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Benchmarking Study On Innovation Policy 29012010
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Benchmarking Study On Innovation Policy 29012010
1.
Benchmarking Study on
Innovation Policy CC India, Research services January 29, 2010
2.
Contents Summary
Case Studies Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 2
3.
Promoting „industry and
academia linkage‟ and „R&D/ innovation programs‟ are the prominent trends across the top innovative countries in the world Summary –Best practices followed by the top innovative countries Presence of the Best Practice in the NL Yes/ No Level Supporting the linkages between industry and academia has emerged as a prominent trend amongst the top innovative countries in the world. This linkage is promoted in a number of ways, like: − Companies promote commercialisation in the universities Promoting industry and academia linkage − Increasing the number of Industrial PhD‟s carried out in cooperation P between an enterprise and a university − Innovation funds (backed by the private sector) promote entrepreneurship education, technology incubators, entrepreneurs-in-residence and other programs in the universities Promotion of R&D activities has been done by providing direct funding to national entities/ universities to carry out research/ innovation programs Promoting R&D Developing specific clusters and carrying out R&D in areas of national P importance has emerged as a major trend Governments have been proactive in encouraging tax credits to businesses Providing tax credits involved in R&D/ innovative activities P − This initiative has been highly beneficial for the Small and Medium Enterprises (SMEs) In the R&D activities and the innovative programs prevalent in the countries, Inclination towards a P areas related to sustainable development, clean environment/ energy, climate sustainable society change have been paid special attention via direct funding/ tax credits Note: The presence/ absence and the level of presence of a best practice in the Netherlands is based on the analysis of the secondary sources of information only. The idea is to give a flavour of the overall dynamics of the innovation landscape in the Netherlands when benchmarked vis-à-vis the top innovative countries in the world Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 3
4.
Supporting „SMEs for
innovation‟ and „developing the basic building blocks of innovation‟ have also been important for promoting innovation Summary –Best practices followed by the top innovative countries Presence of the Best Practice in the NL Yes/ No Level The top innovating countries have focussed on supporting the Small and Medium Enterprises (SMEs) in various activities that promote innovation SME support P − Government support mainly consists of monetary funding and proving technical know how The governments across the top innovating countries have been focussing on easing credit availability for innovative/ research oriented businesses Easing credit − This helps in promoting new ideas into the market, thus leading to an P availability innovative economy − Majority of these activities have been focussed on providing support to the Small and Medium Enterprises (SMEs) Promotion of the “Entrepreneurial spirit” into the mindset of the businesses/ citizens. For example: Promoting − Promoting the incubators set up in the universities, to help fasten the entrepreneurial process of commercialisation of an idea P environment − Developing academic entrepreneurship in the Institutes of Higher Learning − Promoting the science and technology education Better Physical and ICT infrastructure helps in creating an efficient environment, Developing physical and further removes unnecessary delays & ICT infrastructure − These focus around improving highways and mass transit systems; and P broadband expansion, etc., Note: The presence/ absence and the level of presence of a best practice in the Netherlands is based on the analysis of the secondary sources of information only. The idea is to give a flavour of the overall dynamics of the innovation landscape in the Netherlands when benchmarked vis-à-vis the top innovative countries in the world Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 4
5.
Contents Summary
Case Studies Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 5
6.
Global Innovation Index
(GII) is based on the quantitative and qualitative data gathered for the eight pillars (five for Inputs and three for Outputs) Global Innovation Index–by INSEAD and Confederation of Indian Industries (CII) Global Innovation Index Key Discussion Overview: The Global Innovation Index (GII) is based on the quantitative and qualitative data gathered for the eight INPUTS OUTPUTS pillars mentioned (five for Inputs and three for Outputs) Institutions and Policies Knowledge - Input Pillars: The input pillars define aspects of the conducive environment required to stimulate innovation within an economy Human Capacity Competitiveness - Output Pillars: The Output pillars provide evidence of the results of innovation within the economy Infrastructure Wealth Difference (Input-Output Rank): - Positive Difference: The countries with a positive difference between (Input-Output Ranks) indicate that in spite of Market Sophistication relatively poor environment than other countries, they are able to deliver in terms of output Business Sophistication - Negative Difference: The countries with a negative difference between (Input-Output Ranks) indicate that in spite of relatively better environment than other countries, they are not able to deliver in terms of output Overall Ranking Input Pillars Ranking Output Pillars Ranking Input-Output Rank Country Rank Country Rank Country Rank Country Difference United States 1 Denmark 1 United States 1 Japan 11 Germany 2 United States 2 Germany 2 Germany 8 Sweden 3 Sweden 3 Japan 3 Netherlands 4 United Kingdom 4 United Kingdom 4 Sweden 4 United States 1 Singapore 5 Singapore 5 United Kingdom 5 Korea, South 1 Korea, South 6 Switzerland 6 Singapore 6 Sweden -1 Switzerland 7 Canada 7 Korea, South 7 United Kingdom -1 Denmark 8 Korea, South 8 Netherlands 8 Singapore -1 Japan 9 Hong Kong 9 Switzerland 12 Finland -4 Netherlands 10 Germany 10 Finland 15 Switzerland -6 Canada 11 Finland 11 Canada 15 Canada -9 Hong Kong 12 Netherlands 12 Hong Kong 18 Hong Kong -9 Finland 13 Japan 14 Denmark 21 Denmark -20 Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 6
7.
