Culture and Innovation

1. Model of the Entrepreneurship Motivation and Innovation Culture programme 22 March 2007 Valdis Avotiņš, Agnese Griņeviča, LIAA Rene Tõnnisson & Wolfgang Drechsler, Tartu

2. New products and technologies Risk capital scheme Shared laboratories Training, consultancies 2004-2006 Strand III support Business incubators Pre-Seed TTOs & LiOs Competency Centres Risk Capital Qualified personnel New product scheme Innovation- System Created Monitoring System PPP Concept Foresight Operational Programme 2007-2013 Inno-Culture Skills Centre Techo-consultancies TI – VCF scheme Need analysis Riga NIP Business Angel networks EU networks

6. 1. INNOVATION AND EXISTING CULTURE (especially regional / local) as it exists 2. CULTURE FOR INNOVATION in the sense of an innovation conducive climate within a certain location (“innovation milieu”) 3. INNOVATION CULTURE in the sense of an innovation-conducive habit or system or best practise within a given company Innovation & Culture

8. Only external barriers

9. Assimmmetry of information (308 firms intervied) RIS Latvia, 2003

10. Share of i n n ovat ive firms, % , 2002-2004 17,5% innovative firms gave 42,3% of total turnover in 2004 Only 4,7% product innovative Only 3,5% high-tech in manufacturing

11. Competitive companies R&D performance in business sector shows positive pace Intramural R&D in business sector by research type, EUR mill. Source: Central Statistics Bureau, 2006.

12. Two policies Encouraging phase Birth phase Start phase After-start phase (upon 42 months) Growth management phase Entrepreneurship policy Promotion of new innovative SMEs policy

13. Division of business education in Education system in Finland Business values and attitude Business related knowledge Business and management knowledge Pre-schools High schools Universities Vocational education Life-long learning

14. Lujo Brentano 1844-1931

15. “ When I climbed out of the boat that had brought us back … to Naples, and gave to one of the boys lying on the pavement my briefcase to carry, he shook his head with the words: I have already eaten!” (Brentano)

18. But this is just half of the story... There are innovations that are only good for the entrepreneur, and there are innovations that are also good for state, society, and economy. And while entrepreneurship is nice as such, the interest for the state side and regions lies in promoting it in precisely those areas that have a “snowball effect” to produce a general increase in production and wealth.

19. not so much, or not only, about creating an innovation-friendly culture, but to create a set of innovation incentives which are in line with the existing culture! Therefore, the question or challenge implied in asking about regional innovation culture is

20. Regional culture can ATTRACT innovation: During economic globalization, which is marked by a divorce of value-addition and physical product, life remains “real” and must be lived. Thus, to attract innovative business, as or more important than tax advantages etc. may be LIVING ENVIRONMENT and quality of life for the innovators and their families… … which are partially cultural, partially infrastructural, partially natural (landscape and climate ), but they ARE promotable and should be a focus of any regional innovation strategy.

31. Pre-seed Facility Programme Model

34. Role of Pre-seed Facility Applied and basic R&D Idea with comm. value Entrepreneurship education, training Idea stimulation / business idea formulation Market analysis Product Protection Development Value Competition cooperation Business plan Dev. plans Market plan Organisation plan Financial plan Prospect Licensing IPR Commercial protection Marketing Royalty agreement License to existing company Forming new start-up Funding Equity registration Incubator company Operational company Real estate Incubator Premises Industrial networks Basic daily services Professional services Asset management Early stage Seed capital Risk capital Competent management Technology Transfer System Innovation Culture and Entrepreneurship Motivation Education Outflow of Master, PhD Fiscal incentive environment Business culture Social attitudes Understanding of failures Greenhouses Business labs Pre-analysis IPS fund Seed fund Business and Technology Incubators Pre Seed fund

36. Innovation Culture is thus not about having more technological innovations

37. ... but it is about the right attitude and understanding how to make best out of innovations in your specific situation

38. P ē rses iela 2, R i ga, LV 1442, Latvia Phone: +371 70394 1 0 Fax: +371 7039401 E-mail: valdis.avotins @ liaa . gov . lv http://www.liaa.gov.lv Thank You for attention!