Strengthening Science-Industry interactions: Network-oriented innovation policy in Germany K. Lochte, Ph.D. Chair of the Scientific Commission Wissenschaftsrat, Cologne Prague, May 2006

Strengthening Science-Industry interactions: Network-oriented innovation policy in Germany I.Strengths and weaknesses of the German innovation system II.Strategies to improve the innovation performance III.Outlook

Strengths of the German innovation system Source: Telekom Stiftung, DIW Berlin - Science output: among the top three worldwide with respect to total publications - Leading patenting country in Europe - Leading in investments in lifelong learning of employees in enterprises

Source: Telekom Stiftung, DIW Berlin

R&D staff in industry:83% large-scale enterprises 17% SME R&D investments:87% large-scale enterprises 13% SME

Source: Telekom Stiftung, DIW Berlin

- Stimulation of R&D in SME - Improved integration of SME into the innovation process - Establishment of new forms of funding opportunities Key to enhanced innovation performance in Germany is: Strategy: R&D and innovation funding portfolio strengthening - Science-industry interactions (esp. clusters) - Key technologies

BioRegio Goal: to foster the biotech industry by linking science and industry Criteria for selection of regions: - Critical mass of biotech companies and strong research institutions - High commercial application potential of research - Interdisciplinary research network - Supporting service infrastructure (consultancies, patent exploitation agencies) - Sustainable concept for future development of the region

BioRegio Great success documented by extraordinary growth of German biotech scene: Since start the number of biotech companies has increased about 8-fold to ~600 (~90% SMEs)  highest no. in Europe - Led to the establishment of 30 BioRegions - Volume: 90 Mio. €, invested in four model regions - Mobilised significant private investments in BioRegions (in the model region Munich this mobilisation effect was >1000%) - Succeeded by BioProfile, Volume: 50 Mio. €

BioRegio Example 1 - Outstanding scientific environment (TU and LMU Munich with university hospitals, Max-Planck-Institutes, Universities of Applied Sciences, GSF) - Successful patent exploitation agencies (Garching Innovation, Ascenion) - >160 Life Science companies - Regional activites co-ordinated by BioM AG: also advisory and financing function for young biotech firms - 10,000 people working in biotech industry, 5,000 in R&D

BioRegio Example 2 - Only model region in the New Länder - Bio instruments cluster - Focus on optics, medical technology, equipment- intensive diagnostics - Carl Zeiss Jena 23 research and other public organisations 60 biotech companies service providers investors

InnoRegio Goal: to enable regions in the New Länder to develop a scientific and economic profile by building regional innovation networks Criteria for selection: - Relevance of projects for competitiveness of the region - Networking strategies - Model character for other regions 23 InnoRegios Volume: 250 Mio. €

InnoRegio Example 1 - Areas of expertise: development and production of complex maritime systems and services for transport, energy production and tourism - Cluster comprising maritime suppliers, service providers, shipyards, PROs, public administration - Main business segments: - transport and logistics systems - products and services for the ship- building and offshore industries - services for maritime traffic safety and sea and coast protection

InnoRegio Example 2 - Goal: to provide services and products for visually impaired people - Development of tools to improve access to education and employment market for visually impaired - Cluster comprising multimedia firms, libraries, Education and research institutes

PRO INNO Goal: to enhance the innovation competence of SME through development and application of key future technologies by way of R&D collaboration with other enterprises and research institutions Volume: 150 Mio. € for 2006, further increasing

- Project management executive for programmes of federal ministries targeting innovation ability of SME - Bridge between science and industry - Organised by industry - Created and utilises unique infrastructure comprising industry-based innovation networks covering approx. 50,000 SME and 700 research institutions - Annual budget of public funds: 250 Mio. € AiF German Federation of Industrial Research Associations

Source: Telekom Stiftung, DIW Berlin

High-Tech-Strategy Germany 6 billion € programme ( ) focussing on - linking science and industry (esp. in clusters) - promoting technology transfer - fostering key technologies - strengthening SME - fostering entrepreneurship - increasing productivity and attractiveness of German science system Excellence Initiative Participation of SME will be important criterion for selection of clusters of excellence in second round of the competition