PANEL 3A Developing Networks and a Market for Knowledge Brokerage

PANEL 3A

Developing Networks and a Market for Knowledge Brokerage

Judge Business SchoolJudge Business School


Arnoud De Meyer

Director

Professor of Management Studies

April 18, 2007

The World of Management and Organisations is moving to a new Paradigm

• Offshoring: from subcontracting to outsourcing to partnering

• Knowledge Content of all our products and services is increasing rapidly

• New forms of globalisation in organisations are emerging

• The creation of a vast group of lower middle class in emerging countries with their own needs and ambitions

• Stepchanges in the ICT capabilities and user friendliness (Web2.0, $1 terminal, ubiquity)

This leads to profound changes

• Offshoring: from subcontracting to outsourcing to partnering• Suppliers become partners in value creation and product

design• Knowledge Content of all our products and services is increasing

rapidly• Knowledge workers become dominant

• New forms of globalisation in organisations are emerging• From a ‘triangular’ network towards a network of peers

• The creation of a vast group of lower middle class in emerging countries with their own needs and ambitions• Ideas for innovation can come from anywhere

• Stepchanges in the ICT capabilities and user friendliness• Growing irrelevance of geographical and organisational

boundaries

The world moves towards:

• Networks, networks, networks• Knowledge trading as a major source of economic activities

Some of the Issues

1.Protection of intangible goods will be a growing issue

2.Need for new methods of decision analysis and decision making in a world of information overload

3.The technology works, but how do you learn from a far away site?

4.Building the knowledge organisation

What is a firm or an organisation

• Creating economies of scale for capital attraction and retention• A structure to organise differentiation and integration• Minimising transactions costs associated with markets• Or… a structure in which we have developed the capability to

combine and recombine information in order to transform it into knowledge (or even wisdom?)

Learning from far away: how to smoothen the information flows?

• Create credibility• Clear and dynamic charter• Quick wins

• Stimulate diversity• In culture• And systems and processes

• Invest in elaborate and diversified communication systems

• Understand all the networks, including the ones that operate around you.

Building the Knowledge organisations: why is it a challenge?

Information overload does not lead to knowledge creation: every ten years we double the quantity of data/information

What are the incentives to move from being a reader to become a writer

Knowledge is power (though culture may be a moderating factor): why would I give it up?

We are at the beginning of a new paradigm in terms of search and decision strategies: from convergent to divergent thinking

Technology is an important tool, but not the unique component of the solution!

Architecting your knowledge

• Is everybody plugged in into the organisation’s knowledge network?

• Do you have a conscious design of your global knowledge base?

• What are the incentives to keep building the knowledge base

• How do you do the quality control?

• How do you structure knowledge in order to avoid confusion through overload

• Who leads the knowledge conversion processes?


“Processes, Values and Experiences developed at the Cambridge Network”

Cambridge Network - History

• 1999 Set up by “six heroes” from business and academia (no government money)

• Loosely modelled on San-Diego Connect• Self-funding from day one• Grew into:

– Jobs market– Introduction to VC’s– Share training– Operations in Boston, Munich, Shanghai

• Now $1million turnover / 1300 corporate members

Our Vision

Cambridge ideas change the world

We ‘raise Cambridge’s game’ by helping our members’ endeavours succeed

Sharing amongst members can deliver new sources of success

Cambridge Ideas Change the WorldRaising Cambridge’s Game

Sharing for Success

• The Cambridge cluster has a scale and vitality which the rest of Europe envies

• Cambridge has generated significant wealth for investors, companies and the region

• The University of Cambridge plays a key role in keeping the cluster at the cutting edge

The Cambridge Network has 1300 corporate membersWe organise 40 events per year in Cambridge, London and beyondwww.cambridgenetwork.co.uk receives 20,000 individual visitors every week dayOur weekly e-news and e-jobs letters have been requested by 3000 & 800 peopleOur paper newsletter ‘Connections’ goes to 2000 people each month

The Vice Chancellor of the University of Cambridge is the president of the Cambridge NetworkThe University of Cambridge owns 20% of the Cambridge Network Anyone with a cam.ac.uk e-mail address can participate in events for free

‘Through Cambridge Corporate Gateway, Plastic Logic has been introduced to a number of potential partners from all over the world. Having first met BASF Ventures at the Corporate Gateway event, we are delighted that this relationship has blossomed into a multimillion dollar investment’

http://www.cambridgenetwork.co.uk/

Cambridge Ideas Change the World

Raising Cambridge’s GameSharing for Success

• Requires ‘know who’..

