European Year of Creativity and InnovationSantander – UIMP 20 – 21 Augustus 2009

Key Competences for times of crisis

“Sense of Initiative and Entrepreneurship”

Dr Martin HinoulBusiness Development Manager

Knowledge Economy Region Leuven

Santander, August 20, 2009

An Entrepreneurial Society

“The rise of the entrepreneur, which has been gathering speed over the past 30 years, is not just about economics.

It also reflects profound changes in attitudes to everything from individual careers to the social contract.

It signals the birth of an entrepreneurial society”

-The Economist- March 14, 2009

The World became Flat…(Friedman)

And the business became global…M

arke

t V

alue

G

DP

EU

EU - U.S

2000

EU - U.S – Asia- BRIC

1900

customers0.5 billion 1 billion 2 billion

year

60 trillion $

Europe has no raw materials

The World became Flat, but …

And Europe has no energy resources

Therefore innovation becomes extremeley important

•Innovation is important for economic growth: 50% since World War II66% in the 90’s

90 % in the 21th century

• Lisbon 2010: Europe should bring the R&D effort from 2 to 3% A difficult mission ( a shortage of 110 billion Euro and a shortage of 700.000 scientists and engineers)

• Finland 3,49% ; Nl 1,94%; UK 1,93%; Fr 2,2; It 1,07; Sp 0,97%; Po 0,65%; Ro 0,39%; Bg 0,47%….US 2,8%

From Productivity to Innovation

Golden Sixties :

Productivity (labour intensive)

Seventies :

Quality (skill intensive)

Eighties :

Flexibility (capital & technology intensive)

Nineties :

Innovation (knowledge intensive)

21st Century :

90% will come from Innovation

"The literature on innovation is longer than my arm. (…)

It can be summarized as follows : innovation is either a machine or a magic garden. If it's a machine, companies should design it, oil it, power it up, and manage it.

If it's a garden, companies should create conditions under which it can flourish, and then let the magic occur.

Innovation is both of course."

-Thomas A. Stewart (*)- Fortune magazine, 5 mars 2001

(*) : Author of "Intellectual capital – The new wealth of organizations", Nicholas Brealey Publishing, 1997

10

Source: World Bank Institute

Knowledge economy index• Economic incentive

regime

• Education

• Innovation

• ICT

Belgium

“In the twenty-first century, brainpower and imagination,

invention, and the organization of new technologies are the key

strategic ingredients.”

- Lester Thurow- Professor MIT -

12

“ In a knowledge-based economy growth is inextricably linked to the capacity for innovation – the ability to transform knowledge and ideas into new products, processes or services. Healthy and innovative regional economies are the foundation of a nation’s competitiveness”

-Deborah L. Wince-Smith

President Council on Competitiveness

The New Economy or the knowledge economy regions

The European Technology Dilemma

The technology gap (10 yrs) w

ith the U

S is still not decreasing

The technology gap w

ith China and

India (20 yrs) is shrinking every month

From Lisbon 2000 to…

70% of the active population should be employed 3% of GDP should go to R&D And Europe should be the strongest Knowledge Economy in the

world

Innovation and Lisbon 2010New faces – Results?

INNOVATION IS CHANGING

Faster, Faster, Faster

19

Source: Joseph Jacobsen

It requires a wider collaboration across disciplines and specialties (multidisciplinary approach)

21

The concept of Intellectual Property is being reexamined in the light of these collaborative demands

Intellectual Property

It requires a wider collaboration of Knowledge Economy regions

Three Regional Centers growing together, increasing the overall size of the pie

Taiwan

Silicon Valley China

Collaboration of Knowledge Economy Regions

The trend is clearly towards

“open innovation”

The guru of Open Innovation – Henry Chesbrough

Innovation requires the

“triple helix” approach

The Triple Helix

Is the complex between three actors

The Government The Industry The Knowledge Centers

Knowledge creationKnowledge diffusion

Knowledge exploitation

Triple Helix is about:

In Conclusion:

Faster, Faster, Faster

It requires wider collaboration across disciplines and specialties (multidisciplinary approach)

The concept of intellectual property is being reexamined in the light of these collaborative demands

It requires a wider collaboration of regions The trend is towards “open innovation” It requires a “triple helix” approach

Need for an Integrated Perspective on Innovation

33

1. Innovation is about :

Blending Creativity, Opportunity and Organization

It is both Content and Process

Creativity is the starting point and a necessary condition

Linking Creativity to Opportunity is the key for progress

Linking an Idea and an Opportunity (a different order of difficulty and complexity)

Seeking the Opportunity is the hardest part of the innovation job

Opportunities should therefore always be Relevant to a Particular use, or Specific application, generating value to users”

Some people more inclined than others to spot and assess opportunities

Once the link between opportunity and organization is obvious a lot of hard work remains to be done

