innovation - a driver for economic growth in scotland
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Innovation - A Driver for Economic Growth In Scotland. PAUL LEWIS 23 April 2010. Build a globally competitive business environment. Grow globally competitive companies. Scottish Enterprise. Grow globally competitive sectors. An economic development agency that helps Scotland…. - PowerPoint PPT PresentationTRANSCRIPT
Innovation - A Driver for Innovation - A Driver for Economic Growth In ScotlandEconomic Growth In Scotland
PAUL LEWISPAUL LEWIS
23 April 201023 April 2010
Build a globally competitive business
environment
Grow globally competitive sectors
Grow globally competitive companies
An economic
development agency
that helps Scotland…
Scottish EnterpriseScottish Enterprise
Working with partners
to help achieve the
Scottish Government’s
purpose of increasing
sustainable economic
growth
Low Business R&D
Few Companies of Scale
Low Productivity
Uncompetitive Demand Side
Asset Performance
Creativity15% UK - HEI Patents
National Resources20% Euro wind/tidal sub-sea capability:
life science excellence
Competitive Supply Side
Existing Assets
Double
To Achieve OECD/Top Quartile
Scotland’s Economic ChallengeScotland’s Economic Challenge
Double
15%
Sweden 3.8%
Finland 3.5%
OECD Average 2.2%
UK 1.8%
Scotland 1.6%
Investment
DemandPull
Risk Component
>Business Sectors
>Companies of Scale
>High Growth Companies
= HIGH GROWTH= HIGH GROWTH
Total Investment Total Investment as % GDPas % GDP
BERD as BERD as % Total Investment% Total Investment
74%
71%
68%
61%
38%
Research & Development Investment Research & Development Investment
Productivity ChallengeProductivity Challenge
Participation
Drivers of ProductivityDrivers of Productivity
PRODUCTIVITY
Enterprise Innovation
Investment
CompetitionSkills
Growth
Population
Productivity+ 15% (= +£18.7bn GDP)
Business base+ 32,000 VATbusinesses
Business R&Dspend
+£760 million pa
Exports+£380m pa
The EvidenceThe Evidence
“The findings of the Index to date show that innovation may be responsible for the lion’s share of the UK’s productivity growth from 1990-2007. Two-thirds of UK private sector productivity growth between 2000 and 2007”. NESTA Innovation Index 2009.
Innovation is strongly linked to business growth across a range of sectors. It may come as no surprise that innovative software firms enjoyed a much faster growth rate than non-innovative ones (13% average revenue growth per year compared to just over 0%).
Council of Economic Advisors report - Productivity and Innovation.“Innovation Nation report” - McKinsey
Does Innovation Produce Growth?Does Innovation Produce Growth?
Scottish Government’s Economic StrategyScottish Government’s Economic StrategyIncreased priority given to Innovation & Commercialisation,
recognised as a key driver of competitiveness Specific priorities to increase Scotland’s performance on
innovation, beyond the focus on science & technology - skills & business models as well as product and services.
Strengthen links between Scotland’s research base & business innovation to address low levels of R&D.
Utilisation of ICT.
Innovation - The Successful Exploitation of New IdeasInnovation - The Successful Exploitation of New Ideas
Creation of Customer or Citizen Value.
SE Approach to InnovationSE Approach to Innovation
CommercialisationCommercialisation
Clear line of sight to the market Market-based approach Maximising the sunk investments Focus on “commercial champions”
“Addressing significant market opportunities”
Business InnovationBusiness Innovation
Broaden innovation beyond science and technology New Visible Innovation Service Increasing the pool of “innovative active”
“The successful exploitation of ideasfor business growth”
Innovation SystemInnovation System
Improve the business environment for Innovation in Scotland’s key sectors Innovation is industry-specific
“Building a sustainable innovation system in our key sectors”
Scottish Enterprise Innovation PolicyScottish Enterprise Innovation Policy
Web, InfoGuides and
ToolsPromotionPromotion
AdviceAdvice
SupportSupport
WinningThrough
Innovation Events
InnovationSupport
GrantR&D Grant
InnovationSpecialists
InnovationSector Support
SMART
InnovationPartners
Collaboration
EnterpriseEurope
Scotland
Innovation Celebration
Get business to do more innovationGet more business to do innovation
Business InnovationBusiness InnovationBusiness InnovationBusiness Innovation
Broaden innovation beyond science and technology New Visible Innovation Service Increasing the pool of “innovative active”
“The successful exploitation of Ideas for business growth”
Design, Services
& BusinessModel
Innovation
Industry-SpecificSupport
Business InnovationBusiness Innovation
Broaden innovation beyond science and technologyNew Visible Innovation ServiceIncreasing the pool of “innovative active”
“The successful exploitation of Ideas for business growth”
Business InnovationBusiness Innovation
Web, InfoGuides and
ToolsPromotionPromotion
AdviceAdvice
SupportSupport InnovationSupport
GrantR&D Grant
InnovationSpecialists
InnovationSector Support
SMART Collaboration
EnterpriseEurope
Scotland
Design, Services
& BusinessModel
Innovation
Industry-SpecificSupport
WinningThrough
Innovation Events
InnovationPartners
Innovation Celebration
Winning Through InnovationWinning Through Innovation Stimulating a culture of innovation 1,200 delegates in 2 years
Speakers including:- Barry Gibbons, former Global CEO of Burger King Brian Williamson, Chief Executive, TIGER EYE Helen Battersby, ex-Sales and Marketing Director,
Gleneagles Hotel
Business InnovationBusiness Innovation
Broaden innovation beyond science and technologyNew Visible Innovation ServiceIncreasing the pool of “innovative active”
“The successful exploitation of Ideas for business growth”
Business InnovationBusiness Innovation
Web, InfoGuides and
ToolsPromotionPromotion
AdviceAdvice
SupportSupport
WinningThrough
Innovation Events
InnovationSupport
GrantR&D Grant
InnovationSpecialists
SMART
InnovationPartners
Collaboration
Innovation Celebration
Industry-SpecificSupport
InnovationSector Support
EnterpriseEurope
Scotland
Design, Services
& BusinessModel
Innovation
Tourism Innovation - +£15MTourism Innovation - +£15M
Web, InfoGuides and
ToolsPromotion
Advice
Support
WinningThrough
Innovation Events
InnovationSupport
Grant
R&DGrant
InnovationSpecialists
InnovationSupport Service
SMART
InnovationPartners
Collaboration
WTIWorkshops
EnterpriseEurope
Scotland
IndustrySpecificSupport
Business Innovation
• Broaden innovation beyond Science and technology• New Visible Innovation Service• Increasing the pool of “Innovative active”
“The successful exploitation of ideas for business growth”
InnovationCase Studies
Innovation Celebration
Culture ofInnovation
Design, Services &Business
ModelInnovation
R&D Company Support£30M invested – generating £400M of R&D.
