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M.Sc. in “Engineering Policy and Management of Tehnology”

M.Sc. in “Engineering Policy and Management of Tehnology”. Innovation, Engineering and the Management of Technology : building a university agenda Pedro Conceição and Manuel Heitor. CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+

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M.Sc. in “Engineering Policy and Management of Tehnology”

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  1. M.Sc. in “Engineering Policy and Management of Tehnology” Innovation, Engineering and the Management of Technology: building a university agenda Pedro Conceição and Manuel Heitor CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+ Instituto Superior Técnico, Technical University of Lisbon http://in3.dem.ist.utl.pt

  2. Background:trends for the University ?Conceicão & heitor (1999) • Valorization of human and intellectual capital? Codified knowledge (“software”) Tacit knowledge (“wetware”) Challenges and … Opportunities...

  3. TRADITIONAL MECHANISMS TO PROMOTE UNIVERSITIES and R&D IN SOCIETY 1. Intellectual Property Protection issues: economic impact negligible promotes institutional integrity requires adaptation and flexibility 2. Technology Infrastructures and Science Parks issues: emphasis local development have not promoted U-I linkages The model: “american university” as reference

  4. TRADITIONAL MECHANISMS TO PROMOTE THE ROLE OF UNIVERSITIES IN SOCIETY The trend: a process of “institutional convergence” The result: universities today, despite their long historical I inheritance, are relatively new institutions… … with a complex set of incentive structures and organizational features (Rosenberg & Nelson, 1996) The threat: institutional integrity The analysis: “standard”, linear model has been implicit in m most studies

  5. Education / training for last 10 years New technologies Education / training acquired for more than 10 years Existing technologies 2000 2010 2000 2010 The knowledge gap(Scope: EUROPEAN REGIONS) 2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years

  6. QUESTION Which trends for science, technology and innovation policy, in a way to contribute for the challenges faced by engineering and technology to enhance innovation?

  7. Knowledge InstitutionsLearning Organisations Intellectual PropertyLearning Networks The need for institutional renewal, …promoting diversity with institutional integrity, (Conceicão & Heitor, 1999) …making use of partnerships! (Conceicão, Gibson, Heitor & Sirilli, 2000) Our Argument... • The scope:...the globalized “learning society”! BUT, understanding research (R&D; R&T; R&L), promoting research for creative teaching, and integrating technology, policy and management!

  8. CONTENTS • 1. The CONTEXT: a CONCEPTUAL FRAMEWORK • FACTS and RESULTS • 3. HYPOTHESIS • STRATEGIES, POLCIES and RECOMENDATIONS • Reference Terms e Scenários • Strategies and Policies • ...http://in3.dem.ist.utl.pt/et2000/

  9. The CONTEXT • 1. The “new” economy: “the big boom” • 2. Technological change: accelerating • 3. Social Dynamics: complexity and diversity • 4. “Governance”: a new model! OCDE: “FUTURES”, Hannover 2000 EC: “IPTS - Futures Report”, 2000

  10. Technology replaces employment Industrial era I- Recession Economy without employment Services Demand Deficit Services Value creation Indústry Entrepreneurial economy Indústry Technology creates new industries and opportunities Agriculture Agriculture II- Growth The structure of the “new” economy Knowledge era

  11. The importance of Technology in corporate development • Case study: Innovation in Italy (Evangelista & Sirilli, 1997) The convergence of sectors is emerging, with the growing importance of technology in corporate development

  12. The CONTEXT • 1. The “new” economy: “the big boom” • 2. Technological change: accelerating • 3. Social Dynamics: complexity and diversity • 4. “Governance”: a new model! OCDE: “FUTURES”, Hannover 2000 EC: “IPTS - Futures Report”, 2000

  13. 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

  14. Technological Change: telecommunications

  15. Technological 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

  16. information technologies materials biotechnologies energy information technologies Telematics Automation Computers Semiconductors Superconductors Biosensors Biochips Photovoltaic applications materials Computer based design of new materials New alloys Ceramics and composits Bio-leaching Biological ore processing Power lasers biotechnologies Instrumental analysis of dna sequences Membranes Biocompatible materials Recombin. DNA New drugs Enzymatic Synthesis Batteries Pacemakers Artificial Heart energy Supervision of energy processes Robotics Security systems Photovoltaic materials Fuel cells Superconductors New energy biomass New reactors Nuclear fusion Technological Change:Emerging interactions... to from

  17. Technological Change: impact ...1 1. Knowledge Diffusion • corporate competitiveness depends on innovation capacity • globalization has increased market demand on nre products, processes and services QUESTION:inovation/ adoption of new technologies? 2. Knowledge Creation • Increasing interdisciplinarity and complexity of the knowledge base • Significant contribution of technology for scientific development QUESTION:Which, and how to develop the scientific base? 3. Knowledge Transfer • the need to promote systems of education and training diversified QUESTION:Which education and training systems?

