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Innovation for Strengthening the Electronics Industry Technology Market Place Oct 24 - 25, 2011 BMICH, Colombo Eng. Sanath Panawennage, Arthur C Clarke Institute for Modern Technologies

Innovation for Strengthening the Electronics Industry Technology Market Place Oct 24 - 25, 2011 BMICH, Colombo Eng. Sanath Panawennage, Arthur C Clarke

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Innovation for Strengthening

the Electronics Industry

Technology Market PlaceOct 24 - 25, 2011

BMICH, Colombo

Eng. Sanath Panawennage,

Arthur C Clarke Institute for Modern Technologies

BreakthroughInnovations

In Core Technologies

Innovations in core Business Processes,Business model, financing,Organizational Design, etc.

BreakthroughInnovations

In Core Technologies

“If you build a better mouse trap the world will beat a path to your door”

Typical product orientation concept

Not necessarily True always !

“What the customer needs may be a better solution to a mice-problem”

What is Innovation ?

• ‘Innovation’ – Often used together with ‘Science &

Technology’, ‘Research & Development’– there is growing recognition that innovation

encompasses a wide range of activities in addition to R&D, such as organizational changes, training, testing, marketing and design

Innovation is the process of Implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations.

(Oslo Manual, OECD)

Innovation,• More than Science and Technology – Also

Design, Business Models, Finance, Organizational Changes

• More than high tech manufacturing – Also in services

• More than Industry and Research Institutions – Also Consumers and Users

• More open and networked

Some Innovation-centric Policy and Strategy Responses

• In Austria, Finland, Sweden, the United Kingdom and the United States, investment in intangible assets and MFP growth have together accounted for between two-thirds and three-quarters of labour-productivity growth between 1995 and 2006, thereby making innovation the main driver of growth,

Country

% of GDP spent on

ST&I

No of USPTO-Patents granted p.a. 2004-2008

% of

High-Tech Exports

S. Korea 2.6 5000+ 75

Singapore 2.2 446 57

India 0.9 385 27

Malaysia 0.7 133 55

Thailand 0.24 32 27

Sri Lanka 0.13 1.8 1.5

Country Ranking (out of 125) Score

Switzerland 1 63.82

Singapore 3 59.64

USA 7 56.57

Korea 16 53.68

Japan 20 50.32

Thailand 48 38.63

India 62 34.52

Sri Lanka 82 30.36

Bangladesh 97 28.05

Pakistan 105 26.75

Global Innovation Index 2011

How do we view our Electronic Industry in this perspective of Innovation

The Electronic Manufacturing Industry of Sri Lanka today,

• Mainly contract-manufacturing of components, modules for leading global players.

• Only one or two Sri Lankan companies engaged in design, development, manufacture, marketing.

Contract Manufacturing,• Foreign / Joint ownership

• No local designs & development

• State-of-the-Art production facilities

• No technology transfer / local capacity development

External Environmental factors

• The Global Market for Electronics,Appx. 1.2 Trillion US $ SL share 0.03%

• Electronics Industry RevolutionMore than 40 years old

Technological revolutions (waves) - the basis for

economic development …..

Industrial Revolution (late 18th and early 19th centuries)

Electronics Revolution(1960's)

ICT Revolution(1980’s)

Biotech Revolution (1990’s)

Nanotech(In 21 st Century)

Key Interactions proposed in the National Science, Technology & Innovation Strategy

1.3.8. Promote linkages among R & D

Institutions, Universities and Industry

1.3.11 Establish a reliable mechanism to provide

useful technology foresight assessments

in niche areas on a regular basis to

researchers and local industries

1.3.12 Provide incentives to set up and

sustain R&D units in local industry

1.3.13. Encourage private sector companies to invest in R & D units in local industry.1.3.13.1 Systems to assist industries and businesses to help them to evaluate, select, transfer, upgrade, and add value to technology useful technology.1.3.13.2 Attractive Tax concessions/incentives for investments in R&D1.3.13.3 Attractive Tax concessions/incentives for income derived from new products and services thus realized.1.3.13.4 Equipping R&D institutes with necessary instruments/equipment which are beyond the budgets/justificaton for individual companies and provide easy access to such facilities.1.3.13.5 Improve the legal system for easy/inexpensive/speedy protection of IPR to encourage the use of public resources for R & D by the private sector

1.3.15 Establish a conducive environment for foreign R &D Companies to establish their R&D facilities in Sri Lanka and providing opportunities for capacity building and employment for local scientists and engineers.

Initiatives planned by the ACCIMT,

• Establishment of an Advanced Electronic & communication Design Laboratory.

• Establishment of an Advanced Calibration Laboratory.

• Establishment of an Advanced Conformity Assessment Laboratory.

• Establishment of an Advanced Electronic & Recovery Laboratory.

Thank you