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Innovation policy in Lithuanian enterprises
Tomas Pranckevičius
Vilnius, 2009
Final master thesis
Facul ty of bus iness management
Content
• Introduction
• Internationalisation and economic performance
• Theory of innovations
• Innovation policy in Lithuania
• Proposals for innovation policy in Lithuanian enterprises
• Conclusions and proposals
2Innovation policy in Lithuanian enterprisesT. Pranckevičius
Introduction• Research object: science, technology and innovation policy, policy
creation, policy promotion.
• Research aim: to describe innovations, to indicate the most important factors of innovation in Lithuania, to create policy and solutions how to improve innovation in Lithuanian enterprises.
• Research methodology: scientific literature analysis (science research articles, monographs, scientific conferences and seminar methodology) and documents (programs, strategies, reports) analysis, comparison, summation.
• Goals or research questions: how to build better innovation level in Lithuania? What kind of unsuccessful factors exist in innovation policy implementation?
3Innovation policy in Lithuanian enterprisesT. Pranckevičius
Internationalisation and economic performance• Innovation through the CREATION, DIFFUSION and use of
KNOWLEDGE has become a KEY driver of ECONOMIC
GROW and provides part of the response to many new societal
changes.
T. Pranckevičius Innovation policy in Lithuanian enterprises 4
The determinants of innovation
performance have changed in a
globalising knowledge-based
economy, partly as a result of
recent developments in
INFORMATION AND
COMMUNICATION
TECHNOLOGIES (ICTs).
Models of innovation
T. Pranckevičius Innovation policy in Lithuanian enterprises 4
Sparking innovations in communities
6Innovation policy in Lithuanian enterprisesT. Pranckevičius
Incubator,
Mentoring
Finance, Risk
Capital
S&T
Knowledge,
Tech
Transfer
Research &
Development
Innovative
enterprises
Skills,
Human
Resources
Policy
Regulations
Innovation networks and knowledge clustersClassical Information
Architecture
Post-Modern Innovation
Architecture
Top-Down Bottom-Up
Centralized Distributed
Closed Open
Stable Adaptive
Planned Emergent
7Innovation policy in Lithuanian enterprisesT. Pranckevičius
Command / ControlCouncils / Boards
Enterprise – Wide
Collaboration
Collaboration / TeamworkCommand / Control
Innovation policy in Lithuania• R&D EXPENDITURES in enterprises 0.55% in 1998 and it is
still only 0.82% in 2007 of GDP.
• Innovations activities in Lithuanian enterprises for R&D are
intramural 44.1% and extramural 26.9% (2004-2006).
• Low participation in lifelong learning 4.9% leads to obsolete
qualifications, actually not suitable for high skill work.
• Lithuanian patents per million populations are 0.37% EPO
(EU level 9.83%).
• Lithuania by the 2008 European Innovation Scoreboard is in
the level of catching-up countries. Lithuanian has only around
1% annual grow in INNOVATION PERFORMANCE.
T. Pranckevičius Innovation policy in Lithuanian enterprises 8
Co-operation arrangements on innovation activities, 2004–2006Percent of enterprises with innovation activity
9Innovation policy in Lithuanian enterprisesT. Pranckevičius
• 43% enterprises collaborate
in innovation activities,
• 27.7% of all innovations
were generated in
collaboration with CLIENTS
or CUSTOMERS,
• 21.2% with OTHER
PARTNERS,
• 34% with SUPPLIERS,
• 18.4% higher EDUCATION
institutions,
• 10.3% RESEARCH
institutions.
Lithuanian statistics, 2008
Internet access total by economic activities
• 96.1% percent of enterprises
with the staff of 10 and more
employees used computers,
95% percent – the Internet at
work
• In everyday work,
computers were used at least
once a week by 31.4%
percent, the Internet – by
28.8% percent of employees
of such enterprises
10Innovation policy in Lithuanian enterprisesT. Pranckevičius
Lithuanian statistics, 2008
Collaborative work space innovation and societal change
11Innovation policy in Lithuanian enterprisesT. Pranckevičius
Technology transformation visualisation and virtualisation, possibilities for identification, such tools like Living Labs and maybe more opportunities looks very widely and perspective in the near future and good scenarios for innovative enterprises.
Basic Technologies of Living Lab architecture• Living labs can be used as an instrument and core for the
collaboration in national and regional innovations systems, between
enterprises, science and research institutes, clusters, public-private
partnership.
T. Pranckevičius Innovation policy in Lithuanian enterprises 12
IT Enable Strategy,
Collaboration...
Councils/Boards/Working
Groups... Employee
(Social/Visual)... Networks
Innovation / Process / Speed /
Scale... Productivity
Sustainable Differentiation...
Time to Market
Enterprises / Technology...
Architecture
Global Lithuanian conceptionBuilding human-like world's knowledge base in Lithuanian language and provide knowledge based search semantics systems and services with virtual space economy or Knowledge Based – Geospatial Information System (KB-GIS).
Levels: 1) NATIONAL, 2) NORDIC-BALTIC REGION 3) INTERNATIONAL.
To be a part of GLOBAL MIND?
13Innovation policy in Lithuanian enterprisesT. Pranckevičius
Conclusions and proposals (I)• Higher education sector with science and technology
research are the key driver of innovation performance.
• Promote economic cooperation and entrepreneurship, regional cluster cooperation and innovation opportunities in the region with special focus on creative and innovative industries.
• Science, technology and innovation development commission is not so active today. Innovation coordination institution strongly is recommended to establish.
14Innovation policy in Lithuanian enterprisesT. Pranckevičius
Conclusions and proposals (II)• Enterprises and science in collaboration have a lack of
innovation strategies, there is no national innovation strategy.
• Enterprises have not enough access to public activities in public and scientific institution funding programs and it not promotes entrepreneurship collaborative network with partners.
• There is a lack of measurements about innovation activities through ICTs. Analysis of networking and partnerships for innovation, application of networks, partnership for innovation activities, and productivity of interaction within networks is rather limited and needs to be developed.
15Innovation policy in Lithuanian enterprisesT. Pranckevičius
Conclusions and proposals (III)• Stimulate collaboration, innovation culture and creative
entrepreneurship: 1) eliminate all not necessary bureaucracy, 2)
promote foreign investments, 3) ensure credits, 4) manage
fiscal deficit, 5) stimulate economic activity and 6) promote all
state institutions and involve in innovation processes.
• To set up better relationship and to let increase working
efficiency in change and increased way of using ICTs: to
enhance innovation by empowering users, workers, science and
industry in collaborative and organizational way.
T. Pranckevičius Innovation policy in Lithuanian enterprises 16
Thank you!
Questions and remarks!
T. Pranckevičius Innovation policy in Lithuanian enterprises 17