Challenge-Driven Innovation

Turning societal challenges from threats to opportunities for

sustainable growth

Why?

Has it been easy? NO

Has it been fun and made a difference?

YES

VINNOVA in brief About me• Swedish government agency working

under the Ministry of Enterprise and Innovation

• Funds for Research and Development is > 2,500,000,000 SEK

• About 200 people work at VINNOVA´s offices in Stockholm and Brussels

• We develop Sweden's innovation capacity for sustainable growth and benefiting society!

• Our Director General is Charlotte Brogren

• Daniel Rencrantz• Industrial Technologies and

Innovation Management Division• Part of CDI-team since 2011• PhD in Projects, Innovation and

Entrepreneurship

• Essence

• Objective and governance

• Results

• Transferability

• Success criteria and lessons learned

My presentation

What is CDI really about, what is the essence?

Green urban system solutions

Increased use of paved surfaces leads to flooding, less water filtration, declining city treesCreate system solutions that improve the relation between grey (hard) and green (vegetation) surfacesResearch institute, academia, municipalities, consultancy firms, suppliers (grey and green surfaces)

CHALLENGESustainable Attractive CitiesSTAGE

Digital and physical play environmentsIncrease wellbeing and physical health for children and youthTake advantage of IT and gamification to make physical outdoor environments more accessible and engagingMunicipalities, children and youth, software companies, construction firms, architects, playground equipment manufacturers

CHALLENGESustainable attractive citiesSTAGE

School for everyone, from the first day in the new country

Many students with a foreign background are not eligible for higher education and are therefore alienated from societyDevelop and test multi-lingual e-learning solution for immigrant students that yet do not master the Swedish languageTechnology providers, publishers, research institutes, universities, municipalities, schools, authorities

CHALLENGEInformationSocietySTAGE

Societal challenges How can we turn societal challenges from

threats to opportunities?

What is the objective and how is it governed?

Initiation Collaboration Implementation Effects

GovernanceFour broad challenges

Key attributes and principlesThree-stage-gated investment logic

Calls and review structureActive project support

Goals

Inclusive, demand-driven approach

Strategic and tactical level

Operativelevel

Project 1Project 1Project 1

Solution -potential

Goals (end of stage 1)

Stage 1Initiation

Project n

Plan (development

and impl.)

Stakeholder analysis

Relevant actors

Stage 2 Collaboration

Consortium agreement

Market analysis (global)

Goals (end of stage 2)

Identified enablers and

hinders

Robust awareness of

different needs

Plan (impl. and

communication)

Tested and evaluated solutions

Stage 3 Implementa-

tion

Project n Project nCustomer & user

involvement

Alliances, partnerships & networks

Goals effects(3-5 years after Stage 3)

Goals results(end of Stage 3)

Cross-border private-public

Customer & user involvement

Value created

Attractiveness & investments

Results implemented in other contexts

Rules & regulations promoting innovations

Products, processes, services etc.

Attractiveness & investments

Dimension 1. Innovation (CDI) capability

Dimension 2. Innovation

Four societal challenges where Sweden is considered to have good prospects for

internationally pioneering innovations

CHALLENGEFuture Healthcare

CHALLENGESustainable AttractiveCities

CHALLENGEInformationSociety

CHALLENGECompetitiveIndustries

Key attributes and principles Must deal with significant demands in society and industry, which can be

associated with clear stakeholders

Shall result in innovations that combine international business potential and public welfare

Builds on collaboration with actors in value networks, which involve users and customers

Embodies a systemic approach, taking consideration to the whole innovation system and not only parts or subsystem

………

Program logic: three-stage process

InitiationDevelop idea and

consortium or technical feasibility study

(approx. 9 months)

CollaborationDevelopment and

integration, restricted tests, user involvement

(approx. 2 years)

ImplementationFull-scale tests in real

environments, demonstrate, user

involvement (2 years)

Clear movement towards utilization

Stage 1Initiation

Steg 2 Collaboration

Stage 3Implementation

Approx5-20 MSEK

Up to 10 MSEK

Up to 500 tkr Max 80%

Max 50%

Approx25-40%

Investment logicNo of projects

approvedContribution

(max)Contribution:

share of total costs

Structure

Internal steering group (SG)Takes the final decision based on input from the other groups

High-level external committee (HLEC)Takes a strategic role, e.g. portfolio management.

Evaluation teamsOne team per area, which overlap through the use of external generalist evaluators. The recommendations provide input to the high-level external committee.

Frequent and transparent pulseCall closes

Decision

Call closes

Decision

Continuous improvement

Strategic development

Support actions

Calls

It all sounds good… …in theory, but what about results?

Results so far exceed expectations…

Has renewed VINNOVA’s portfolioe.g. county councils and municipalities

Leads to learning, mobilization, spin-off effects e.g. 90% continue in some form

despite rejection to stage 2

Innovations: high potentiale.g. Patient journey

Results used in real settingse.g. playgrounds

Attracts other investmentse.g. 90 MSEK

Targets sustainable growthe.g. passive house + planning

Some examples

Input Process Output

2010 2014Approvedcontributions

2117 MSEK 2610 MSEK +23%

Applications 1818 4260 +134%

Approved projects 798 1524 +91%

Reports to handle 3694 5744 +55%

Visits on www.vinnova.se

348 000 668 000 +92%

Employees 214 204 -4.7%

VINNOVA (as a whole):CDI a key instruments launched early 2011

Ok, but what about transferability?

Several layers of transferability and learning

VINNOVA

CDI Projects

Other projects

Other funders

ConsortiaSociety Society

Society

Society

Key success criteria

Define vision and principles(leave specifics to applicants)

Use stage-gated investment logic

Dare to experiment (early tests)

Implement support actions (applicants, project managers, assessors)

Be transparent and communicate extensively

Innovate with rather than for someone