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Innovation strategies

National strategies

Eva Gajzago

on 14 May 2018

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Transcript of Innovation strategies

Why should the government
support innovation?
development of
national economies
Definition of the national innovation process and strategy
'Innovation can be defined as the transformation of an idea into a marketable
product or service, a new or improved manufacturing or distribution process, or
even a new method of providing a social service. This
adaptive network of institutions
that encompass a variety of informal and
formal rules and procedures—a
national innovation ecosystem
—that shape how
individuals and corporate entities create knowledge and collaborate
to bring new
products and services to market.'
the European Union’s
-year growth strategy
is about delivering growth that is:
through more effective investments in education, research and innovation;
thanks to a decisive move towards a low-carbon economy; and
with a strong emphasis on job creation and poverty reduction
in the areas of employment, innovation, education, poverty reduction and climate/energy

Global and local processes affecting innovation
Definition of the national innovation process and strategy
How and why can (should) the government support innovation?
EU strategy - HORIZON 2020
Hungarian innovation strategy - present strategy and its goals

lecturer, College of Dunaújváros
PhD student, Széchenyi István University Doctoral School on
Regional Science

Changing higher education
Economic crisis
strengthening power of developed regions
changing systems and structures
improving role of information, communication and innovation
higher educational institutes joining global networks and processes
global information and cooperation networks
awareness of natural resources
changing level of regional competition - cities and attraction zones
changing studying area
changing role of information
multicultural and multilingual courses
institutions join global economic processes
online and open courses
global research networks - eg. international co-authorship of publications, co-inventors of patents
new R&D areas (biotechnology, nanotechnology, genetic engineering, etc.)
free flow of knowledge?
innovation strategy
changing importance of innovation
innovation can be an outbreak point
changing national and international systems
less governmental support?
new methods: decentralization, deregulation, partnership, cooperation, networking
new aspects: think global, act local
strengthening importance of information and communication
sub national innovation systems
company management belongs to global headquarter but innovation management must be local
lack of resources (human resources)
specific local knowledge became more important
cooperation with local companies - knows local attitudes, customs
creative class, cities are the cradles of creativity
problems of global branding
human side of innovation - people can adapt more slowly than systems (Dahrendorf, 1994 - 6 mth, 6 y, 60 y)
Basics and definitions
(Nagaoka S., Kondo M., Flamm K., Wessner C., 2009.): 21st Century Innovation System for Japan and the United States, Comparative Innovation Policy, 13.p.)
History of innovation and innovation networks
invention in prehistoric societies (boomerang, toggle-joint harpoon)
first known inventor: a “government employee,” Imhotep - built the first pyramid
Khufu - how to move 50-ton granite slabs
workers for Ramses - moved 1,000-ton statues
Greek city-states (Dionysius, Archimedes) - new institutions of research and discovery (respect and reputation), purchased research, large research teams, new type of self-funding research institution (schools organized around one or more great teachers)
Library of Alexandria (Alexander the Great)
Romans’ huge administrative machine, government-sponsored innovators (Marcus Vipsanius Agrippa - siege weapons and catapults)
repeatedly discovered and forgot the same inventions, inventions sometimes died with their inventors
Dark Ages
Antioch - the first artificial streetlights
Church monasteries - small libraries, technologically advanced mills, factories, and farms
guilds - shipbuilding, printing press
rise of universities -medicine and natural science
Industrial Revolution - first systems of intellectual property rights, patents, copyright, prizes
Modern Patrons - foundations (Carnegie and Rockefeller institutions, Ford Foundation)
Big Science and the Growth of Government Funding - government laboratories, government grants
S. Scotchmer (2004): Innovation and Incentives, The MIT Press Cambridge, Massachusetts, London, England
System of national innovation
Global and
international systems
Government and
public institutes
(higher education)
research centers
Definition of innovation
the 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
the process of translating an idea or invention into a good or service that creates value or for which customers will pay.
the development of new values through solutions that meet new requirements, inarticulate needs, or old customer and market needs in value adding new ways.
Oslo Manual, 46.p.
National innovation system (NIS) is
group of institutions, companies and other organizations
together with resources, regulations and terms, which
affect the development, elaboration, delivery, spreading and using of
new knowledge and technology
Hungarian innovation policy 2007-2013
development of the innovation potential of economic sector
inventions can not easily come out from universities
innovation is a difficult process - can not be standardized (can not produce much profit, willingness of investment is low- common goods?)
innovation can be defined as a new method of social and public services
innovation is closely connected with knowledge - promotion of education
creation of knowledge is complicated and affected by the knowledge of people (unstable)
creation of knowledge is like information - can be copied or stolen
knowledge is know-how and expertise (difficult to measure)
knowledge (tacit knowledge) and innovation affects the society (not only the economy)
innovation does not only needs invention but the whole process and the knowledge of actors (and infrastructure too)
cooperation and networking is essential for innovation
elaboration of basic innovation acts and regulations (standardizing regulations)
systematic and coherent promotion of science
increasing the rate of science and technology subventions in the budget
institutional reforms in public universities and research institutes (HR)
strengthening the cooperation of companies, industry, academics and higher education
development of patent laws and acts and increase the protection of property rights
promoting R&D project in cooperation of public and business sectors
founding special intermediary organizations - promoting cooperation and for effective research results
promoting technology transfer
promoting incubation of new companies (spin-offs)
establishing Cooperation Centres
special subventions for joint research projects
promotion of innovation marketing, spreading innovation culture
How do you think globalization affects universities?
What kind of organizations participate in a national innovation system?
Why should the government support innovation?
Types of national innovation system
dominant player (Ireland, Sweden)

