4th Intl. Conf. on Technology Policy and Innovation Curitiba, August 2000 CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+ Instituto Superior Técnico, Technical University of Lisbon Towards a University Agenda on Engineering Policy and the Management of Technology Pedro Conceição and Manuel Heitor

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

TRADITIONAL MECHANISMS TO PROMOTE UNIVERSITIES and R&D IN SOCIETY The model: “american university” as reference 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

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

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

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

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

Technological Change: materials, IPTS(1999) STEELS CAST IRON IRON COOPER ALLOY STEELS GLASSY METALS AL-LITHIUM ALLOYS DUAL PHASE STEELS MICROALLOYED STEELS BRONZE SKIN FIBRE GUMS RUBBER LIGHT ALLOYS SUPER ALLOYS TITANIUM ZINCONIUM ETC NEW SUPER ALLOYS DEVELOPMENT SLOW MOSTLY QUALITY CONTROL AND PROCESSING CONDUCTING POLYMERS HIGH TEMPERATURE POLYMERS HIGH MODULUS POLYMERS BAKELITE NYLON WOOD PAPER STONE FLINT POTTERT GLASS CEMENT REFRACTORIES PORTLAND CEMENT FUSED SILICA CERMETS EPOXIES POLYESTERS COMPOSITES POLYMERS METALS CERAMICS POLYMERS COMPOSITES CERAMICS METALS ALLOYS BC5000 BC GOLD CERAMIC COMPOSITES COMPOSITES METAL-MATRIX SURFACE ENGINEERING RELATIVE IMPORTANCE SUPERCONDUCTORS TOUGH ENGINEERING CERAMICS KEVLAR BRICKS (with STRAW) IVORY BC 5000 BC

Technological Change: telecommunications

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

New reactors Nuclear fusion New energy biomassPhotovoltaic 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 lasersBio-leaching Biological ore processing New alloys Ceramics and composits Computer based design of new materials materials Photovoltaic applications Biosensors Biochips Semiconductors Superconductors Telematics Automation Computers information technologies energybiotechnologiesmaterialsinformation technologies Emerging interactions... Source: BIPE from to

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

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)

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

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 The ISSUE... concluding OUR GOAL: to discuss the emergence of a university agenda on engineering policy and the management of technology

advanced education and research in engineering policy and management of technology... Which specific driving forces? 1.Productivity 2.The knowledge-based industries 3.Resouces 4.Scale vs intensity 5.Industrial structure 6.Institutional development 7.The regional dimension 8.Sustainable development 9.Social capital for the inclusive development

advanced education and research in engineering policy and management of technology... Which relevant topics? 1.Advanced Research Methods for decision support and policy analisis 2.Management of technology and innovation 3.Organizational design and institutional development 4.Technology policy (environment; industrial; communications)

1. Productivity

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

3. RESOURCES Expenditure by Manufacturing Firms on Innovation

Perspectives for “change”: Public vs private R&D expenditures P97 P95 P81 ES IR SE JP USA FR D UK

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

5. THE INDUSTRIAL STRUCTURE 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 EU-13 YEAR Portugal

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 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

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

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

Perspectives for “change” Building the conceptual framework The notion of localised technological change: The science base: 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 aim of policy should be to create a broad and productive science base, closely linked to higher education…”, Pavitt (1998) … Systems of Innovation and Competence Building!