Innovation policy in Lithuanian enterprises

Tomas Pranckevičius

Vilnius, 2009

Final master thesis

Facul ty of bus iness management

Content

• Introduction

• Internationalisation and economic performance

• Theory of innovations

• Innovation policy in Lithuania

• Proposals for innovation policy in Lithuanian enterprises

• Conclusions and proposals

2Innovation policy in Lithuanian enterprisesT. Pranckevičius

Introduction• Research object: science, technology and innovation policy, policy

creation, policy promotion.

• Research aim: to describe innovations, to indicate the most important factors of innovation in Lithuania, to create policy and solutions how to improve innovation in Lithuanian enterprises.

• Research methodology: scientific literature analysis (science research articles, monographs, scientific conferences and seminar methodology) and documents (programs, strategies, reports) analysis, comparison, summation.

• Goals or research questions: how to build better innovation level in Lithuania? What kind of unsuccessful factors exist in innovation policy implementation?

3Innovation policy in Lithuanian enterprisesT. Pranckevičius

Internationalisation and economic performance• Innovation through the CREATION, DIFFUSION and use of

KNOWLEDGE has become a KEY driver of ECONOMIC

GROW and provides part of the response to many new societal

changes.

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The determinants of innovation

performance have changed in a

globalising knowledge-based

economy, partly as a result of

recent developments in

INFORMATION AND

COMMUNICATION

TECHNOLOGIES (ICTs).

Models of innovation

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Sparking innovations in communities

6Innovation policy in Lithuanian enterprisesT. Pranckevičius

Incubator,

Mentoring

Finance, Risk

Capital

S&T

Knowledge,

Tech

Transfer

Research &

Development

Innovative

enterprises

Skills,

Human

Resources

Policy

Regulations

Innovation networks and knowledge clustersClassical Information

Architecture

Post-Modern Innovation

Architecture

Top-Down Bottom-Up

Centralized Distributed

Closed Open

Stable Adaptive

Planned Emergent

7Innovation policy in Lithuanian enterprisesT. Pranckevičius

Command / ControlCouncils / Boards

Enterprise – Wide

Collaboration

Collaboration / TeamworkCommand / Control

Innovation policy in Lithuania• R&D EXPENDITURES in enterprises 0.55% in 1998 and it is

still only 0.82% in 2007 of GDP.

• Innovations activities in Lithuanian enterprises for R&D are

intramural 44.1% and extramural 26.9% (2004-2006).

• Low participation in lifelong learning 4.9% leads to obsolete

qualifications, actually not suitable for high skill work.

• Lithuanian patents per million populations are 0.37% EPO

(EU level 9.83%).

• Lithuania by the 2008 European Innovation Scoreboard is in

the level of catching-up countries. Lithuanian has only around

1% annual grow in INNOVATION PERFORMANCE.

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Co-operation arrangements on innovation activities, 2004–2006Percent of enterprises with innovation activity

9Innovation policy in Lithuanian enterprisesT. Pranckevičius

• 43% enterprises collaborate

in innovation activities,

• 27.7% of all innovations

were generated in

collaboration with CLIENTS

or CUSTOMERS,

• 21.2% with OTHER

PARTNERS,

• 34% with SUPPLIERS,

• 18.4% higher EDUCATION

institutions,

• 10.3% RESEARCH

institutions.

Lithuanian statistics, 2008

Internet access total by economic activities

• 96.1% percent of enterprises

with the staff of 10 and more

employees used computers,

95% percent – the Internet at

work

• In everyday work,

computers were used at least

once a week by 31.4%

percent, the Internet – by

28.8% percent of employees

of such enterprises

10Innovation policy in Lithuanian enterprisesT. Pranckevičius

Lithuanian statistics, 2008

Collaborative work space innovation and societal change

11Innovation policy in Lithuanian enterprisesT. Pranckevičius

Technology transformation visualisation and virtualisation, possibilities for identification, such tools like Living Labs and maybe more opportunities looks very widely and perspective in the near future and good scenarios for innovative enterprises.

Basic Technologies of Living Lab architecture• Living labs can be used as an instrument and core for the

collaboration in national and regional innovations systems, between

enterprises, science and research institutes, clusters, public-private

partnership.

T. Pranckevičius Innovation policy in Lithuanian enterprises 12

IT Enable Strategy,

Collaboration...

Councils/Boards/Working

Groups... Employee

(Social/Visual)... Networks

Innovation / Process / Speed /

Scale... Productivity

Sustainable Differentiation...

Time to Market

Enterprises / Technology...

Architecture

Global Lithuanian conceptionBuilding human-like world's knowledge base in Lithuanian language and provide knowledge based search semantics systems and services with virtual space economy or Knowledge Based – Geospatial Information System (KB-GIS).

Levels: 1) NATIONAL, 2) NORDIC-BALTIC REGION 3) INTERNATIONAL.

To be a part of GLOBAL MIND?

13Innovation policy in Lithuanian enterprisesT. Pranckevičius

Conclusions and proposals (I)• Higher education sector with science and technology

research are the key driver of innovation performance.

• Promote economic cooperation and entrepreneurship, regional cluster cooperation and innovation opportunities in the region with special focus on creative and innovative industries.

• Science, technology and innovation development commission is not so active today. Innovation coordination institution strongly is recommended to establish.

14Innovation policy in Lithuanian enterprisesT. Pranckevičius

Conclusions and proposals (II)• Enterprises and science in collaboration have a lack of

innovation strategies, there is no national innovation strategy.

• Enterprises have not enough access to public activities in public and scientific institution funding programs and it not promotes entrepreneurship collaborative network with partners.

• There is a lack of measurements about innovation activities through ICTs. Analysis of networking and partnerships for innovation, application of networks, partnership for innovation activities, and productivity of interaction within networks is rather limited and needs to be developed.

15Innovation policy in Lithuanian enterprisesT. Pranckevičius

Conclusions and proposals (III)• Stimulate collaboration, innovation culture and creative

entrepreneurship: 1) eliminate all not necessary bureaucracy, 2)

promote foreign investments, 3) ensure credits, 4) manage

fiscal deficit, 5) stimulate economic activity and 6) promote all

state institutions and involve in innovation processes.

• To set up better relationship and to let increase working

efficiency in change and increased way of using ICTs: to

enhance innovation by empowering users, workers, science and

industry in collaborative and organizational way.

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Thank you!

Questions and remarks!

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