US innovation strategy
focuses on investing in the building blocks of innovation, promoting competitive markets and supporting specific clusters United Sates – GII Ranking #1 United States Overview of Innovation Policies/ Initiatives Overview: The innovation strategy of the US is based around three main pillars mentioned below - Investing in the building blocks of American innovation: Initiatives which support the necessary tools for innovation, from investments in R&D to the human, physical, and technological capital needed to perform research and innovations - Promoting competitive markets that spur productive entrepreneurship: Creating a national environment ripe for entrepreneurship and risk taking - Catalysing breakthroughs for national priorities: Supporting sectors with exceptional national importance where the market is unlikely to produce the desirable outcomes on its own (Examples include alternative energy sources, health IT, and manufacturing advanced vehicles) Key Matrices : R&D Expenditure (% of GDP) : 2.68% (2007); Time to start a business(2010): 6 days; Public Expenditure on Education (% of GDP): 5.70% (2006) Direct Support for Innovation Indirect Support for Innovation Funding for Innovation/ R&D: In the American Recovery and Reinvestment Act alone the Nurturing Entrepreneurship: President committed over USD 100 b to support innovation in energy, basic research, - Increased access to capital for new businesses: The Recovery Act reduced fees education and training, advanced vehicle technology, innovative programs, health IT and increased guarantee levels on small business loans and health research, high speed rail, smart grid, and information technology - Provide training and mentoring to entrepreneurs: U.S. Small Business - The 2010 budget proposed to double the research budgets of three key science Administration (SBA) has 68 district offices and over a thousand nonprofit “resource agencies: the National Science Foundation, the Department of Energy's Office of partners” that offer 14,000 counsellors who serve about 1.5 m entrepreneurs and small Science, and the National Institutes of Standards and Technology business owners each year Catalysing Breakthroughs For National Priorities: Supporting sectors with exceptional • Further, the US administration is also partnering with community colleges, national importance where market is unlikely to produce the desirable outcomes on its own universities, and the philanthropic sector to deliver more training and mentoring (Examples include alternative energy sources, health IT, and manufacturing advanced resources to aspiring entrepreneurs to promote the creation of new businesses vehicles) - Stimulate entrepreneurship through increased access to government data: The - The President has set a goal to double the generation of renewable energy in the next US Administration launched Data.gov, a one-stop shop for free access to data three years generated across all Federal agencies - President has proposed a 10 year, USD 150 b investment in the R&D and Initiatives for building a better physical & ICT infrastructure helps in creating an demonstration of clean energy technologies efficient environment, and further removes unnecessary delays - In Aug 2009, the US Administration announced USD 2 b in grants to catalyse private - The Recovery act provides USD 36 b for infrastructure projects to improve highways sector investment to build a globally competitive domestic battery and electric drive and mass transit systems; and USD 4.5 b for the development of technologies to component industry enable greater energy efficiency - The Recovery Act provides over USD19 b in investments to modernise health - The Recovery Act provides USD 7.2 b for broadband for expanding broadband access information technology - In Apr 2009, President Obama named the first ever Chief Technology Officer of the U.S. to oversee the application of technology to create jobs and growth Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 7
8.
R&D funding, SME
Focus and removing bureaucratic inefficiencies are the main focus areas of the German innovation policy Germany – GII Ranking #2 Germany Overview of Innovation Policies/ Initiatives Overview: The main pillars of the innovation policy of Germany are - Improving framework conditions for innovation, through simplifying the tax system and other bureaucratic procedures - Improving the performance of the education and science system - Promoting innovation activities in firms through financial aid, and - Supporting industry-science links Key Matrices : R&D Expenditure (% of GDP) : 2.53% (2007); Time to start a business (2010): 18 days; Public Expenditure on Education (% of GDP): 4.41% (2006) Direct Support for Innovation Indirect Support for Innovation Thematic R&D Programs (Direct research promotion): These offer grant aid to Industry – Science Linkages: Many innovation policy programs focus on both enterprises and public research institutions for R&D projects in high-tech supporting collaborative R&D and innovation projects, typically involving both areas public and private actors - In 2008, the federal government planned to spend about EUR 3.4 b on Improving Tax Structure: Efforts focus on improving framework conditions for subsidies for non-defence R&D projects, of which about EUR 2.9 b was linked innovation, notably through simplifying the tax system and reducing the tax burden to applied R&D and innovation for firms, and by diminishing bureaucratic procedures that may inhibit innovation - Main areas of research promotion are ICT, biotechnology, medical and health and the start-up of new enterprises technologies, production technologies, environmental and energy Improvement of Education System: Going forward, the efforts are expected to technologies, and transport technologies focus on Adjusting the education system to changing requirements of technology SME focus: The ZIM program, central innovation program for SMEs received and innovation: significant additional funds of ~EUR 450 m for 2009-10 - The German education system is still not able to meet the economy's demand for high-skilled labour, both in terms of quantity and quality - Intensified efforts are needed both in primary and secondary education, and in higher education Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 8
9.
