Transcript Closing Remarks

Knowledge Economy Forum VIII
Reforming Innovation Systems:
Moving Beyond Lectures and Labs
CLOSING REMARKS
Fernando Montes-Negret
World Bank
Keeping Things in Perspective
“… Capitalism has brought to consumers in
developed economies vast riches unheard in
previous centuries. The average North
American, European, or Japanese consumer has
a higher standard of living than a medieval
king.”
G.A. Akerloff & R. J. Shiller, Animal Spirits, 2009, p.171
Keeping Lisbon on the Agenda
CRISIS AS A GOLDEN OPPORTUNITY to accelerate
structural changes and move to more sustainable growth
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Prepare ECA countries for the upturn of the global business cycle
Avoid short-term measures that affect long-term growth potential
R&D Expenditures as a mechanism for enhancing competitiveness
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Keep a long term view of priorities in crisis: Deal with the urgent,
but do not forget the important -Shigeo Katsu, ECAVP, World Bank
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Innovation in Traditional Indicators needed to capture dynamic
reality in emerging countries -Dean Soumitra Dutta, INSEAD
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Decentralization of Innovation requires: Coordination,
Cooperation, Competition -Anneli Pauli, Deputy Director, DG
Research, EC.
Pro-cyclical R&D &Government Role
DOUBLE-DIVIDEN ACTIONS can strengthen demand and growth:
•Investments in infrastructure
•Training and active labour market policies
•Easing of entry restrictions to create new markets
Early 1990s
vs. Current Crisis
FINLAND
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Geographically-limited financial
crisis, booming global demand
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Strategy: Export-led recovery,
re-industrialization
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Policy: From macro to micro
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Unutilized human capital
1/10 of R&D outsourced
Basic knowledge jobs
Technical
Improving competitiveness
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Global financial crisis,
contracting global demand
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Strategy: Domestic demand,
boost competences, “sit out”
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Policy: Micro-micro
Weak entrepreneurial spirit
 1/4 of R&D outsourced
 Advanced knowledge jobs
 Non-technical
 Loosing ground
Recipe for Growth: Talent, Finance for R&D
KOREA
Recipe for Growth: Talent, Finance for R&D
KOREA
Recipe for Growth: Talent, Finance for R&D
KOREA
Innovation and Technology Policy:
Still A Priority !
CROATIA: Compound growth rates for Convergence
 Even small acceleration on a sustainable basis accumulates
into a large impact in living standards for future generation.
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Linear extrapolation of the average growth rates indicates that
Croatia’s per capita income in 50 years would correspond to
60 percent the U.S. level, an outcome reached by EU-27
countries in 2000.
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Alternatively, Croatia could reach the same outcome in less
than one-third of the time by raising its growth rates by 1-1.5
percentage points and sustaining such rates for a bit more
than a decade.
RDI Reform - 20 Years Too Late?
Friendly Investment Climate Essential for RDI
reform … but no excuse for delay !!!
Audience Peer Reviews ECA KE III …
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7 Reform Options: No One Size Fits All
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Distinction Not Simple:
 public and private goods
 technology pull and market pull
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RDIs as “helpers” and not drivers of innovation, survive by staying a
step ahead of the local industry needs in Western Europe
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Classification must be Differentiated based on Institution
 RDIs
 HEIs
 Academies of Science
 Private R&D firms
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Looking Beyond Traditional Indicators for RDI Classification:
patents, citations, and publications for benchmarking
Audience Peer Reviews ECA KE III…
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GOCO
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Conceptually attractive, but faces implementation challenges
Widely attacked as unrealistic because:
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Case by case > All stakeholders to be engaged
Competition for Non-Statutory Funding
Progressive reduction of public sector funding (5-8 years)
SHOCK THERAPY
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Legal Barriers
GOGO - OK if government ensures RDI autonomy – no political
interference”
GRADUALIST APPROACH
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No managers to contract
Agency risks
Only solution for completely unproductive RDIs > closure
Closures/ Liquidations politically and financially least feasible
INSIDER PRIVATIZATION - Distributing shares to
researchers – participants silent
Just cut funding – is it enough?
