Sociedade Portuguesa de Inovação Tuesday, June 21 st, ,5/3,5 CM Innovation in America

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Objective  To give the audience a general overview of America’s national innovation initiatives and priorities;

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Agenda 1.America’s national innovation agenda 2.America’s Innovation opportunities and challenges 3.The new shape of innovation in America 4.The innovation ecosystem defined by America 5.Looking ahead

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America America’s Task Innovation has always been deep in America’s soul from the nation’s birth 228 years ago. Innovation has always been deep in America’s soul from the nation’s birth 228 years ago.  For the past 25 years, America has optimized its organizations for efficiency and quality. Over the next quarter century, America must optimize its entire society for innovation.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America America’s Role America has fundamentally been about exploration, opportunity and discovery. America has fundamentally been about exploration, opportunity and discovery.  “ The legacy America bequeaths to its children will depend on the creativity and commitment of our nation to lead a new era of prosperity at home and abroad”, Council of Competitiveness

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America America’s Challenge Innovation itself, where it comes from and how it creates value is changing. It requires a new vision, new approaches and new action plan Innovation itself, where it comes from and how it creates value is changing. It requires a new vision, new approaches and new action plan  To unleash its innovation capacity to drive productivity, standard of living and leadership in global markets.  Macro-economic forces and financial constraints make innovation-driven growth a more urgent imperative than ever before.  American business, government, workers and universities face an unprecedented acceleration of global change, relentless pressure for short-term results, and fierce competition from countries that seek an innovation driven future for themselves.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America 1. National Innovation Agenda

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Three categories of the national innovation agenda Three categories of the national innovation agenda I.Talent II.Infrastructure III.Investment

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Talent Initiatives The lifeline of innovation starts with human capital and the ability to be creative. The lifeline of innovation starts with human capital and the ability to be creative.  Building a national innovation education strategy for a diverse, innovative and technically-trained workforce;  Catalyzing the next generation of American innovators;  Empowering workers to succeed in the Global Economy.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Investment Initiatives Money, incentives and risk are necessary investment for promoting innovation. Money, incentives and risk are necessary investment for promoting innovation.  Revitalizing frontier and multidisciplinary research;  Energizing the entrepreneurial economy;  Reinforcing risk-taking and long-term investment.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Infrastructure Initiatives The right means for creating innovation.  Creating a national consensus for innovation growth strategies;  Creating a 21 st century intellectual property regime;  Strengthening America’s manufacturing capacity;  Building 21 st century innovation infrastructure – the health care test bed

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America 2. Innovation Opportunties and Challenges in America

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Innovation Opportunities 21st Century opportunities for innovation lie in many areas. 21st Century opportunities for innovation lie in many areas.   Promise of environmentally friendly and plentiful fuel sources; i.e. Hydrogen cars   Medical therapies to cure diseases; i.e Biotechnology   Lower-cost and higher quality health care by applying 21st century information technologies; i.e 1/3 of health care dollars are tied-up in administrative paperwork

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America 21 st Century Innovation Opportunity – the Hydrogen Economy Case Study  The potential of a hydrogen economy to address major challenges facing America and the rest of the world is capturing the imagination of consumers, researchers, government and industry.  Why hydrogen? Hydrogen fuel cell vehicle is nearly twice as energy efficient as a conventional vehicle and its only emission is water vapor; If 1 in 100 cars use hydrogen, 4 million gallons of gas will be saved every day Hydrogen can be extracted from various fuels, promoting energy diversity Fuel cells are a potential source not only of transportation power, but also of electrical power.

Innovation in America CRCi June 2005 by Elia Cossis General Motors says Sequel, its latest hydrogen car prototype, can help end gasoline's grip on the industry Fill 'er up with hydrogen Innovation in America

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Innovation Challenges The rest of the world is picking up the pace... Today the forces of global economic integration and advances in technology are creating a different and more complex challenge.   Sweden, Finland, Israel and South Korea each spend more on R&D as a share of GDP than the United States;   China overtook the United States in 2003 as thh top global recipient of foreign direct investment;   Asia now spends as much on nanotechnology as the United States   Only six of the world’s 25 most competitive IT companies are based in the US; 14 are based in Asia   Corporate R&D dropped nearly $8 billion in 2002, the largest single year decline since the 1950s.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America 3. The New Shape of Innovation in America

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America The New Shape of Innovation  Relationships that once looked adversarial are increasingly evolving into complementary, even symbolic ones.  Some of the most salient new relationships among innovators and in the nature of innovation itself include: User and producer-based innovations; Manufacturing and services Nationalism and globalization Security and scientific openness Public and private sector innovations

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America The New Shape of Innovation [cont.]  User and producer based innovations The world is divided into “producers” and “consumers” with the former in control…or not? This has now changed with “User-based innovation”, a term coined by MIT’s Eric von Hippel New models of innovation incorporate the customer into the design and development process This relationship can help manage risk and significantly mobilize the nations innovation capabilities.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America The New Shape of Innovation [cont.]  User and producer based innovations Photo courtesy of the Economist – “The rise of the creative consumer” Mar 10th 2005

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America The New Shape of Innovation [cont.]  Examples of user-based innovation:  General Electric’s “LightSpeed VCT” – 3D image of a beating heart  Staple’s “wordlock” – a padlock that uses words instead of numbers  BMW’s “telematics” – combining computing and telecoms for new generation luxury cars. BMW posted a toolkit on their website asking customers their ideas for in-car online services; 15 out of 1000 replies were chosen and prototypes have been developed.  Electronic Arts’ “open source software” – manufacturer of computer games ships programming tools to its customers, posts their modifications online and works their creations into new games.  What’s the connection? Harnessing customer innovation requires new methods

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America 4. The Innovation Ecosystem as difined in America

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America The Innovation Ecosystem  Innovation is best seen not as a linear or mechanic process, but as an ecosystem, a multi-faceted and continual interaction among many aspects of the economy and society;  Ecosystem must take into consideration:  supply inputs  market demand  influence of external factors, especially the policy environment and common national infrastructure.

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America The Innovation Ecosystem

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America 5. Looking Ahead

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Key National Priorities  The National Innovation Initiative identified some key national priorities that while not specific to near-term stimulation of innovation, do underpin America’s ability to innovate. These key priorities include: Unfunded Liabilities  I.e. Health Care and Social Security K-12 Education  More emphasis on creating a workforce equipped for creative thinking and collaborative culture. American students tend to have mediocre performance on international assessment exams. A Global Trading System  Harmonize global rules on competition policy, international standards and intellectual property, the fundamentals of protecting innovation. 21 st Century Infrastructure  Transportation and Internet upgrades 1/12

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Useful Source of Information  InnovateAmerica – National Innovation Initiative Report December 2004; Council of Competitiveness  Available in CRCi 1/12

Innovation in America CRCi June 2005 by Elia Cossis Porto - Portugal Edificio “Les Palaces” Rua Júlio Dinis, no. 242, Porto, PORTUGAL Tel: Fax: TagusPark Núcleo Central, Oeiras, PORTUGAL Tel: Fax: Lisbon - Portugal California - USA 2102 Business Center Drive, Suite 220E Irvine, CA USA Tel: Fax: Maryland - USA Suite Research Park Drive Baltimore, MD Tel: Fax: Innovation in America

Innovation in America CRCi June 2005 by Elia Cossis Innovation in America Thank You