Professor Ron JohnstonProfessor Ron Johnston

Australian Centre for InnovationAustralian Centre for Innovation

Faculty of Engineering, University of SydneyFaculty of Engineering, University of Sydney

FEASTFEAST

17 July 200717 July 2007

Building the Infrastructure to Manage Building the Infrastructure to Manage Uncertainty – Experience from within the EUUncertainty – Experience from within the EU

15 years old; 15 years old; non-profit but non-profit but very commercialvery commercial

Mission – to assist organisations to Mission – to assist organisations to better address the challenges of the better address the challenges of the future through innovationfuture through innovation

M

The European ChallengeThe European Challenge

“ “Europe must break out of structures and Europe must break out of structures and expectations established in the post-WW2 era expectations established in the post-WW2 era which leave it today living a moderately which leave it today living a moderately comfortable life on slowly declining capital…comfortable life on slowly declining capital…unsustainable in the face of rising competition unsustainable in the face of rising competition from other parts of the world” from other parts of the world”

(Aho Report, p.1)(Aho Report, p.1)

ANDAND

“ “In the context of the Lisbon Strategy and the In the context of the Lisbon Strategy and the shift to a knowledge-based economy, Europe shift to a knowledge-based economy, Europe needs to ensure an attractive business needs to ensure an attractive business environment for the development of key environment for the development of key technology areas and markets where it should technology areas and markets where it should aim at achieving world-leading competitive aim at achieving world-leading competitive advantage.” (DG-RTD)advantage.” (DG-RTD)

The Response The Response Building the NEW InfrastructureBuilding the NEW Infrastructure

1.1. Strategic IntelligenceStrategic Intelligence

2.2. Demand-side policies to create Demand-side policies to create opportunities for innovationopportunities for innovation

3.3. User-led manufacturingUser-led manufacturing

Strategic Intelligence –Strategic Intelligence –a capacity to address the a capacity to address the

futurefutureThroughThrough Databases of foresight and forecastingDatabases of foresight and forecasting Futurewatch/ over-the-horizon scanningFuturewatch/ over-the-horizon scanning Analyses of emerging technologiesAnalyses of emerging technologies Capacity buildingCapacity building Focussed R&D – FP7 Focussed R&D – FP7 €52 billion€52 billion Multiple applicationsMultiple applications

Demand-side policies –Demand-side policies –the rationalethe rationale

The primary target should be new and The primary target should be new and emerging markets for knowledge-intensive emerging markets for knowledge-intensive goods and services with a high growth goods and services with a high growth potential, which require intensification of potential, which require intensification of R&D efforts and where public authorities R&D efforts and where public authorities can play a critical role on the demand can play a critical role on the demand side.” (DG-RTD)side.” (DG-RTD)

ExamplesExamplesPastPast

• InternetInternet• Key platform technologies underpinning Nokia Key platform technologies underpinning Nokia

and Philips productsand Philips products• Aerospace and high-speed trainsAerospace and high-speed trains

FutureFuture• E-healthE-health• PharmaceuticalsPharmaceuticals• EnergyEnergy• EnvironmentEnvironment• Transport/logisticsTransport/logistics• SecuritySecurity• Digital contentDigital content(Aho Report)(Aho Report)

Public ProcurementPublic Procurement

Innovation in procurement processesInnovation in procurement processes Procurement from the market of Procurement from the market of

innovative goods/ servicesinnovative goods/ services Procurement of ‘prospective’ Procurement of ‘prospective’

goods/servicesgoods/services Innovation in identification of Innovation in identification of

procurement needsprocurement needs

Characteristics of Lead MarketsCharacteristics of Lead Markets

High per capita incomeHigh per capita income Quality and quantity of demandQuality and quantity of demand Good framework conditions for learning Good framework conditions for learning

and innovationand innovation Pioneering, demanding regulationsPioneering, demanding regulations Competence in entire value chainCompetence in entire value chain ImageImage Clear major problems/challengesClear major problems/challenges

(Meyer-Kramer, 2004)(Meyer-Kramer, 2004)

Opportunities?Opportunities?

A better strategic intelligence A better strategic intelligence capability will assist in identifying capability will assist in identifying new business opportunities new business opportunities

Demand-side policies will create a Demand-side policies will create a landscape for new business landscape for new business venturesventures

User-centred innovation has User-centred innovation has application in all industries, and application in all industries, and challenges lowest-cost modelschallenges lowest-cost models