Strong university research,
encouraging business environment, and support to SMEs are the main pillars of the Swedish innovation policy Sweden – GII Ranking #3 Sweden Overview of Innovation Policies/ Initiatives Overview: The main pillars of the innovation policy of Sweden are - Strong university research system - Encouragement to businesses focusing on innovation, and - Efforts devoted to linking the university research and the corporate sector - Though at present, the SME sector is not a major contributor to the R&D space, going forward SME‟s are being encouraged for innovation Key Matrices : R&D Expenditure (% of GDP) : 3.63% (2007); Time to start a business(2010): 15 days; Public Expenditure on Education (% of GDP): 6.85% (2006) Direct Support for Innovation Indirect Support for Innovation Overview: In late 2008, the Swedish government introduced a new Research and SME Support: The Swedish Agency for Innovation Systems (VINNOVA) Innovation Bill (2009-12), with a funding of SEK 5 b through its “Research & Grow” program for the SMEs, provides the SMEs - In the Research and Innovation Bill, the Government presents an initiative to increase access to people with experience of innovation and R&D the commercialisation of research results, emphasising that Government investments in research need to be made use of more extensively in the community and business - The main areas where the SMEs get indirect support for innovation are sector “Sustainable development” and “Bridging knowledge gaps” - Innovation offices will be set up at a number of higher education institutions - During 2006-07, 67% of the projects resulted in new collaborations - Sectoral Programs: Government plans to support special programs in medicine, with R&D performers; universities, research institutes or other technology and sustainable development, these have a funding of ~EUR 180 m companies EU Structural Funds: EU Structural Funds are becoming increasingly important in the innovation policy landscape in Sweden. Between 2007-13 ~EUR 100 m is expected to be Special support for universities: Government promotes research spent on innovation support initiatives in the universities R&D: R&D investments by industry in Sweden are concentrated around some 20 large - Presence of companies in the universities to promote companies operating in the world market. commercialisation - Investments in R&D by SMEs are on a level comparable to other industrial nations, but their share of total R&D is smaller - A possible concern however is that the Government invests very little R&D-money in companies outside the military sector SME support: The Swedish Agency for Innovation Systems (VINNOVA) through its “Research & Grow” program for the SMEs distributed EUR 36 m to 360 companies between 2006-08 Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 9
10.
UK is characterised
by a strong science base and strong innovation capacity in the services sector United Kingdom – GII Ranking #4 United Kingdom Overview of Innovation Policies/ Initiatives Overview: Department for Business Innovation & Skills (BIS) is leading the Government's work to develop a public procurement culture that both stimulates innovation in the economy and helps the public sector to meet its future needs at better value for money for the taxpayer The 2007 UK Innovation Survey showed that the proportion of UK businesses with 10 or more employees undertaking innovative activities is rising Key Matrices : R&D Expenditure (% of GDP) : 1.78% (2006); Time to start a business (2010): 13 days; Public Expenditure on Education (% of GDP): 5.64% (2006) Direct Support for Innovation Indirect Support for Innovation Support for Business R&D: Government helps companies fulfil their R&D aspirations with UK Innovation Investment Fund (UKIIF): GBP 1 b UKIIF would focus on investing in the help of following solutions growing small businesses, start-ups & spin-outs, in digital & life sciences, clean technology & advanced manufacturing - R&D Tax Credits: Funding mechanism for investment, where credit is given either as a - GBP 150 m contribution by Government and GBP 175 m collected by UKIIF, creates an tax deduction based on R&D spending or surrendering losses in return for cash payment initial pool of funding worth GBP 325 m for the fund - Technology Program: To spread knowledge, understand policies, spot opportunities Measures for small and medium-sized Businesses (SMBs): and bring people together to solve problems or make new advances; and invest in - Government‟s Technology Strategy Board (TSB) in 2009 invested GBP 6.5 m (shared delivery mechanisms and programs to drive technology-enabled innovation by over 180 UK SMBs), to help stimulate innovation in a range of technology areas . - Other R&D Support Products: Apart from the above two, other tax breaks include TSB projects also focus on reducing government energy bills capital allowances for investment in equipment and premises - Small Business Research Initiative (SBRI) helps early stage, high-technology SMBs gain greater access to R&D opportunities to engage with a specific department need and Coordinating nano-activity: In January 2010, the Nanotechnology Mini-Innovation and to prove their technology or idea Growth Team (Mini-IGT) recommended if funding can be directed through various bodies Promoting research in specific areas/clusters: Range of new partnerships/ clusters have responsible to the BIS to drive commercialisation of nanotechnology-based products been created to promote innovation Measures for the British National Space Centre: Six government departments, two - Health Innovation and Education Clusters (HIECs): Partnerships between the NHS, research councils, the TSB and the Met Office work towards reducing red tap and enhancing higher education sector and blue chip companies provide professional education & efficiency to ensure that the UK fully exploits its competitive advantage in satellites, robotics training, promote innovation in healthcare by speeding up adoption of research and related technologies - Energy & environmental technologies sector: In December 2009, five North West Food Innovation Strategy: The UK Cross-Government Strategy for Food Research and agreed for a partnership to create closer working ties, collaborate on energy innovation Innovation, launched by the Government‟s Chief Scientific Adviser, aims to improve the schemes & develop clear leadership to enhance growth of the sector security and sustainability of the UK‟s food system - Measures taken by Office for Life Sciences (OLS): In July 2009, OLS set out certain Digital Economy Bill: In November 2009, Digital Economy Bill. The Bill has measures to measures, such as UK Life Sciences Super Cluster , Patent Box, Innovation Pass, etc., protect the creation of a range of engaging public service content, from multiple providers, on to secure UK as a location of choice for global Life Sciences investment in future multiple platforms Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 10
11.
