EL TRIÁNGULO DEL CONOCIMIENTO Y EL MUNDO FINANCIERO Universidad Menéndez Pelayo, 2010

1. EL TRIÁNGULO DEL CONOCIMIENTO Y EL MUNDO
Sesión 3ª CIENCIA Y
FINANCIERO
EMPRESAS
Francisco J. Jariego
UIMP, 29 Septiembre 2010
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2. EL TRIÁNGULO DEL CONOCIMIENTO Y EL
MUNDO FINANCIERO
Mañana
Sesión 3ª CIENCIA Y EMPRESAS
Preguntas:
• ¿Cómo conseguir que las actividades de I+D+i se incorporen de verdad a
la estrategia de las empresas y tengan representación directa en los más
altos niveles de decisión corporativa?
• ¿Cómo fomentar la inserción de países y empresas en las agendas
internacionales de I+D+i que configuran el futuro de muchos sectores
industriales?
• ¿Cómo crear una cultura empresarial de gestión de la innovación en todos
sus aspectos, incluidos los financieros?
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3. 01
The CEO
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4. The importance of being… CEO
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5. Hurdles
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6. “You'll always miss 100% of the shots you
don't take”, Wayne Gretzky
Innovation always involves risk. It can
be hedged, mitigated, insured against, and
shared with others, but—by definition— it
never can be eliminated from innovation,
nor should it be. Leaders and companies
that will not take enough risk will never be
able to achieve payback through
innovation. Companies that say they
want to innovate, but then do
everything possible to remove all the
risk, will confound the process and
drive innovative people away.
The greatest risk that leaders and their
companies face is taking no risk at all
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7. ROI: The missing link
BAH, Global Innovation
1000, 2005, Money Isn’t
Everything
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8. Risk Aversion
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9. Exploitation vs. Exploration
innovat
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10. A nightmare at the CIO Office: A fictional
story
Once upon a time, a young
entrepreneur made a proposal to the Dreaming of innovation
CIO of a big company to radically
change IT management...
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11. You are what you measure
HBR, Dan Ariely
CEOs care about stock value because that’s how
we measure them. If we want to change what
they care about, we should change what we
measure.
It can’t be that simple, you might argue— but
psychologists and economists will tell you it is.
Human beings adjust behavior based on the
metrics they’re held against. Anything you
measure will impel a person to optimize his score
on that metric. What you measure is what you’ll get.
Period.
To change CEOs’ behavior, we need to change the
numbers we measure. Stock value metrics that
focus on the long term are a start, but even more
important are new numbers that direct leaders’
attention to the real drivers of sustainable
success.
What are those numbers?
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12. Gut feeling: Understanding our inner
workings
Mckinsey Quarterly
“Left unchecked, subconscious biases will undermine strategic decision
making. Here’s how to counter them and improve corporate
performance”
“Executives should trust their gut instincts—but only when four tests are
met.”
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13. 02
Culture
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14. Markets: The Innovation Machine
(Richard Foster & Sarah Kaplan, “Creative Destruction: Why Companies that Are
Built to Last Underperform the Market”)
70
60
Avg. life of a S&P 500 company has
fallen from ~65 yrs in the 1930s to
50 ~20 yrs in the 1990s
40
30
20 Trend
Line
10
0
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15. The Red Queen Effect
 In two major studies published in 2002 and 2005, Robert
Wiggins of the university of Memphis and Tim Ruefli of the
University of Texas, added some rigor to the question of
competitive advantage.
 They examined a sample of 6,772 companies across forty
industries from 1974 to 1997. And their finding confirmed
that true competitive advantage is both rare and
relatively short lived:
• Only 5% of the companies in the sample ever achieved a
period of superior performance lasting 10 years or more
• Only 32 companies (less than 0,5%) made it 20 years
• Only 3 companies (American Home Products, Eli Lilly and
3M) sustained high performance to the 50 year mark
 Wiggins and Ruefli also found that the intensity of
competition increased during the 23 year sample
period and also showed that there is no such thing as a
safe, stable industry. Schumpeter’s ghost was alive and
well: “the gales of creative destruction” were blowing
harder than ever
 While Wiggins and Ruefli’s data presents a major
challenge to the notion of strategy based on traditional
economy, the patterns they identified would come as
no surprise to an evolutionary biology. Competitive
advantage is rare and sort lived in the biological world as
well. Indeed it is exactly what one would expect in an
evolutionary system
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16. Non Zero-Sum Games: Cooperation
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17. 3 C’s
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18. Innovator’s DNA
HBR, Jeffrey Dyer, Hal Gregersen, Clayton
Christensen
 Associating: The ability to successfully connect unrelated
questions, problems or ideas from different fields… The
Medici Effect
 Questioning: Ask Why, Why not, What if. Play the devil
advocate. Hold two diametrically opposing ideas in your
head at the same time. Constraints as catalysts
 Observing: Discovery driven executives produce
uncommon business ideas by scrutinizing common
phenomena, particularly the behaviour of potential
customers. In observing them, they act like anthropologist
and social scientist
 Experimenting: Like scientists, innovative entrepreneurs
actively try out new ideas by creating prototypes and
launching pilots
 Networking: Unlike most executives, innovative
entrepreneurs go out of their way to meet people with
different kind of ideas and perspectives to extend their own
knowledge domains
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19. Tinkering:
"Siempre estoy haciendo cosas que no puedo
hacer, así es como logro hacerlas." Pablo Picasso
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20. OECD Innovation Strategy: Key Findings
Foster entrepreneurship
Businesses, especially new and young firms, are the main source of
job growth from innovation.
