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National innovation systems

Sub-regional seminar on the commercialization and enforcement of intellectual property rights

Skopje, Macedonia1 - 3 April 2009

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Innovation Facts Innovation and growth Innovation process National innovation systems Innovation actors Role of the state in the NIS Innovation supportive infrastructure Innovation policy instruments Future challenges

Today’s presentation

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Innovation is an old phenomenon

Humans tend to think about new and better ways of doing things and try them out in practice

Innovation facts

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Innovation is essential for a country’s competitiveness

Innovations can become products that drive growth

Institutions are important for the support of innovative activities

Innovation and growth

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Basic research

Applied research

Development

Commercialization

New knowledge

Application of knowledge to specific subject

Development of products

Need for new knowledge

Desired new product characteristics

Market feedback (desired product alterations)

Innovation – non-linear process

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Overlap between basic and applied research, as well as between development and commercialization

Principal investigators, patents and processes are mobile (not company dependent)

Unexpected outcomes

Complexity of the innovation process

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New knowledge creation

Application of knowledge into new products

Commercialization of productsParticularized companies

Innovative enterprises

Innovative enterprises

Academy of science

Universities

Academy of science

Universities

Complexity of the innovation process – Cont.

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Different stages and different actors need different support

InventionInvention InnovationInnovation

Complexity of the innovation process – Cont.

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Inventions need specific demand, production capabilities, inputs, complementary inventions and innovations to succeed at the innovation stage

Complexity of the innovation process – Cont.

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National innovation systems – different institutions and their interaction (technical, commercial, legal, social, and financial), which influence the innovation process and give direction of the technological changes in the society.

Differs for different countries Need to be flexible, adjust to the needs of

the society

National innovation systems

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Innovation actors

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States need to create the framework conditions for incentives for innovation

With efficient instruments there can be strong support with less state investments

Direct support assumes non-existence of information asymmetry

let the market make the decision

Role of the state in the NIS

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Higher education system (supply of labor) Knowledge intensive business services IPR Enforcement Supply of knowledge Entrepreneurship friendly environment Local, regional and international interaction

possibilities

Innovation supportive infrastructure

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Incentive for innovation Knowledge transfer Efficiency of the investments

Costs of IP protection (efficiency losses from support of innovation, double investments in R&D)

Innovation supportive infrastructure - Protection of IPR and Innovation

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Adoptive capacity Freedom for

experimenting Entrepreneurship

supportive environment

Innovation supportive infrastructure - Innovation supportive culture

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Teach next generations Conduct research Commercialize

Provide: • A return to public investments in research• A source of new companies and jobs• Justification for new research allocations• Services to companies within the innovation

ecosystem (clusters)

Innovation supportive infrastructure - Role of the universities

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Provide infrastructure Encourage entrepreneurial culture, research

cooperation and public support for research Attract industry and promote regional

development

Innovation supportive infrastructure - S&T Parks

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Potential investors do not have perfect knowledge, information asymmetry for new innovative ideas

Institutions for innovation financing (exp. venture capital)

Innovation supportive infrastructure - Financing innovation

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Importance of the SMEs – small companies can drive high-tech innovation

Knowledge intensive SMEs SMEs support:

• information on financing possibilities• creation of business plans• improvement of the SMEs infrastructure• implementation and coordination of SMEs support• organizing networking• education and trainings • consulting services• support for knowledge transfer • management and marketing research • R&D support

Innovation supportive infrastructure - SMEs

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IPR enforcement Technology Transfer Technology parks and centers Networks Support for financing Marketing/promotion support

Innovation policy instruments

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Stronger NIS Learn from each other Regional Innovation systems

Cooperation, cooperation, cooperation

Future challenges

THANK YOU