Transcript Proposed Structure of the National Innovation and ICT Council

POTENTIAL OF FAB LABS IN ADVANCING
INNOVATION AND COMPETITIVENESS
IN DEVELOPING ECONOMIES
Iwona Borowik
Innovation Policy Specialist
World Bank Group
LED Forum 2015
London School of Economics and
Political Science
March 7, 2015
SELECTED INNOVATION PROJECTS LED BY THE WORLD
BANK IN EUROPE AND CENTRAL ASIA (ECA)

Georgia: Competitive Industries & Innovation Program 2014-2017: review of
the innovation system and advice on innovation strategy, establishment of the
Georgian Innovation and Technology Agency and its mandate

Montenegro: Higher Education and Research for Innovation and
Competitiveness project: support for funding of pilot Center of Excellence and
innovation grant program promoting international collaboration and research
excellence

Western Balkan Countries: Facilitation of efforts in reaching agreement on
the Regional R&D Strategy for Innovation in the Western Balkan Countries,
2012

Bulgaria: review of the innovation system and advice on innovation strategy,
innovation instruments, legal framework, innovation system governance,
2012-2013

Poland: Enterprise Innovation Support Review, 2013: advice on the
innovation policy, programs and innovation strategy for 2014-2020

Romania: Research, Development and Innovation Sector Functional Review,
2011
2
WHAT ARE THE UNDERLYING BOTTLENECKS
HINDERING INNOVATION IN ECA?
3
LOW LEVELS OF R&D EXPENDITURE

Average R&D/GDP in ECA 0.7% compared to EU27 average of 2%
Gross Expenditure for R&D as a percentage of GDP, 2011
4
3.5
3
2.5
2
1.5
1
0.5
0
Source: Author’s calculation based on UNESCO data for 2011
HIGH PROPORTION OF GOVERNMENT SPENDING VS.
PRIVATE R&D

Low business spending on research and innovations

Low business sophistication (prevailing export of low-tech goods)

The public and businesses do not adequately perceive importance of
innovation (resulting in poor innovative and entrepreneurial culture)
Private/Public R&D financing 2011
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Bus
Source: Author’s calculation based on Eurostat, data for 2011
Gov
MOST RESEARCH NOT RESULTING IN INNOVATION

Decline in scientific productivity and particularly research quality

Research system oriented towards basic research with poor results in applied
research

Limited research-industry collaboration

Underinvested proof of concept labs/innovation infrastructure for quality
research and inventions

Limited participation in international research programs (e.g. EU FP7, Horizon
2020)
R&D expenditure per one patent in US Patent & Trademark Office
(thousands of PPP$)
350
300
250
200
150
100
50
0
Source: Author’s calculation based on UNESCO and USPTO data for 2011. Scientific productivity is measured by amount of
public spending per one patent; high expenditure per patent demonstrate poor quality of research (i.e. most of research do not
produce patents);
HOW CAN FAB LABS STIMULATE INNOVATION?

Provide opportunities for researchers, inventors, entrepreneurs, students,
society (towards knowledge-driven society) being an “open-source
innovation”

Generate new sphere of possibilities at the local level to stimulate
innovations, inventions and applied research (towards knowledge-driven
economy)

May be used across industries promoting cluster development (specialization)
at an affordable cost

Enable access to global knowledge/networks (Fab Lab Network)

Create a deal flow for high impact start-ups - essential for the attraction of
risk capital
7
FAB LABS’ MULTIPLIER EFFECT IN RAISING COMPETITIVENESS
Education, Human Capital
Innovation
Innovation- and
Economy,
Technology-based
Exports,
Business Development Competitiveness
• Attract students to Science,
Technology, Engineering
and Mathematics (STEM )
Education
• Product innovation
Job Creation
•
• Relevance of skills
training
• Attract more citizens
(students, entrepreneurs,
professionals) into STEM
professions
•
• Shift from low-skill intensity
to medium/high
•
•
•
• Mitigate ‘brain drain’ of
•
STEM-focused researchers,
graduates and professionals
•
• Attract diaspora
• Educate the community
•
• Teaching skills in computing
•
(CAD/CAM), digital
fabrication, engineering,
•
electronics, programming,
design, creative thinking
•
• Generating a critical mass • Engaging
of enterprises (SMEs) that
broader public in
Disruptive and design thinking
combine engineering and
innovation,
Rapid prototyping
entrepreneurship
stimulates new
modalities
economic
Igniting early technology
development
adoption
• Networks formation and
multi-disciplinary
Increase of
Collaborative and distributive
collaboration (researchers, manufacturing
innovation
engineers, entrepreneurs,
• Shift from lowMulti-disciplinary and applied
etc.)
skill to mediumR&D
• Incubation of business
and highNational, region, city
ideas
technology
innovation
intensity products
• Creative entrepreneurship
Innovation output (e.g.,
• Export diversity
• Creation of new
patents)
businesses, enterprises or • Puts a country on
Tap into global knowledge
firms
par with more
developed
Increasing the stock of useful • Commercialization
nations in digital
knowledge
fabrication
• Creation of high impact
Active catalyst to creativity
potential
start-ups
Capacity building to execute
• Strengthen
ideas commercially
• International integration
competitive
advantage
Job Creation and
Social Development
• New opportunities for
employment
• Improving income
stability
• New skill sets to use
latest most advanced
‘disruptive technologies’
such as 3D printers and
related equipment in
new ways
Social development
• Community building in
the underserved or
remote areas
• Skills building
• Platform for jobs and
expanded employment
opportunities across
sectors
 Knowledge Hub, Knowledge generation and diffusion 
 Technology adaptation, penetration 
 Cross-sector (Manufacturing, ICT, Cultural and Creative Industries, Agriculture, etc.) 
Fab Labs as bridges (public-private-academia partnership)
8
Source: The World Bank (2013): “Innovation Infrastructure Flagship Projects: Pre-feasibility Study”. BULGARIA Reimbursable Advisory
Services Program on Innovation
FAB LAB AS AN INNOVATION SYSTEM CONNECTOR
Partnerships
Demand for Fab
Labs
Academia
Source: The World Bank (2013) “Innovation Infrastructure Flagship Projects: Pre-feasibility Study”.
9
BULGARIA Reimbursable Advisory Services Program on Innovation
YET, TO

LEVERAGE ON
FAB LABS …
Need for business access to early stage financing for innovation (business
angels, crowdfunding, VC, grants programs)
•
vital issue across ECA (Georgia, Croatia, Serbia, Montenegro, etc.)
•
good example of addressing this challenge is Bulgaria’s approach:
JEREMIE program of EUR 348m until 2016 (joint initiative of EIF and
the European Commission) providing 5 equity and debt products for
SME lifecycle

Essential role of entrepreneurs’ connection with business
incubators/accelerators (including pre-incubation services): assistance in
business mentoring starting from idea development and business plan
development

Effective Intellectual Property and technology transfer policies and their
deployment

Commitment of the government: proof of concept labs/Fab Labs,
incubators, community centers, etc. most likely will not be self-sustainable
over a longer period of time
10
Thank you
Disclaimer:
The views expressed in this presentation are solely of the
author and may not be regarded as representing official
views of the World Bank Group
11