Audience Peer Reviews ECA KE III …
RISKS / OPPORTUNITIES
 Concerns of losing national R&D capacity
 Anti-reform lobby from RDI Directors ►delays
 RDI may “crowd out” innovative firm entry ►
 RDI restructuring is essential to level private-public playing field
FINAL REPORT SHOULD SPELL OUT
 How to establish RDI mission / metrics / expectations /
autonomy
 How to develop new scientific fields / RDIs
 Discuss “sweeteners” in greater detail:
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grant schemes for collaborative research
vs. tax incentives,
or accelerated depreciation.
Becoming a World Class University
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World-class higher education institutions (HEI) are crucial for
development, but we must consider that:
 Not all HEIs need to be world-class; most HEIs can serve the
purpose of addressing local skill gaps and serve as diffusion agents
for knowledge and technology.
 Not all countries can establish them
 The Dangers of “Doing Well” > Complacency
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Three necessary conditions:
 Talent – Students / Teachers / Researchers
 Financial resources
 Autonomy and Good governance
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Three potential paths:
 De Novo (INSEAD, Olin);
 Mergers; and
Becoming a World Class University
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Incentives and institutional change are critical for improved
performance, but there are contextual limitations (U. of Zagreb)
Sum Greater Than Parts. Creative collaboration opportunities
(ParisTech)
NUS Messages:
 Universities to focus on solving tomorrow’s problems and
creating tomorrow’s industries
 Entrepreneurship > Teaching > Research
 Attract Top Foreign Talent (Teachers & Students)
 Licensing Necessary but not Sufficient
 Adapt Best Practices to Domestic Conditions
 Linkages with industry.
Identifying, Producing, and Retaining Skills
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The “human side” of innovation: strong correlation
between skills and competitiveness.
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Europe (EU-27) does well in the literacy and basic skills,
less well in occupational skills, and not well in “talents for
the Global Knowledge Economy”.
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Investment in skills and human capital is critical in time of
crisis to ensure robust post-crisis recovery: those countries
that are ready, will experience robust recoveries.
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The talent challenge: Interest in science education and
vocation in technology is lower in industrialized countries,
where technology is readily available. Teachers play a very
significant role in reversing this trend.
Identifying, Producing, and Retaining Skills
Identifying, Producing, and Retaining Skills
Key Global Challenges:
 Importance of Long Term Planning
 We live in Exponential Times
 Managing Resource Demand Growth & Climate
Change
Global Trends in Education:
 Value-based Educational Content
 Restore Interest in Math, Science, and Technology
 Build Teacher’s Societal Status, Image, and Rewards
Quality Infrastructure Messages…
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Compete on Quality, Not only on Price
National Quality Infrastructure & Legal System Critical
Important for Trade and Innovation
Compliance with Rules of Importing Country on NonDiscriminatory basis
Mutual Recognition for Trade Facilitation
EU Standards as a Driver for Reform
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Technical Regulations
Inspections
Accreditation
Industry
(Provider)
State
(Regulator)
Driving force.
Identification of needs.
Weights in decision making.
Sources of know-how.
Usage of available people.
Usage of available infrastructure.
Development of Strategy
Knowledge Economy Forum, VIII
Fontainebleau, 1 May 2009
Public
(Consumer)
Dr. Hüseyin Uğur
20
Commercialization: From Labs to Markets
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Importance of Networking for Universities
Innovation Based on Research Universities
Development of products done by industry
University-Industry do not compete, but have different
but complementary roles
Sharing Risks & Rewards through “spin-offs”
(university-Industry)
Demand results from “honest brokers” (TTOs,
commercialization contractors, …)
Incubating the Incubators: ECA does not follow the
“typical” linear model … Why? KEF IX
Commercialization: Not All About Money
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Entrepreneurial Ecosystems
Promote Access and Diffusion
Collaborative Research
Social Networking for Commercialization
SMEs and Serial Entrepreneurs as driving force
Social Entrepreneurs and Philanthropists
National Labs as Accelerators of Innovation (US Labs)
Incentives not Mandates
“Open Innovation” Model
Protect Innovation Through the Crisis
FINAL MESSAGE
VERY WARM THANKS
FOR YOUR ACTIVE PARTICIPATION
See You Next Year !
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