Transcript European side

Dr. Jon Thorhallsson
CECUA President
KSG SIA Chairman
Information Society 2004
Vilnius October 19, 2004
Iceland’s strategy and
investments in R&D
Can the example of Iceland be useful to
other states in creating strategies?
(c) KSG SIA 2004
(c) KSG SIA 2004
(c) KSG SIA 2004
Marel has a history that goes back to 1977
when two engineers at the University of
Iceland began to examine the possibility of
developing and manufacturing scales for the
effective control of production in fish
processing plants.
(c) KSG SIA 2004
Foreign Currency
(c) KSG SIA 2004
Software exports
(c) KSG SIA 2004
Resources for R&D in Iceland 19502001
Millj kr
FTE
25.000
3,0%
22.500
2,5%
20.000
R&D/GDP
Important years:
17.500
2,0%
Major events
15.000
R&D Personel
2.500
2.250
2.000
1.750
1.500
OECD reviews
12.500
1,5%
10.000
1,0%
7.500
5.000
0,5%
2.500
1.250
1.000
750
500
250
0
1
1950
1955
Total
Útgj
R&DRoÞ
exp
1960
1
1965
2
1970
3
1980
(c)
KSG SIA 2004
R&D/GDP
R&Dafby
firms
Þar
fyrirt
RoÞ/VLF
2
4
1990
3
4
2000
Manyears
Ársverk
0,0%
0
The Key Role of S&T
• Scientific management of fisheries
• Profitable national fisheries -compared to 40%
operating losses world wide
• Hydropower -Geothermal energy development unique - Sustainable energy economy
• Management of natural hazards – environment land erosion
• Emerging knowledge based industry:
– Food processing machinery, software, biotech, medical technology
products, human genomics, bioinformatics
(c) KSG SIA 2004
The Problems of S&T Policy
in Iceland
•
•
•
•
•
•
Problems of scale and resources
Total spectrum of modern societal needs
We do everything other nations do!
Dispersion of efforts
Institutional fragmentation
Small units-resource and management
problems
(c) KSG SIA 2004
The S&T policy statement 1
December 2003
1. To increase the share of competetive funding
from public sources – Doubling over the next
four years (government term)!
2. To strengthen the universities as research
institutions!
3. To redefine the role of public research
institutions and their relations to the universities
and to industries (the economy)!
(c) KSG SIA 2004
S&T policy statement 2
Follow up actions! June 2004
1.
To strengthen the role of competetive public funding
•
•
2.
To strengthen the universities as research institutions.
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•
•
3.
Redefine criteria for doctoral programmes – Role of the Graduate Research Fund
Flexibility in the division of academic staff time – Research vs Teaching
The evaluation of the quality as well as the relevance of university research
To redefine the role of public research institutions
•
4.
Linking funding to policy objectives – Better coordination between funds
Requesting a proposal for a new strategic funding program from the S&T
community
Implementing (Prime Ministry Committe) recommendations on the reorganisation of
sectoral research institutions and their relation to the universities
Other policy issues
•
•
•
•
•
Strong internationl participation – Nordic, EU, N-America, Arctic
Continuity of funding instruments – from science to innovation and social benefit!
Innovation support programmes to be coordinated
Equal gender opportunities improved
Promoting interest of students in primary and secondary schools in science and
technology.
(c) KSG SIA 2004
Innovation drives the economy
Where does it come from?
What happens with it?
• 70 % from start ups
• 9 out of 10 fail
(c) KSG SIA 2004
European Start up Culture?
Your
Company?
Start up resources Europe
Sales
Resources %
100%
75%
50%
Development
25%
0%
Start
Prototype
Domestic Market
Validation
Foreign Market
Validation
Stages of development
(c) KSG SIA 2004
Foreign Market
Sales
European Start up Culture
•
•
•
•
Technical perfection
Technically good product will sell
The product will sell itself
Money spent on sales is wasted
(c) KSG SIA 2004
USA Start up Culture
Resources %
Start up resources USA
100%
75%
50%
25%
0%
Sales
Development
Start
Prototype
Domestic
Market
Validation
Foreign Market Foreign Market
Valdiation
Sales
Stages of development
(c) KSG SIA 2004
Wouldn't
this be better?
USA Start up Culture
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•
•
•
Make money
What sells is good
Why develop if nobody buys?
Get marketing & sales assistance
(c) KSG SIA 2004
Conclusions
Europe/USA gap
• USA
– Companies are there to make money
– Risk takers
– Failures are there to learn from
• Europe
– Technical perfection
– Risk avoiders
– Failure and no second chances
(c) KSG SIA 2004
Icelandic Experiment
CLOSING THE EUROPE/USA GAP
Icelandic Trade Council
New Business Venture Fund
(c) KSG SIA 2004
Icelandic experiement set up
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•
•
•
Put 3-4 companies in a Business Cluster
Set up a local office
Hire an experienced marketing/sales mgr
Companies get local
– Business Address
– Phone number
– Email
• Find local partners
(c) KSG SIA 2004
Business cluster approach
Icelandic experiment resources
100%
Resources %
Sales
75%
50%
Developm ent
25%
0%
Start
Prototype
Domestic Market
Validation
Foreign Market
Validation
Foreign Market
Sales
Stages of development
Start up resources USA
Start up resources Europe
100%
Sales
Resources %
Resources %
Sales
100%
75%
50%
25%
0%
Development
Start
Prototype
Domestic
Market
Validation
Foreign Market Foreign Market
Valdiation
Sales
75%
50%
Developm ent
25%
0%
Start
Stages of development
Prototype
Domestic Market
Validation
Foreign Market
Validation
Stages of development
(c) KSG SIA 2004
Foreign Market
Sales
Company selection criteria
• Niche product
• Home market penetration
• Co-operative management
(c) KSG SIA 2004
Support
• Help the companies to help
themselves
• 2 years financial support
• Trade Council of Iceland
(c) KSG SIA 2004
Business Cluster Copenhagen
for Nordics
• Companies have partners
• Making revenue
COPENHAGEN CLUSTER A SUCCESS
www.ecpint.com
(c) KSG SIA 2004
Business Cluster Riga
for Baltic States
• Copenhagen model and experience
• Companies found Latvian Partners
• Looking for Lithuanian and Estonian ones
www.ksg.lv
(c) KSG SIA 2004
Cluster Network
also for local companies
Power of
the
network
(c) KSG SIA 2004
Questions?
(c) KSG SIA 2004