Cluster of Excellence Nucleous of Innovation and Growth

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1 Cluster of Excellence Nucleous of Innovation and Growth Bertram Lohmüller, PhD London, July 2013 Export-Akademie Baden-Württemberg GmbH & Steinbeis Global Institute Tübingen Steinbeis Waldhörnlestraße 18 D Tübingen Phone +49 (0) Fax +49 (0)

2 Region of Innovation. Metropolregion Stuttgart -Tübingen 1 Baden-Württemberg 2 Île de France 3 Bayern 4 5 Finland 6 Denmark 7 Sweden 8 Hessen 9 Hamburg 10Luxenbourg 11 Noreste (ES) 12 Bremen 13 Centre-Est (FR) 14 Sachsen 15 Nordrhein-Westfalel 16 East of England 17Austria 18 Comunidad de Madrid 19 South East (UK) 20 Slowenia 21 Niedersachsen 22 Belgium 23 Rheinland-Pfalz 24 Thüringen 25 Sud-Quest(FR) Innovativeness of EU- Regions Best in Class Top Average Above average End Tübingen Source: Statistisches Landesamt Baden-Württemberg Europäischer Innovationsindex 2012

3 Actual Key Trends in international Business

4 Key Trends in Germany (1) Innovation is systematically managed in order to achieve market advantages especially in international markets. Working in innovation clusters is becoming more important and the development of new products and services in co-operations is getting more important, i.e. together with A-customers and und A- suppliers % of turnover is achieved with products younger than 3 years. Reduction of costs is a main challenge to increase international competitiveness. Therefore innovations in production-processes, service-processes and managerial processes are getting more important. IBFA/IBSA Database , 15 case companies 2011 GiMA consult, data analysis by Rolf Pfeiffer, Bertram Lohmüller

5 Key Trends in Germany (2) Globalisation of buying, production and sales/distribution is usual. Instruments for customer-orientation and customer-bounding are becoming more important. Companies are offering free services (e.g. software, financial arrangements, free deliveries) to increase customer relationship. Consequently, companies are going to offer systemintegrated products and services. IBFA/IBSA Database , 15 case companies 2011 GiMA consult, data analysis by Rolf Pfeiffer, Bertram Lohmüller

6 Global Key Trends Energy Mobility Environment Health Communication Security

7 Turnover (%) Growth (%) Innovation = Networking in Clusters IMP³rove Benchmarking shows -»Close«networking is related to higher growth rates 70% of the growth champions (10% of the most profitable and fast growing companies) within European SMEs are focussing on a close integration of network partners into the innovation management process. Revenues from new products and services younger than 3 years 8 Average growth rates over the last 4 years 7, ,2 n = 1600 Strong cross linked companies Less strong cross linked companies Strong cross linked companies Less strong cross linked companies Source: European Benchmarking Study 2008, EU-Project IMP³rove

8 Open Innovation If a runner wants to overtake his front man, then he may not run in his footsteps. Mao tse-tung Ulrich Kaufmann fotolia.de

9 Agreement / (Confidatial) Range of possible development partners The Process of Open Innovation to Closed Innovation Partner Final Product (ideas from all partners are included) = Idea = 1 Development partner Selection of partners (screening) Development time Market Launsch Identification of potential development partners Partner Development within the innovation cluster - faster - better - more intelligent - more innovative

10 What is an Innovation Cluster of Excellence?

11 Challenges for Managing Innovation Clusters Successfully Different Unterschiedliche partners Partner Different products/services Different targets Different cutomers Communication Kommunikation Regular partner meetings Communications and collaboration platform Quality of the Products/ Qualit Produkte and Services Monitoring and Evaluation Guiedelines Checklists Challenges Einbindung Convincing of Key Unternehmen Companies Convincing of companies Refrences Best practice examples Management & Administration Administration Professional project management Financial management Internationale Zusammenarbeit co-operations Intercultural management Common working language Refular interntaional meeting

12 Criteria for an Innovation Cluster of Excellence Co-operation of companies with a clear demand for new products and services within an industry sector or a branch The degree of innovations (integrated systems) is higher than the Top 25% in industry Shorter time to market in comparison to the Top 25% in industry Balance of cluster members is given Industry (start up, SMEs, Big companies Research Institutes Universities Banks International orientation of the cluster activities