And requires an adequate Organizational approach

2. Innovation is about :

Blending creativity, opportunity and organization needs special kind of persons

The credible champion willing to go for it against all odds – the Entrepreneur

Entrepreneurs have an instinct for positioning themselves at the nexus (liaison) of creativity and opportunity

Willing to assume the risks and uncertainties that come along

Prepared to deliver the 99% perspiration to conclude the job

3. Innovation is about :

Companies who innovate in order to differentiate so that they can build a longer lasting competitive edge

Even cooperation is a form of competition

Without competition no innovation, without innovation no competition - Co competition

Innovation never ends

Open Innovation is just a different dimension of the competitive process

4. Innovation is about :

Requiring the proper legal context

Clear intellectual property policies and frameworks are a condition sine qua non

In a Knowledge economy, Knowledge has become a major production factor

As a consequence, there is a need for means to adequately articulate, protect and transfer knowledge within or outside the boundaries of the organization

The European Technology DilemmaUS versus Europe

The technology gap (10 yrs) w

ith the U

S is still not decreasing

40

A nation which depends upon others for its new basic scientific knowledge will be slow in its industrial progress and weak in its competitive position in world trade

Science, the endless frontier – Vannevar Bush 1945

Old and New Halls of Fame

Pittsburg

Seattle

San Diego

Silicon Valley

It is a new Form of Culture

CULTURE

All things are possible attitude

Risk Taking Scott McNealy-Sun

Co-competition

Stock options

Based on Meritocracy

Time for the next big thing

Cross-pollination

Cross-investments

State of mind

Failure Badge of meritJumping on the Next Curve (Oracle)

Networking

Inflection Point (Andy Grove)

Repeaters (Reinvention)

“The story of Silicon Valley is not “e,” but “i,”, not electronic commerce but innovation and imagination. What distinguishes many of these companies is not their technical prowess but their imagination. They are young, hungry, and totally devoid of tradition. It is the power of “i,”, rather than “e,” that separates the winners from the losers in the twenty-first-century economy.”

“Silicon Valley is not a place, but a metaphor for unfettered imagination, rampant experimentation, and an utter lack of nostalgia.”

Leading the Revolution Gary Hamel

Stanford – Fred Terman

Silicon Valley – A complex Network of Clusters

Nano-electronics

Internet – Google – e-Bay –Yahoo-Amazon.com

Semiconductors – Shockley - Intel

Software -Oracle

Computers – Apple - Sun

Electronics – Hewlett Packard - Varian

Networks – Cisco (Bosack,Lerner& Troiano -1984)

2005

2000

1980

1975

1955

1939R

oute 101 – Route 280 - S

tate of m

ind

VC

– Kleiner P

erkins Caulfield…

NA

SD

AQ

Silicon V

alley Joint Venture N

etwork

Stanford U

niversity – UC

SF

- Berkley

Clean Technology

ShockleyTerman

A network of professors, entrepreneurs, venture capitalists, Nobel Prize winners and role models

Steve Jobs

Scott McNeally

John Chambers

Larry EllisonLarry PageSergey Brin

Pierre OmidyarS. Boyer

Jerry YangJeff Bezos Edw. McCracken Jerry Sanders

Sig en Rus Varian

Gordon Campbell

Hewlett&Packard

Silicon Valley Is a “network” and a “state of mind” (Felix Theeuwes – Durect

Corporation) Is a network effect that transcends national boundaries (Wim

Roelandts – voorzitter Xilinx) Regional centers growing together increasing the overall “Pie” (Wim

Roelandts Xilinx)

Stanford University 1891

Two Examples

1. Steve Jobs – Apple Computer

2. Larry Page & Sergey Brin - Google

48

Steve Jobs and Apple

Steve Jobs – Apple Computer (1)

“Mr Jobs is most celebrated for his sense of product design, his marketing acumen and, especially, his ability to execute on visions that have transformed three industries: personal computing, music and telephones.”

- Financial Times-

July 2009

50

Larry Page & Sergey Brin – Google (2)

“Moscow -born Sergey Brin and Midwest-born Larry Page dropped out of graduate school at Stanford University to, in their own words, “change the world” through a powerful search engine that would organize every bit of information on the Web for free. The Google Story takes you deep inside the company’s wild ride from an idea that struggled for funding in 1998 to a firm that rakes in billions in profits, making Brin and Page the wealthiest young men in America. Based on scrupulous research and extraordinary access to Google, this fast-moving narrative reveals how an unorthodox management

style and culture of innovation enabled a search engine to shake up Madison Avenue and Wall Street”

-The Google Story-

David A. Vise

51

Larry Page and Sergey Brin

The Google Story

The European Technology DilemmaEurope versus Asia

The technology gap w

ith China and

India (20 yrs) is shrinking every month

Knowledge Economy Regions in Asia

India, a Rising Elephant

From terracotta statues in Xi’an (emperor Qin Shi) to …

…a new economic superpower?