• ..value for money services and solutions

• ..and access to complementary resources to make things happen

'I have been offered the position of Marketing Specialist at T which I found by looking on the Cambridge Network website'

'I attended the China Special Interest Group in May and briefly met Anthony Wong, the Commissioner for Design and Innovation. I was able to have a further meeting with him on my recent visit to Hong Kong. This was thanks to the Cambridge Network.’

‘I saved £15k on recruitment fees this year thanks to my membership of Cambridge Network‘

Cambridge Ideas Change the WorldRaising Cambridge’s Game

Sharing for Success

• A fundamental Cambridge value..

• ..embodied by reusing innovation and thinking

• ..and access to people with a wealth of experience

'Thank you both for a fantastic evening last night. I think it was one of the most useful and informative sessions I've ever been to. Meeting so many fellow FDs from similar sectors who had such a level of shared experience was excellent. The food and location were also great. Many thanks for a top scoring event.

The Cambridge Network’s mission is to link together like-minded people from business and academia to each other and to the global high technology community for the benefit of the Cambridge region

In its first year of operation, The Learning Collaboration (TLC) has provided >250 people with access to in-house training schemes run by larger Cambridge Network members – we call this type of benefit “Collaborative Advantage”

Where does the Cambridge Network Operate?

Physical Virtual

Global

Local

Across the board!

Introducing investmentand deals

Networking to sharecontacts and ideas

Promoting the Cambridgebrand

Celebrating Cambridge successes

Promoting member servicesand collaborative offerings

So how does this relate to member’s needs?

• Human Resources

• Marketing

• Finance

• Start-up / Early Stage

• Other / Job Seeker

• Jobs in website & jobsletter – 50 per year

• Shared TLC training – 60 courses per year

• 4 R’s (Remuneration, Rent, Recruitment) Survey• Cambridge Corporate Gateway (Apr & Oct)

• Post news, events, profile into website and newsletter – 50 per year

• Connections magazine – 12 per year

• Cambridge Network in the City – 3 per year

• Financial Directors’ SIG – 3 per year

• Special Interest Groups for: Intellectual Property, IT, China, USA, India, Healthcare, Cleantech – 20 per year

• Open Meetings – 4 per year (*)• Café Networking – 3 per year (*)• Post CVs (*)

Benefits are free and open to all employees of Corporate Member. (*) = also available to individuals

Why do members join?

To improve chances of meeting the right people

(both locally and globally)

To show affiliation to the Cambridge Phenomenon and the values its stands for

To benefit from FREE Member services

Key Success Factors

• The “Cambridge” Brand

• Local “Heroes”

• Mix of Physical and Virtual Networks

• Spirit of Trust amongst network participants

• ..and some clever software

Policy Implications

• People are loyal to a top university/region and ‘want to belong’

• Charge money to belong from day one (if it is offered for free it is not worth anything!)

• Try to build bridges between different disciplines in your community (although it is not easy, the innovative/enterprising benefits can be huge)

Find out more..

• Cambridge Network– www.cambridgenetwork.co.uk

• Collaborative Training Programme– www.cambridgenetwork.co.uk/tlc

• Matching/Dealmaking with Cambridge– www.cambridgenetwork.co.uk/corporategateway

• Summer School (for people who want to be like us!)– www.cambridgenetwork.co.uk/summerforum

