Tapping the World’s Innovation Hot Spots

John Kao – Harvard Business Review

PRESENTED

BY

R.SUJANA

(GB-06)

INTRODUCTION

• There’s a whole new world of innovation opportunities opening up for a company.. If you know where to look.

• There are dozens of countries offering sponsor programs to appeal innovative enterprises to their home territories.

Examples

• Singapore offers tax relief, employee training, and R&D grants to life sciences firms that locate there.

• India provides talent management for some of the world’s most sophisticated technology development work.

• Finland is becoming a global center for innovative design.

Contd..

• To take advantage of , identify which countries offerings best fit your company’s innovation strategy.

• Be prepared to mix and match.• Example, Nile Therapeutics, a

biopharmaceutical firm, uses intellectual property from Italy and conducts clinical tests in Eastern Europe.

Driving Forces of Global Innovation 1) Innovation as a currency of

global competition – pursuing the “global dream”; An international style of business heavily influenced by values of openness, exploration, and risk taking.

2) Global war for talent – talented young innovators can be attracted anywhere through incentives and opportunities

Contd..

3) Innovation as a national agenda – nations increasingly embrace innovation as a national priority

4) Power of networks – global networks are becoming increasingly intertwined.

Model 1 – The Focused Factory

What is a “focused factory”• Clear strategic intent• Infrastructure• Talent

Examples:• Denmark• Singapore –• Biopolis-a 2-million square-

foot biomedical research center.(for stem research)

• Fusionopolis-U.S. National Institutes of Health

Contd..

Singapore donated 2.6% to 3% of GDP to life sciences by 2010, despite the economic downturn.

Key Players:• GlaxoSmithKline (GSK)-

Centre for Research in Cognitive and Neurodegenerative Disorders

• Novartis- Institute for Tropical Diseases

Model 2 – Brute Force

• What is “Brute Force”• Large source of low-cost labor• Innovation opportunities• Huge quantity of ideas

• Examples:• China• India

Contd..

China, currently the world’s centerof outsourced manufacturing, will bethe next hub of brute force innovation.

•Key Players:• Microsoft

Model 3 – Hollyworld

• What is a “Hollyworld”• Forming a global creative class• As more smart entrepreneurs

gather in one place, the more attractive that place becomes to other like-minded people.

• (Silicon Valley effect)• Developing an inviting innovation

destination

Contd..

• Examples: • India – Indian Institutes of

Technology grads merged with Indian US Tech school grads

• Supports and benefits from outsourcing

• Singapore – Funding life-science grad students.

Model 4 – Large-Scale Ecosystems

• What is a “Large-Scale ecosystem”• End to end innovation systems

• Stewardship , funding bodies, Research Institutions etc.

• Self-contained environments• Alliance-management skills

needed

Contd..

• Example:• Finland – Focus on education,

science, & technology (Aalto university)

-Finland enjoys a well-run innovation system benefiting from strong governmental stewardship.

Systems Integration Mix & Match

Approach• Silicon Valley, an area with a

rich mix of skills, ethnicities, and re-sources, as well as abundant educational , institutional, and even familial connections , could serve as a model for a U.S approach.

Contd..

Mix & Match: Choose from among the following models and/or blend country and corporate strategies

To be ready for innovation world

• Understand emerging models of innovation

• Join together different strengths within and outside the firm’s walls

• Cultivate relationship building skills and union management in order to become a trusted members of the local community

THANK YOU