Business InnovationBusiness Innovation
CommercialisationCommercialisation
Clear line of sight to the market Market-based approach Maximising the sunk investments Focus on “commercial champions”
“Addressing significant market opportunities”
Business InnovationBusiness Innovation
Broaden innovation beyond science and technology New Visible Innovation Service Increasing the pool of “innovative active”
“The successful exploitation of ideasfor business growth”
Scottish Enterprise Innovation PolicyScottish Enterprise Innovation Policy
Per Patent
Per $1m of Royalties
Per Spinout
Scotland
Scotland
Scotland
USA
USA
USA
2.9mn
4.6mn
52.1mn
40.8mn
48.2mn
131.7mn
Cost per output in US$ Mns
Dead
< 15 FTE
>50 FTE
30%
55%
5 Year Performance: Scotland (%ages)
SE commercialisation interventions
No.
of c
ompa
nies
Projected t/o
< £
1mn
£1m
n -
£5m
n
£5m
n -
£20m
n
£20m
n +
3
Strong supply of IP:- 2008 Research Assessment Universities efficiency report (Top 10 US vs Top 8 Scotland) Comparable 5-year
performance with Denmark
But we are not achieving outcomes and impacts sought
Commercialisation - How We CompareCommercialisation - How We Compare
Challenge is to significantly increase the impact of initiatives.
Some lessons:- – Impacts are highly concentrated - few firms deliver.– Focus resources: market sectors; “bigger” projects, increase
chance of success.– Greater commercial focus - from the outset and on people
dimension.– Don’t incorporate too soon - wait until the technology is
sufficiently mature and market opportunity clear.– Invest more where we have proven market lead and capacity
to secure economic results in Scotland - earlier stop/go decisions.
The ChallengeThe Challenge
CommercialisationCommercialisation
Market-based integrated approach Increasing focus on commercial champions Consistent SE approach Maximising the sunk investments
“Addressing significant market opportunities”
CommercialisationCommercialisation
CommercialisationCommercialisation
Clear line of sight to the market Market-based approach Maximising the sunk Investments Focus on “commercial champions”
“Addressing significant market opportunities”
Business InnovationBusiness Innovation
Broaden innovation beyond science and technology New Visible Innovation Service Increasing the pool of “innovative active”
“The successful exploitation of Ideas for business growth”
Innovation SystemInnovation System
Improve the business environment for Innovation in Scotland’s key sectors Innovation is industry-specific
“building a sustainable innovation system in our key sectors”
Scottish Enterprise Innovation PolicyScottish Enterprise Innovation Policy
Scotland has over 70% of the UK’s tidal power which has been estimated at 13 billion kilowatt hours per annum
Scotland’s position at the end of a long Atlantic
Ocean fetch produces tremendously energetic
waves
Scotland’s Wave and Tidal ResourcesScotland’s Wave and Tidal Resources
£100 Bn investmentUp to 48,000 jobsUp to £38 Bn GVA
R&D
SFC Research Pools
Offshore & Sub-Sea Expertise
Renewables Innovation for ScotlandRenewables Innovation for Scotland
Test & Demonstration
Energy Infrastructure
30,00 employed in sector
Large clinical trials infrastructure - commercial and academic
Strengths in major disease areas:- oncology; diabetes; cardiovascular medicine; inflamation
Scotland’s Life Science IndustryScotland’s Life Science Industry£1.3 billion GVA £1.3 billion GVA
Edinburgh Bio Quarter; Edinburgh Bio Quarter; Centre for Regenerative Medicine;Centre for Regenerative Medicine;
• Innovation - the Challenge and the Solution
• Critical we encourage more companies to engage in innovation – stimulate demand.
• “Raising the Bar” on commercialisation outcomes
• Importance of building Innovation “partnerships” to deliver “system level” change in sectors
• Role for Knowledge Exchange – beyond IP - skills, connections, knowledge/culture.
ConclusionsConclusions
Innovation - A Driver for Innovation - A Driver for Economic Growth In ScotlandEconomic Growth In Scotland
PAUL LEWISPAUL LEWIS
23 April 201023 April 2010