Also: www.cambridgenetwork.us;www.shanghainetwork.cn;www.munichnetwork.com

‘SOFT’ COMPANIES AND R&D CONTRACTS; THE UNDERVALUED ENGINE OF GROWTH

FOR KNOWLEDGE BASED ECONOMIES

David ConnellDirector of TTP Capital Partners and Senior Research Associate,

Centre for Business Research at Cambridge University

19th April 2007

TOPICS

• ‘Soft’ and ‘Hard’ Companies

• The Commercialisation of New Science and Technology

• The Role of Government Procurement of R&D in the United States

• Policy Implications

SOFT AND HARD START-UP STRATEGIES

• There are a range of start-up strategies available to technology entrepreneurs

SpeculativeProductDevelopment

SubcontractSuppliers

ContractR&D

Consultancy

• Uncertainty

• Financial Investment

• ManagementDifficulty

RISK AND RETURN



ContractR&D

Consultancy

• Uncertainty



RISK AND RETURN



HARDCOMPANIES

SOFTCOMPANIES



ContractR&D

Consultancy

• Uncertainty



RISK AND RETURN HARDCOMPANIES

SOFTCOMPANIES



ContractR&D

Consultancy

• Uncertainty



RISK AND RETURN



HARDCOMPANIES

SOFTCOMPANIES

SPECULATIVE R&D

BESPOKE R&D



ContractR&D

Consultancy

• Uncertainty




SOFTCOMPANIES

SPECULATIVE R&D

BESPOKE R&D



ContractR&D

Consultancy

• Uncertainty



RISK AND RETURN



• ‘Hard’ start-ups require substantial venture capital investment and if successful can grow very rapidly and deliver big returns for investors

• ‘Soft’ start-ups rely mainly on customer contracts to fund the development of technology that meets their needs

• Customer funding through the soft model also plays a key role in the early “exploratory” stages of exploiting new technology

• Soft company growth rates are limited and so they are rarely attractive as investments to venture capitalists

HARDCOMPANIES

SOFTCOMPANIES

SPECULATIVE R&D

BESPOKE R&D



ContractR&D

Consultancy

• Uncertainty




SOFTCOMPANIES

SPECULATIVE R&D

BESPOKE R&D



ContractR&D

Consultancy

• Uncertainty



RISK AND RETURN

EXITSTTP GROUP PLC a private company

WAVEDRIVERWAVEDRIVER

Laboratory instrumentation

Wholly owned by TTP Group

Mobile terminal technology

IPO London Stock Exchange

October 2000

600 employees

Automated chemical synthesis

Acquired by Mettler-Toledo

December 1998

Pharma manufacture systems

Demerged

August 1998

200 employees

Automotive power electronics

Acquired by PowerGen

1997

Contract product development

Technology consulting

Proprietary IP exploitation

Wholly owned by TTP Group

300 employees

Tonejet high quality imaging

Vista low cost printing

BT Movio mobile TV

Dymo electronic label printer

Mosquito nanolitre dispenser

comPOUND storage system

Explorer µplate cytometer

DAB modules

Microfluidic lab-on-chip

Matrix low cost wireless comms

EXAMPLE OF A ‘SOFT’ CAMBRIDGE COMPANY

EXAMPLE OF A ‘HARD’ CAMBRIDGE COMPANY

CAMBRIDGE SILICON

RADIO

• Fabless Bluetooth semiconductor spin out from Cambridge Consultants : April 1999

• $85m venture capital investment in 4 rounds

• First profit in Q3 2003

• IPO on London Stock Exchange in March 2004

• Today– 900 employees– $700 million revenues– 50% global market share

ORIGINS - spin out team of 10 people from Cambridge Consultants (similar to TTP)

- technical team had worked together for 10 years

- management team had worked together for 4½ years

TOPICS





THE ROLE OF R&D CONTRACTS IN THE COMMERCIALISATION OF NEW SCIENCE AND TECHNOLOGY

RESEARCHUNIVERSITIES; CORPORATE RESEARCH

EXPLORATORY DEVELOPMENTSOFT COMPANIES;

APPLIED R&D CENTRES

AND INSTITUTES

SCALABLE COMMERCIAL DEVELOPMENT

HARD START - UP COMPANIES;

ESTABLISHED COMPANIES

• Innovation is about problem solving; customers have problems and ‘wish lists’

• A development contract from a customer is the best market research a technology company can have

THE ROLE OF R&D CONTRACTS IN THE COMMERCIALISATION OF NEW SCIENCE AND TECHNOLOGY

• Many successful ‘hard’ companies owe their success at least in part to the ‘soft’ company model:

In Cambridge : CSR, Domino Printing Sciences, Autonomy

In US : Intel, Qualcomm

• In Cambridge, ‘soft’ companies :

- are probably more important than the University as a direct source of spin out companies;

- have provided an initial training ground for technology entrepreneurs and venture capital investors;

- provide a stepping stone for young university scientists and engineers wanting to move into the commercial world.