13 Criteria for an Innovation Cluster of Excellence Excellent management-structures are given: Information and collaboration platform is installed with information about the latest activities within the cluster Organisation of conferences and workshops to bring the cluster members into contact with each other Conduction of thematic workshops with key experts from all over the world To offer support for getting R&D-funding from government e.g. Horizon 2020 Marketing activities Stage gate process from open innovation to closed innovation is defined

14 Project Collaboration Collaboration Platform Cluster-Portal New Product Ideas Ideas für Products. Services, B.- Processes

15 Cluster Monitoring with Benchmarking Benchmarking und analysis of key performance indicators (KPIs). Measure of current performance and identification of best practices Activities Development of a questionnaire with KPIs In-house benchmarking Intra-industry and intersectoral benchmarking Measure of current performance Creation of a performance matrix Experience Execution of International Best Factory Awards and International Best Service Awards since more than 15 years Execution of international benchmarking projects since 1997 University

16 Results of International Best Factory Awards Time to Market in Months Schlechteste 25% Durchschnitt Top 25% IBFA Database 2011, Source 747 companies Data Rolf Pfeiffer, Bertram Lohmüller, 2011

17 Results of International Best Service Awards Number of new clients (younger than 1 year) Schlechteste 25% Durchschnitt Top 25% IBSA Database 2011, Source 347 companies Data Rolf Pfeiffer, Bertram Lohmüller, 2011

18 Government and Cluster of Excellence?

19 Government and Cluster of Excellence About 90% of all clusters in Germany fail when the funding from government stops. Reason: The cluster is dealing with internal discussions without having a clear business case (own estimation B. Lohmüller). Financing of cluster with decreasing funding rates over the years (e.g. 1st year = 100%, 2nd year = 70%, 3rd year = 40%, 4th year 0%) Built up of infrastructure, e.g. incubator centers to bring R&D institutes and industry together (example: Bavaria Innovative) Support of clusters where a clear focus on key technologies is given.

20 Innovation-Cluster within the EU- Initiative EQUAL

21 Entrepreneurial University and Cluster of Excellence?

22 Entrepreneurial Universities and Cluster of Excellence Offering master studies with a main focus on management techniques is not target oriented. The aim should be on the training of interdisciplinary thinking and acting. Not only general management but technology management is required in the future Training modules for cluster management and cluster members is becoming more important. Seminars E-Learning modules Evaluation tools

23 Targets of Cluster Activities Steinbeis Global Institute Tübingen, Steinbeis University Master of Sience in Global Technology Management How technologies are developed sytematically? How new technologies have to be identified and evaluated? What stage of development the technology has? What is the performance of the company to develop the technology further? How a technologydevelopmentprocess can be created and implemented?

24 How to Connect Theory with real Products and Services? Project Competence Study Master of Sience in Global Technology Management Project in the Formal: Admission condition Company Conceptual: Integral transfer instrument Content: Problems of the practice Competence company practice + application knowledge project competence Scientific based problem solution through transfer of knowledge into the practical application institute theory + transfer student problem solution Study job Parallel with work and in-professional due to the project in the company study project theory & transfer time

25 E-Learning Modul Cluster-Check

26 Industry/Business and Cluster of Excellence?

27 Industry/Business and Cluster of Exellence Private venture capital is required Banks should be more open to finance innovations Big companies should support cluster activities on a higher level than smaller ones. Infrastructure Personal resources Financial support Marketing

28 Cluster of Medical Technology in Baden-Württemberg

29 Key Factors for an Innovation Cluster of Excellence Open for ideas from outside Structured management of the Cluster Clear process from open innovation to closed innovation Stable communication framework A strong will to win International Network - world-wide Continues montoring of quality and results Ahead, there is always Place! Sebastian Vettel Formula 1 Winner

30 One good idea a day keeps your competitors away Contact Dr. Bertram Lohmüller bertram.lohmueller@eabw.de Tel.: +49 (0)7071 /