Innovation Presentation to Digital Content Industries 29 th September 2004 David Hughes FREng...
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Transcript of Innovation Presentation to Digital Content Industries 29 th September 2004 David Hughes FREng...
Innovation
Presentation to Digital Content
Industries
29th September 2004
David Hughes FREng
Director General Innovation Group, DTI
Competing in the Global Economy:
The Innovation Challenge
Innovation
Our world is changing
Healthcare in an Aging Society
Global Security
Intelligent & Connected World
Our impact on the Environment
Technology: Driver &
Solution
Innovation
Dramatic Change in Life Cycle
Conventional
Vo
lum
e
Intro-duction Ramp-up Maturity
End of life
Development Dramaticend of life
Shorter time to market
Fas
t ra
mp
-up
Demand fluctuation
Higherpeak
New Digital Consumer
3-5 years 1 year
Source: Dr Tsugio Makimoto - Hitachi/Sony
Innovation
Source: US Department of Labor
Increasing intensity of global competition
0
5
10
15
20
UK Hong Kong SAR Taiwan
Hourly compensation costs, 2001, for production workers in manufacturing in US dollars
Innovation
The economic message
UK Businesses will only achieve long-term success in global markets by focusing on greater value added as their competitive edge.
Innovation is the key to achieving this.
And Businesses need to keep innovating to stay ahead of the competition.
InnovationGovernment strategy - The Innovation
Report
‘Competing in the global economy – the innovation
challenge’ Published in December 2004
http://www.dti.gov.uk/innovationreport/index.htm
“The challenge ... is to create the conditions where all our firms put innovation at the centre of their strategies for the future.”
Rt. Hon. Tony Blair, Prime Minister
Innovation
What can government do to improve innovation performance?
Set an encouraging framework – macroeconomic stability, competition, IP framework, standards.
Strategic investments
– science, government R&D, infrastructure.
Support innovative businesses – exploitation of science base, advice, partnerships, access to finance, incentives (e.g. R&D Tax Credit).
Ensure that procurement and regulation create opportunities for
innovation – not barriers. Align efforts at national and regional/Devolved Administrations.
Innovation
Intellectual Property: Awareness
Business Advice Open Dayshttp://www.patent.gov.uk/about/marketing/thinkkit/index.htm
Innovation
Intellectual Property: Crime and Enforcement
Patents Act 2004 2004 Chapter 16
Scoping Study:
Report of the Patent EnforcementProject Working Group.
- June 16th 2004
ME A Michael Edwards & AssociatesConsultants in intellectual propertymanagement and protection.
Innovation
SMEs and Entrepreneurship
• Business Link support for Innovation
• Upgrading SME management skills
• Improved support for women’s enterprise
“I’ve gained a lot of confidence from all the support I’ve received”
Katieca Smith, Partner in Architectural Practice
Innovation
HEIs/SET Base BusinessBusiness
RDAs
ResearchCouncils dti
TechnologyStrategy
ResearchPriorities
Culture change neededfor better exploitation
Science andIndustry Councils
Businesssupport
Higher levelSET skills
Regional Innovation
Innovation
New approaches to Procurement
• £109bn pa goods/services purchased by Government in 2001/2002
• Strong Ministerial interest in joined up work across government
• Capturing Innovation guidance for policymakers
• Reinvigoration of Small Business Research Initiative underway
• Joint DoH/DTI seminar on Innovation in the NHS for suppliers and buyers
Innovation
…… additional boost for technology
Competing in the Global Economy – the Innovation Challenge, Dec 2003
Increase Business Demand for New & Emerging TechnologiesThe Technology Strategy & Programme
Science & Innovation Investment Framework 2004-2014, July 2004
InnovationDetermining Strategic Technology
Priorities
BUSINESS/USER NETWORKS•Sector based networks e.g. IGTs, IAP•CBI•Chambers of commerce•Trade associations
SEB NETWORKS•Research Council networks•Academic groups•Professional Institutes•RTOs•Technology Brokers
TECHNOLOGYSTRATEGIC PRIORITIES
MIXED NETWORKS•OGD strategies e.g. MoD, DoH•Faraday partnerships •Foresight
REGIONAL/DEVOLVED ADMINISTRATION NETWORKS• Science Industry
Councils
Networks are fundamental to ensuring that the Technology Strategy reflects the demands and needs of
business.
Innovation
TECHNOLOGY TECHNOLOGY PROGRAMMEPROGRAMME
Collaborative R&DKnowledge Transfer
Networks
CUSTOMERS
CUSTOMERS BI-ANNUAL BI-ANNUAL
CALLS FOR CALLS FOR PROPOSALSPROPOSALS
TECHNOLOGY TECHNOLOGY STRATEGYSTRATEGY
IDENTIFICATION AND JUSTIFICATION
OF TECHNOLOGY PRIORITIES
NETWORKNETWORKSS feed into decision making
Technology Strategy & Programme
Innovation
Value added by knowledge based services and IndustriesG7 comparison, 2000Per cent of total value added
01020
304050
Germany UK France Japan US Canada* Italy
Finance, insurance, other business services, community, social and personal services
Communication services
High and medium-high tech
Source: OECD
The innovation challenge – create value in a knowledge
economy …
Innovation
Source: Creative Industries Economic Estimates, July 2003
Contribution of creative industries %
GDP, 2001
00.5
11.5
22.5
3
Softw
are
Publ
ishi
ngRa
dio,
TV
Des
ign
Adve
rtis
ing
Arch
itect
ure
Mus
ic &
arts
Vide
o, fi
lms
Craf
tsD
esig
nerfa
shio
nArt
, ant
ique
Software, computer games and electronic publishing …… the largest of the creative industries
Innovation
‘Value added’ Opportunities - Health Care
Education for patients using medical devices
• Medical devices not used correctly
• Results in little or no benefit from device, maintenance
costs, adverse events and negligence claims
• Training on how to use correctly is needed
• Opportunity for digital content industries
Digital Content ‘Users’
Innovation
More ‘Value added’ Opportunities
• Convergence of games/films- Machinima.com
• E-learning Market
- Language-engineering technology • Development of next generation broadband
- BSG’s new initiative
Digital Content ‘Users’
Innovation
• Active involvement of your sector in April competition for funding for Inter-Enterprise Computing
• Now preparing for the November competition for funding
• How can you be more engaged in the process?
Challenges -- Technology Strategy
Innovation
•Using public procurement to facilitate innovation:
Latest figures show £125bn goods and services procured per year
Around 55% of all spend in the UK on IT services and systems is in the public sector
Best practice guidelines for procuring broadband-type content and applications being drawn up
•What are the big opportunities for DCI in Government procurement and how can we engage further?
Challenges -- Procurement
Innovation
Measuring our success
Businesses see more value added from goods and services
Economy sees more productivity (e.g. output per hour).
Better public services - - Improved quality of life