1. Innovation for Strengthening the Electronics Industry Technology Market Place Oct 24 - 25, 2011 BMICH, Colombo Eng. Sanath Panawennage, Arthur C Clarke Institute for Modern Technologies

2. Breakthrough Innovations In Core Technologies

3. Innovations in core Business Processes, Business model, financing, Organizational Design, etc. Breakthrough Innovations In Core Technologies

4. “If you build a better mouse trap the world will beat a path to your door” Typical product orientation concept Not necessarily True always ! “What the customer needs may be a better solution to a mice-problem”

5. What is Innovation ? ‘Innovation’ –Often used together with ‘Science & Technology’, ‘Research & Development’ –there is growing recognition that innovation encompasses a wide range of activities in addition to R&D, such as organizational changes, training, testing, marketing and design

6. Innovation is the process of Implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations. (Oslo Manual, OECD)

7. Innovation, More than Science and Technology – Also Design, Business Models, Finance, Organizational Changes More than high tech manufacturing – Also in services More than Industry and Research Institutions – Also Consumers and Users More open and networked

8. Some Innovation-centric Policy and Strategy Responses In Austria, Finland, Sweden, the United Kingdom and the United States, investment in intangible assets and MFP growth have together accounted for between two-thirds and three-quarters of labour-productivity growth between 1995 and 2006, thereby making innovation the main driver of growth,

9. Country % of GDP spent on ST&I No of USPTO- Patents granted p.a. 2004-2008 % of High-Tech Exports S. Korea2.65000+75 Singapore2.244657 India0.938527 Malaysia0.713355 Thailand0.243227 Sri Lanka0.131.81.5

10. CountryRanking (out of 125)Score Switzerland163.82 Singapore359.64 USA756.57 Korea1653.68 Japan2050.32 Thailand4838.63 India6234.52 Sri Lanka8230.36 Bangladesh9728.05 Pakistan10526.75 Global Innovation Index 2011

11. How do we view our Electronic Industry in this perspective of Innovation

12. The Electronic Manufacturing Industry of Sri Lanka today, Mainly contract-manufacturing of components, modules for leading global players. Only one or two Sri Lankan companies engaged in design, development, manufacture, marketing.

13. Contract Manufacturing, Foreign / Joint ownership No local designs & development State-of-the-Art production facilities No technology transfer / local capacity development

14. External Environmental factors The Global Market for Electronics,  Appx. 1.2 Trillion US $  SL share 0.03% Electronics Industry Revolution  More than 40 years old

15. Technological revolutions (waves) - the basis for economic development ….. Industrial Revolution (late 18th and early 19th centuries) Electronics Revolution (1960's) ICT Revolution (1980’s) Biotech Revolution (1990’s) Nanotech (In 21 st Century)

16. Key Interactions proposed in the National Science, Technology & Innovation Strategy 1.3.8. Promote linkages among R & D Institutions, Universities and Industry 1.3.11 Establish a reliable mechanism to provide useful technology foresight assessments in niche areas on a regular basis to researchers and local industries 1.3.12 Provide incentives to set up and sustain R&D units in local industry

17. 1.3.13. Encourage private sector companies to invest in R & D units in local industry. 1.3.13.1 Systems to assist industries and businesses to help them to evaluate, select, transfer, upgrade, and add value to technology useful technology. 1.3.13.2 Attractive Tax concessions/incentives for investments in R&D 1.3.13.3 Attractive Tax concessions/incentives for income derived from new products and services thus realized. 1.3.13.4 Equipping R&D institutes with necessary instruments/equipment which are beyond the budgets/justificaton for individual companies and provide easy access to such facilities. 1.3.13.5 Improve the legal system for easy/inexpensive/speedy protection of IPR to encourage the use of public resources for R & D by the private sector

18. 1.3.15 Establish a conducive environment for foreign R &D Companies to establish their R&D facilities in Sri Lanka and providing opportunities for capacity building and employment for local scientists and engineers.

19. Initiatives planned by the ACCIMT, Establishment of an Advanced Electronic & communication Design Laboratory. Establishment of an Advanced Calibration Laboratory. Establishment of an Advanced Conformity Assessment Laboratory. Establishment of an Advanced Electronic & Recovery Laboratory.

20. Thank you