CONCLUSION: GOVERNMENT EXPENDITURE IS ITSELF A KEY PART OF THE ECONOMY AND SO IT SHOULD SUPPORT SOFT START UPS BY PLACING R&D CONTRACTS AND TRIALING NEW TECHNOLOGY

TOPICS





HOW THE US FEDERAL GOVERNMENT USES R&D BUDGETS TO STIMULATE THE TECHNOLOGY SECTOR

• Key role of US Federal Government in national R&D system recognised since the start of the Cold War – pivotal in development of semiconductor, computer and other sectors

• Federal Government R&D expenditure approximately $105 billion in 2004/5, 20% with industrial companies

• Lead programme for smaller businesses is the Small Business Innovation Research Programme (SBIR), established in 1982

• Contracts aimed at meeting Federal Agencies’ requirements for new technology

• 1,500 firms receive 4,000 SBIR contracts worth $2 billion per annum

KEY FEATURES OF SBIR PROGRAMME

• Aimed at meeting Agency’s requirements for new technologies as customers: usually specified in some detail

• Available to US businesses owned 51% or more by US citizens

• R&D contracts (plus some “grants” for directed research). 100% funding is the norm. No collaboration required. Companies own IP.

• Competitive process run by each agency 2 to 4 times a year. Agencies required to ensure ‘simplified, standardised and timely solicitations’

• Complete transparency of topics, award winners and amounts

• Organised as a seed fund not a set aside target

TOTAL SBIR BUDGET IN 2005: $2,034m

DoDNIH

DoE

DoEdUSDA

DHS

DoC

DoT

EPA

NSF

NASA

KEY FEATURES OF SBIR PROGRAMME (Cont’d)

• Phased approach, typically:– Phase I $100k for a 6 month feasibility study– Phase II £750k for a 2 year development programme– Phase III Public sector implementation and further R&D funding

possible through Agencies’ non-SBIR budgets

• 1,500 US firms receive 4,000 SBIR contracts and awards each year; 70% to companies employing less than 25 people

• Firms can receive multiple contracts from different agencies in parallel each year

• Total R&D procurement from small firms probably $6-8 billion per annum

• In addition, goals for OVERALL Federal procurement from small US businesses ensured that in 2005:

– 25.5% went to small businesses directly– a further 20% went to small firms via prime contractors

EXAMPLES OF SBIR SOLICITATIONS

• Speech recognition technology for air traffic control (Navy)

• Affordable advanced lighting systems (Navy)

• Smart scalpel (DARPA)

• Chip scale technologies for Gigaband signals (DARPA)

• Methods for innovative pharmaceutical manufacturing and quality assurance (National Cancer Institute)

• Diagnostic tool for von Willebrand disease (National Heart, Lung and Blood Institute)

• New capabilities enabling the massive sequencing of entire genomes of organisms (National Science Foundation)

• Data mining and management (National Science Foundation)

• Food science and nutrition; e.g. novel or rapid assay technologies for food constituents (US Department of Agriculture)

SOME BENEFICIARIES

• Qualcomm, Amgen, Genzyme

• Photobit Technology Corporation (acquired by Micron Technology Inc in 2001)

– NASA research lab spin out 1995– SBIR contacts from US Army, NASA, DARPA,

Missile Defence Agency– Early development largely funded by

government contracts– Now leading supplier of CMOS image sensors for phones

and cameras ($1 billion revenues approx?)

• HNC Software (acquired by Fair Isaacs in 2002)– Predictive software solutions– 15 Phase I and 14 Phase II awards– 1500 employees at acquisition– Real time detection of credit card fraud

TOPICS





A US STYLE SBIR PROGRAMME COULD PERFORM A VITAL ROLE WITHIN THE UK AND EUROPEAN UNION



APPLIED R&D CENTRESAND INSTITUTES


HARD START-UP COMPANIES; ESTABLISHED COMPANIES

Corporate Sponsorship

GAPGAPResearch Councils

Technology Strategy Programmes

EU Programmes

DTI R&D Grants

• Venture Capital• Corporate Investment, Acquisition,

Licensing and Partnerships

A US STYLE SBIR PROGRAMME COULD PERFORM A VITAL ROLE WITHIN THE UK AND EUROPEAN UNION



APPLIED R&D CENTRESAND INSTITUTES


HARD START-UP COMPANIES; ESTABLISHED COMPANIES

Corporate Sponsorship

GAPGAP

GOVERNMENT GOVERNMENT INNOVATION INNOVATION CONTRACTSCONTRACTS

Research Councils

Technology Strategy Programmes

EU Programmes

DTI R&D Grants

Commercial Customer Requirements and

Funding

• Venture Capital• Corporate Investment, Acquisition,

Licensing and Partnerships

POLICY ISSUES FOR EMERGING KNOWLEDGE BASED ECONOMIES

• Opportunities for ‘soft’ companies with world class expertise serving international markets:

• Software• Chemistry for drug discovery• Etc.

