Post on 25-Mar-2020
PRESENTATION & WORKSHOPRegional Innovation Systems,
Intellectual Capital Reporting & Key drivers for
innovation
FH JOANNEUM
Christian Friedl & Thomas Schmalzer
WP3: MULTI-STAKEHOLDER CAPACITY BUILDING
3.1 WORKSHOP PROGRAMME
The University of The West Indies, Cave Hill, Barbados
CHRISTIAN FRIEDLI currently work as lecturer, project manager and researcher at the Institute of International Management of FH JOANNEUM University of Applied Sciences.
In my position, I am responsible for coordinating various research projects at our Institute, in the field of knowledge transfer between university & business, university development, lifelong learning and entrepreneurship.
Before, I have been Educational & Project Manager at the University of Graz and have been working for 9 years in the field of University Lifelong Learning as an expert for the implementation of information and communication technologies for educational activities.
I hold a master degree in Business Administration and a continuing education master degree on European Project and Public Management. Since 2011, I am member of the steering committee of the Austrian Association for the Promotion of Lifelong Learning. Beside my university career, I have been active in the music industry for 14 years.
THOMAS SCHMALZER
I currently work as senior lecturer of economics and head of the R&D centre at the Institute ofInternational Management at FH JOANNEUM (University of Applied Sciences in Graz, Austria) aswell as independent lecturer, trainer and consultant for clients worldwide.
In my position I am responsible for the acquisition, the coordination, as well as the overallmanagement of all R&D projects at the institute, many of them EU funded with a total volumeof over 28 million EUR in the past 5 years, where I have been directly involved in over 30 out of50 larger projects.
Currently I am acting head of the Austrian team of the Global Entrepreneurship Monitor (GEM), the world's largest study in the field of entrepreneurship.
My cross-cultural experience stems from living and working in various countries on shorterproject based, as well as longer term academic and private basis.
FH JOANNEUM
• Leading University of Applied Sciences• 41 degree programmes• ~4000 Students, >540 staff & >800 external
lecturers• Over 540 ongoing projects in R&D with around
5 million annual revenues (50% from the businesssector and 23% from international cooperation)
• Around 200 partner universities in countries all over the world
• Practical student projects• No fees for EU students small fees for third country
students!• Strong international networks• Excellent results at competitions and evaluations
~ 40 bachelor and master degree programmesin 6 departments
| Applied Computer Sciences
We connect people and systems.
| Engineering
We focus on innovative mobility and sustainable production.
| Health Studies
We care about people’s health.
| Building, Energy & Society
We design tomorrow’s living spaces.
| Media & DesignWe shape the media and design of the future.
| Management
We invest our expertise in international business success.
CONNECTION ICR & RIS
University –
Business
Corporation
HEIs/ Universities
REGIONAL INNOVATION SYSTEM
HC / SC / RC
HC / SC / RC
ICR
ICR
Industry-Business
HC / SC / RC
ICR
RIS = Regional
Innovation System
ICR = Intellectual
Capital Reporting
HC = Human Capital
SC = Structural Capital
RC = Relational Capital
HOW TO CONNECTACTORS OF RIS WITH ICR:
Policy-makers
Source: Own
illustration
ICR = „Common language“ in RIS
OVERVIEW
1. Regional Innovation Systems (RIS) – Concepts,
theoretical background, examples
2. Short ICR summary of the last workshop
3. Key driving factors for regional innovation –
Linking regional development and intellectual
capital
THE CONCEPT OF
REGIONAL INNOVATION
SYSTEMS (RIS)
Session 1
8
THE CONCEPT OF REGIONAL INNOVATION SYSTEMS (RIS): OVERVIEW
• Definition of Innovation
• Origin of the Innovation Systems concept: National Innovation System (NIS) & Regional Innovation System (RIS)
• Elements & Activities of an (Regional) Innovation System
• Modeling of Innovation Systems
• Analytical Framework to analyse Innovation Systems
• Typology of a RIS
WHAT IS INNOVATION?
