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
“
.
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
“
… 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
.
Impact of Information Technology (IT) On Society and Economy
© SAP 2008 / Page 8
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)
“
… 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
.
Incentives for Innovation in the Public Services
© SAP 2008 / Page 10
… 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
“
… 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
.
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
.
Better Utilization of Structural Funds during Post-Research Stage
© SAP 2008 / Page 13
… 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)
.
Incentives for Cooperation with USA and China
© SAP 2008 / Page 14
… 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