  18. Technological Change: impact ...2 • Entrepreneurial capacity : NTBF • Socio-economic inequality: • The need to promote local systems of knowledge creation and diffusion Knowledge Diffusion… • A strategic vision: • developing technologyplatforms • enphasizing clusters(the corporate value chain) ca de vlor. • ...to promote SOCIAL CAPITAL in a technology context

  19. Creation and distribution of knowledge Technological innovationand development Economic growth and development What we know… • PROCESSES: complex and diversified • INVESTMENT: education; R&D; learning-by-doing • AGENTS: state, firms, universities, schools

  20. What we know… “The Chain Link Model” “Communities of practice” Research Knowledge Technology platforms Potential Markets Invention/ analytical design Detailed design & Test Re-design & Production Distribution & market BUS Chain Linked Model of Innovation Kline & Rosenberg

  21. CONTENTS • 1. The CONTEXT: a CONCEPTUAL FRAMEWORK • FACTS and RESULTS • 3. HYPOTHESIS • STRATEGIES, POLCIES and RECOMENDATIONS • Reference Terms e Scenários • Strategies and Policies • ...http://in3.dem.ist.utl.pt/et2000/

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

  23. Facts and Results • Productivity • The knowledge-based industries • Resouces • Scale vs intensity • Industrial structure • Institutional development • The regional dimension • Sustainable development • Social capital for the inclusive development

  24. 1. Productivity

  25. 2. Knowledge-based industries OECD(2000) Average annual real value added growth of knowledge based industries (1985 share year) Share in business sector value added in knowledge business industries (share year 1996)

  26. 3. RESOURCES Expenditure by Manufacturing Firms on Innovation

  27. 0,1 France Netherlands 0,075 Germany Denmark Finland Poland Norway US Japan Public R&D Expenditures per capita Korea Canada UK 0,05 France UK US Netherlands Canada Germany Czech Rep Finland Denmark Ireland 0,025 Japan Norway Sweden Spain Portugal Ireland Sweden Belgium New Zealand Hungary Spain Portugal Mexico Turkey 0 0 0,125 0,25 0,375 0,5 Private R&D Expenditures per capita Perspectives for “change”: Public vs private R&D expenditures FR D JP USA UK P97 P95 ES SE IR P81

  28. Evolução do investimentos público e empresarial em I&D (1981-1995) Caso de estudo: Portugal (1982-1998) Caso de estudo: EUA (1953-1998) • público: aumento significativo • privado: aumento incremental • a partir de 95 ‘crescemos na diagonal’ Público Privado USA PT 95-98 PT 95-98 81-95 Perspectives for change:Investments inR&D

  29. 4. Scale vs Intensity R&D Expenditure (OECD)

  30. Portugal 35 30 25 40 35 30 20 25 20 15 15 10 10 5 0 1983 1987 1991 1995 5 0 1983 1987 1991 1995 YEAR YEAR Food, beverages & tobacco Textiles, apparel & leather Wood products & furniture Paper, paper products & printing Chemical products Non-metallic mineral products Basic metal industries Fabricated metal products Other manufacturing, nec 5. THE INDUSTRIAL STRUCTURE EU-13

  31. 5. Industrial structure:Dynamics

  32. 6. Institutional Development Market Regulation and Employment Protection Nicoletti, Scarpetta & Boylaud; OECD (2000)

  33. 7. The regional dimension:technology and innovation gap • 1. Input:HUMAN AND MATERIAL RESOURCES • 2.output:SCIENTIFIC AND TECHNOLOGICAL CAPACITIES • 3. determining factors : • international cooperation • sme`s:support services • networks • FDI: integration in local economies • transports, communications, energy infrastructures … BUT, ALSO, INSTITUTIONAL FACTORS

  34. Regional diversity in Western Europe Source:Sixth Periodic Report DG XVI, 1998

  35. 8. The sustainable developmentinnovation and the environment “Master Equation” Environmental Impacte = (Population)*(GDP/Capita)*(Environmental Impacte /GDP) Increased eco-efficiency Promoting engineering and technolgy for innovation!

  36. DMI, Direct Material Input per capita (1988-1995) Source : EEA, 2000, Environmental Signals for 2000 8. The sustainable developmentinnovation and the environment Economic growth in Portugal is associated with the highest european growth rate of materials consuption!

