Towards a University Agenda on Engineering Policy and the

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Towards a University Agenda on Engineering Policy and the 4th Intl. Conf. on Technology Policy and Innovation Curitiba, 28-31 August 2000 Towards a University Agenda on Engineering Policy and the Management of Technology Pedro Conceição and Manuel Heitor CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+ Instituto Superior Técnico, Technical University of Lisbon http://in3.dem.ist.utl.pt

Background: trends for the University ? Conceicão & heitor (1999) Valorization of human and intellectual capital? Codified knowledge (“software”) Tacit knowledge (“wetware”) Challenges and … Opportunities...

TRADITIONAL MECHANISMS TO PROMOTE UNIVERSITIES and R&D IN SOCIETY 1. Intellectual Property Protection issues: economic impact negligible promotes institutional integrity requires adaptation and flexibility 2. Technology Infrastructures and Science Parks issues: emphasis local development have not promoted U-I linkages The model: “american university” as reference

TRADITIONAL MECHANISMS TO PROMOTE THE ROLE OF UNIVERSITIES IN SOCIETY The trend: a process of “institutional convergence” The result: universities today, despite their long historical I inheritance, are relatively new institutions… … with a complex set of incentive structures and organizational features (Rosenberg & Nelson, 1996) The threat: institutional integrity The analysis: “standard”, linear model has been implicit in m most studies

The knowledge gap (Scope: EUROPEAN REGIONS) Edudation / training for last 10 years 2000 2010 Education / training acquired for more than 10 years New technologies Existing technologies 2000 2010 2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years

QUESTION Which trends for advanced education and research in engineering schools, in a way to contribute for the challenges faced by engineering and technology to enhance innovation?

Our Argument... The need for institutional renewal, The scope:... the globalized “learning society”! Knowledge Institutions Learning Organisations Intellectual Property Learning Networks The need for institutional renewal, …promoting diversity with institutional integrity, (Conceicão & Heitor, 1999) …making use of partnerships! (Conceicão, Gibson, Heitor & Sirilli, 2000) BUT, understanding research (R&D; R&T; R&L), promoting research for creative teaching, and integrating technology, policy and management!

The CONTEXT 1. Technological change: accelerating OCDE: “FUTURES”, Hannover 2000 EC: “IPTS - Futures Report”, 2000 1. Technological change: accelerating 2. The “new” economy: “the big boom” 3. Social Dynamics: complexity and diversity 4. “Governance”: a new model!

Technological Change: materials, IPTS(1999) 10 000 BC 5000 BC 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020 GOLD COOPER BRONZE METALS METALS IRON GLASSY METALS AL-LITHIUM ALLOYS DUAL PHASE STEELS MICROALLOYED STEELS POLYMERS NEW SUPER ALLOYS DEVELOPMENT SLOW MOSTLY QUALITY CONTROL AND PROCESSING CAST IRON SKIN FIBRE GUMS STEELS ALLOY IVORY STEELS RELATIVE IMPORTANCE COMPOSITES SURFACE ENGINEERING LIGHT ALLOYS BRICKS (with STRAW) POLYMERS RUBBER WOOD SUPER ALLOYS CONDUCTING POLYMERS PAPER HIGH TEMPERATURE POLYMERS STONE TITANIUM ZINCONIUM ETC ALLOYS FLINT COMPOSITES BAKELITE HIGH MODULUS POLYMERS POTTERT GLASS CERAMIC COMPOSITES EPOXIES NYLON METAL-MATRIX CEMENT POLYESTERS COMPOSITES CERAMICS CERAMICS REFRACTORIES KEVLAR SUPERCONDUCTORS PORTLAND CEMENT SILICA FUSED TOUGH ENGINEERING CERAMICS CERMETS 10000 BC 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020 5000 BC

Technological Change: telecommunications

Technological Change: perspectives The Convergence: telecommunications and computers ... The QUESTION : scope and scale TECHNOLOGIES PROCESSES more technologies to produce each product PRODUCT TECHNOLOGY PROCESSES more products produced from a given technology Source: von Tunzelmann (1999)) PRODUCTS

Emerging interactions... Source: BIPE to New reactors Nuclear fusion New energy biomass Photovoltaic materials Fuel cells Superconductors Supervision of energy processes Robotics Security systems energy Batteries Pacemakers Artificial Heart Recombin. DNA New drugs Enzymatic Synthesis Membranes Biocompatible materials Instrumental analysis of dna sequences biotechnologies Power lasers Bio-leaching Biological ore processing New alloys Ceramics and composits Computer based design of new materials materials Photovoltaic applications Biosensors Biochips Semiconductors Telematics Automation Computers information technologies from

The importance of Technology in corporate development Case study: Innovation in Italy (Evangelista & Sirilli, 1997) The convergence of sectors is emerging, with the growing importance of technology in corporate development