• An interactive process of information transfer
• Requirements: Creativity and learning processes >>>
• Includes Implicit & Explicit knowledge
• Small steps or complete process
• Diffusion of innovation: imitation or adoption
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
InventionIntroduction to
marketInnovation
INNOVATION BASIC DEFINITION (OSLO MANUAL)
• An innovation is the implementation of a new or significantly improved product(good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organisation or external relations.
• The minimum requirement for an innovation is that the product, process, marketing method or organisational method must be new (or significantly improved) to the firm.
• A common feature of an innovation is that it must have been implemented. A new or improved product is implemented when it is introduced on the market. New processes, marketing methods or organisational methods are implemented when they are brought into actual use in the firm’s operations.
Source: Oslo Manual, 3rd edition (2005)
90. 82.
41.
83.
0
5
10
15
20
25
30
35
40
45
Trinidad and Tobago Jamaica Barbados Dominican Republic
Global Innovation Index
Source: www.globalinnovationindex.org, published by Cornell University, The European Institute for Business
Administration (INSEAD) and the World Intellectual Property Organization
The aim of the GII Report is to provide a ranking of world economies’ innovation capabilities and results.
Rankings 20141. Switzerland
2. UK
3. Sweden
….
20. Austria
….
41. Barbados
…
82. Jamaica
83. Dominican
Republic
90. Trinidad &
Tobago
CHAIN-LINKED MODEL OF THE INNOVATION PROCESS
Source: Illustration from http://ibsttools.page.tl/Innovation-theory.htm
Based on Kline & Rosenberg (1986)
Existing knowledge base
Learning and feedback
SYSTEM BOUNDARIES & INNOVATIONPROCESS OF INSTITUTIONS
Schematic diagram of the
system boundaries of the
innovation process of
companies depending on
their size:
(a) Big companies can
cover the full process of
knowledge creation,
transfer and application
(b) SME in manufacturing
usually cover only more
applied parts of it
(Wiedenhofer, 2012)
THE TRIPLE-HELIX MODEL: CREATION OF A KNOWLEGDE
ECONOMY & REGIONAL INNOVATION ECOSYSTEM
Illustration: The Triple Helix Model with further information about UBC stakeholders’ roles
Model adapted from Etzkowitz & Leydesdorff (2000). Source: The State of European University-Business Cooporation, 2011, p. 32
QUESTIONS TOWARDS THE CONCEPT OF INNOVATION SYSTEMS
• What is an Innovation System?
• Which elements are attributed to it?
– Size
– National / Regional / Sectoral elements
• What influences Innovation Systems?
– Socio-economic influences: Industries, Culture, Science
– International labor-division
• Innovative Regions = Regional Innovation Systems?
• Special characteristics of RIS?
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
ORIGIN OF THE CONCEPT OF INNOVATION SYSTEMS
• 1970ies: Increased knowledge-gain in innovation economy
• From the 1970s: Critical reflection of classical models (Krugman 1979)
• New concepts concerning complexity and non-linearity of innovative processes (Nelson & Winter 1977, Freeman 1982, Dosi 1982, 1988)
• Conception of technical advancement (= innovation) as an endogenous growth factor (Romer 1986 and other representatives)
• Implementation of basic approaches of innovation research/sciences (Eg.: interactive innovation model of Kline & Rosenberg 1986)
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
FORMATION OF A CONCEPT FORNATIONAL INNOVATION SYSTEMS (NIS)
• List (1789 – 1846): Concept/Founder of National System of Production
– Creating national institutions & infrastructure
– Optimizing production
• Freeman (1987): Idea of „National System of Innovation“
– Promotion of advancement of technological infrastructure
• Lundvall (1992): Combines NIS and interactive learning
– Innovation as inherent part of regular economical activities
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
DEFINITION „NATIONAL INNOVATION SYSTEM“
Definitions by Lundvall 1992, Edquist/Lundvall 1993, Galli/Teubal 1997.
