I Minds2009 Bruno Lanvin Closing The Innovation Gap In Europe

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Closing the Innovation Gap

in Europe

How much can a crisis help ?

Bruno Lanvin Executive Director, INSEAD-eLab

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Four points

• Innovation is under renovation

• Can Europe seize the opportunity ? – Will it have the muscle ?

– Will it have the brains ?

– Will it have the guts ?

• The growing significance of the local level

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Three points

• Innovation is under renovation

• Can Europe seize the opportunity ? – Will it have the muscle ?

– Will it have the brains ?

– Will it have the guts ?

• The growing significance of the local level

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(Source : WEF/Innovation 100)

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Three points

• Innovation is under renovation

• Can Europe seize the opportunity ? – Will it have the muscle ?

– Will it have the brains ?

– Will it have the guts ?

• The growing significance of the local level

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Distance to reach other side of the street (in meters)

Intensity of downpour

(in liters/second)

Estimated ground speed

of vehicles heading towards observer (in km/hour)

Anticipated velocity of pedestrian

crossing the sreet (in meters/second)

Can Europe seize the opportunity ?

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Will Europe have the muscle ?

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R&D Spending (private + public) as % of GDP

EU 27 1,82

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Europe’s innovation on steroids ?

• Small Business Act

• Venture Capital

• Partnership

(I) = f ( SBA, VC, PPP)

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Will Europe have the brains ?

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2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00

WE

F G

lob

al

Co

mp

eti

tiven

ess I

nd

ex 2

008-2

009 (

GC

I)

INSEAD eLab eSkills Readiness Index 2008 (eSRI)

eSRI average: 3.92

GCI average: 4.22

Skills matter to global competitiveness

Predicted

Actual

Global Competitive Index (GCI)

Eighty-four percent of the variation in

the WEF Global Competitiveness

Index is accounted for by the eSkills Readiness Index

© IN

SEA

D e

Lab 2009 – So

urce : IN

SEA

D/e

Lab d

atabase

and

rese

arch

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Skill needs for a sustainable development in Europe

Literacy & Basic Skills (Math, Science, IT Literacy)

B

Occupational skills B-

Talents for the Global Knowledge Economy C

© INSEAD eLab 2009 – Source : INSEAD/eLab database and research

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Europe’s Skill Challenge: Uneven but Widespread

A

B

C

D

E

© INSEAD eLab 2009 – Source : INSEAD/eLab database and research

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R Countries Index

4 India 5.92

7 France 5.68

12 USA 5.60

16 Germany 5.44

17 Belgium 5.34

45 Spain 4.71

49 Italy 4.59

67 Estonia 4.33

77 China 4.16

81 Luxemburg 4.06

91 Slovenia 3.85

Availability of scientists and engineers

© INSEAD eLab 2009 – Source : INSEAD/eLab database and research

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R Countries Index

1 Singapore 6.34

2 Belgium 6.29

6 France 5.71

11 India 5.38

14 Netherlands 5.27

43 USA 4.54

55 China 4.38

57 Italy 4.27

66 Spain 3.93

89 Portugal 3.43

Quality of maths and science education

© INSEAD eLab 2009 – Source : INSEAD/eLab database and research

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Quality of education

Innovation performance 30 20 15 5 1

(NRI ranking in brackets)

1

5

10

15

20

25

30

25 10

SWE (2)

DK (1) NOR

(10)

FIN (4)

NED (6)

SUI (5)

CAN (11)

AUS (15)

UK (9) USA

(6)

NZ (21)

ICE (8)

AUT (17)

IRE (21)

GER (16)

Innovation and education in the world’s top 15 knowledge economies

© INSEAD eLab 2009 – Source : INSEAD/eLab database and research

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crisis

time

overall demand

& skills supply

pre-crisis post-crisis

Without European Skills Pact

Skills shortage

Skills supply

Market/skills demand

With European Skills Pact

Two post-crisis scenarios

© INSEAD eLab 2009 – Source : INSEAD/eLab database and research

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The way forward

• prevent talent drain during the crisis

• more maths & science

• seize the cleantech opportunity

• enhance openess and mobility

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Will Europe have the guts ?

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SIZE(*) matters • Build on success

• Focus resources • Be open

• Benchmark

• Encourage risk taking, multi-disciplinary work and bold innovation

(*) Special Innovation Zones in Europe

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Innovation is a mindset

• A culture of innovation requires the recognition of the right to fail

• Incremental innovation can grow from specialization; disruptive innovation demands inter-disciplinarity, openness and collaboration

• A critical factor of innovation success is timing : time-to-market, agility are key

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What are we waiting for ?

Indecision in times of crisis is more deadly than in normal times. Innovation will make the difference between the players who will be on the right/wrong side of the street when the weather improves and traffic grows again.

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Three points

• Innovation is under renovation

• Can Europe seize the opportunity ? – Will it have the muscle ?

– Will it have the brains ?

– Will it have the guts ?

• The growing significance of the local level

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The Power of Being Small

– Global connected hubs

– Small big players : Estonia, Singapore, Qatar

– Regions and municipalities as champions

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The ABCDE of innovation-based competition

Excellence

- React swiftly to opportunities

- Infrastructure, networks

and hub positioning

- Open-mindedness

& multi-disciplinarity

- Local will to create, risk,

adapt and change

- Attract and retain talent

Agility

Desire

Cooperate

Be on the map

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Thank you for your attention

bruno@lanvin.org