Creating Knowledge Markets for Difficulties

Transcription

1 The geography of innovation and policy design Session 5: Should countries pursue policies at the sub-national level? Creating knowledge markets for diffusion With bridging institutions that link entrepreneurship and finance with local research institutions Zernike (UK) Limited Rio de Janeiro October 2011 ZERNIKE (UK)

2 The geography of innovation and policy design Session 5: Should countries pursue policies at the sub-national level? Creating knowledge markets for diffusion With bridging institutions that link entrepreneurship and finance with local knowledge research institutions Zernike (UK) Limited Rio de Janeiro October 2011 ZERNIKE (UK)

3 Structure The sub-national agenda some key points Focus on the market for knowledge Demand supply and place Bridging institutions Finance and its articulation End with a concrete example

4 The first question sub-national innovation? No brainer YES!!!!! But how? Regional performance persistent and strong differences The capital question, often dominates With differential delegated powers And differential starting points and endowments

5 Two main themes: Mexican State s Innovation Plan ZERNIKE (UK) SELECTIVITY focus where there is already some strength Jalisco specific aspects of ICT but isolated initiative of driver group no shared or inclusive vision ARTICULATION align and join up efforts of all agents Guanajuarto a strong administrative culture with academic underpinning emphasis on defining collaborative processes not yet addressed content success requires both to be covered

6 What makes the difference? ZERNIKE (UK) Four crucial ingredients Vision - having a clear shared vision of future Language - being able to talk to each other Incentive - History - funding to lubricate and rewards no substitute for doing it

7 Think about complexity and the chaos model Fractals containing fractals containing fractals Relatively simple deterministic relationships Each understandable but together complex And entropic so able to be energised

8 Some common themes The grand plan v Pragmatic incrementalism Central delegation v Local legitimacy Building on best v Dragging up the least Investing in infrastructure v Changing behaviour Tight cohesion v Open engagement

9 Three hypotheses ZERNIKE (UK) Lots of ideas BUT no risk capital So lets build a Venture Capital industry Lots of money BUT no ideas So lets change the science base Lots of money AND lots of ideas BUT cannot talk to each other So develop interaction language and culture Capital finds ideas it does not generate them

10 Knowledge markets: demand supply and place Demand three differential aspects missionary work with MSMEs working with the willing partnering the leading edge Supply four key strategies IP and Licensing new firm formation strategic alliances faculty advisory roles Place with essential characteristics information services infrastructure

11 Bridging institutions: soft and hard The knowledge transfer task: TTOs/OTRIs UC San Diego, Connect model Mexican UVTCs Portuguese UTEN Norwegian reporting And infrastructure to help make the bridge: Incubators sales and business orientation Technology Centres member firm led S&T Parks service rich triple helix

12 The Commercialisation Cycle Product Development Stage HIGH Risk Of Failure Commercial Value LOW > Market consolidation > Market expansion > Market penetration > Product enhancement > Sales & distribution > Product development > Marketing & research > Prototyping > Market definition > Innovation & R&D R&D Fiscal approaches Angels /3F s Seed VC/IIF Sources Of Funding VC/ Expansion IPO/MBO /Trade Sale Tier 0 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Business Development Tiers Tiers 0/1 - Pre-incubation Direction Collaboration Guidance Resources etc Pre-Seed funding Tier 2 - Incubation Mentoring Seed funding Contacts Consulting Clients Tier 3 - Post-incubation Funding Structuring Relationships etc Tiers 4/5 - Commercial Maturity

13 Things to concentrate upon Risk and its management The role of finance intermediaries With four key sources technology, commercial, financial and personnel Investment readiness Most ideas need a lot of work before they are ready And reference to mentors and role models With different needs at different stages Deal flow and its stimulation Covering all the bases Structured to reward desirable outcomes Guiding intelligence for strategy ZERNIKE (UK)

14 Example region Cambridge, England ZERNIKE (UK) Elite and wealthy research University started in 13 th century Lots of engineering and sciences Alumni remain, so rich people resource Cambridge London Strong resistance to development Business 1,300 firms, creating 35,000 jobs high tech sectors CAD to Bio 80 start-ups per annum businesses creating businesses specialist service periphery CAMBOURNE WEST UNIVERSITY CAMPUS MELBOURN SCIENCE PARK CAMBRIDGE SCIENCE PARK ST JOHN S INNOVATION CENTRE CAMBRIDGE PETERHOUSE THE BABRAHAM INSTITUTE GRANTA PARK

15 The Corridor, Manchester Manchester Technology Park Manchester Science Park Manchester Bio Incubator Medi linked building

16 Thank You BOB HODGSON ZERNIKE (UK) Ltd The Grove High Street Sawston Cambridge UK CB2 4HJ 0(044)