Singapore‟s innovation strategy
is focused around promoting R&D and linkages between „research in universities‟ and „the corporate sector‟ Singapore – GII Ranking #5 Singapore Overview of Innovation Policies/ Initiatives Overview: Singapore‟s innovation strategy is focused around promoting R&D (with special focus on specific clusters/ areas), and linkages between research in universities and the corporate sector - The National Framework for Innovation and Enterprise (NFIE): NFIE‟s role is to build on the strong R&D foundation established through earlier investments in R&D to develop innovation and enterprise in Singapore. SGD 350 m is allocated to initiatives under NFIE during 2008 – 2012 Key Matrices : R&D Expenditure (% of GDP): Not Available; Time to start a business(2010): 3 days; Public Expenditure on Education (% of GDP): 3.20% (2009) Direct Support for Innovation Indirect Support for Innovation Establishing Support for Academic Entrepreneurship in Universities: Developing Research Centres of Excellence (RCEs): RCEs conduct investigator-led research with a global academic entrepreneurship in the Institutes of Higher Learning (IHLs) is a key focus under impact, focusing on areas aligned with the long-term strategic interests of Singapore, Singapore the NFIE has the following RCEs - Establishment of University Enterprise Boards : An Enterprise Board will be set up - Mechanobiology RCE; Earth Observatory of Singapore; Cancer Research Centre of in each university to drive innovation Excellence; and Centre for Quantum Technologies - Innovation Funds for Universities: An innovation fund is planned to be set up for Strategic Research Programs: NRF has identified selected strategic areas of research for building up core R&D capabilities. Till Oct, 2008, the Research Innovation and Enterprise Council each university, this will fund entrepreneurship education, technology incubators, (RIEC) had allocated SGD 1.55 b to establish Strategic Programs entrepreneurs-in-residence and other programs, to promote commercialisation of university technologies - The strategic research programs are in the areas of Biomedical Sciences , Environmental and Water Technologies (EWT) including Clean Energy and Interactive and Digital Media (IDM) Translational R&D Grants for Polytechnics will support polytechnics to perform translational research on the R&D output from universities and research institutes Campus for Research Excellence And Technological Enterprise (CREATE): NRF will establish research centres in Singapore which will have intensive research collaboration with Creating Enterprise Support Structures: Singapore-based universities/ research institutions and top research universities in the world - Proof-of-Concept Grants, of up to a maximum of SGD 250,000 will be given to - Singapore-Massachusetts Institute of Technology (MIT) Alliance for Research and researchers based in IHLs to develop proofs-of-concept for their technology ideas Technology (SMART) is one such example of CREATE - Technology Incubation Scheme provides 85% co-funding, up to SGD 500,000, for Enhancing Technology Transfer: companies accepted into technology incubators set up in the IHLs, in exchange for - National intellectual property (IP) Principles for Publicly-funded R&D: Principles, equity stake in the company guidelines and best practices will be provided for the identification, ownership, protection and - Early-Stage Venture Funding scheme will seed the development of a number of exploitation of intellectual property arising from publicly-funded research early-stage VC funds, National Research Foundation (NRF) will match 1:1 the funds - Innovation Vouchers will be given to SMEs to procure R&D and other services from IHLs raised by VCs and public research institutions to encourage SME and university collaboration Supporting Innovation Policy Studies: A national centre for innovation studies will be set up to encourage innovation in both private and public sectors Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 11
12.
By emphasising innovation
through people and culture and performance oriented changes, South Korea has built an innovation intensive economy South Korea – GII Ranking #6 South Korea Overview of Innovation Policies/ Initiatives Overview: South Korea has been able to develop an innovative economy and sustain this achievement through - Innovation through people and culture - Strategic Leadership, Various participatory program and accelerating learning culture - Performance Oriented Changes - Roadmap Based Planning, Improvement through measurement and Performance management and incentive program - Integrated Innovation System - Benchmarking from private sector, problem solving and best practice diffusion and IT Integrated Innovation systems Key Matrices : R&D Expenditure (% of GDP): 3.22% (2006); Time to start a business(2010): 14 days; Public Expenditure on Education (% of GDP): 4.22% (2006) Direct Support for Innovation Indirect Support for Innovation Investment – South Korea's spending on research and development (R&D) will Set-up of Institutes - The emphasis of these institutes are planning and increase more than 11% in 2008 ( USD 11.5 b) from last year in line with its plan to conducting of national R&D projects to raise the level of scientific and technological promote leading technologies skills - Korea has formulated 17 new growth engines and support to associated - Leading government funded research institutes are Korea Institute of Science research: six projects in green technology industries;10 six in state-of-the-art and Technology, Korea Research Institute of Chemical Technologies, Korea fusion industries, such as IT fusion systems, robot applications, and Institute of Machineries and Metals, Electronic Technology Research Institute biomedicines; and five in high valued-added services industries, including - Under 21st Century Frontier R&D Program , the government set up institutes healthcare, education services and the tourism industry such as National research laboratory and the Creative Research Initiative - Korea is amongst the top 3 R&D spenders across Asia Outward Looking - Government industrial policy, human resources, and government-led development of S&T infrastructure; these factors have influenced the Korean innovation system and determined the characteristics of the systems Knowledge sharing program - The Knowledge Sharing Program (KSP), a comprehensive policy consultation program launched by the Ministry of Strategy and Finance to share Korea‟s development experience with other countries Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 12
13.