Which Superpower?

And what about good old Europe?

? *

European Knowledge

Economy Regions

?

European Knowledge Economy Regions

Cambridge the better example in Europe

Cambridge

source: Cambridge 2020 report - 1998

The East of England RegionSilicon Valley Scale – Lots of space for Growth

The Oxford to Cambridge Arc – ‘Inspiring Innovation for Britain’

2

Down the A34

London:‘Finance and

GlobalConnections’

(plus itsUniversities)

Heathrow ‘Growth Area’

O2C

Arc

– IP

Ally

‘Hug

e Br

ainp

ower

’

Thames Valley‘Industry and Commercialisation’

Along the M11

Oxford

Cambridge

Global connectivity

Stanstedand the ‘Herts’

Pharmas

The ‘Golden Triangle’ of the UK

“…the only way to compete is to concentrate resources in regions that are strong….” Martin Rigby. MD, ET Capital, Cambridge Lecture, 2006

Some 75% of all VC funds found a home here in 2006

Leuven

The Leuven ModelKnowledge Transfer and

Collaboration

In an old young city

Some important data for the Leuven Region

1366 Brewery Stella Artois (now Inbev)

1425 University of Leuven

1972 KU Leuven R&D

1984 IMEC

1997 Gemma Frisius Fund

Qu

ality of L

ife

Kn

ow

led

ge

cent

ers

Entrepreneurs

Role Models

Money

Capital Markets

Infrastru

ctureC

lust

er P

olic

y

International C

ies

Networks

Government

The Value Chain*

Knowledge Centers Entrepreneurs & Role Models Money Capital Markets Infrastructure Cluster Policy Presence of International

Companies Networks Government Quality of Life

* Gibbons – Saxenian - Hinoul

Transfer Cell K.U.Leuven R&D

© 2007 LRD

K.U.Leuven Research & Development received the

2008 IPTEC Tech Transfer Award

Nominated:

• K.U.Leuven R&D (Winner 2008)• Columbia University (USA)

• Imperial Innovations (UK)

• MIT (USA)

• Wisconsin Alumni Research Foundation (USA)

Received the award :

• 2006 : Stanford University (USA)

• 2007 : Tsinghua University (China)

© 2007 LRD

Dual incentive mechanism to maintain a balance and healthy tension between striving for scientific excellence and gearing this excellence towards application and innovation.

Faculties, departments, research groups:international quality in research,

teaching performance

LRD divisions/projectsContract autonomy &flexibility incentives

LRD Research Divisions

© 2007 LRD

• At the moment (2009) 85 spin-off companies (exploiting university research results) are active, creating employment of >2.200 employees.

Spin-off companies

•6 successful IPO’s are established

Imec and the World’s Largest Industry Commitment to Semiconductor Research in Partnership

Imec and the World’s Largest Industry Commitment to Semiconductor Research in Partnership

LamRESEARCH

STMicroelectronics

IMEC

Micro-elektronicaNanotechnologie

TelematicaCommunicatie

E-security

Mechatronica

Feed – food- health

Lifesciences

L-SEC

DSP-Valley

Leuven.Inc

Cluster Policy

The concept

Economy Region

Ingredients

The Old Economy

Economy Region

Ingredients

Universiteit

INBEV

KBC-groep

The New Economy

Economy Region

CompaniesIngredients

Cluster Formation

Economy Region

ClustersIngredients

Sweepers

and Recipe

Martin Hinoul’s BouillabaisseIngredients and Recipe

Source Fortune – Sept 26,2005Campbell Soup 1935

Micro-elektronica - nanotechnologie

Telindus

Tyco Electronics

Luciad

Tomoton

Micro Matic

Delcomp

Data4S

Mind LinuxSolutions

LMS

Krypton

IPCOS

Assurcard

A.C.S. Belgium

B.E.S.T.

Eyetronics

Cypress Semi

FillFactory

STM

Agilent Techn.

J.W.Lemmens

Philips ITCL

Septentrio

ASM Belgium

Target Compiler Techn.

EasicsCoWare

AnSem

Epiq Sensor Nite

Oligosense

Xenics

Photovoltec

Vector International

JSR Electronics

ICOS Vision Systems

Newfrom

Option International

Vivactiss

Eonic Systems

Resonext

ARM

Soltech

KULeuvenIMEC

K.U.LeuvenLab Photochemistry & Spectroscopy

Lab of Solid-state Physics & Magnetism

IMECSub-45nm research facilityNanotechnology Platform

Design platform

Kenniscentra

Centers of excellence

Pure innovatievebedrijven

Mixed innovatievebedrijven

Biotest SeralcoBenelux

TerumoEurope

Autocyte Europe

Conti BPC

Ortec

VWR InternationalCentocor

Malaise&co

IVIA

MedvisionBenelux

Norgine

Dermat

E.S.R.I.Deckers Div

Dakocytomation

Cochlear

M-Elect

Custom8

@Medical Techn.

