyping, etc.) and other technical expertise Services Specific Features of Technology Business Incubators

24. APCTT Critical Tasks in the Era of Globalisation, Innovation and Knowledge-driven Economies

25. APCTT Pre-seed Seed Venture Capital Expansion Start-up Growth Idea Fortification Own funds Family Friends Dev’t funds Business Angels VC companies Hi-tech stock markets Innovation Financing Chain Venture capital cannot finance innovation on its own. Dynamic innovation demands an unbroken financing chain, from seed capital to stock market. The financing chain is no stronger than its weakest link. T Y P E O F F I N A N C E R E Q U I R E D P R I N C I P A L S O U R C E S O F F I N A N C E

26. APCTT Growing Role of Risk Financing Mechanism for High-tech Start-ups Role of debt and risk financing Speed of technological change Private investments in emerging and new businesses dwarf the more formal venture capital outlays. In US alone total private investments in entrepreneurial companies in 1999 was more than US$ 63 billion – far more than the US$ 46 billion the professional venture capital industry invested during the same period in start-ups and growing firms.

27. APCTT Average Success of VC Financing (US pattern) Return on investment Company growth

28. APCTT 6 in 1000 business plans get funded on average The No 1 reason a start-up’s valuation is cut due to incomplete executive teams 10% of start up in a given venture capital portfolio will succeed 6 out of 1,000,000 technology ideas will result in IPO New Technology Financing - Success Rates Source: Artemis Ventures

29. APCTT Critical Tasks in the Era of Globalisation, Innovation and Knowledge-driven Economies

30. APCTT Stakeholder Networking: Project Development: • Access to relevant online news, databanks and support services • Sharing of knowledge and ideas • Posting of business proposals • Matching of prospective partners • Expert forums • Chat rooms • Personal/corporate sites • User-customized work space • Project preparation and management • Building of the project team • File sharing • Pooling of resources • Access to external services • Discussion room • Chat room • Administration & reporting tools Services Available to Web Communities of Technology Transfer Stakeholders

31. Thank you Website: www.apctt.org e-mail: postmaster@apctt.org