1. Inno-Forest, 13. 9.2006 THE INNOVATION POTENTIAL EVALUATION OF THE SLOVAK SMALL AND MIDDLE ENTERPRISES Ing. Radomila Horňáková TECHNICAL UNIVERSITY IN ZVOLEN Department of Marketing, Trade and World Forestry

2. Inno-Forest, 13. 9. 2006 Products assortment THE CHOSEN RESULTS FROM RESEARCH OF INNOVATION POTENTIAL OF SMALL AND MIDDLE ENTERPRISERS OF WOOD-PROCESSING INDUSTRY

3. Inno-Forest, 13. 9. 2006 The main floaters of innovation in companies

4. Inno-Forest, 13. 9. 2006 The main gain from application of innovations

5. Inno-Forest, 13. 9. 2006 The financial resources for company innovations

6. Inno-Forest, 13. 9. 2006 The percentage shares of innovation costs on company turnover

7. Inno-Forest, 13. 9. 2006 Innovation activity as a part of business strategy The suppliers of innovation solutions for firms and companies

8. Inno-Forest, 13. 9. 2006 Innovation systems of the countries and the regions Legislation, macroeconomic factors Innovation capability Knowledge, experiences, qualification, creativity and personal characteristics of the employees Absorptive capability of the firm including of active transfer of the knowledge into the Tangible and intangible property of the firm, its state and structure Innovation system and innovation culture of the firm INOVATION POTENTIAL INNOVATIVENESS

9. Inno-Forest, 13. 9. 2006 Innovation Capability: The ability to come up, consistently, with novel ideas that deliver short and long term profits to an organization. The next question that follows is “What gives the organization the ability to come up with ideas consistently?” It comes from the ability to link insights, concepts and facts in a new/different way. There are essentially three capabilities that form the pillars on which Innovation Capability is built. Building Innovation Capability Knowledge Capability is the first pillar. If coming up with ideas is about linking concepts, insights and facts in a unique manner, then the first thing that an organization needs is to possess these concepts, insights & facts. It needs to know these or have the ability to learn them quickly. Attitudinal Capability is all about having the right attitude, as an enabler of new ideas. Attitude at an organizational level results in people behaving in a certain way that can have far reaching impact on innovation capability. Creative Capability is the topping so to say, once the knowledge is there and the attitude is right, the insights, facts and concepts still need to be linked together. This is what creative capability is all about. These three pillars need to come together to hold the roof of innovation capability. In the next few sections, we will go through the steps to build each of these capabilities.

10. Inno-Forest, 13. 9. 2006 Source: Making Technological Knowledge Work, 2005 Absorptive Capacity: The Firm as a Search Engine

11. Inno-Forest, 13. 9. 2006 EVALUATING METHODS OF INNOVATIVENESS AND INNOVATION POTENTIAL European Innovation Scoreboard OECD Manual – Measuring Productivity Enterprise Evaluation of the preparedness for innovation Balanced Scorecard

12. Inno-Forest, 13. 9. 2006 EUROPEAN INNOVATION SCOREBOARD The Innovation scoreboard is one component of a much broader benchmarking exercise of DG Enterprise covering European enterprise policy and competitiveness as a whole. Innovation drivers Knowledge creation Innovation & entrepreneurship Application Intellectual property Five key dimensions of innovation performance:

13. Inno-Forest, 13. 9. 2006 OECD MANUAL The main objectives of this manual are to: Provide an accessible guide to productivity measurement for those involved in constructing and interpreting productivity measures, in particular statistical offices, other relevant government agencies and productivity researchers. Improve international harmonization: although there is no strong prescriptive element in the manual, it contains indications about desirable properties of productivity measures. When countries have a choice in constructing new measures or developing a system of indicators, the manual may provide guidance. Identify desirable characteristics of productivity measures by reference to a coherent framework that links economic theory and index number theory. Desirable properties have to be assessed against the reality of data availability or the costs of producing statistics. Broad trends can often be discerned with tools that do not live up to full theoretical standards as long as they are interpreted with the necessary caution. However, the user has to be aware of simplifications that occur in the practice of productivity measurement.

14. Inno-Forest, 13. 9. 2006 BALANCED SCORECARD Source: www.balancedscorecard.org, 2005

15. Inno-Forest, 13. 9. 2006 MAP OF THE COMPANY INNOVATION POTENTIAL A company with high innovation potential meets the individual indicators in the following spheres: by scoring maximum levels: Strategy and planning Marketing Technological process Quality management Logistics Human resources

16. Inno-Forest, 13. 9. 2006 MAP OF THE COMPANY INNOVATION POTENTIAL A company with high innovation potential meets the individual indicators in the following spheres: by scoring maximum levels: Strategy and planning Marketing Technological process Quality management Logistics Human resources

17. Inno-Forest, 13. 9. 2006 Micro firms – comparison of the reality and approach to the issue

18. Inno-Forest, 13. 9. 2006 Small firms – comparison of the reality and approach to the issue

19. Inno-Forest, 13. 9. 2006 Middle firms – comparison of the reality and approach to the issue

20. Inno-Forest, 13. 9. 2006 Big companies – comparison of the reality and approach to the issue

21. Inno-Forest, 13. 9. 2006 Comparison of total innovation potential in all groups of the companies

22. Inno-Forest, 13. 9. 2006 Total innovation potential of Slovak wood-processing companies

23. Inno-Forest, 13. 9. 2006 Suggested innovation model for small and middle wood-processing enterprisers Control Managment in Company Organisation and People in Company Strategic Interconnection in Company Innovation Processes in Company Surroundings of Company

24. Inno-Forest, 13. 9. 2006 Very important is to overcome from the role of classical manager to role e new, modern manager – instead of classical planning the firms have to endeavor to create new conceives and inspirations, don’t be afraid to lead and support the other employees, empower them (because one problem has many ways how to solve it)… They have to point at effective leading and management, to reach singleness of firm, in the role of manager create innovation-able organization, be opened to cooperation. They have to organized teams and support teamwork, to develop human power, to ensure constant education, to motivate and certainly evaluate and measure outputs. The further important thing is to ensure perfect interconnection between teams, what is basis for correct operation of strategic interconnection. The face-to-face communication and feedback in company is many times abandoned. Firms in innovation processes should realize radical innovations. Even if it will face to considerable measure of doubts, it’s important moving power for firm. Firms have to pay attention to discover new floaters for innovations. As soon as they will identify them they choose an individual access. They have to control and measure, not forget to watch successfulness of new product at market, turnovers, profits of this product, to compare themselves to competition, watch the market trends. And the last point: From the firm and it’s surrounding to create innovation culture, innovation surrounding. In the following points is defined, how should this model be used in praxis:

25. Inno-Forest, 13. 9. 2006 Thank you for your attention!!! Thank you for your attention!!!