Effective Global R&D Focus Group

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1 46 rue Lauriston Paris Tel: +33 (0) Fax: +33 (0) Effective Global R&D Focus Group January 2008 January First meeting: 12 June 2008, Paris Summary EIRMA/08.015, January 2008 This two-year Focus Group aims to boost understanding of how to manage R&D and innovation as global, increasingly Open activities, specifically to address opportunities provided by emerging economies and particularly BRIC countries (Brazil, Russia, India, China). The group will highlight the good practices and explore the situations and the types of company for which such practices are most relevant. It will establish how these practices can be implemented and identify the risks and types of failure and the points to be considered before embarking. The discussion will focus on medium-sized and larger companies whose intermediary position and specific characteristics make this question particularly interesting. The Focus Group will be responsible for formulating its concepts, then organising activities and studies which will test and refine these concepts. One or more learning expeditions will be organised to visit R&D and innovation centres outside Western Europe and share with people on the spot the lessons they have learned. The group will conclude by presenting its findings to senior membership at the 2010 EIRMA Representatives Round Table meeting. Who Should Participate? This initiative is aimed at a small group of about 15 people with two types of background. Most participants will be in their 30s early 40s, have the capacity to contribute well, and will benefit by developing their strategic understanding of effective R&D and innovation management. A smaller group will be more senior, willing to act as mentors to the group as a whole, and interested in developing their own insight into the subject matter. Full-time support will be provided by the EIRMA bureau by a member of staff studying for her PhD and by experienced academics. The cycle is evolutionary and will be directed by its members. We seek participants who will be able to take part in the full package of events (i.e. around 6 complementary meetings and one or more learning trips during two years), although it will be possible on an exceptional basis to take part in only some activities. To enrich the debate and for more effective sessions, participants may be involved in information gathering and specific studies between meetings. Co-chairmen Léopold Demiddeleer (Solvay) and Dietmar Theis (Siemens) To Register Return the registration form by mail or fax by mid-march 2008.

2 Overview This two-year Focus Group aims to boost understanding of how to manage R&D and innovation as global, increasingly Open activities, specifically to address opportunities provided by emerging economies and particularly BRIC countries (Brazil, Russia, India, China). The group will highlight the good practices and explore the situations and the types of company for which such practices are most relevant. It will establish how these practices can be implemented and identify the risks and types of failure and the points to be considered before embarking. The discussion will focus on medium-sized and larger companies whose intermediary position and specific characteristics make this question particularly interesting. Background Globalisation of the value chain is with us for sometimes already: manufacturing activities have been set up at different organisational entities and across countries. The current tendency of opening R&D activities to the external world is a more recent and intensifying phenomenon. Between 1995 and 2003, the largest companies in the world have doubled their R&D investments abroad, from 33.9 up to 70.6 billion dollars 1. Technological alliances have also multiplied by two in less than 10 years. Although the large majority of R&D investments are still made in developed countries, developing countries- and in particular Asia - are increasingly considered as an interesting or even an inevitable future destination for multinational R&D investments. Today, an increasing number of companies consider these practices as interesting opportunities: they globalise their R&D activities, through outsourcing, location of their R&D activities abroad, alliances and partnerships with suppliers, customers, the academic world and competitors, etc. Henry Chesbrough gave a name to this practice in 2003: Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. [This paradigm] assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. The questions and challenges linked to this new organisation of R&D activities generate new issues for companies. Many questions on coordination of activities, systematisation of identification of new partners including SMEs - and integration of external knowledge or intellectual property are already in abeyance. A company has to position itself, taking into account the possible opportunities and constraints of such tendencies. Programme The Focus Group will be responsible for refining and formulating these concepts, then organising activities and studies to test its beliefs. One or more learning expeditions will be organised to visit R&D and innovation centres outside Western Europe and share with people on the spot the lessons they have learned. New questions and hypotheses will emerge, which will be discussed and explored through concrete case studies on actual firms, 1 «OECD Science, Technology and Industry (STI) Outlook 2006», Paris, OECD