Barriers to firm entry and exit need to be reduced
Policies that facilitate structural change are crucial for reallocating
resources.
• New enterprises drive many obsolete firms out of the market and often
do not survive very long themselves.
• Evidence from OECD countries suggests that between 20% and 40% of
entering firms fail within the first two years.
• This reallocation of resources to more efficient and innovative firms is
central to innovation and economic growth and should be based on open
and competitive markets.
• Labour market policies should provide the flexibility and mobility
necessary to enable reallocation of resources from declining to innovative
firms, along with support for lifelong learning and re-skilling of workers.
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21. How to start an entrepreneurial revolution
HBR, Daniel J. Isenberg
 Do public leaders... 1. Stop Emulating Sillicon
• Act as strong, public advocates of Valley
entrepreneurs and entrepreneurship?
• Open their doors to entrepreneurs
and those promoting
2. Shape the Ecosystem
entrepreneurship? Around Local Conditions
 Do governments...
• Create effective institutions directly
3. Engage the Private Sector
associated with entrepreneurship
(research institutes, overseas
from the Start
liaisons, forums for public-private
dialogue)? 4. Favour the High
• Remove structural barriers to Potentials
entrepreneurship, such as onerous
bankruptcy legislation and poor
contract enforcement? 5. Get a Big Win on the Board
 Does the culture at large... 6. Tackle Cultural Change
• Tolerate honest mistakes, honorable
failure, risk taking, and contrarian Head-On
thinking?
• Respect entrepreneurship as a 7. Stress the Roots
worthy occupation?
 Are there visible success stories 8. Don’t Over engineer
that... Clusters; Help Them Grow
• Inspire youth and would-be
entrepreneurs? Organically
• Show ordinary people that they too
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can become entrepreneurs? 20 9. Reform

22. What do you want to be when you grow
up?
Putting a ding in the universe!
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23. Culture: The 10 Commanments
Eric Beinhocker, The Origin of Wealth
1. PERFORMANCE ORIENTATION Performing
2. HONESTY norms
3. MERITOCRACY
4. MUTUAL TRUST
Cooperating
5. RECIPROCITY
norms
6. SHARED PURPOSE
7. NON-HIERARCHICAL: Junior people are
expected to challenge senior people, and what
matters is the quality of the idea, not the title of
the person saying it
8. OPENNESS: Be curious, open to outside Innovating
thinking, and willing to experiment; seek the norms
best wherever it is
9. FACT BASED: Find out the facts. It is
facts, not the opinions, that ultimately counts
10. CHALLENGE: Feel a sense of competitive
urgency; it is race without a finish line
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24. 03
Homework
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25. OECD Innovation Strategy: Key Findings
The OECD Innovation Strategy
is built around five priorities for
government action:
1. empowering people to
innovate;
2. unleashing innovation in
firms;
3. creating and applying
knowledge;
4. applying innovation to
address global and social
challenges; and
5. improving the governance
and measurement of policies
for innovation.
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26. Yes, we can
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27. Others can: The new world order
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29. OECD Innovation Strategy: Foster efficient
knowledge flows, networks and markets
 Knowledge drives economies, but mechanisms for its diffusion are not well developed. Knowledge
networks and markets are so far much less developed than product, labour and financial markets.
Public policy should therefore support the formation of knowledge networks and markets.
 This can be done through policies that encourage the development of knowledge brokerages. In
appropriate cases these could facilitate the securitisation of intellectual assets, thereby enabling
the capture of value on a much broader range of knowledge assets.