• Partnerships needed for global marketing and commercial project management

• Transnational new “hard” company opportunities, e.g. Oxford Diffraction:

• Sales, marketing and finance in Oxford• Development and production based in Poland

• Public sector role:• Innovative customer• R&D contracts to solve real problems• Promotion of ‘soft’ and ‘hard’ company partnerships

FOR FURTHER INFORMATION

• Copies of report available from:Centre for Business Research

University of CambridgeTop FloorThe Judge Business School BuildingTrumpington Street Cambridge CB2 1AG

• Website:www.cbr.cam.ac.uk

• David [email protected]

http://www.cbr.cam.ac.uk/

mailto:[email protected]

KNOWLEDGE ECONOMY FORUM VIKNOWLEDGE ECONOMY FORUM VI

Developing Networks andDeveloping Networks anda Market for Knowledge Brokeragea Market for Knowledge Brokerage

Gilbert NicolaonGilbert Nicolaon

CambridgeCambridge

April 19, 2007April 19, 2007

Knowledge economy and Knowledge economy and traditional sector industrytraditional sector industry

R&D and the EconomyR&D and the Economy

The “end” users of R&D The “end” users of R&D (Knowledge)(Knowledge)

MultinationalsMultinationals

High tech SMEsHigh tech SMEs

Traditional sectors SMEsTraditional sectors SMEs

Public R&D and Industry Public R&D and Industry

Public R&D relation with industry :Public R&D relation with industry :

Multinationals :Multinationals : Through Industrial R&D labsThrough Industrial R&D labs

High tech SMEsHigh tech SMEs (often spin-offs) : (often spin-offs) :

Usually tight relationsUsually tight relations Traditional sectors SMEs :Traditional sectors SMEs :

Very limited cooperationVery limited cooperation(research scientists and traditional SMEs (research scientists and traditional SMEs

managers do not know each other)managers do not know each other)

Industry in Europe Industry in Europe

Industry in Europe :Industry in Europe :

Multinational : a few hundredMultinational : a few hundred

High Tech SMEs : a few thousandHigh Tech SMEs : a few thousand

Traditional SMEs : over 200 000Traditional SMEs : over 200 000(+ Recently, Services sector SMEs)(+ Recently, Services sector SMEs)

« Traditional » sector SMEs represent« Traditional » sector SMEs represent

a large potential market for technologya large potential market for technology

Traditional Traditional SSectorectorss and Technology and Technology

The demand for technologyThe demand for technology from from « Traditional » sector industry« Traditional » sector industry is limited is limited

BUT :BUT :

Technology is important for SMEs competitivenessTechnology is important for SMEs competitiveness

SMEs competitiveness is essential for the economySMEs competitiveness is essential for the economy

Economic growth is essential for every countryEconomic growth is essential for every country

A Paradox !A Paradox !

Traditional sector industry (mainly SMEs) Traditional sector industry (mainly SMEs) offers a very large market…offers a very large market…

BUT…BUT…

……This market is usually This market is usually not targeted by Scientists !not targeted by Scientists !

Because traditional sectors industrialists :Because traditional sectors industrialists :Have limited interest for R&D.. Have limited interest for R&D.. Use outdated equipment…Use outdated equipment………..

« …Technology « …Technology absorption is as absorption is as important as important as innovation… »innovation… »

Shigeo KatsuShigeo KatsuV.P. World BankV.P. World Bank

April 17, 2007April 17, 2007

Absorption and InnovationAbsorption and Innovation

Traditional sector industry offers a Mkt. for :Traditional sector industry offers a Mkt. for :

Technology AbsorptionTechnology Absorption Which requires technology servicesWhich requires technology services

++ InnovationInnovation

Technology PushTechnology Push Market PullMarket Pull

Push or Pull ?Push or Pull ?

Technology PushTechnology Push From the Lab to the marketFrom the Lab to the market

Idea of a scientistIdea of a scientist

Limiting step : selling the Limiting step : selling the ideaidea to : to : AnAn industry industry AAn entrepreneurn entrepreneur

TOP DOWNTOP DOWN

Market PullMarket Pull From market needs to the lab From market needs to the lab AND Back to marketAND Back to market Need identified by industryNeed identified by industry Limiting step :Limiting step :

Identifying the customerIdentifying the customer Identifying the needIdentifying the need

BOTTOM UPBOTTOM UP

Push or Pull ?Push or Pull ?

