View
23
Download
0
Category
Tags:
Preview:
DESCRIPTION
Increasing innovation capacities of companies Taking the Challenge – promotion of innovation in IT sector SMEs. Riga , April 20 , 200 7 V aldis Avotins , Knowlege and Innovation System Department. Trillions of 1995. - PowerPoint PPT Presentation
Citation preview
Increasing innovation capacities of companies
Taking the Challenge – promotion of innovation in IT sector SMEs
Riga, April 20, 2007
Valdis Avotins, Knowlege and Innovation System Department
Rapidly changing environment (2)Real GDP (PPP): Projections 2004-2015 (Using 1991-2003 Average Growth Rates)
0
2
4
6
8
10
12
14
16
2003 2005 2007 2009 2011 2013 2015
Trillions of 1995 international $
India China Brazil
Canada France Germany
Italy Japan Mexico
Russian Federation United Kingdom United States
India
China
United States
JapanGermany
United Kingdom
France
Italy
Canada
Mexico
Russian Federation
Brazil
Source: WBI
Knowledge, transfer, absorbtion, innovation
Policy:
What ?
Why ?
How ?
Who ?
Needanalysis
Supplyanalysis
Awarenesscampaign
SWOT andSynthesis
Gaps and market failures
identified
RIS Latvia – a step by step approach
stage 1
meetings of RIS and NIP SCs and National Economy Council
stage 0 stage 2
Detailedelaborationof theworkprogram
Definitionofmeasuresandpriorpilotactions
Validation
Presentation& discussionof analysesresults;Gaps identified
consensusbuilding
01/2002 12/2003 03/2003
12/2004
Share of innovative firms, %, 2002-2004
14,1
27,2
53,6
0
10
20
30
40
50
60
10-49 50-249 >250
17,5% innovative firms gave 42,3% of total turnover in 2004
Only 4,7% product innovative
Only 3,5% high-tech in manufacturingSource: CSB
Weaknesses and challenges
• Research and industries develop isolated
• Research policies doesn’t include industry’s needs
• Economical growth has not increased R&D demand
• Small public R&D budget doesn’t reflect Government priorities
• Lack of entrepreneurial spirit and innovation culture
• Still dependence on low-tech, low productive and low cost industries
Assimmmetry of information (308 firms intervied)
0 20 40 60 80 100 120 140
University of Latvia
Riga Technical University
Latvia University ofAgriculture
Riga Stradina University
Service is knownService usedI will use again
RIS Latvia, 2003
Lack of technological competitiveness
0% 25% 50% 75% 100%
To attract external experts
Diversification of existing products
Purchase of products / licences / technologies
Collaboration with other enterprises
Increase of market share in other markets
To increase ability to react on market changes
Increase of market share and/or detection of new markets in EC
Increase of technological competence
To increase competence inside the enterprise
Increase of internal production capacity
Development of new products
Optimisation of operations to decrease costs
Increase national market share and/or detection of new marketsnationally Latvia
Sweden
0
9
18
27
36
Latgale
Rīga
A. Passive
B. Reactive
C. Strategic
D. Creative
High-Tech
Innovative
Don’t know that they don’t know
Know that they don’t know but don’t know what they don’t know
Know but not always what and how
High knowledge and absorption capacity
Source: RIS Latvia, WB methodology, 2004
Level o
f know
ledg
e o
f need
ed
chan
ges: w
hat a
nd
how
Enterprises by their technological capability
The NIS consists of several components aiming to foster the economic success of the firms and thus to increase the quality of life
The continuation of the RIS Latvia
The project of Regional Innovation Strategy (RIS Latvia) has became the milestone for developing the NIS, NDP and Regional Innovation Strategies
Monitoring and efficiency
• Social and Human Capital
- Universities
- S&T training and education
•Absorptive Capacity
- ”Follower” firms; Intermediate and end consumers and professional users
- Market for goods and services
•Research Capacity
- Universities; government,
laboratories
- Basic scientific research
•Knowledge Users
•Knowledge Creators
• Public Sector
• Private Sector
• Technology and Innovation Performance
- “Creative” firms
- Applied R&D and product/
process development
NIS concept contribution
National Development Plan 2007-2013
Financing for R&D&I, ERDF in%
18,31
6,11
0
2
4
6
8
10
12
14
16
18
20
2004-2006 2007-2013
Period
% 2004-2006
2007-2013
New products and technologies
Risk capital scheme
Shared laboratories
Training, consultancies
2004-2006
Strand III support
Business incubators
Pre-Seed
TTOs & LiOs
Competency Centres
Risk Capital
Qualified personnel
New product scheme
Innovation-System Created
Monitoring System
PPP Concept
Foresight
Operational Programme 2007-2013
Inno-Culture
Skills Centre
Techo-consultancies
TI – VCF scheme
Need analysis
Riga NIP
Business Angel networks
EU networks
Systemic innovation; the value chain
Source: Inno Group, 2007
Competitive companies
4,0
6,85,6
10,29,8
5,0
13,3
19,1
2002 2003 2004 2005
Applied research Experimental development
R&D performance in business sector shows positive pace
Intramural R&D in business sector by research type, EUR mill.
Source: Central Statistics Bureau, 2006.
Generation ofnew concepts
Productdevelopment
Redefinition ofprod. processes
Redefinition ofsales processes
Management (Knowledge and technology)
Mar
ket
dem
and
Market
Universities, R&D institutes, Private consultants, etc
Innovation management in companies
Planned aid budget – 8,4 MEUR
Received applications – 88, required grants 10,8 MEUR
Rejected projects – 43, total grants ~5,1 MEUR
Signed contracts – 45, total grants 5,7 MEUR
Changes in contracts (in paid out grants) – 31%
Support for Development of New Products and Technologies
(2004 – 2006)
Conclusions:• SMEs weak in formulation their technological needs• SMEs first look to grant, not to business goals and market demand• SMEs lack of innovation culture• SMEs need focused training and specialised consultancies• Consultants lack deep specialisation• Aid programs need better focus to market failures
Developing an Innovation and Enterprise CulturePromotion of entrepreneurship
– The specific strategy and mechanism for creating awareness about enterprise, and creating an environment whereby entrepreneurial activity is nurtured, supported and developed
– Creation of conducive environment– Awareness building campaign– Entrepreneurship education– Promotion of new innovative companies
Promoption of intrapreneurship – creating innovation culture in firms– Provide training in Creativity; – Promote a training culture in companies;– Empower employees to take an active role in the development of
enterprises;– Provide an environment for creating and developing new ideas;– Prepare managers to support the ideas developed by employees; – Define creativity as part of work;– Involve employees in decision making process; – Establish relevant system of innovation motivation and „bonuses”; – Allow risk as part of daily work; – Increased investment in R&D; – Evaluation of the effectiveness of work results
Thank you for attention!
Recommended