1. TEL AVIV UNIVERSITY Asia – The Great Unknown: Testbed for Global Business Innovation The Israel Business Conference 2006 Gadi Ariav Tel Aviv University and Samuel Neaman Institute

2. 2 outline the foreground:  “unknown” – the Asian role in the innovation economy  global innovation – arbitrage over a network of clusters the session today:  the big picture  key issue I: human resources and work  key issue II: Intellectual Property Rights  “things you don’t see from afar”  panel / discussion

3. 3 one world thoughts  Regional Advantage Annalee Saxenian (1994)  Clusters of Creativity Rob Koep (2002)  The World is Flat Thomas Friedman (2005, 2006)  From global to metanational Ives Doz, Jose Santos and Peter Williamson (2001)  Creating Regional Wealth in the Innovation Economy Jeff Saperstein and Daniel Rouach (2002)

4. 4 economic innovation (Schumpeter, 1934): 1.the introduction of a new goods or of a new quality of a goods 2.the introduction of a new method of production 3.the opening of a new market 4.the conquest of a new source of supply of raw materials or half- manufactured goods 5.the carrying out of a new organization, of new industrial structure

5. 5 innovation clusters  the ultimate model: silicon valley  an open local economic network architecture  the nodes in the network: –(tech-) companies, investors –subcontractors, professional services –universities, government  VC: the “2 hour driving boundary”  lowers risk for innovation and (tech-) entrepreneurship

6. 6 global innovation through resource arbitrage  from sticky resources to competitive advantage  a global open economic network of networks architecture –nodes: economic innovation clusters –hubs, network making  the meta-national company: –networked… operation  resource mobilization  learning  multi-disciplinary – corporate and public policy – issues

7. 7 opportunities for business innovation in Asia  India and China in the new global order  human resources and work model – China  Intellectual Property rights – China, India  “the view from there” – India