Definition by OECD, 1999:
“The international understanding of Research and Innovation Systems is based on all institutions, which
– operate scientific research
– accumulate and impart knowledge
– educate workers (personnel, laborers)
– develop technologies
– produce and distribute innovative products and procedures.”
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
NATIONAL INNOVATION SYSTEM RIS
• Regional Innovation System (Cooke 1992) / Sectoral / TechnologicalInnovation System (Carlsson 1995,…)
• The spatial distribution of innovation activities is concentrated on specific sites. Geographic proximity support mutual trust and interaction between stakeholders.
• “Embeddedness” into a common social, cultural and institutional environment.
• Regional and National Innovation Systems are composed by sectoral-technological Innovation Systems
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
REGIONAL INNOVATIONS SYSTEMS (RIS) AS PART OF A SUPERIOR INNOVATION SYSTEM
Source: Adapted from Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
Inter-Firms
Relations
Innovation Services
Industrial Base
Regional
Environment
Infrastructure
R I S
Sectoral/Technological
Innovation SystemsNational & Supranational
Innovation Systems
- Universities
- Research Facilities
- TT Institutions
- Technology-related
information & training
- Consultancy
- Venture capital
- Customers
- Suppliers
- Competitors
- Sub-Contractors
- Cooperation Partners
- R&D
- Investments
- Employee
Qualification
- Firms’
branch & size
- “Milieu” /
“Innovative
culture”
- Quality of living
environment
- Educational Level of
Workforce
- Technical infrastructure
- Technology centers /
Science parks
- National
& International
policies
- Regional policies
- Financial Support
- Economic services
- Engineering
Policies
Science & Technology
Industrie‘s R&D Efforts
ACTIVITIES WITHIN AN RIS
• Research & Development (R&D)• Acquisition & Expansion of competencies and skills• Formation of new product markets • Product development based on markets• Establishment & Adaption of Institutions• Internal/external learning• Creation & Adaption of Laws & Regulations• Learning, Consulting & Networking activities• Start-up and entrepreneurial activities• Financial support & funding• Consulting and knowlegde transfer
Source: Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
DISCUSSION
• Which „RIS“ exist in the Carribbean?
• How are they characterized (sectoral/technological, geographic, part of common value chain, etc.)?
• Which actors are involved in what roles and are there anycrucial actors?
• What is a sucessful RIS for you?
MODELLING OF INNOVATION SYSTEMS
Source: Adapted from Koschatzky, 2005.
Demand Framework conditions
Political
system
Innovation relevant infrastructure
Enterprise
systemInter-
mediaries
Education
and
research
system
Education
ROLE OF UNIVERSITIES IN RIS: EXAMPLE „REGIONAL IMPACT OF AN
UNIVERSITY OF APPLIED SCIENCES“
Development of new products,
methods and services
Practical oriented education
(Full and part time degree programs,
dual study program)
Vocational training, courses
High quality
of teaching
Individual skills
R&D
Inno-
vation
Labour
market
Enhanced
(regional)
competitiveness
UAS
Typology of RIS
Governance Dimension
providing the soft infrastructurefor innovation support - with
three modalities: grassroots RIS, network RIS, dirigiste RIS
Business Innovation Dimension
describes the positioning of firmstowards each other, the outside world, relations to consumers & producers in the market place
TWO DIMENSIONAL CLASSIFICATIONSTRUCTURE
Braczyk et al., 1998, Cook/Heidenreich, 2004
1A) GOVERNANCE DIMENSION –GRASSROOTS RIS
• Features:
– Initiation Process of the RIS is locally organized