The structure of the “new” economy Technology replaces employment Economy without employment Demand Deficit Agriculture Indústry Services Industrial era Knowledge era I- Recession Services Agriculture Technology creates new industries and opportunities Entrepreneurial economy Value creation Indústry II- Growth

THE ISSUE …1 The evidence: “The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966) “The explosion in knowledge creation was concentrated in a few regions, and led to similarly concentrated distribution of income”, World Bank (1999) The most daunting problem is that of “spiritual inequality”, Fogel (1999)

Regional diversity in Western Europe Fonte: Sixth Periodic Report DG XVI 1998

THE ISSUE …2 A specific issue: EUROPEAN DIVERSITY “With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors… …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”, Henderson & Morgan (1999)

source: Community Innovation Survey, OCT-PT Innovation in EU source: Community Innovation Survey, OCT-PT

The ISSUE ...concluding The need to consider engineering research and teaching in a broader context, leading to innovation: Promoting value, by exploiting change Understanding institutional development Integrating systems of competence building and social cohesion OUR GOAL: to discuss the emergence of a university agenda on engineering policy and the management of technology

Which specific driving forces? advanced education and research in engineering policy and management of technology... Which specific driving forces? Productivity The knowledge-based industries Resouces Scale vs intensity Industrial structure Institutional development The regional dimension Sustainable development Social capital for the inclusive development

Which relevant topics? advanced education and research in engineering policy and management of technology... Which relevant topics? Advanced Research Methods for decision support and policy analisis Management of technology and innovation Organizational design and institutional development Technology policy (environment; industrial; communications)

1. Productivity

2. Knowledge-based industries OECD(2000) Average annual real value added growth of knowledge based industries (1985 share year) Share in business sector value added in knowledge business industries (share year 1996)

Expenditure by Manufacturing Firms on Innovation 3. RESOURCES Expenditure by Manufacturing Firms on Innovation

Perspectives for “change”: Public vs private R&D expenditures 0,025 0,05 0,075 0,1 0,125 0,25 0,375 0,5 Public R&D Expenditures per capita Private R&D Expenditures per capita Canada Denmark Finland France Germany Ireland Japan Netherlands Norway Portugal Spain Sweden UK US Belgium Czech Rep Hungary Korea Mexico New Zealand Poland Turkey FR D JP USA UK P97 P95 ES SE IR P81

R&D Expenditure (OECD) 4. Scale vs Intensity R&D Expenditure (OECD)

5. THE INDUSTRIAL STRUCTURE EU-13 YEAR Portugal 5 10 15 20 25 30 35 1983 1987 1991 1995 YEAR 5 10 15 20 25 30 35 40 1983 1987 1991 1995 Food, beverages & tobacco Textiles, apparel & leather Wood products & furniture Paper, paper products & printing Chemical products Non-metallic mineral products Basic metal industries Fabricated metal products Other manufacturing, nec

5. Industrial structure: Dynamics

6. Institutional Development Market Regulation and Employment Protection Nicoletti, Scarpetta & Boylaud; OECD (2000)

7. The regional dimension: technology and innovation gap 1. Input: HUMAN AND MATERIAL RESOURCES 2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES 3. determining factors : international cooperation sme`s: support services networks FDI: integration in local economies transports, communications, energy infrastructures … BUT, ALSO, INSTITUTIONAL FACTORS

7. The regional dimension: technology and innovation gap …cont. Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action This requires a shift in development studies: from state-led or market-driven processes, regardless time, space or milieu to institutional perspective, looking at the quality of institutional networks

7. The regional dimension: technology and innovation gap …cont. INSTITUTIONAL NETWORKS to mediate: mediate information exchange knowledge creation capacity for collective action potential for interactive learning efficacy of voice mechanisms Henderson & Morgan (1999)

9. Social capital for inclusive development OECD(2000)

POLICY ISSUES Towards an Agenda for innovation and technology policy: THE CONTEXT: increase importance of knowledge for development THE CHALLENGE: how to promote the learning society? Towards an Agenda for innovation and technology policy: 1. the framework: interactive nature of innovation 2. balancing innovation and diffusion 3. wetware/software interaction 4. the inclusive development 5. the institutional development

Management of Technology ! … debate …challenges and opportunities for a University Agenda on: Engineering Policy and the Management of Technology !

KNOWLEDGE AND INNOVATION Creation and distribution of knowledge Economic growth and development Technological innovation and development PROCESSES: complex and diversified INVESTMENT: education; R&D; learning-by-doing AGENTS: state, firms, universities, schools

Perspectives for “change” Building the conceptual framework …Systems of Innovation and Competence Building! The notion of localised technological change: a joint process of production, learning and communication a fully endogenous, with strong interdependence between specialisation and diversification important, but limited role of demand based on mix of generic and tacit knowledge The science base: ” …the aim of policy should be to create a broad and productive science base, closely linked to higher education…”, Pavitt (1998)