Technology Technology PushPush

Market Market

PullPull

TechnologyTechnology High to Med.High to Med. Med. To LowMed. To Low

MarketMarket ?? Well knownWell known

RiskRisk High to Med.High to Med. Med. To LowMed. To Low

Rate of ReturnRate of Return High to Med.High to Med. Med. To LowMed. To Low

Success rateSuccess rate LowLow Med. To High Med. To High

A double « challenge »A double « challenge »

Traditional sector industries are not Traditional sector industries are not very attractive for research scientistsvery attractive for research scientists

Technology is not the priority for Technology is not the priority for traditional sector industries managers’traditional sector industries managers’

BUT…BUT…

The « Challenge »The « Challenge »

Technology is essential for competitivenessTechnology is essential for competitiveness Competitiveness is essential for economic Competitiveness is essential for economic

developmentdevelopment

CONCLUSIONCONCLUSION Technology demand has to be « stimulated »Technology demand has to be « stimulated »

““Stimulated” bottom upStimulated” bottom up

A 3 Partners cooperation :A 3 Partners cooperation :

Governments or/and International Org.Governments or/and International Org. Stimulate the process to boost the economyStimulate the process to boost the economy Provide training Provide training Provide support and « assistance »Provide support and « assistance »

The Public Research laboratoriesThe Public Research laboratories Provide the appropriate technology servicesProvide the appropriate technology services

The Industrial SMEsThe Industrial SMEs (+, recently, service SMEs)(+, recently, service SMEs) Identify the market needsIdentify the market needs

Technological InnovationTechnological Innovation

Requires a wide range of expertiseRequires a wide range of expertise Usually not available « internally »Usually not available « internally » Networks are widely used to :Networks are widely used to :

Identify appropriate technology providersIdentify appropriate technology providers Identify appropriate partners :Identify appropriate partners :

• Financial engineeringFinancial engineering• Market analysisMarket analysis• I.P.R.I.P.R.

The components of InnovationThe components of Innovation

Large Large GroupGroup

High T. High T. SMESME

Trad. Trad. SMESME

Public Public lablab

TechnicalTechnical YY YY ?? YY

EconomicalEconomical YY YY YY NN

FinancialFinancial YY ?? ?? NN

LegalLegal YY NN NN NN

I.P.R.I.P.R. YY YY NN ??

Technology NetworksTechnology Networks

Many active networksMany active networksNational (and Regional) Innovation agenciesNational (and Regional) Innovation agencies

Venture Venture Capitalists

Federation of IndustriesFederation of Industries

E.U. Framework ProgramE.U. Framework Program

International networksInternational networks

National NetworksNational Networks

Ministries of Industrial DevelopmentMinistries of Industrial Development Many countries have a national agencyMany countries have a national agency

U.S.A. : S.B.A.U.S.A. : S.B.A. France : Oséo groupFrance : Oséo group Netherlands : SenterNetherlands : Senter Finland : TekesFinland : Tekes Croatia : Bicro Croatia : Bicro (created with W.B. support)(created with W.B. support) ……..

A National Agency :A National Agency :OséoOséo--innovationinnovation (France)(France)

Assistance for innovation and Technology Dvp.Assistance for innovation and Technology Dvp.Financial supportFinancial support

Soft, conditional loansSoft, conditional loans Small grants to support external consultingSmall grants to support external consulting

• Economical (Market studies)Economical (Market studies)• Legal (Legal agreements,; I.P.R.)Legal (Legal agreements,; I.P.R.)• PartnershipPartnership (Partner search) (Partner search)

« Expertise » assistance« Expertise » assistance TechnicalTechnical Financial Financial (Business Plan)(Business Plan) LegalLegal

A National Agency :A National Agency :OséoOséo--innovationinnovation (France)(France)

A networking activityA networking activity TechnicalTechnical

Through the Technology Dept.Through the Technology Dept.