– Funding comprises a mix of grants, loans of local origin (banks, localgovernment, local chamber of commerce)
– Research competence is highly applied, near-market
– Level of technical specialisation is low
– Supra-local coordination is low
• Examples:
– Tuscany (Italian industrial districts) in the 1970ies
1B) GOVERNANCE DIMENSION –NETWORK RIS
• Features:
– Initiation of tech-transfer actions are multilevel
– Funding is guided by agreements amongst stakeholders
– Research competence is mixed, pure & applied activities
– System coordination is high (many stakeholders)
– Specialisation is flexible due to a wide range of demands from global tosmall-firm scale
• Examples:
– Baden-Württemberg
1C) GOVERNANCE DIMENSION –DIRIGISTE RIS
• Features:
– Initiation of action is a central government policy product
– Tech transfer activities are animated from outside
– Research is rather basic, fundamental relating to the needs of (statelyowned) firms in or beyond the region
– High level of coordination and specialisation
• Examples:
– Metropolitan research labs in France (Rhône-Alpes, Midi-Pyrénées, Brittany) followed by a technopole policy
2A) BUSINESS INNOVATION DIMENSION -LOCALIST
• Features:
– A few or no large indigenous firms, few branches of externallycontrolled firms
– Research outreach of firms is not high
– Few major public R&D resources, more smaller private ones
– High degree of associationalism amongst entrepreneurs and regional policy makers
• Example:
– Finnish region around Tampere
2B) BUSINESS INNOVATION DIMENSION -INTERACTIVE
• Features:
– Reasonable balance between small & large firms (indiginous as well asforeign directed)
– Widespread access of regional research to foreign innovation sourcing
– Balanced mix of public & private research stakeholders (headquarter oflarge firms, regional government)
– Highly associative, many industry networks etc.
• Example:
– Baden-Württemberg, Catalonia
2C) BUSINESS INNOVATION DIMENSION -GLOBALIZED
• Features:
– Domination by global corporations, supply chains of dependentSME
– Research orientation is internal and highly privatistic
– Interests of large firms governs the regional cooperationactivities
• Examples:
– North-Rhine Westphalia, Singapore
MATRIX OF RIS – TYPOLOGY & EVOLUTION
36Source: Cook et al., 2004, Fig. 0.1
Grassroots Network Dirigiste
Tuscany
Catalonia
Brabant
Denmark
Baden-Württemberg
Singapore
Gyeonggi
Tampere
Tohoku
Slovenia
Wales
North-Rhine Westphalia
Lo
cali
st
Inte
racti
ve
Glo
balized
Examples of different RIS; arrows indicate direction of RIS movement 1995 - 2005
> Governace
dimension
> B
usin
ess
dim
ensio
n
DISCUSSION: WHERE DO YOU SEE YOURRIS TODAY AND IN 10 YEARS?
Grassroots Network Dirigiste
Lo
cali
st
Inte
racti
ve
Glo
ba
lized
> Governace
dimension>
Busin
ess
dim
ensio
n
CONCLUSION RIS
• Analysis of systemic innovation suggests rather a use of regional than national innovation system approaches. Spatial proximity and personal communication playan important role in innovation processes.
• Due to globalisation, the rise of knowledge intensive industry & clustering RIS areevolving and changing their shapes.
• Classification scheme helps to analyse and compare key drivers and identifypotential successful policy strategies.
• Several methods & tools are available to analyse a RIS and certain functions anddraw conclusions for policy makers.
• Intellectual Capital Reporting (ICR) is considered as one of them focused on knowledge based items.
SHORT SUMMARY OF THE LAST WORKSHOP: “INTELLECTUAL CAPITAL REPORTING”
Session 2
39
Sectors / Technologies:
retrospectively,
prospectively
INTELLECTUAL CAPITAL REPORTING AS AN ANALYTICAL TOOL TO ANALYZE RIS
Source: Adapted from Fraunhofer, ISI, Koschatzky, Innovationssystem_und_Messung, 2011.