Encouraging start ups,
promoting R&D and knowledge transfers are the pillars which help Switzerland to position itself as European champion of innovation Switzerland – GII Ranking #7 Switzerland Overview of Innovation Policies/ Initiatives Overview: Switzerland is positioned as the “European champion” of innovation, surpassing even the Scandinavian countries and this is based on around - R& D Project promotion - Market-oriented R&D, which companies pursue in collaboration with universities R&D-Project Promotion in joint projects - Start up and Entrepreneurship - Creation, setting up and development of start-up companies through education, training, coaching, and access to financing - Knowledge and technology transfer – Knowledge and Technology Transfer (KTT) in regional networks. CTI is involved in international research programmes Key Matrices : R&D Expenditure (% of GDP) : 2.90% (2004); Time to start a business(2010): 20 days; Public Expenditure on Education (% of GDP): 5.51% (2006) Direct Support for Innovation Indirect Support for Innovation CTI – CTI is the Confederation‟s innovation promotion agency of Switzerland government CTI Start-up - CTI Start-up enables entrepreneurs to realise their innovative idea and has an annual budget of around CHF 100 m professionally - CTI Invest - Supports Swiss High Tech companies that are looking for investors and - CTI Start-up reviewed more than 1 800 projects, and awarded over 200 start-up that take part in the CTI Start-up coaching process, or which are already holders of the enterprises with the CTI Start-up Label CTI Start-up label Venture 2010 - A Swiss-wide business plan competition of ETH Zurich and McKinsey & - Venture Kick - Invites researchers to start their own business by financing the rapid Company, Switzerland development of product ideas that stem from their research projects ManuFuture- A joint initiative of the mechanical, electrical and metallurgical manufacturing - R&D Project promotion - R&D project promotion in the areas like life sciences( Biotech industries and partners from academia that supports activities to maintain to strengthen the and Medtech), Enabling sciences(ICT, Business management and finance, logistics, production place in Switzerland production), Micro and Nano technologies and Engineering Sciences Internationalise R&D activities - CTI is an active player in designing international Innovation Cheque - Innovation cheque is a pilot scheme that intends to encourage SME programs and platforms for applied R&D especially within the European Research Area. CTI to engage in technology transfer, a maximum of EUR 5000 can be applied under innovation paves the way for SMEs to engage in applied R&D und thus create added value in cheque Switzerland Increased Budget for innovation - Government has increased the budget of the KTI/CTI, Swiss Innovation forum - The Swiss Innovation Forum brings together the know-how of the main funding agency for applied research, by EUR 13 m leading institutions in the fields of innovation, creativity and design Information campaign programme - the government is launching a EUR 0.3 m information Do Research (DORE) funding programme - A common initiative which supports research campaign targeted at the academic and private sectors on the subject of funding projects in social sciences opportunities offered by the KTI/CTI ilab - The idea is to present science in an attractive way to high school students Note: Innovation Promotion Agency - CTI Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 13
14.
Promoting “innovation in
the enterprises, especially the SMEs” and “industry- academia relationship” are the pillars of the Danish innovation strategy Denmark – GII Ranking #8 Denmark Overview of Innovation Policies/ Initiatives Overview: Ministry of Science, Technology and Innovation is responsible for all innovation-related policies and support measures. Danish Agency for Science, Technology and Innovation helps the Danish Government for innovation in Denmark through the Danish Council for Technology and Innovation (DCTI) - DCTI‟s primary activities includes focussing on Commercialisation (of research) and entrepreneurs, Regional innovation, Interaction between research and industry, ICT integration in business and industry; and Infrastructure between research and industry - The two main goals of the DCTI‟s action plan for more innovation and effective knowledge dissemination (2007-2010) are “Danish enterprises must be more and continuously innovative, the small and medium-sized enterprises included” and “Knowledge dissemination and interaction between research and industry shall be strengthened” Key Matrices : R&D Expenditure (% of GDP) : 2.54% (2007); Time to start a business(2010): 6 days; Public Expenditure on Education (% of GDP): 7.92% (2006) Direct Support for Innovation Indirect Support for Innovation Promoting SME and academic tie-ups: Focus on students/ interns involved in Science & Technology: - The „double-up‟ initiative: An initiative started in 2008 and with a funding of DKK 30 m - Students shall be taught systematically to work with innovation. Focus on innovation plans to offer public co-financing of co-financed research projects between SMEs and management shall be increased and a spirit of entrepreneurship and innovation will academic and research institutions be promoted in educational establishments Encouragement of the Approved Technological Service (ATS) Institutes: ATS institutes - Industrial PhD Initiative: The number of Industrial PhD‟s carried out in cooperation are the portal to obtain knowledge from the academic and research institutions for SMEs. between an enterprise and a university are planned to be doubled in 2010, this initiative Some of the main initiatives planned for the ATS institutes are has a funding of DKK 380 m - Innovation centre for ebusiness: With a funding of DKK 21 m, the centre plans to Focus on Public sector innovation policies: From 2007 onwards, the DCTI intends to support SMEs use of Information and Communication Technology (ICT) focus on the public sector and its role in innovation policies. The DCTI will set a strategy for - Regional innovation agents: As part of the imitative regional "innovation agents" will how the public and private sectors can mutually support enterprise innovation contact the group of SMEs which are not traditionally innovative to promote innovation Mentorship to the SMEs: By 2007, ~70% of SMEs in the Denmark did not have systematic and knowledge collaboration access to, or management of innovation • The initiative has a funding of DKK 32m and expects to establish contact with 700- - The planned mentor scheme will lead to experienced and competent industry managers 900 SMEs being loaned to SMEs, to give them competencies in, and tools for, innovation Proof of Concept financing: DKK 40 m is planned to be spent on funding ~50 proof of management and preparation of strategies leading to innovation concept studies by the public research institutions Future Innovation Incubators: DKK 500 m is planned to spent on financing incubators to promote the commercialisation of new technologies/ ideas Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 14
15.