BUT ALSO …BUT ALSO … EconomicalEconomical

With specialized consultantsWith specialized consultants Financial Financial

With V.C., Banks, Business Angels…With V.C., Banks, Business Angels…

International NetworksInternational Networks

World BankWorld Bank An activity which started in the 80s’An activity which started in the 80s’ Covering numerous eligible countriesCovering numerous eligible countries

European UnionEuropean Union Framework ProgramFramework Program ERA-NETERA-NET Eureka Eureka

Brokerage eventsBrokerage events

Invented in the early 90s’Invented in the early 90s’ The goal :The goal :

For technology providersFor technology providers

To meet withTo meet with Technology buyersTechnology buyers

The « challenges »The « challenges » A good balance between Buyers and ProvidersA good balance between Buyers and Providers A « qualitative » mutual interestA « qualitative » mutual interest

Brokerage : an exampleBrokerage : an example

Euro-Trans Days Oct. 15-16, 2007Euro-Trans Days Oct. 15-16, 2007AA E.U. E.U. event on Surface Transportation event on Surface Transportation

GOALSGOALS Stimulate SMEs, R&D, Stakeholders cooperationStimulate SMEs, R&D, Stakeholders cooperation Stimulate Tech. TransferStimulate Tech. Transfer

CONTENTCONTENT Plenary sessionsPlenary sessions WorkshopsWorkshops

One to One One to One confidential meetings

A few examples A few examples

An example of successAn example of success

An applied R&D projectAn applied R&D project A French SME (Elmetherm, 40 employees)A French SME (Elmetherm, 40 employees) A major British china producer (Royal Dolton)A major British china producer (Royal Dolton) An academic lab. (University of Limoge)An academic lab. (University of Limoge)

An innovative way of producing china cupsAn innovative way of producing china cups With assistance and support from :With assistance and support from :

The French Innovation AgencyThe French Innovation Agency A French Regional administrationA French Regional administration D.T.I.D.T.I.


World Bank Tech. Dvp programWorld Bank Tech. Dvp program

India(1988-96)India(1988-96)

NCL restructuration programNCL restructuration program

NCL 1988 : A R&D public InstituteNCL 1988 : A R&D public Institute Limited contact with Indian industryLimited contact with Indian industry Limited financial resourcesLimited financial resources


NCL restructuration programNCL restructuration program

An “ambitious” restructuration programAn “ambitious” restructuration program Intensive training focused on Mkt. Oriented R&DIntensive training focused on Mkt. Oriented R&D Training about I.P.R. (B.T.G., London, U.K.)Training about I.P.R. (B.T.G., London, U.K.) Equipment financingEquipment financing ……

A “side” success A “side” success A patented new plasticA patented new plastic A partnership NCL-G.E.A partnership NCL-G.E. A major R&D investment by G.E. in IndiaA major R&D investment by G.E. in India

An example : An example : The The FrenchFrench textile industry textile industry

80s, 90s Competition from Morocco, Turkey80s, 90s Competition from Morocco, Turkey Numerous Numerous French French enterprises have disappearedenterprises have disappeared Some have survived and are profitableSome have survived and are profitable Which are those which survived ?Which are those which survived ?

Those which improved productivityThose which improved productivityby introducing technology in their production facilitiesby introducing technology in their production facilities

Those which improved their productThose which improved their productby focusing on « technical textiles » with high Added Valueby focusing on « technical textiles » with high Added Value

In this « traditional » sector the enterprises which In this « traditional » sector the enterprises which survived are those which focused on technology survived are those which focused on technology

ConclusionConclusion

Technology commercialization requires a very wide Technology commercialization requires a very wide range of expertise:range of expertise:

• TechnicalTechnical

BUT ALSO :BUT ALSO :• Economical, Financial, Legal, Cultural….Economical, Financial, Legal, Cultural….

Bringing these expertise together is a key Bringing these expertise together is a key success factor for technology developmentsuccess factor for technology development(whether it is Tech. Push, Mkt. Pull, or Tech Absorption)(whether it is Tech. Push, Mkt. Pull, or Tech Absorption)

Thank you for your attentionThank you for your attention


[email protected]@club-internet.fr

Suggestion Nb. Suggestion Nb. 11

Give more attention to traditional sectors :Give more attention to traditional sectors :High Tech industries need innovationHigh Tech industries need innovationBUTBUTTraditional sector industries need technologyTraditional sector industries need technology

To update their production facilitiesTo update their production facilities To adapt to environmental regulations To adapt to environmental regulations To save energyTo save energy To improve their competitivenessTo improve their competitiveness

DO NOT « NEGLECT » TRADITIONAL DO NOT « NEGLECT » TRADITIONAL SECTORS INDUSTRIESSECTORS INDUSTRIES


Do not think only : “Technology push”Do not think only : “Technology push”(Selling what you know how to do)(Selling what you know how to do)