Actors:
Companies,
Science,
PolicymakersInnovation processes:
micro – meso – macro
Political system
(state / EU)
Economic
System
Education and
Science System
Analyses & Methods:
Evaluation (ex post,
monitoring, ex ante)
Foresight, Scenarios,
Road maps, Policy-
Analysis, Instit. analysis,
Network analysis,
Intell. Capital Reports
Indicators:
Corporate data
Sectorial techno-
economic performance
Bibliometrics
Regulatory data (e.g.
norms, standards)
RIS
DEFINITION
The term “Intellectual Capital” (IC) refers to the (intangible) resources on which the organisationrelies in the broadest sense, including not only human capital resources, but those of the organisation itself and its relations with its environment. “ (Leitner et al., 2013)
CATEGORIES OF INTELLECTUALCAPITALThe intellectual capital is divided into three areas:
• Human Capital: skills and competencies of staff, as well as theirmotivation and learning ability
• Structural Capital: environment that employees need to workproductively (incl. structures, processes and procedures)
• Relational capital: extent, to which the institution is interlinked withexternal partners and perceived by interested parties
GROWING IMPORTANCE
In 1978: intellectual capital were only 5% of all assets
Nowadays, more than 80% of all assets
Up to 90% of the value created by a firm is estimated to comefrom the management of the firm’s intellectual capital
Source: Chareonsuk and Chansa-ngavej (2008)
CHARACTERISTICS OF THESEKNOWLEDGE-BASED ITEMS
1. Partial Excludability (not fully controllable assets)
2. Nonmarketability (Imperfect (intransparent) or non existing markets; problems with valorisation in existing markets)
3. Interdependence between different intangibleitems (i.e. R&D expenditure and employeecompetences or brand value )
Source: Lev (2005)
SO WHAT IS THE „PROBLEM“ WITHINTELLECTUAL CAPITAL?
• Valuation problems
– Uncertain future concerning potential revenues from IC implementation
– Risky and uncertain future development of IC
• Measurement problems
So which is the appropriate category/single item of IC we shouldprimarily invest in, in order to obtain our strategic goals?
Source: Lev (2005)
INTELLECTUAL CAPITAL REPORTING (ICR) FOR KNOWLEDGE-BASED INSTITUTIONS & ACTORS OF THE INNOVATION SYSTEM!
• New challenges for universities, businesses and policy-makers andtheir management, the significance of strategic managementincreases
• The “classical” strategic management approaches do not work for these knowledge intensive, stakeholder-oriented institutions
• ICR establishes a common understanding and university-business-model-oriented language
• Evolution: ARCS > AKWB model & Austrian HEI model
INTELLECTUAL CAPITAL REPORTING MODELS: 1. ARCS (RESEARCH INST.)
Source: Koch et al (2000)
ARCS (Austrian Research Center Seibersdorf) Intellectual Capital Report Model
INTELLECTUAL CAPITAL REPORTING MODELS: 2. AKWB (INDUSTRY-BUSINESS)
Arbeitskreis Wissensbilanz Germany (AKWB) Model
visi
on
Business Processes
human
capitalstructural
capitalrelational
capital
other
ressources
Business EnvironmentOpportunities & Risks
Intellectual Capital
Knowledge Processes
InitialSituation
ExternalImpact
bu
sin
ess
stra
tegy
measu
r
es
businesssuccess
EUROPEAN INCAS GUIDELINE HOW TO BUILD ICR:
www.akwissensbilanz.org/Infoservice/Infomaterial/European%20ICS%20Guideline.pdf
Source: Adapted from European Incas Guideline & Arbeitskreis Wissensbilanz
THE AUSTRIAN INTELLECTUAL CAPITAL REPORTING MODEL: FOR UNIVERSITIES
Model of IC Reporting in Austrian universities
Source: Leitner, 2004
BENEFITS OF ICR WITHIN ORGANISATIONS
• Defines/updates the mission statement
• identifies priorities in research & teaching
• communicates strategy throughout organization & starts discussion on intangible value drivers and success factors
• allows the alignment of individual goals with institutional objectives
• links strategic objectives to long-term targets and annual budgets
• promotes an internal process of learning about the institution's structure and performance
• monitors the achievement of goals and assesses the organisation'sperformance over the course of time
Source: Leitner et al. (2013, p. 9, p. 41)
BENEFITS OF ICR OUTSIDE ORGANISATIONS
• improves the level of transparency
• provides comprehensive and valuable information to stakeholders (students, teaching personnel and researchers, Ministries, funding agencies, businesses, and society as a whole)
• can facilitate the presentation of results, which could contribute to attracting funds and to enhance competitiveness in general
Source: Leitner et al. (2013, p. 42)
KEY DRIVING FACTORS, REGIONAL INNOVATION SYSTEMS AND INTELLECTUAL CAPITAL REPORTING
Session 3
52
THE IMPORTANCE OF DRIVING FACTORS
• As seen, ICR can be a valuable steering instrument due to several reasons, especially in knowledge-intensive institutions (& economies) because of their mainly intangible inputs and outputs.
