1. World Bank program on : Technology development and knowledge economy Towards a Knowledge economy : The role of Governments Gilbert Nicolaon
Kiev
February 29, 2008

2. Knowledge (Research) and Economy

3. Research and Economy Early 20th century :
Research is an « academic » discipline
World War II :
Successful application of R&D
(Radar, Atomic Energy, Artificial clouds…)
Post World War II :
R&D « with no string attached »

4. Research and Economy 50s - 60s R&D « with no strings attached »
70’s : A major change in the U.S. :
A closer link between R and economy
80’s : Western Europe follows the same path
90’s : Emerging economies +Eastern Europe
00’s : Spreading all over the world

5. A “Universal” challenge
A gap between Research and Economy
A need to fill this gap to
Take advantage of public E&D effort
Improve the competitiveness of national industry
Improve economical growth and employment
A challenge all over the world
A MAJOR CHALLENGE FOR MOST COUNTRIES

6. The «Actors»

7. The « Actors » + Who is concerned ? Scientists and engineers
Industrialists +
Government
A 3 PARTNERS COOPERATION

8. A «Universal» challenge
To bridge the « gap » between public
Research and Economy in order to :
Take advantage of « national » R&D effort
Support national economy
Improve national competitiveness
Improve employment
Boost economical growth
Export technological expertise
Improve the balance of payments
A CHALLENGE FOR ANY GOVERNMENT

9. A 3 Partners cooperation
What do they expect?
The Technology Providers :
To get support for R&D
The industrial Cos (Large + SMEs) :
To get new products and processes
The Governments (Ministries, agencies ..):
To stimulate economic growth and employment
BENEFICIAL FOR EACH PARTNER

10. A 3-Partner Cooperation
What do they do?
The Technology Providers :
Provide innovative technologies
The industrial Cos (Large + SMEs):
Identify the market
Manage the innovative process
The Governments (Ministries, agencies ..)
Establish a favorable legal environment
Stimulate the process to boost the economy
Provide assistance for project management

11. The Role of Governments

12. Governments’ « involvement »A
An appropriate legal framework
Some infrastructure
Assistance for assessment and mgt.
Partial funding +
Incentives to stimulate the process

13. Governments’ « involvement »
2 major challenges :
Researchers are not used to work for industry
Industry is not used to pay for public R&D
GOVERNMENTS HAVE TO SET UP INCENTIVES

14. Governments’ « involvement »
A major goal for any Government
But some major challenges
A need for strong incentives
Legal incentives
Infrastructural incentives (Tech. Parks, Incubators,…)
Financial incentives

15. Governments’ « involvement »
Incentives for researchers
Infrastructural (Incubators, Tech. Parks,…)
Financial (Royalties sharing….)
Legal
Incentives for industry
Financial (Cost sharing….)
Fiscal (Tax Credit…..)
STRONG INCENTIVES ARE NEEDED

16. Governments’ « involvement »
To create a motivating legal framework :
To encourage market oriented R&D
To stimulate Research/industry partnerships
To allow researchers to patent R&D results
To allow researchers to create start-ups
To boost technological services to industry
To bring assistance to entrepreneurs

17. Governments’ « involvement »
Financial incentives
To support market oriented R&D
Specific grants (To support Mk. Oriented R&D)
Soft loans (0% interest, repayable in case of success)
Tax credit (To stimulate industrial R&D)
To stimulate Research/industry cooperation
To stimulate researchers motivation
Grants or loans for industrial cooperation
Personal financial rewards

18. Governments’ « involvement »
National innovation agencies
Technical expertise
AND ALSO
Financial expertise
Economical expertise
Legal expertise

19. Some elements of an efficient innovation policy

20. An efficient innovation policy
Strong incentives are needed
Researchers have to be motivated
Industrialists have to be motivated
Financial + legal incentives
Financial support for Research/industry partnerships
Individual financial rewards for researchers
STRONG INCENTIVES ARE NEEDED

21. An efficient innovation policy
A legal framework stable over a long period of time is very important
Innovation takes time
Incentives should be stable over long period of time
Legal (Tax) system should be stable
THE RULES SHOULD NOT CHANGE WHILE THE INNOVATIVE PROJECT IS GOING ON

22. An efficient innovation policy
The decision process should be fast
Competition
Market change
Technological progress
THE DECISION PROCESS MUST BE FAST

23. An efficient innovation policy
An innovation policy should have several components
In order to be efficient, it should be :
Coherent
« Light »

24. A few Programs + Numerous Regional programs United States : SBA
Europe :
Finland : TEKES
France : Oséo-Innovation
The Netherlands : Senter
Spain : CDTI
…..
+ Numerous Regional programs
Flanders (Be), Ile de France (Fr.)…..

25. International Programs
World Bank Projects on Tech Development
Far East (India, Korea…)
Latin America (Mexico…)
Eastern and Central Europe (Croatia…)
European Union Framework Program
Other European programs
Eureka initiative
Intergovernmental (Market-Oriented, Nationally-Funded)
European Space Agency
Technology Transfer program

26. E.U. programs Research for the benefit of SMEs
Coordination of SMEs RTD co-operation
ERA-NET
Eurostar
SMEs participation to RTD projects +
Various supporting actions
Network of National Contact Points
Coordination and support actions

27. Governmental programs
To strengthen national competitiveness
Assistance for:
Identifying partners
Preparing a Business Plan
IPR and legal matters
To provide some public funding
Financial support for project preparation
Grants
Soft loans

28. Research and Innovation

29. Research and Innovation
MONEY KNOWLEDGE
INNOVATION :
KNOWLEDGE MONEY

30. Innovation BUT ….It is far to be enough !
A « good » technology
BUT ….It is far to be enough !
In order to reach the market :
A clear vision of R&D to Mkt.
A fair analysis of the competition
A rigorous Business Plan
A « good » management team

31. Innovation The 5 components of innovation : Technical
Economical (market, competition)
Financial (Business plan)
Legal (Partnership agreement, IPR)
Managerial

32. An innovation policy + A CONTRADICTION ?
Competences (*) in 5 different wide sectors
Large teams of specialists of each sector +
Customer targeting close to the « market »
Numerous teams all over the country
A CONTRADICTION ?

33. The « solution » A large headquarter Several small regional offices
Technical + Economical
Financial
Legal
Several small regional offices
For « customer » targeting

34. Project evaluation Technical (quality of the technology)
Economical (market and competition)
Financial (Business plan)
Legal (partnership agreement, IPR)
Managerial (management team)

35. Project Appraisal The ANVAR (French) experience CONCLUSION
A Technico-economical expert
Usually an external scientist or engineer who has a good understanding of the market
A Financial expert
Usually a banker who has a good experience of the industrial sector concerned
A Legal expert
Usually from the Legal Dept.
CONCLUSION
An “overall” appreciation
By an « Innovation Engineer »

36. A « good » project ? The limiting factors (The French experience) :
Usually NOT Technical
Financial (Underestimation of project cost)
Economical (overestimation of the market)
Legal (disagreement between partners)

37. A « good » project ?
A good technology
A rigorous business plan
A carefully analyzed market
A strong legal agreement
A top level management
MOST OF ALL A GOOD BALANCE BETWEEN ALL THOSE FACTORS

38. Thank you for your attention
Gilbert Nicolaon