division of labour (Germany)

pillarized (South-Korea)
How can/should the government
support innovation?
How can (should) the government support innovation?
EU innovation strategy
Innovation performance in the EU
EU Member States’ innovation performance
4 groups of countries
Innovation leaders (Denmark, Finland, Germany and Sweden) - well above that of the EU27 average
Inovation followers (Austria, Belgium, Cyprus, Estonia, France, Ireland,
Luxembourg, Netherlands, Slovenia, UK) - lose to that of the EU27 average
Moderate innovators (Czech Republic, Greece, Hungary, Italy, Malta, Poland, Portugal, Slovakia, Spain) - below that of the EU27 average
Modest innovators (Bulgaria, Latvia, Lithuania, Romania) - well below of the EU27 average
country groups: innovation performance per dimension
What do innovation leaders have in common
national research and innovation systems with a key role of business activity and public-private collaboration
perform very well in Business R&D expenditures
perform very well in other innovation indicators related to firm activities (Sweden in 3 out of 8 innovation dimensions - Human resources, Finance and support, Firm investments -, Germany and Denmark in 2)
a balanced national research and innovation system
- 75% of the 20-64 year-olds to be employed
R&D -
3% of the EU's GDP to be invested in R&D
Climate change and energy sustainability
- greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990
- 20% of energy from renewables
- 20% increase in energy efficiency
- Reducing the rates of early school leaving below 10%
at least 40% of 30-34–year-olds completing third level education
Fighting poverty and social exclusion
- at least 20 million fewer people in or at risk of poverty and social exclusion
The 5 targets for the EU in 2020
7 flagship initiatives
Smart growth
Digital agenda for Europe
Innovation Union
Youth on the move
Sustainable growth
Resource efficient Europe
An industrial policy for the globalisation era
Inclusive growth
An agenda for new skills and jobs
European platform against poverty
Innovation Union
Investment into the future
Natioal R&D and invation strategy
Content of strategies
situation analysis
problem identification and possible strategies
vision and objectives
monitoring and feedbacks
3 main parts
knowledge creation
knowledge utilization
knowledge flow
until 2020:
R&D expenditure to 1,8% of GDP
until 2030:
R&D expenditure to 3% of GDP
Main objectives
30 more bigger R&D organizations enter into the world's elite
30 more R&D centers of global companies investing and settles in Hungary
30 more R&D intensive macro regional medium sized companies
300 more gazelles (R&D and development oriented small companies)
1000 more innovative start-ups promoted
more innovative local supplier companies connected with global companies invested in Hungary
College of Dunaújvaros, Hungary - Inst. Social Sciences, Application Office
PhD student, Doctoral School on Regional Sciences, Győr - Innovation intermediary organizations
member of regional innovation subcommittee of Hungarian Academy of Science
12 years work experience (6,6)- marketing, project management, teaching
participating in the foundation of Innovation Management Center of the college
mother of 2 children (2,4)
BLOG: Marriage of Innovation and Regional Development
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