Innovation Management

BINASIA – Viet NamNational Workshop

27-28 January 2005Hanoi, Viet Nam

N. SrinivasanAsian and Pacific Centre for Transfer of Technology

New Delhi, India

Successful exploitation of new ideas

Transformation of knowledge into commercial productsor services

A catalyst – an ingredient in a process to create andsustain wealth

Fundamental source of competitive advantage

What is Innovation ????

Why Innovation ????

Globalization – Technologies and economies

Shift of emphasis from manufacturing to knowledge-based economies

Shortening life cycle of products

Introduce new and improved, added-value products and services

To be competitive

Achieve profits

Re-invest profits in the business

• Macroeconomic Environment • Technology, Innovation and Diffusion • Human Resources: Education, Health and Labour • General Infrastructure • Public Institutions: Contracts and Law • Cluster Development • Company Operations and Strategy • Public Institutions: Corruption• Domestic Competition• Environment

Growth Competitiveness Index (2004)

Growth Competitiveness Index (2004)

5.95 5.82 5.72 5.56 5.48

4.9 4.884.58

4.294.07

3.72 3.57 3.51 3.473.17

2.84

0

1

2

3

4

5

6

7

5.95 5.82 5.72 5.56 5.48 4.9 4.88 4.58 4.29 4.07 3.72 3.57 3.51 3.47 3.17 2.84

FinalndUnited States

SwedenSingapo

reJapan Korea

Malaysia

Thailand China IndiaIndonesi

aSri

LankaPhilippi

nesViet Nam

PakistanBanglad

esh

Source: The Global Competitiveness Report 2004-5, World Economic Forum

Critical mass of commercially oriented research expertise

Industrial technology users

Investors and consultants

New talents & new money

Sustainable Innovation Environment

Innovation Process:Linear to Systemic Approach

Linear ( out going )

Systemic ( up coming )

Target Technological process The entire value chain

Source Uni-sectoral R&D Multi-sectoral R&D Cross-pollination of ideas

Process Periodic Continuous

“Science is the conversion of money into knowledge. Innovation is the conversion of knowledge into money”

Innovation and Knowledge-driven Economies- Critical Tasks

Critical Technological Development Tasks

Areas of Critical Intervention

To promote cross-border technological cooperation

•Joint R&D•Joint commercialisation•Sub-contracting

To promote growth of technology-led enterprises

•Technology business incubators•Innovation support systems•Regional associations

To develop effective risk financing mechanisms

•Business angels•Venture capital•High-tech stock markets

To develop vibrant communities of stakeholders

•Cross-border Web-aided communities•Local communities & networks

0 100 200 300 400 500 600 700 800 900

USA

Germany

Korea

China

Japan

Brazil

Finland

Australia

Israel

Egypt

India*

Number of Business Incubators (2000)

Shortening Life Cycle of Technology: Risk Financing

Tech Growth Life Style

Rapid growthand ramp-up

Maturity

Idea R&D Prototype

PrivateInvestors Angel Financing

Venture Capital

IPO, Acquisition

time

revenue

Debt Financing

APCTT and Innovation Management

• New and emerging technologies • Traditional technologies • Intellectual Property Rights • Technology incubation • High-Tech entrepreneurship development • Green productivity • Start-up venture creation • Venture financing• NATIONAL INNOVATION SYSTEM

THANK YOU

B I N A S I A

• National biotech policy• Technology development programmes (national and international)• Training programmes (national and international)• Instiutions (mainly R&D)• Biotech parks• Biotech industries• Biotech-mart

– Technology offers– Technology requests– Services offered– Services requested

• Biotech news• Biotech events• Intellectual Property Rights• Biosafety and bioethics