  37. 9. Social capital for inclusive development OECD(2000)

  38. CONTENTS • 1. The CONTEXT: a CONCEPTUAL FRAMEWORK • FACTS and RESULTS • 3. HYPOTHESIS • STRATEGIES, POLCIES and RECOMENDATIONS • Reference Terms e Scenários • Strategies and Policies • ...http://in3.dem.ist.utl.pt/et2000/

  39. Perspectives for “change” • …Systems of Innovation and Competence Building! • The notion of localised technological change: • a joint process of production, learning and communication • a fully endogenous, with strong interdependence between specialisation and diversification • important, but limited role of demand • based on mix of generic and tacit knowledge • The science base: ” …the aim of policy should be to create a broad and productive science base, closely linked to higher education…”, Pavitt (1998)

  40. THE ISSUE …1 The evidence: • “The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966) • “The explosion in knowledge creation was concentrated in a few regions, and led to similarly concentrated distribution of income”, • World Bank (1999) • The most daunting problem is that of “spiritual inequality”, Fogel (1999)

  41. Regional diversity in Western Europe Source:Sixth Periodic Report DG XVI, 1998

  42. A fragmented regional innovation system: an institutionally blocked regional economy Large firms SMEs SMEs SMEs SMEs SMEs SMEs Large firms Sectoral Associations Regional Government Universities SMEs SMEs SMEs Regional economy SMEs SMEs SMEs SMEs SMEs SMEs SMEs Chamber of Commerce SMEs Technology Centers SMEs SMEs Business Services SMEs Large firms SMEs SMEs SMEs SMEs Technology Consultants SMEs SMEs SMEs SMEs

  43. A learning region: An efficient regional innovation system Open gate: International R&D/academic excellence networks SMEs Cluster SMEs SMEs SMEs SMEs SMEs Valorisation of R&D and Tech. Transfer Office SMEs Large firms; Tech. Centers; Sect. Associa- tions SMEs Science base: Universities; Public R&D; Laboratories Open gate: International technology transfer networks Regional economy Large firms SMEs SMEs Open gate: International value chains SMEs Regional government SMEs Global economy SMEs SMEs SMEs Technology Centers SMEs Business intermediaries: Cham. of Comm.; Local Agencies BICs Business services & tech. con- sultants SMEs SMEs SMEs Sectoral Associations SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs Open gate: International business consultants & specialized business services

  44. Internal coherence of the regional innovation system by connecting its different key elements: R&TDI supply with well identified Demand and business needs, from SMEs in particular. Increase the amount and, more importantly the quality of innovation public spending through innovation projects (bigger and better spending in this field through regional policy). Rationalise the regional innovation support system by raising awareness, eliminating duplications, filling gaps and promoting synergies. Regional Innovation StrategiesLandabaso et al. (1999) Successful stories: The Regional Technology Plans Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle-Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).

  45. What type of Social Capital ? Source: Conceicão, Gibson, Heitor & Sirilli (2000)

  46. THE ISSUE …2 • “With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors… • …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”, • Henderson & Morgan (1999) A specific issue: EUROPEAN DIVERSITY

  47. The regional dimension:technology and innovation gap …cont. Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action • This requires a shift in development studies: • fromstate-ledor market-drivenprocesses, regardless time, space or milieu • to institutional perspective, lookingat the quality of institutional networks

  48. The regional dimension:technology and innovation gap …cont. • INSTITUTIONAL NETWORKS to mediate: • mediate information exchange • knowledge creation • capacity for collective action • potential for interactive learning • efficacy of voice mechanisms • Henderson & Morgan (1999)

  49. Building Social capital in technology contexts: a case study – the internet industry Develop software solutions Designed to enhance the Internet experience for both Consumers and business SoftwareSolutions CONTENTS SERVICES E-TAILERS “THE INTERNET” ALTERNATIVE MEDIA E-CHANNELS BUSINESS CONSUMER INTERNET SERVICES ACCESS PROVIDERS Enabling Technologies Create hardware/software solutions which enable the efficient operation of the internet

  50. a case study:internet business model Business/Customer Support On-line Products and Services Software solutions Content Services • NetObjects • Real Networks • Egain • Netscape • Marimba • Inktomi • Sitara Networks • Resonate • THE GLOBE.COM • THE MOTLEY FOOL • BROADCAST.COM • MPATH • MONSTER.COM • NETCENTIVES Access Providers Service Providers • YAHOO • MSN • EARTHWEB • VERTICALNET • BABY CENTER • EARTHLINK • MINDSPRING • Alternative • Media • ESPN • CNN • Wall St. • Journal • DOUBLECLICK • USWEB/CKS • IXL • MEDIA TRIX • RAZORFISH • ABOVENET • Networks • Associates • WebOrder • Vignette • Ariba • AT&T • WorldNet • Ameritech • VERIO • COMPUSERVE • NETCOM • Cisco IOS • Hewlett-Packard • Sun IBM • AOL • EXCITE@HOME • DELL • BARNES & NOBLE • CHARLES SCHWAB • CITIBANK • MACY’S • E-CHANNELS • Cisco • Lucent/Ascend • Nortel/Bay Networks • Nexabit • Netopia • Broadcom • Verifone • AMAZON.COM • E*TRADE • BEYOND.COM • EBAY • BUY.COM Enabling Technologies E-tailers Technological Innovation Traditional Corporations Source: joint Venture – Sillicon Valley Network, 1999

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