Audit of Innovation in the BMW Region An Evaluation of a Regional Knowledge Economy Gerry Finn,...

Audit of Innovation in the BMW Region

An Evaluation of a Regional Knowledge Economy

Gerry Finn, Director

1. Why do an innovation Audit?

2. Approach Undertaken

3. The BMW Region Challenges & Opportunities

4. Performance of the Innovation System

5. Conclusion, Recommendations & Next Steps

Presentation Overview

1. Why do an Innovation Audit?• Regional Innovation has been a key priority for the BMW Regional Assembly for many years • Innovation, ICT & the Knowledge Economy is the 1st Priority of the BMW Regional OP 2007-13 (€200m out of €458m) 

1. Why do an Innovation Audit?• Regional Assembly has managed two Regional Programmes of Innovative Actions (€3.1m) • Several submissions made to Government on RTDI policy e.g. Strategy for Science Technology and Innovation, Innovation Taskforce

•2004 Audit of Innovation

•Benchmarking Document for Innovation

• Update and Revisit Progress Achieved

• Funding to Update Awarded Under Inter-Regional project

1. Why do an Innovation Audit?

• A strong innovation system is one of the hallmarks of a knowledge-based economy

•BMW Region Challenge- Creating Sustainable Jobs- Current Lack of Higher Value-Added jobs

Importance of a Functioning Innovation System?

- Government Policy:•Building Ireland’s ‘Smart’ Economy

•Strategy for Science, Technology and Innovation

(€1bn+ invested since 2000),

•Innovation Taskforce

•Central to the Programme for Government 2011 – Ireland as an Innovation Hub

Importance of a Functioning Innovation System?

2. Research Approach Adopted

+

CISC(Centre for Innovation & Structural Change, NUIG)

2010 Audit of Innovation

Methodology

KIS = Innovation Service Providers Organisations (public or private) that provide Innovation Services i.e. Knowledge-based support, including applied R&D, innovation activities

Positive impact on business processes and activities - thereby assisting them to innovate and grow. 

What are Knowledge Intensive Services?

• R&D services;

• prototyping and design services;

• technology transfer services.;

• ICT services;

• innovation management;

• strategic consultancy; Public: Institutes of Technology, Universities, Publicly Funded Research CentresPrivate: ICT, R&D and Management Services

Examples of Innovation Services

Role of Sector in the

Innovation System?

Participants in the Innovation System

Framework for Delivery

Outputs for Economic Development

3.

The BMW

Region

Challenges &

Opportunities

Challenges for the Region

to Turn Potential into Job/Growth• Rural Region – High Reliance on ‘Primary Sectors’ • Recession has impacted heavily on the BMW Region: lags on a range of economic indicators compare to the EU27 & S&E Region

• Up-skilling a key challenge – move out of the low-skills equilibrium

Challenges for the Region

to Turn Potential into Job/Growth• BMW Region’s Share of Public R&D Expenditure Remains Low

e.g. 13% Programme for Research in 3rd Level 11% Science Foundation Ireland Funding 19% Enterprise Ireland

BMW National Share• Population 27% - Labour Force 25%- Output 19% (GVA)

Business Expenditure on R&D by region, 2007

BMW Region 19% of Total BERD Expenditure in the State

Headcount of Research Personnel (Number) by Region, Sex, Year and Type, 2007

BMW Region 21% of Total Research Personnel

• NUI Galway (St. Angela’s College)• Athlone IT, Dundalk IT, Galway/Mayo IT Letterkenny IT, Sligo IT

• The Marine Institute (Oranmore)• Teagac Rural Economy Research Centre (Athenry)

Líonra- Collaborative Research & Innovation Strategy

Applied Research Centres & Incubation Centres

Dynamic Knowledge-Led Sectors Emerging in the BMW Region

• Companies in the Knowledge Intensive Services Sector worth €1bn to Regional Economy (ICT, R&D & Management Services)

• World Leading Medical Devices Cluster,

Galway (Manufacturing of Medical Devices,

employing circa 9,000)

•Other Leading Technology Sector Identified:

Computer & Communication Hardware (6,500)

Pharmaceuticals (6,100)

Software and Communication Services (5,300)

• Graduate Employee Levels High (78%)

Dynamic Knowledge-Led Sectors Emerging in the BMW Region

4. Performance of the Innovation System

4. Performance of the BMW Region’s Innovation System

Why are Companies Engaging in the Innovation Process?

• Grow Sales, Turnover and Market Share

• Develop the Capacity/Skills of Employees

• Necessary for Survival

How is the innovation system performing in the BMW Region?

• Knowledge Transfer & Innovation Support Activities are a Priority

• HOWEVER funding limitations & concerns around return-on-investments in innovation remain a challenges for private companies

• Networks & Networking identified as key sources of information for the KIS Sector

• Innovation is market-led rather than grant driven

• However public grants remain a key consideration

How is the innovation system performing in the BMW Region?

How is the innovation system performing in the BMW Region?

92%

77%

Challenges for Public Sector

• Slowness of

Response

• Culture Gap between

Academia & Industry:-

Not Sufficiently

Business Orientated

Challenges for Public Sector

•Lack of Co-ordination/Appropriate Points of

Contact

•Inadequate Delivery/ Quality Issues

• Poor Understanding of Needs/Different

Expectations Regarding Research Outcomes

• Further barriers in the innovation system included:

• Lack of awareness of available funding • Opportunity Cost of Investing in Innovation/R&D Activities

• Difficulty in access appropriate services

How is the innovation system performing in the BMW Region?

5. Conclusions, Recommendations & Next

Steps

• Dynamic cluster of knowledge intensive services – leading transition to knowledge/smart economy in the BMW Region

• Opportunities to exploit potential and translate to jobs and growth

Conclusions, Recommendations & Next Steps

• National innovation policy – Needs a more Explicit Regional Dimension (reflect local & regional economic realities, linkages/networks)

• Lead to the development of Regional Innovation Strategies + robust monitoring & evaluation systems

• Single point of industry/academia to address barriers to accessing services

•A bottom-up approach

Conclusions, Recommendations & Next Steps

• Greater exploitation of regional assets

– identify the evident regional comparative advantages along with the innovation and capacity required to deliver the optimum output

(Smart Specialisation)

• Build upon Líonra Collaborative Strategy

Conclusions, Recommendations & Next Steps

• More sustained investment is required in Innovation Centres & Incubation Centre to Commercialise R&D Activity

• The role of HEIs in knowledge and technology transfer should be expanded - could yield more tangible returns for Government invest in R&D

• EU co-financed ERDF focus on Innovation should be maintained

Conclusions, Recommendations & Next Steps

www.bmwassembly.ie