SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS

Finance and Regulationsfor Innovation and Economic Growth

Sinan TumerHead of International Research Policy

SAP Research

November 20, 2009

ECFIN Conference Brussels

About SAP Research

Objectives Tapping into the academic brain-pool through campus based

research centers

Largest PhD program for IT in Germany

Open Innovation model through Co-Innovation with partners

Participation in EU and National programs

Active in think tanks such as the International Research Forum

Created 1999 with the mission of talent developing and contribution

to SAP's product portfolio…

…. by identifying and shaping emerging IT trends

…. by generating breakthrough technologies through applied

research.

© SAP 2009 / Page 2

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Requirements of Successful Innovation Policy

© SAP 2008 / Page 3

Revolutionary Technology

Financing Model

Risk Taking

Available Talent Pool

Ecosystem for Co-innovation

© SAP 2007 / Standard Presentation / Page 4

SAP Research Global Network

Pretoria Brisbane

Sophia Antipolis

WalldorfKarlsruhe

Dresden

Belfast

St.Gallen/Zurich

Darmstadt

Campus-based Engineering Centers SAP Labs-based Research Centers

Tel Aviv Bangalore

Palo Alto

Development Labs

Sao Leopoldo

Shanghai

Montreal

Research in Dialogue to Realize its Value Proposition for Partners and Customers

© SAP 2009 / Page 5

Demos Living Labs Exhibitions

eMotion

2nd LifeBlogs Wikis, Pages

Virtual Community

Co-Innovation

PublicationsProjects Workshops

Innovation through ICT

© SAP 2009 / Page 6

Today:

Europe is thelargest ICT marketin the world – butit largely importsfrom the US, Indiaand China insteadof from its homecountries.

ICT = value

driver of all sectors

ICT=ICT Industry +

commercial applications

ICT solutions have

to be well integrated

ICTin

Europe

European ICT Strategy (per ISTAG) - GOALS

© SAP 2009 / Page 7

Sustainable economic recovery to prevent us from future

turbulences (as those in 2008).

Cloud Computing

Internet of Services

Internet of Things

The Future Internet

Mega Trends of ICT European ICT Strategy

The increasing competition at a global scale and the emergence of new business models, not

only fuelled by ICT, but also transforming the ICT sector itself.

Massively available ICT capabilities embedded,

connected, ambient, and in the cloud.

International Collaboration

Sustainable collaboration through

joint calls

Consultation Workshops & Think Tanks

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… ICT is becoming a key enabler for achieving all major policy objectives of Europe THUS

…ICT is the driver for innovation in every other sector, thus the Internet will become the dominant infrastructure of the future with respect to the GDP growth and will enable SUSTAINABLE and competitive economic and social growth in Europe

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Impact of Information Technology (IT) On Society and Economy

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EU should implement appropriate regulations and foster investments to promote ICT innovations in all facets

science & technologyskill & know-how development,infrastructure for innovation culture dissemination & exploitations

© SAP 2007 / Page 9

Framework Program Historical Evolution Support Science & Technology Framework

05

10152025303540455055

Billion € 3.27 5.36 6.6 13.12 14.96 17.5 53.2

FP1 FP2 FP3 FP4 FP5 FP6 FP7

Started in the 80s

9B Euros of funding to ICT Research during FP7

FP7 Budget greatly increased + longer term focus (2007-2013)

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… developing forward-looking R&D procurement strategy impacts efficiency of public sector, innovation performance and competitiveness of Europe

… The Commission should raise awareness and provide incentives to member states to act as “early buyers” by using instruments like pre-commercial procurement to accelerate adoption and implementation of innovative solutions

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Incentives for Innovation in the Public Services

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… The Commission should consider supporting pre-commercial procurement as part of FP7 research funds to share the risk with member states

Tax Incentives are Crucial to Foster Innovation

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… For example in France and Canada, there is such a fiscal promotion. However, in Germany there is not. This weakens Germany’s position as an innovative location and puts local enterprises at a disadvantage.

…In some countries, R&D efforts are promoted through tax incentives – a very efficient instrument that is also frequently used by leading industrialized nations outside of Europe in order to create incentives for enterprises to invest in R&D

… Taxes are of course governed by the individual states – but why is there, in this case, no European Union-wide uniform policy instrument?

© SAP 2008 / Page 11

… Commission can provide financial incentives to spin-off start-ups by further exploiting results of funded research

…Financial incentives should be in place to promote entrepreneurship and high-tech start-ups Access to Venture Capital

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Incentives for Deployment and Commercialization of Innovation

© SAP 2008 / Page 12

… Commission should support dialogs between innovative ICT firms and venture capitalists/Business Angels

… part of such funds should be allocated to stimulate pre-commercial invention infrastructure like Living Labs, Industry Value Networks, PPP Center of Excellence

…Stimulates faster commercialization and exploitation of applied research, thus Europe can realize the deployment of investments in research faster

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Better Utilization of Structural Funds during Post-Research Stage

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… SME’s should have more access to structural funds to develop their innovative ICT structure to utilize Cloud computing technology

… Commission should allow research and post research funds be allocated for transatlantic cooperation with USA and China

…China launched public technology procurement program to encourage innovation. US public sector is spending $50B/yr in R&D procurement (20 times higher than Europe, 4 times higher in non-defense)

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Incentives for Cooperation with USA and China

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… topics critical for Europe like homeland security, transportation, climate change, energy… require such Cooperation to accelerate deployment of solutions at MS

© SAP 2007 / Page 15

Thank you!

QUESTIONS – COMMENTS – DISCUSSION