Linking business to knowledge: new challenges Dr Kastytis Gečas, Lithuanian Innovation Centre

Innovation Policies: why innovation Jump to a knowledge-driven economy – national consensus Innovation is essential for business development – a key component in enterprise policy – innovation strategy vs. growth strategy Towards support for innovation – financial support/grant schemes for SMEs – advisory services and networking If the GDP volume in Lithuania grows in the current speed, it will overtake the average EU level only by the year 2040

Innovation is a business process connected with exploiting market opportunities for new products, services and business processes. EC Communication COM(2005) 121 final, 06/04/2005, Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a Competitiveness and Innovation Framework Programme ( ) If science is the transformation of money into knowledge, innovation is the transformation of knowledge into money EUREKA Innovation is related to a process connecting knowledge and technology with the exploitation of market opportunities for new or improved products, services and business processes compared to those already available on the common market, and encompassing a certain degree of risk. Community Framework for State Aid for Research and Development and Innovation, 2006

Structure of Lithuanian industry Source: Science and technology, Eurostat/ 2005

Innovative companies and turnover (23.4% of total number) Source: Innovation Activity Development, Dept. of Statistics of Lithuania, 200 6

Source: European Innovation Scoreboard’ 2004

Knowledge-based competitiveness. Two complementary paradigms To increase (innovation) supply = Technology push – Links between science and industry: bridging – Exploitation of research results, (technology) absorptive capacity, – Technological innovation (and may be non- technological innovation) – Technology transfer = exploitation of research results – Support services = research - exploitation- oriented (industry liaison, technology transfer, technology information, etc.) – Science and technology parks, spin-offs – Risk capital – Global competitiveness – Prioritty-based policies = high-tech business development (e.g. bio, IT, etc.) – Financial support to pioritised sectors – Linear model (creation, tranfer support, companies) To increaase innovation demand = Market pull – Company as a focal point: higher added value by innovation – Innovation diffusion, exploitation of knowledge, innovation capacity, innovation culture – Non-technological innovation (and may be technological innovation) – Technology transfer = technology partnerships – Support services = specialised infrastructure (to access knowledge, partners, finances, …) – Clusters, platforms, and other network-type activities, transnational networks – Public and private consultancy services – “Innovation everywhere” as a means for competitiveness – Financial support as (innovation) risk decreasing tool (industrial R&D, innovation, networking, …) – Non-linerar, multifacet model (partnerships, diffusion, innovation transfer, innovation management and content, etc.)

R&D-based innovation vs. innovation diffusion Source: European Innovation Scoreboard’ 2003 V

Innovative companies and turnover (23.4% of total number) Source: Innovation Activity Development, Dept. of Statistics of Lithuania, 200 6

Non-technological innovation Source: Innovation Development, Dept. Statistics Lithuania, 2006

Innovation cooperation partners Source: Innovation Activity Development, Dept. of Statistics of Lithuania, 200 6

Innovation Sources Source: Innovation Activity Development, Dept. of Statistics of Lithuania, 200 6

Corporate innovation financing: soft vs.hard Source: Innovation Activity Development, Dept. of Statistics of Lithuania, 200 6

Innovation partnerships

Obstacles to innovation Source: Innovation Development, Dept. Statistics Lithuania, 2006 Financial risk HR risk Market risk

Decreasing risks: fostering inovation in business State policies – favourable conditions – Programme for Innovation in Business (2000, 2003) – National Lisbon Strategy Public Support (national, EU Structural Funds) Linking business to knowledge – Specialised infrastructure and services – Domestic and international networking

Innovation support services at universities Research as knowledge production – Labs as knowledge centres – intellectual assets – Knowledge transfer centres (industry liaison, technology information and technology transfer, management techniques, IP management) – Professionalism, competence and skills – Preconditions Favourable Institutional set-up Intellectual property set-up and proper management Focusing on market (industry and services) demands Research as service – Contractual R&D: towards instu – Consultancy: technological/non-technological innovation capacity building – Precondition Institutional set-up Focusing on market needs Research as networking activity – Acting for ( on behalf of) companies internationally, e.g. FP projects, partnering, etc. – Facilitators? …

Dr Kastytis Gečas, Director, Lithuanian Innovation Centre, …innovation does not wait