• The regional innovation systems (RIS) approach is based on a tight collaboration of several groups of stakeholders that is beneficially served by a common “language” and understanding of driving factors.
• Especially the definition of Human, Structural and Relational Capital is well covered by the ICR concept and its driving factors.
THE IMPORTANCE OF DRIVING FACTORS
• Therefore, the resource base of innovation within a system can be commonly assessed and further supported by developing these driving factors.
• Stakeholders from economy as well as science can work on “shared” driving factors and focus on them in course of their single institutional strategies.
APPROACH TO DEFINE KEY DRIVING FACTORS
FOR RIS BY CONVERGING THEORIES
• Starting in the 1980ies new theories were introduced to explain theparadigmatic shift from production to knowledge society
• Following challenges had to be adressed:
– Scientific-technological excellence
– Innovation and institutional/regional learning
– New policy mechanisms on a (supra)national level
– New regional orientation due to internationalisation, adaption and imitationof growth paths
NEW ECONOMIC GEOGRAPPHY >> INDUSTRIAL SITE MODELS
Industrial site and regional models including innovation and technological development, Wiedenhofer (2012).
56
EXAMPLE FOR THE IDENTIFICATION AND SELECTION
PROCESS OF KEY INNOVATION DRIVERS
(rix…indicators of relevance, and are average values
of the corresponding factors).
Source: Wiedenhofer, 2012
The comparative literature review contains three thematic areas:
• Industrial site concepts & models including innovation;
• ICR of regional networks & complementary knowledge management literature;
• A branches specific study on research, technology and innovation of the Machinery &
Metalware Industry (MMI) in Austria.
DEFINITION AND LEGITIMISATION OF KEY INNOVATION DRIVERS – EXAMPLES
Source: Wiedenhofer, 2012
DEFINITION AND LEGITIMISATION OF KEY INNOVATION DRIVERS – EXAMPLES
Source:
Wiedenhofer,
2012
DEFINITION AND LEGITIMISATION OF KEY INNOVATION DRIVERS – EXAMPLES
Source: Wiedenhofer, 2012
EU-PROJECT LEGEND (2013-1-SK1-LEO05-06361)
• Implements Intellectual Capital Reporting in the Slovakian region of Kosice for SMEs and partners of SMEs (such as universities and research institutions)
KEY DRIVERS APPLIED TO AN IT CLUSTER: CASE STUDY LEGENDGroup work:
Read the Case Study „KEY DRIVERS FOR THE KOŠICE REGION”
Form 6 working groups (trying to involve different actors SMEs, HEIs & policy-makers) and focus on one selected driver from the area „Structural capital“. Scientific Facilities
New Technologies
IP Rights
Geographic Proximity of Oranizations
Institutions for Knowledge Transfer and Support
Internationalization
Discuss Current Situation / Status Quo
Desired State / Target
What is needed to reach this target?
Share your finding with all participants 2013-1-SK1-LEO05-06361
CONCLUSION
• Innovation processes of companies (especially SME) often include externalstakeholders and structures
• „Territoriality“ of knowledge creation and exchange and learning processes areimportant
• „New“ growth models (industrial site models) including innovation and learning canbe used as a base to identify key driving factors.
• Assignment of such driving factors to IC defines the base for ICR with focus on innovation including micro- and macroeconomic elements.
• IC as a common language supports and defines the interfaces of includedstakeholders and thus further regional development.
• From a scientific point of view this approach includes a convergence of different concepts – new economic geography & related site models, innovation & systemresearch and the classical IC management.