enhancing the role of kisa in innovation systems
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Enhancing the role of KISA in Innovation Systems. Dr. Jonathan Potter Senior Economist OECD Centre for SMEs, Entrepreneurship & Local Development. Second Research Seminar KIBS & knowledge flows in a globalised economy NESTA, 1 Plough Place, London 28 March 2011. - PowerPoint PPT PresentationTRANSCRIPT
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Enhancing the role of KISA in Innovation Systems
Dr. Jonathan PotterSenior EconomistOECD Centre for SMEs, Entrepreneurship & Local Development
Second Research SeminarKIBS & knowledge flows in a globalised economyNESTA, 1 Plough Place, London28 March 2011
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Presentation Structure
1. Outline of OECD KISA work
2. KISA and KIBS: nature and trends
3. The role of KISA in innovation systems
4. Policy suggestions
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OECD KISA workPart One:
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1.1 Exploratory KISA study
• Most firms make use of KISAs in their daily operations, producing them internally or sourcing them externally
• How do KISAs contribute to acquisition and growth of innovation capabilities?
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1.2 What are KISAs?
• R&D; information and communication services; human resource management; tax services; accounting; marketing etc
Internal KISA Functional experts (financing, operations, logistics, marketing, legal), researchers, managers, directors, R&D departments, innovation units, venturing units
External KISA Consultants, KIBS firms, RTOs, trade bodies, various types of networks, professional organisations, government agencies
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1.3 Study method
• 9 country studies
• 4 broad industry groups
• 20 case studies
• Industry mapping
• 1000 survey respondents
• 230 interviews
• What kinds of KISAs occur? • How do they affect innovation?
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1.4 Other work touching on KISA
• OECD Innovation Strategy– Non-technological innovation
– Open innovation
– Role of SMEs and entrepreneurship
• Local SME and Entrepreneurship Reviews – Policy assessments in case study regions
– Focus on networks and knowledge flows in innovation
• Training in SMEs– Use of KISAs as an informal training
mechanism
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KISA and KIBS: nature and trends
Part Two:
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2.1 Scale of KIBS
• Note: As a % of total industry, construction and market services excl. financial intermediation. Figures for the US are for 2006 and are nymber of employees.Source: OECD Structural and Business Demographic Statistics Database
0%
5%
10%
15%
20%
25%
30%
35%
Pola
nd
Slov
ak R
epub
lic
Slov
enia
Esto
nia
Czec
h Re
publ
ic
Aust
ria
Finl
and
Italy
Spai
n
Port
ugal
Hun
gary
Swed
en
Denm
ark
Ger
man
y
Belg
ium
Fran
ce
Uni
ted
King
dom
Uni
ted
Stat
es
Luxe
mbo
urg
Net
herla
nds
KIBS % of total employment (2007)
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2.2 Growth of KIBS
• Note: For the US, 2002-06. Annual growth of the number of employees• Source: OECD Structural and Business Demographic Statistics Database
0%
20%
40%
60%
80%
100%
120%
140%
Swed
enN
orw
ayCz
ech
Repu
blic
Uni
ted
King
dom
Italy
Pola
ndLu
xem
bour
gBe
lgiu
mG
erm
any
Finl
and
Aust
riaFr
ance
Slov
enia
Net
herla
nds
Hun
gary
Denm
ark
Uni
ted
Stat
esSp
ain
Kore
aIre
land
Esto
nia
Slov
ak R
epub
licPo
rtug
alTu
rkey
KIBS employment growth 2002-07
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2.3 KISA clusters – USA
Source: OECD, based on ORBIS database
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2.4 KISA-intensive regions
Source: OECD, Regions at a Glance, 2005 data
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2.5 SMEs & KIBS (UK)
92%
25% 25%
7%
17% 18%
17% 17%
41% 40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number of enterprises
Total employment Value added (at factor costs)
Large
Medium
Small
Micro
• Source: OECD Structural and Business Demographic Statistics Database
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KIBS role in innovation Part Three:
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3.1 Types of KISA contribution
1. Sources of innovationInitiating and developing innovation activities in client organisations
2. Facilitators of innovationSupporting organisations in the innovation process
3. Carriers of innovationTransferring existing knowledge among or within organisations, industries and networks
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3.3 KISA and skills upgrading
Note: BE = 38, NZ = 74, PO = 137, TU = 49, UK = 50, Total = 348Source: OECD LEED (2010), Leveraging Training & Skills Development in
SMEs: Preliminary Cross-Country Analysis of the TSME Survey
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Policy suggestionsPart Four:
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4.1 KISA absorption
• Effective human resource management– Employ experts; form multi-disciplinary
research teams; use personal connections with industry and other experts
• Appropriate organisational structures– Dedicated business units that scan the
environment and develop new expertise; acquisition of firms that can bring in new knowledge and innovative thinking; joint ventures that institutionalise co-operation
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4.2 KISA absorption (contd)
• Effective networks and linkages– Participate in networks; engage in close co-
operation with suppliers and customers in new solutions development; joint projects with research
• Use of market-based transactions– Buy integrated product/service bundles that
bring external KISA within the firm; outsource to integrate former internal KISA with external expertise; purchase from service providers and work with them
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4.3 Policy for external KISA
• Supply of KISA– Promote university consulting– Public sector KISA should not substitute for private
sector KISA– Professionalise KISA suppliers– Ensure sufficient supply of financing for growth-
oriented KISA firms
• Networking– Focus public innovation programmes on ‘softer’ and
‘downstream ‘ innovation– Proactive brokering– Building skills and appropriate structures in firms
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4.4 Policy for external KISA
• Demand for KISA– Develop awareness of KISA– Certify services– Publicly-funded demonstration projects– Tax incentives for use of KISA in innovation– Public procurement favouring use of external
KISA– KISA vouchers for SMEs
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4.5 Conclusion
Overall
• Innovation policy should be more responsive to non-technological aspects of innovation, and recognise the role of KISA
“Further research will be necessary to more fully explore the most effective role of public policy in stimulating supply and demand of KISA”