Promoting R&D, Intellectual
Property knowledge, industry-academia linkage are the main focus areas of the Japanese innovation strategy Japan – GII Ranking #9 Japan Overview of Innovation Policies/ Initiatives Overview: Innovation Policy in Japan is set by the Council for Science and Technology Policy (CSTP), with implementation carried out by the Ministries and funding agencies. Japanese strengths lie mostly in business R&D expenditures, promotion of Intellectual Property, number of researchers, and public-private partnerships - However, R&D is promoted a lot in the Japanese innovation landscape, government constituted ~16% of the total R&D expenditure in 2008. (The R&D funding in Japan is dominated by the funding from the private sector) - Innovation 25 is a long-term strategy initiative for the creation of innovation contributing to the growth till the year 2025. The initiative seeks to realise a prosperous future for Japan by designing a mix of short-term and long-term policies that promote research, human resource development, and social reform Key Matrices : R&D Expenditure (% of GDP) : 3.39% (2006); Time to start a business(2010): 23 days; Public Expenditure on Education (% of GDP): 3.48% (2006) Direct Support for Innovation Indirect Support for Innovation The Industrial Innovation Fund was established as a public-private fund with funding from Promoting Industry-Academia linkage: Japanese industry has high research 20 major companies at around EUR 740 m to support start-ups and innovative technologies capacity and a large number of companies are usually involved in research The Third Science and Technology Basic Plan (2006-10) has numerous initiatives programs in the universities which harness innovation for future economic growth - 77% of the R&D expenditure in Japan is funded by the private sector - The total budget for such stimulus measures is EUR 420 b of which EUR 65 b is for investing in new technologies Turning national research institutes into Independent Administrative Agencies: As part of the administrative reform in 2001, the legal status of most - The Third Plan is expected to spend ~ EUR 185 b on R&D national research institutes was changed to Independent Administrative Agencies Supporting Clusters: Special clusters are given preference for promoting sectors like life (IAI) sciences, information and telecommunications, environmental sciences, and nanotechnology/ materials - This greatly increased the flexibility of the institutes in terms of personnel and - Ministry of Science and Technology (MEXT) and Ministry of Economy, Trade and financial management Industry (METI) support projects for regional innovation, such as the Industrial Cluster Promoting intellectual property: Establishment of a system to strategically and Program (EUR 123 m) and the Knowledge Cluster (EUR 65 m) organisationally promote the creation, management and use of intellectual Government baked funding agencies/ entities: properties of universities through - New Energy and Industrial Technology Development Organisation (NEDO) - As of - Integration and strengthening of cooperation between intellectual property 2009, had a budget of EUR 1.7 b, it distributes funds to various technology and national headquarters of universities and Technology Transfer Organisation, projects in fields such as electronics and IT, machinery systems, etc., enhancement of industry-government-university partnership in local - The National Institute of Information and Communications (NICT) has an overall budget communities, and promotion of inter-university cooperation of JPY 403.3 b and conducts R&D on information technology Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 15
16.
The Dutch innovation
policy focuses on talent, public & private research and innovative entrepreneurship Netherlands – GII Ranking #10 Netherlands Overview of Innovation Policies/ Initiatives Overview: The Dutch innovation policy developed by the new inter-departmental Knowledge & Innovation program department (K&I) of the Dutch government, focuses on three main 'policy agendas„ i.e., Talent, Public & private research; and Innovative entrepreneurship - Further, the two main policy delivery organisations in the Netherlands are SenterNovem (industrial R&D and innovation policy) and the Netherlands Organisation for Scientific Research (NOW) (research policy) • SenterNovem is an agency of the Dutch Ministry of Economic Affairs. It promotes sustainable development and innovation, both within the Netherlands and abroad. Its efforts are specifically focused on innovation and environment/ sustainable development • NWO is responsible for enhancing the quality and innovative nature of scientific research, further it also initiates new developments in scientific research Key Matrices : R&D Expenditure (% of GDP) : 1.73% (2007); Time to start a business(2010): 10 days; Public Expenditure on Education (% of GDP): 5.52% (2006) Direct Support for Innovation Indirect Support for Innovation Supporting the SMEs in financing: The Dutch government introduced measures to help SMEs, Innovation Subsidy for Collaborative Projects (Implemented by SenterNovem) : The by expanding a loan guarantee scheme and providing innovation vouchers initiative is aimed at promoting joint R&D initiatives between domestic and foreign - SME loan guarantees (Implemented by SenterNovem): Provides opportunities for SMEs to companies receive bank loans in cases where they lack sufficient collateral. The government provides an - Once the projects fulfil the relevant criteria laid out by the Dutch Ministry of Economic extra guarantee of up to EUR 1 m Affairs, the subsidy is awarded to the Dutch counterpart of the project - Knowledge vouchers for SMEs (Implemented by SenterNovem): With an innovation Research and Development (Promotion) Act (Implemented by SenterNovem and the voucher SMEs can buy knowledge from (semi-) public knowledge institutes, from large Tax authorities): This Act provides a fiscal facility for companies, knowledge centres and companies with R&D expenditures that exceed EUR 60 m per annum, and from foreign public self-employees who perform R&D work knowledge institutes within the EU • In 2009, a total of 7,000 vouchers were available with SenterNovem. 