Innovation and Entrepreneurship: New Applications and Services Driving Future Growth

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1 Innovation and Entrepreneurship: New Applications and Services Driving Future Growth Michael L. Best Associate Professor, Sam Nunn School of International Affairs and School of Interactive Computing, Georgia Institute of Technology, United States of America 4 th Global Industry Leaders Forum Smart Regulation for a Broadband World Armenia, Colombia, 20 September 2011 The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU or its Membership.

2 Innovation = Invention + Impact technical or organizational invention with an economic impact (social impact) the introduction and spread of new and improved products and processes in the economy. the ability of individuals, companies, and entire nations to continuously create their desired future.

3 70 % Invention Impact Singapore % Finland Netherlands China Korea Ireland Japan Israel Chinese Taipei United States Canada Total OECD Sweden United Kingdom France EU25 Australia Germany Norway Austria Russian Denmark New Zealand Switzerland Hungary Poland South Africa Spain Belgium Italy Brazil India Czech Republic Mexico Turkey 4 0 Switzerland Mexico Poland Iceland Canada Austria Greece Italy Spain Australia Luxembourg Germany Belgium Portugal Slovak Republic EU15 France Denmark Norway OECD(*) Japan Netherlands Czech Republic United States United Kingdom Hungary Sweden Korea Ireland Finland

4 Comparing relationship of phones, internet, and broadband internet on patent data

5 Comparing relationship of phones, internet, and broadband internet on patent data

6 Comparing relationship of phones, internet, and broadband internet on patent data Large and significant correlation between broadband penetration and patents the addition of 1% in a nation s broadband penetration correlates with 7 additional patents in that year (5% jump) Phone correlation not significant Internet correlation almost significant and half as strong as for broadband

7 Comparing relationship of phones, internet, and broadband internet on patent data More broadband correlates with more patents; more phones do not significantly correlate with more patents; and more internet users do not significantly correlate with more patents, though they come close.

8 Defensive patents Rent seeking Ignores important areas of innovation

9

10 Exportation Adaptation Domestication Assimilation

11 Research and development (R&D) investments Education and demand development Universities and public research institutes Openness Neutrality

12 The private sector under invests in R&D Public goods problems: non-rival, nonexcludable Monopoly concession, offered to encourage inventions, can dampen need to change Particularly unpredictable and high-risk so hard for market to assign value

13 An educated population demands and creates innovations Educated workforce needed to invent and build on inventions (supply) Educated workforce need innovations to get their jobs done (demand) Many users (from 10-40%) engage in developing or modifying products

14 Research universities (and PRIs) are innovation engines (shameless self-promotion)

15 Open content New policies and licensing regimes - gift economies Creative Commons Open source the quintessential instance of commons-based peer production which is radically decentralized, collaborative, and non proprietary; based on sharing resources and outputs among widely distributed, loosely connected individuals who cooperate with each other without relying on either market signals or managerial commands

16 Open networks Open spectrum license exemptions Open access the third way

17 Technology neutrality Service neutrality Net neutrality

18 Human Resources Infrastruc-tures Capital Policies Norms / Culture

41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50.

41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50. Overall Results Climate Change Performance Index 2012 Table 1 Rank Country Score** Partial Score Tendency Trend Level Policy 1* Rank Country Score** Partial Score Tendency Trend Level Policy 21 - Egypt***

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