3 supported by academic reflexions. The group will conclude by testing its findings in a meeting with companies running their R&D in a truly global fashion, then presenting these findings to senior membership at the 2010 EIRMA Representatives Round Table meeting. The group of people who will participate in the Effective Global R&D focus group will meet several times during periodic EIRMA meetings, with the possibility to interact with all parts of the EIRMA s programme, including Special Interest Groups. First year ( ) 1/ Identifying the main issues and challenges This first meeting is aimed at putting on the agenda the issues, problems and challenges that members want to solve during the two-year cycle Effective Global R&D. A review of academic and business literature will give new and original perspectives on the topic. Objective: to identify the main issues and challenges to be discussed during the focus group. 2/ Learning trip in the selected country The learning trip to the selected country will take place in late 2008 where the group will visit R&D centres, institutes and universities. It aims at highlighting specificities of globalised environments and in particular exploring issues such as partnerships, intellectual property, management of the decentralised R&D facilities, connections between centres, etc. To make the learning trip a useful experience, the group will meet people on the spot and share the lessons they have learnt in their current situation. Objective: to formulate first hypotheses and conclusions regarding critical factors of these new innovation practices. Second year ( ) 1/ Meeting to validate findings and identify models and critical paths During one or two additional meetings in 2009, members will revert to the conclusions and hypotheses formulated during the trip and test them against the experience of companies having R&D centres in China. Objective: to validate conclusions working on specific case studies and to identify models and critical paths. 2/ Report Conclusions and hypotheses formulated by the group will be formalised by the EIRMA PhD student and put together in a final report in January 2010 (for the Representative Round Table). Practical Arrangements Registration Costs Please return the enclosed registration form to the EIRMA secretariat as soon as possible but certainly before mid-march The participation fee is 3000, payable to EIRMA by all participants. This includes participation in all activities (meetings and learning

4 Commitment trips), excluding travel and night s accommodations. Exceptionally, a surcharged per event participation is also available for people who would not take part to all events. The cycle is evolutionary and will be directed by its members. We seek participants who will be able to take part in the full package of events (i.e. around 6 complementary meetings and one or more learning trips during two years), although it will be possible on an exceptional basis to take part in only some activities. To enrich the debate and for more effective sessions, participants may be involved in information gathering and specific studies between meetings.

5 EIRMA Registration Form/Invoice M0805 EIRMA Effective Global R&D Focus Group January 2008 January 2010 Please return to EIRMA 46 rue Lauriston F Paris Fax + 33 (0) NAME: (Prof. Dr. Mr. Mrs.)* : COMPANY: Function: OR BUSINESS CARD Address: Tel: Fax: I do / do not* wish to receive routine announcements from EIRMA. (We normally include all member company participants in our electronic mailing lists, so that we can let you know about forthcoming EIRMA activities, R&D-related initiatives, etc. Your personal details will never be disclosed to third parties without your permission and you will always have the opportunity to have your details removed from our lists or modified.) Preferred mode of payment: * Please delete as necessary Bank card: Eurocard/Master Visa Amex Amount : Card number : Payment by: Bank cheque Bank transfer Account N Crédit Industriel et Commercial 34, avenue Marceau - F Paris Code Banque Code guichet Clé 46 - Domiciliation Paris Marceau Expiry date : Card Security Code : Signature: IBAN (International Bank Account Number) FR BIC (Bank Identification Code) CMCIFRPPXXX EIRMA, as an Association, is not subject to VAT. For any further information please contact Edwige Chassagneux at the EIRMA Secretariat Tel (0)

6 EIRMA Effective Global R&D Focus Group January 2008 January 2010 Please return to EIRMA 46 rue Lauriston F Paris Fax + 33 (0) NAME: (Prof. Dr. Mr. Mrs.)* : COMPANY: Function: o What are your principal functions/posts held so far (including time in current position)? o What are your expectations? For any further information please contact Edwige Chassagneux at the EIRMA Secretariat Tel (0)

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