1. Training on Promoting Innovation Systems in Developing Countries Dir. Jean Pacheco Dir. Lydia Guevarra 1

2. Innovation is new to the firm not necessarily new to the world

3. What is innovation? How does it differ from invention? 3

4. Definitions of innovation Schumpeter(1930s-40s) Innovation is “new combinations” of existing resources OECD (2005: p46) “implementation of a new or significantly improved product (good and service) or process, a new marketing methods or a new organizational methods in business practices, workplace organization or external relations”. “ A common feature of an innovation is that it must have been implemented…it is when introduced on the market… (p47) “new to the firm” as minimum entry level. It does not have to be “new to the market” nor “new to the world”. (p56-57) 4

5. Main types of Innovation Product innovation: new or significantly Improved good and service Process innovation: production or delivery methods, changes in techniques, equipment and/or software Marketing innovation-implementation of new marketing methods involving significant changes in product design or packaging product placement, product promotion or pricing. Organizational innovation- organizational methods in the firm’s business practices, workplace organization or external relations build to order, Just in time production, different ways to share knowledge 5

6. What are the characteristics of Innovation process? Knowledge creation and diffusion is central Constantly changing Continuous and dynamic Uncertain – risk oriented, resistance to change, ‘lock in’ Diverse process – sector, country, regions…. Require complementary assents – cannot use certain technology without infrastructure/HR Systemic – looking at one part cannot really understand the whole process 6

7. Innovation Policy. We read it. We hear about it. But do we understand it?.

8. What is considered as ‘innovation activities’ All activities intended to lead to the implementation of innovation is called Innovation activities that includes following: – Science & Technological activities – Organizational activities – Financial and legistrative activities – Education, Entrepreneurship activities etc Innovation policy covers wider policy arena including science & technology policy 8 S&T Policy Innovatio n Policy

9. Policy components Policy institutions – Infrastructure – Procurement – Priority setting – Standard setting – Public finance Developing banks, trade support Government departments – Including granting councils – Knowledge and technology transfer 9 Education – All levels (primary to Higher) – Life long learning – Research Migration – Immigration policy – Foreign experience/knowle dge Health – Nutrition – Wellness – Disease control Monitoring and evaluation – Policy learning and change

10. Philippine Innovation Policy PDP 2011-2016 Chapter 3 Government shall pursue innovation as an essential factor in harnessing culture of competitiveness. Along these lines government shall: – review the role of higher education institutions in the country’s innovative system – review investments in science, technology and innovation (STI) human resources to directly link them with strategies in retaining the “best” and “brightest” Filipino STI talents; – promote a culture of multi-disciplinary collaboration, knowledge sharing, open dialogue and cross-fertilization of ideas as extremely relevant and important in the emerging global competitiveness 10

11. Assessment: State of innovation among Least Developing Countries, the same. The Philippines included..

12. 3% R&D Expenditure share of GDP Philippines 0.1%

13. What is innovation systems? Why does it matter? 13

14. Some key definition of national system of innovation “The network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies” (Freeman, 1987) “all parts and aspects of the economic structure and the institutional set-up affecting learning as well as searching and exploring” (Lundvall, 1992) “a set of institutions whose interactions determine the innovative performance of national firms” (Nelson, 1993) “the set of institutions which jointly or individually contribute to the development and diffusion of new technologies and which provides the framework within which government form and implement policies to influence the innovation process.” (Metcafe, 1995) 14

15. Innovation System Innovation system (UNIDO, 2007) 15

16. Recipe to a successful Innovation System Ingredients: Industry Research institutions/Academe Government 1.Nurture entrepreneurship 2. Ensure Absorptive Capacity 3. PromoteCapacity Building 4.Build Bridges between science and industry 5.Remove barriers, reduce risks through innovation policy 6.Set up innovation networks, Industry- Science research alliance

17. Innovation Indicators: Use or Misuse? That is the Question.

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20. 20 World Economic Forum (WEF) Global Competitiveness Index 2014

21. Industry 4.0 High Tech Strategy Leading Edge Clusters

22. Stop Thinking about Global Value Chains. Do It. Now.

23. BEST PRACTICES Startup Academy Steinbeis Technology Transfer Center in Associations Innovation networks Technical pre-incubation Eco-innovation Design and Evaluation of Innovation Policies

24. ACCESS support to the creation of a Startup Academy 3-month training programme for 30 participants (2x per year) Provision of relevant knowledge, skills and contacts to empower graduates to become successful entrepreneurs Creation and development of a vibrant and encouraging environment for growth of start-ups and start-up community Promotion of self-employment and entrepreneurship as viable and attractive career paths amongst young professionals Target Group: students of all faculties, young and experienced IT professionals motivated to start their own businesses Best Practice „Startup Academy“ SEE ICT Startup Academy

25. INNOVATION. Its not just DOST. Its our Responsibility too. Chapter 3: Philippine Development Plan Results Matrix: Improved GVA arising from Innovation in the I&S sector Industry 5.2% (2004-2010 average) - 8.1-9.0% (2011-2016 average) Services: 6.1% - 7.0-7.9%

26. 26 Lydia Guevara Director Resource Generation and Management Service (RGMS) Mary Jean Pacheco Director Corporate Planning Service DR VOLKER STEIGERWALD, not in phto PARTICIPANTS Training on Promoting Innovation Systems in Developing Countries, 21-22 July 2014