3,500 vouchers of - A contribution is paid towards the wage costs of employees directly involved in R&D. EUR 2,500 each and 3,500 vouchers for EUR 7,500 each The contribution is in the form of a reduction of payroll tax and social security contributions and an increase in the tax deductions available to the self-employed Supporting innovation programs in specific areas: “Innovation programs”, in specific “key areas” in which the Netherlands excels and can distinguish itself internationally are being pursued The Dutch government targets to be amongst the top five in EU for share of innovative companies that collaborate with universities and research non-university institutes by 2011 - In 2009, there were eight innovation programs in specific areas like nanotechnology, food & nutrition, water technology, life sciences, materials sciences, etc., Establishment of innovation centric entities/ agencies: The presence of innovation Targeted economic stimulus package, especially for 2009 and 2010: A total of EUR 6 b is centric agencies/ entities helps in creating an environment that promotes innovation expected to be spent in 2009 till 2010 on labor market (especially targeted at youth), education - SenterNovem, Netherlands Organisation for Scientific Research (NOW ), ICTRegie and knowledge, easy credit availability, infrastructure and construction, etc., (established by the Dutch government for innovation and research in the ICT sector) Supporting the R&D staff of the private firms in the crisis(2009-10): With a funding of EUR 280 m, the initiative will help the researchers employed in private sector secondment assignments at public research institutes and universities Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 16
17.
Canada‟s innovation strategy
focuses on promoting R&D in specific sectors, establishing technology partnerships and offering Tax credits Canada – GII Ranking #11 Canada Overview of Innovation Policies/ Initiatives Overview: Canada does not have a defined innovation policy under the responsibility of a single department. Rather, the innovation governance system is distributed among a number of departments, agencies and organisations in the public and private sectors - The innovation/ R&D environment in Canada revolves around building an Entrepreneurial Advantage, a Knowledge Advantage, and a People Advantage Key Matrices : R&D Expenditure (% of GDP) : 1.89% (2007); Time to start a business(2010): 5 days; Public Expenditure on Education (% of GDP): 4.93% (2005) Direct Support for Innovation Indirect Support for Innovation Technology Partnerships Canada (TPC)(1) was a special operating agency of Industry The Scientific Research and Experimental Development (SR&ED) program is Canada for providing funding support for strategic R&D, TPC had a special focus on the a federal tax incentive program to encourage Canadian businesses of all sizes small and medium sized enterprises (SMEs) and in all sectors to conduct R&D in Canada - As of Dec 2007, TPC's portfolio consisted of 761 projects representing a multi-year - Generally, a Canadian-controlled private corporation (CCPC) can earn an investment of CAD 3.7 b (88% of this investment targeted small to medium-size companies across Canada). Further, these projects have leveraged an additional CAD investment tax credit (ITC) of 35% up to the first CAD 3 m of qualified 14.2 b in private sector innovation spending expenditures for SR&ED carried out in Canada, and 20% on any excess Programs/ initiatives supporting research/ innovation: amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20% of qualified expenditures for SR&ED carried out - EUR 220 m was provided to the Natural Sciences and Engineering Research Council in Canada. (NSERC) over three years (2007-2010) to create centres of excellence (CoEs) in commercialisation and research in priority areas such as renewable energy and Supporting students environmental technologies - Canadian Govt. is increasing support for scholarships, including in science - The government provided EUR 310 m over 7 years (2007-2014) to Sustainable and engineering, to encourage more youth to pursue advanced degrees in Development Technology Canada to invest with the private sector in large-scale next Canada generation facilities for the production of fuels from renewable resources - As announced in Budget 2007, the government will invest CAD 35 m over two The National Research Council-Industrial Research Assistance Program (NRC-IRAP) is Canada's premier innovation assistance program for small and medium-sized enterprises years, and CAD 27 m per year thereafter, to expand the Canada Graduate (SMEs) Scholarships - NRC-IRAP provides innovation assistance to 10,000 firms annually, sharing the - When the new scholarships are fully in place, the councils will support an financial risks with some 2,800 of these for R&D projects and pre-commercialisation additional 1,000 students per year activities Note: (1) The terms and conditions of the TPC program expired on December 31, 2006; No new projects are being contracted presently, but all existing contracted projects are being supported Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 17
18.