BUTBUT Think also “Market Pull”Think also “Market Pull”

(Offering what your potential customers needs)(Offering what your potential customers needs)

THINK « MARKET PULL »THINK « MARKET PULL »


Do not neglect close by potential customersDo not neglect close by potential customers

Every industry needs technological servicesEvery industry needs technological services(Including traditional sectors industry)(Including traditional sectors industry)

International markets are more risky and costly to International markets are more risky and costly to tackle tackle (*)(*). They should not be your only target . They should not be your only target

DO NOT NEGLECT CLOSE BY CUSTOMERSDO NOT NEGLECT CLOSE BY CUSTOMERS

(*)(*) : : Rule of thumbRule of thumb : : The cost of a cooperation The cost of a cooperation is proportional to the square of the distance is proportional to the square of the distance between the partnersbetween the partners

Suggestion Nb. 4Suggestion Nb. 4(For policy makers)(For policy makers)

The Process has to be « catalysed »The Process has to be « catalysed »

Strong incentives are neededStrong incentives are needed Researchers have to be motivatedResearchers have to be motivated Industrialists have to be motivatedIndustrialists have to be motivated

Financial incentives on top of legal incentivesFinancial incentives on top of legal incentives Financial support for Research/industry partnershipsFinancial support for Research/industry partnerships Individual financial rewards for researchersIndividual financial rewards for researchers

« STRONG » INCENTIVES ARE ESSENTIAL « STRONG » INCENTIVES ARE ESSENTIAL

Suggestion Nb. 5Suggestion Nb. 5(For policy makers)(For policy makers)

A legal framework stable over a long period A legal framework stable over a long period of time is of time is essentialessential

Innovation takes timeInnovation takes timeIncentives should be stable over long period of time Incentives should be stable over long period of time Legal (Tax) system should be stableLegal (Tax) system should be stable

THE RULES SHOULD NOT CHANGE WHILE THE THE RULES SHOULD NOT CHANGE WHILE THE INNOVATIVE PROJECT IS GOING ONINNOVATIVE PROJECT IS GOING ON


1/3 R&D 1/3 R&D (1963-1975)(1963-1975)University (France and USA)University (France and USA)Industry (Franco-American joint venture)Industry (Franco-American joint venture)

1/3 Scientific « diplomacy » 1/3 Scientific « diplomacy » (1976-1985)(1976-1985) (Sci. policy)(Sci. policy)U.S.A. (Houston, Chicago, New York)U.S.A. (Houston, Chicago, New York)U.K. French Embassy (London)U.K. French Embassy (London)

1/3 Innovation engineering 1/3 Innovation engineering (1985- )(1985- )• ANVAR French Innovation agencyANVAR French Innovation agency• British Technology Group (London)British Technology Group (London)• EUREKA program (European mkt oriented program)EUREKA program (European mkt oriented program)

A few exemplesA few exemples

The rusty cans The rusty cans Convince SMEsConvince SMEs The expensive chocolateThe expensive chocolate Legal agreementLegal agreement The rickshawThe rickshaw Local innovationLocal innovation The tea cupThe tea cup Sme/Univ/Large CoSme/Univ/Large Co The microplaneThe microplane Invest. AbroadInvest. Abroad The endless C.D.The endless C.D. Large and smallLarge and small The biodegradable The biodegradable Large and smallLarge and small The by-productThe by-product Serendipity (CLEF)Serendipity (CLEF) The very High Tech.The very High Tech. Spin-off (Soitec)Spin-off (Soitec)

An example : An example : The European textile industryThe European textile industry

25 years ago25 years ago : : Numerous enterprises in Western EuropeNumerous enterprises in Western Europe Very different in sizeVery different in size

Some with international marketsSome with international markets Some with regional marketsSome with regional markets

A very tough competition from cheaper A very tough competition from cheaper labour countries (Turkey, Morocco,…)labour countries (Turkey, Morocco,…)

An example : An example : The European textile industryThe European textile industry

Tomorrow :Tomorrow :

Turkish textile industry is now moving to… Turkish textile industry is now moving to…

… …China! (*)China! (*)

(*) learned yesterday, from a Turkish participant.(*) learned yesterday, from a Turkish participant.

Documents

PANEL 3A Developing Networks and a Market for Knowledge Brokerage