New Standard Eng.

Materialise

MXS

QMedit

PatientWeb

Thrombogenics

ReMynd

Algonomics

BioTie Therapies Corp.

Tigenix

IDT(RNA-TEC)

Medicim

Life sciences in Leuven

K.U.LeuvenL-MTC

Univ hospitalsK.U.Leuven

Rega InstituteCEHA

Lab of Exp. Genetics & Transgenese

VIBVIGOUR

Kenniscentra

Centers of excellence

Puur innovatievebedrijven

Gemengd innovatievebedrijven

Diatos

Onco Methylome

Neurogenetics

FugeiaRegenesys

M4S

Formac Pharmaceuticals

CMPG

Quality of Life

1. Basis is a critical mass of high quality research - Knowledge

2. Create an appropriate entrepreneurial climate in a university context

3. Create a legal framework with respect to exploitation of academic research

4. Clear incentives and policies to encourage research groups and departments to actively seek knowledge transfer opportunities

5. Create a professional Interface Unit – An Integrated approach on research valorisation: multidisciplinary team & “high value” services

6. Create a Seed Capital and/or Venture Capital Fund

12 Lessons from Leuven

7. Foster spin-offs from your university research

8. Clear ownership of Intellectual Property

9. Improving awareness among federal, regional and local shareholders

10. Supporting a forum for business, academia, government and supporting organisations to build partnerships by sharing new ideas and best practices. Importance of the networks.

11. Focus on Focus and Enthusiasm

12. Quality of life

12 Lessons from Leuven

The Eindhoven – Leuven – Aachen Growth Model

ELAt

A European Region with Critical Mass

*•155 miljard € (2007 est. MH)•53 000 € toegevoegde waarde/werknemer

Qu

ality of L

ife

Kn

ow

led

ge

cent

ers

Entrepreneurs

Role Models

Money

Capital Markets

Infrastru

ctureC

lust

er P

olic

y

International C

ies

Networks

Government

A Region with the right ingredients

Knowledge Centers Entrepreneurs & Role Models Money Capital Markets Infrastructure Cluster Policy Presence of International

Companies Networks Government Quality of Life

Infrastructure

Quality of life

Capital Markets

Knowledge Centres

Quality of life

Capital m

arkets

Kno

wle

dge

Cen

tres

Close to the 3% Lisbon target ?

Infrastructures

Capital m

arkets

Quality of life

The Leuven Knowledge Pearl

High Tech campus Eindhoven

The DSM – Chemelot High Tech Campus

RWTH Aachen Campus

•15 Cluster

•10.000 new jobs

•2 billion € investment

Some facts and figures for the ELAt Triangle*

Technology and Materials

Food/Nutrition Life Sciences Total

Netherlands 127 000 92 000 19 000 238 000

Belgium 58 000 39 000 7000 104 000

Germany 104 000 58 000 16 000 178 000

Total 289 000 189 000 42 000 520 000**

* Source : Policy Research, Hochschule Niederrhein, Etil.

** 155 billion € - 2,8 million active population or 1 out of 5 jobs HAV-(est. MH)

Total Added Value

(billion €uro) 20 9 3 32

Total Added Value per employee 69 000 € 48 000 € 71 000 € 61 000 €

Prospects for the futureHow science will

revolutionize the 21st century

Jack Kilby – Integrated Circuit

Moore’s Law

•Transistor 1947

•Shockley 1955

•Fairchild 1957

•Intel 1968

114

35 Xenon atoms on a Ni substrate

There is plenty of room at the bottom

Richard Feynman

115

Bio Silicon – Bio Informatics (1st decade)

116

Nanoshells

Naomi Halas – Rice University

117

Nanofibers

• Nieuwsoortige Filters

• Opsporen van virussen en andere organismen, stofdeeltjes en plantensporen

• Budgetten van NIH en Center for disease control and prevention

• Juli 2004 Bio Shield-project

• DOD – Bioterrorisme (nine-eleven)

118

Nanotubes

Ion Channels – detectie specifieke materialen door aanleggen van elektrische spanning

Chemische fabriek op uw bureau

Het samenpersen van een chemisch productieproces op een plaatje zo groot als een creditcard (Process on a Chip, PoaC). Extreme veiligheid, veel kleiner, selectiever, mogelijkheid voor nieuwe produkten.

Japans consortium van 25 universiteiten en 40 bedrijven heeft haalbaarheid aangetoond van een emulsiepolymerisatieproces.

Nano-robot

Thomas Edison & Georges Eastman (1928)