Transcript Innovation - UK Government Web Archive

Innovation
Competing in the Global Economy:
The Innovation Challenge
Presentation to
Digital Content Industries
29th September 2004
David Hughes FREng
Director General
Innovation Group, DTI
Innovation
Our world is changing
Global
Security
Healthcare in
an Aging
Society
Technology:
Driver &
Solution
Intelligent &
Connected
World
Our impact
on the
Environment
Innovation
Dramatic Change in Life Cycle
Demand
fluctuation
Volume
Higher
peak
Maturity
Introduction
3-5 years
1 year
Shorter time Dramatic
to market
end of life
Development
Conventional
Source: Dr Tsugio Makimoto - Hitachi/Sony
New Digital Consumer
Innovation
Increasing intensity of global competition
Hourly compensation costs, 2001, for production
workers in manufacturing in US dollars
20
15
10
5
0
UK
Source: US Department of Labor
Hong Kong SAR
Taiwan
Innovation
The economic message

UK Businesses will only achieve long-term success
in global markets by focusing on greater value added
as their competitive edge.

Innovation is the key to achieving this.

And Businesses need to keep innovating to stay
ahead of the competition.
Innovation
Government strategy - The Innovation Report
‘Competing in the global economy – the innovation challenge’
Published in December 2004
“The challenge ... is to create the
conditions where all our firms put
innovation at the centre of their
strategies for the future.”
Rt. Hon. Tony Blair, Prime Minister
http://www.dti.gov.uk/innovationreport/index.htm
Innovation
What can government do to improve
innovation performance?

Set an encouraging framework
– macroeconomic stability, competition, IP framework, standards.

Strategic investments
– science, government R&D, infrastructure.

Support innovative businesses
– exploitation of science base, advice, partnerships, access to
finance, incentives (e.g. R&D Tax Credit).

Ensure that procurement and regulation create opportunities for
innovation – not barriers.

Align efforts at national and regional/Devolved Administrations.
Innovation
Intellectual Property: Awareness
http://www.patent.gov.uk/about/marketing/thinkkit/index.htm
Business Advice
Open Days
Innovation
Intellectual Property: Crime and Enforcement
ME A Michael Edwards & Associates
Consultants in intellectual property
management and protection.
Scoping Study:
Report of the Patent Enforcement
Project Working Group.
- June 16th 2004
Patents Act 2004
2004 Chapter 16
Innovation
SMEs and Entrepreneurship
• Business Link support for
Innovation
• Upgrading SME management
skills
• Improved support for women’s
enterprise
“I’ve gained a lot of
confidence from all the
support I’ve received”
Katieca Smith, Partner in Architectural
Practice
Innovation
Regional Innovation
Research
Councils
Research
Priorities
dti
RDAs
Science and
Industry Councils
Higher level
SET skills
HEIs/
SET Base
Technology
Strategy
Business
support
Culture change needed
for better exploitation
Business
Innovation
New approaches to Procurement
• £109bn pa goods/services purchased by
Government in 2001/2002
• Strong Ministerial interest in joined up
work across government
• Capturing Innovation guidance for
policymakers
• Reinvigoration of Small Business
Research Initiative underway
• Joint DoH/DTI seminar on Innovation in
the NHS for suppliers and buyers
Innovation
…… additional boost for technology
Increase
Business
Demand for
New &
Emerging
Technologies
Competing in the
Global Economy – the
Innovation Challenge,
Dec 2003
Science & Innovation
Investment
Framework 20042014, July 2004
The Technology
Strategy &
Programme
Innovation
Determining Strategic Technology Priorities
Networks are fundamental to ensuring that the
Technology Strategy reflects the demands and needs of business.
BUSINESS/USER
NETWORKS
•Sector based networks
e.g. IGTs, IAP
•CBI
•Chambers of commerce
•Trade associations
SEB NETWORKS
•Research Council networks
•Academic groups
•Professional Institutes
•RTOs
•Technology Brokers
REGIONAL/DEVOLVED
ADMINISTRATION
NETWORKS
• Science Industry
Councils
TECHNOLOGY
STRATEGIC
PRIORITIES
MIXED NETWORKS
•OGD strategies
e.g. MoD, DoH
•Faraday partnerships
•Foresight
Innovation
Technology Strategy & Programme
NETWORKS
feed into
decision
making
TECHNOLOGY
STRATEGY
IDENTIFICATION AND
JUSTIFICATION
OF TECHNOLOGY PRIORITIES
CUSTOMERS
BI-ANNUAL
CALLS FOR
PROPOSALS
TECHNOLOGY
PROGRAMME
Collaborative R&D
Knowledge Transfer
Networks
Innovation
The innovation challenge –
create value in a knowledge economy …
Value added by knowledge based services and Industries
G7 comparison, 2000
Per cent of total value added
Finance, insurance, other business services,
community, social and personal services
Communication services
High and medium-high tech
50
40
30
20
10
0
Germany
Source: OECD
UK
France
Japan
US
Canada*
Italy
Innovation
Contribution of creative industries %
3
2.5
2
1.5
1
0.5
0
Software, computer games and electronic publishing
…… the largest of the creative industries
Source: Creative Industries Economic Estimates, July 2003
GDP, 2001
Innovation
Digital Content ‘Users’
‘Value added’ Opportunities - Health Care
Education for patients using medical devices
•
•
•
•
Medical devices not used correctly
Results in little or no benefit from device, maintenance
costs, adverse events and negligence claims
Training on how to use correctly is needed
Opportunity for digital content industries
Innovation
Digital Content ‘Users’
More ‘Value added’ Opportunities
•
•
•
Convergence of games/films
- Machinima.com
E-learning Market
- Language-engineering technology
Development of next generation broadband
- BSG’s new initiative
Innovation
Challenges -- Technology Strategy
•
Active involvement of your sector in April competition for
funding for Inter-Enterprise Computing
•
Now preparing for the November competition for funding
•
How can you be more engaged in the process?
Innovation
Challenges -- Procurement
• Using public procurement to facilitate innovation:
 Latest figures show £125bn goods and services
procured per year
 Around 55% of all spend in the UK on IT services
and systems is in the public sector
 Best practice guidelines for procuring broadband-
type content and applications being drawn up
• What are the big opportunities for DCI in Government
procurement and how can we engage further?
Innovation
Measuring our success
 Businesses see more
value added from goods
and services
 Economy sees more
productivity (e.g. output
per hour).
 Better public services - Improved quality of life
Innovation
Competing in the Global Economy:
The Innovation Challenge
Presentation to
Digital Content Industries
29th September 2004
David Hughes FREng
Director General
Innovation Group, DTI