By fostering a
technology culture and promoting tech entrepreneurship , Hong Kong has been able to build an innovation led economy Hong Kong – GII Ranking #12 Hong Kong Overview of Innovation Policies/ Initiatives Overview: Hong Kong is amongst the top 3 Asian countries which has done well in innovation and is able to develop a conducive innovative economy by - Support of applied research and development (R&D) and technology transfer and application, foster an innovation and technology culture in the community - Promoting a technological entrepreneurship and providing technological infrastructure - Facilitating the development of knowledge intensive human capital Key Matrices : R&D Expenditure (% of GDP) : Not Available; Time to start a business(2010): 6 days; Public Expenditure on Education (% of GDP): 3.52% (2007) Direct Support for Innovation Indirect Support for Innovation The Innovation and Technology Fund - It aims to support projects that contribute to Technological Infrastructure: The ITC helps develop world-class support infrastructure to innovation and technology upgrading in industry, as well as those essential to the upgrading facilitate technological upgrading and development of the industry and development of industry - The Hong Kong Science and Technology Parks Corporation (HKSTPC) – Develops - Innovation and Technology Support Programme – supports midstream/downstream parks and also nurtures technology-based and design start-up companies through its R&D projects undertaken by universities, R&D centres, industry support org, incubation programme which provides low-cost accommodation as well as management, associations ( spent USD 4.04 m during 11 months of 2009) marketing, financial and technical assistance - University-Industry Collaboration Programme - UICP aims to stimulate private sector - The Hong Kong Applied Science and Technology Research Institute Company interest in R&D through leveraging the knowledge and resources of universities ( spent Limited - ASTRI performs relevant and high quality R&D for transfer to industry for USD 198.6 m during 11 months of 2009) commercialisation with a view to elevating the technology level of the industry - General Support Programme - GSP supports those projects that contribute to fostering - Hong Kong Productivity Council (HKPC) - Promotes productivity excellence of Hong an innovation and technology culture in Hong Kong ( spent USD 188.6 m during 11 Kong industry through the provision of integrated support across the value chain months of 2009) Fostering an Innovation and Technology Culture through innovation forum: annual - Small Entrepreneur Research Assistance Programme - SERAP is a technology Innovation Festival which comprises exhibitions, seminars, InnoTech workshops, talks and entrepreneurship programme which provides pre-venture capital stage financing to technology competitions to arouse the interest of the general public in innovation and support technology entrepreneurs (spent USD 331.5 m during 11 months of 2009) technology Applied Research Fund - This is a government-owned venture capital fund to support local Technology co-operation with the Mainland - A joint committee was formed to encourage technology ventures with commercial potential, it is administered by the Applied Research co-operation between Mainland and Hong Kong in innovation and technology Council (ARC), a private company wholly owned by the Government Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 18
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Promoting R&D, support
for specific clusters and tie ups between companies and educational institutes are the main pillars of Finland‟s innovation policy Finland – GII Ranking #13 Finland Overview of Innovation Policies/ Initiatives Overview: Finland is highly praised in terms of the innovation culture that it creates. The main pillars of the Finland‟s innovation strategy are - Support for specific clusters - Promotion to research and development (R&D): Special encouragement is given to the educational institutions, ~26% of the R&D funding in the state budget in 2009 was for Universities - Tie ups between the companies and educational and research institutions Key Matrices : R&D Expenditure (% of GDP) : 3.47% (2007); Time to start a business(2010): 14 days; Public Expenditure on Education (% of GDP): 6.14% (2006) Direct Support for Innovation Indirect Support for Innovation Public funding for research and development (R&D): Finland is one of the most Finland developed an innovation strategy in 2008-09, it is focussed around the below research-intensive countries in the world mentioned points - National spending on R&D totals EUR 6.9 b (3.7% of GDP). Businesses account for - Innovation activity in a world without borders: Public research, development and around 74% of R&D expenditure whilst the remaining 26% is government funded innovation financing will be developed so as to meet the demands of a borderless - Tekes, the Finnish Funding Agency for Technology and Innovation, finances operating environment ~1,500 business R&D projects annually, 50%-60% of this funding for companies is - Innovative individuals and communities: Encouraging environment for individuals directed at small businesses and communities which participate in innovation, for example - Support of numerous government backed agencies: Some examples include: Tekes, • Finland‟s research and university system will be developed into an internationally the Finnish Funding Agency for Technology and Innovation ; The Academy of Finland competitive development environment for expertise and innovations is the prime funding agency for core research in Finland; Sitra, the Finnish Innovation • Support for entrepreneurs Fund; Finnvera is a specialised financing company governed by the Finnish State; The Finnish Ministry of Employment and the Economy oversees Finland‟s technology and - Demand and user orientation: The financing and service system promoting growth innova-tion policy entrepreneurship will be renewed into a clear entity, operating with a focus on entrepreneurs and investors Promoting research in specific clusters: The Strategic Centres for Science, Technology and Innovation (CSTI) established in Finland are new public-private - Systemic approach: A broad based and comprehensive approach to all the public partnerships which encourage research in specific sectors. The sectors are: sector initiatives - Energy and the environment; Metal products and mechanical engineering; Forest Strong International Networks: Finnish research groups and companies have been cluster; Information and communication industry and services; Built environment; successful in EU research programs. Finland is also a member of the European Space Health and well-being Agency (ESA), the European Southern Observatory (ESO) and the European Organisation for Nuclear Research (CERN) Benchmarking Study on Innovation Policy Copyright © 2009 Capgemini. All rights reserved. 19
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Core sponsors of
this research: Roy Lenders, VP Global Leader SCM Koen Klokgieters, VP Global Leader R&D and Business Innovation Freek Duppen, Sr. Innovation Consultant www.capgemini.com/consulting Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group Copyright © 2009 Capgemini. All rights reserved.