 Effective protection of IPRs is necessary to encourage innovation, investment and trade ... Patents are
particularly important for small firms, as they can facilitate entry into new markets and enable
competition and collaboration with other firms
 The protection of knowledge needs to be combined with policies and mechanisms that facilitate
access and transfer. Excessively strong IPR may hamper the appropriate use of protected
knowledge and discourage follow-on research and research in adjacent areas to the detriment of both
competition and innovation.
 The quality of patents is important to ensure competition.
 IPRs not only contribute to innovation, they are also a means of diffusing knowledge and creating
value. A variety of collaborative mechanisms, such as licensing markets or pools and clearing
houses, can facilitate access to and use of knowledge
 In a knowledge-based economy, governments need to take concrete steps to foster the development
of knowledge networks and markets.
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30. Global Challenge: Building an IP
Marketplace US Companies intangible Assets as a
Percentage of Total Assets, WIPO
 Historically, the economic activity generated by the exchange and
valuation of physical goods has been supported by functioning
marketplaces that provide transparency of ownership, integrity that
creates a stable environment, and mechanisms that enable valuation
based on the principles of an open market.
 As economic focus shifts from physical goods to intangible assets
in the 21st century, many agree an analogous supporting marketplace
needs to be developed.
 Patents have become an important currency and a principal means
to establish value for creators and users of knowledge-based assets.
 A fully functioning IP marketplace infrastructure has yet to
emerge, however, placing an undue burden on patent systems. This
void creates uncertainty that leads to a number of problems including
increased litigation and speculative behaviors that Inhibit the innovation
patent systems were designed to protect.
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31. Spain – a bird’s eye view
Indicator Value Year Rank Trend Best Source
GDP (nominal) 1.464 B US$ 2009 9 = EU IMF
R&D Intensity 1,12% GDP 2007 25 UP Sweden (3,82%) OECD
BERD 0,46% GDP 2010 28 UP Israel (3,93%) OECD
Direct Gov.
Funding of 0,12% GDP 2010 5 ? USA (0,18%) OECD
BERD
Scientific 1996-
448.240 9 UP USA (4.307.536) SJR
Production 2008
3.267
Resident 12 Japan (333.498)
Patents 2007 UP WIPO
4.289 Non 18 USA (168.605)
Res.
Networked
4,37 2010 34 DOWN Sweden (5,65) WEF
Readiness
Ease of doing WORLD
2010 62 DOWN Singapore
Business BANK
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32. Investing in Innovation
Expenditure on innovation, by firm size, 2006 Firms receiving public support for innovation, by
As a percentage of turnover) size, 2004-06 (As a percentage of innovating firms)
Large firms SMEs Large firms SMEs
Canada (2004, Canada (2002-04,
manufacturing) manufacturing)
Korea (2008,
Italy
manufacturing)
Korea (2005-07,
Estonia
manufacturing)
South Africa (2005) Netherlands
Luxembourg Austria
Germany Spain
Italy Belgium
Denmark China
Sweden Japan (1999-2001)
New Zealand Germany
Ireland Luxembourg
Belgium Czech Republic
China Chile
Czech Republic Portugal
Iceland (2004) Iceland (2002-04)
Netherlands Estonia
United Kingdom Australia (2006-07)
Spain South Africa (2002-04)
0 2 4 6 8 10 0 20 40 60 80
% %
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33. Ease of doing Business
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34. Ease of doing Business
Spain
51 to 62
1 REFORM
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35. Spain: Entrepreneurial Motivation
Global Entrepreneurship Monitor, GEM España, Informe Ejecutivo, 2009
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36. How we innovate
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37. We have an open innovation framework
steered by TEF operating businesses...
PARTNERSHIPS
SCIENTIFI
C GROUPS
UX LABS
TECH
OBSERVATOR
Y
TECH
TRANSFER
- +
Local OBs/Competence Centers
DERSHIP Telefonica I+D
+ -
Customers
... and guided by Technology provide
us a sustainable should lead the
definition of our
two principles competitive advantage
product and
services
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38. Scientific Teams
Early radar: for warning and discovery beyond vendors and gov funding
agencies.
• Access high-impact early ideas before the buzz is already on…
To speak to talented people, you need talent…
Learning the process, not just the result.
• Often understanding what did not work is most important.
To generate unique differential technology whenever it makes sense:
• in areas where the operator has a lever
• developing technologies that accelerate the commoditization of vendor's equipment
or that are against vendors’ interest
• opening new markets adjacent to Telcos (e.g. Amazon Dynamo and cloud
computing)
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39. User experience & Usability
testing: making sure it
works (and delights)
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40. Software design, coding
and testing: making it real
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