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Transcript of MANAGEMENT & INNOVATION: NATIONAL SYSTEMS OF INNOVATION: ITALY Arnaud COUESNON Richard KILLIAM...
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MANAGEMENT & INNOVATION:
NATIONAL SYSTEMS OF INNOVATION: ITALY
Arnaud COUESNON
Richard KILLIAM
Martin LUIDJI
GM&EB: 2008-2009
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CONTEXT IN ITALY
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About Italy (1)
Population of 59 Million people Member of Europe since the beginning –
Currency: € The world’s sixth largest economy
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About Italy (2)
Very Catholic country – strange relationship with science
Lack of investment in Education. 5.5% of Italian students graduate with degrees in science or engineering
Italy’s greatest weaknesses in innovation are government investments in R&D, education and skill levels, high technology patents innovation financing
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Italy’s problems
• Italy’s share in world trade has declined.• Still a low productivity growth.• Widening gap in GDP per capita with the best
OECD performers.• Weak investment in R&D may reflect the
specialisation of firms in traditional sectors and the prevalence of small family businesses.
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Possible solutions
Restoring economic dynamism will requireaddressing various challenges: _ Improving the environment for
innovation is a crucial part of the solution.
_ The key policy challenges for the immediate future concern human capital and innovation by firms.
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Approved technological districts
Campania : Polymer and composite materials Emilia-Romagna : Advanced mechanics Friuli-Venezia-Giulia : Molecular biomedicine Lazio : Aerospace Liguria : Robotics and intelligent systems Lombardia : Biotechnologies Piemonte : Wireless technologies Sicilia : Micro and nano -systems Veneto : Nanotechnologies
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INNOVATION IN ITALY
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R&D in Italy
Spending on R&D is below the OECD and EU average
In 2005, R&D intensity (gross domestic expenditure on R&D [GERD] as a percentage of GDP) was 1.1%, compared (2.25% for the OECD area and over 1.7% for the EU).
The private sector financed only 40% of R&D and performed 50% (compared to OECD averages of 63 and 68%, respectively).
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National innovative capacity index and subindexes
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Indicateurs de l'effort de recherche des principaux pays de l'OCDE
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Comparaison internationale de la DIRD en 2005
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Taux de croissance de la DIRD dans la zone OCDE, dans la Fédération de Russie et en Chine
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THE ITALIAN GOVERNANCE INNOVATION SYSTEM
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Staff devoted to S&T
At national level : Ministry of Economy and finance MIUR Ministry of Productive Activities Ministry of innovation and technology
At Regional Level Regional R&D and Innovation department Regional innovation agencies
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Share of public financing
Industries45%
Government55%
2002 GOVERNMENT RESEARCH AND TECHNOLOGY BUDGET : 3.812 B€
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Main actors of the Research Funding in Million €
2493
522 450
130 217
0
500
1000
1500
2000
2500
3000
Miur Min. for Health Min. forProductionActivities
Min. for Defense Other ministry
Source: CNR – CERIS Istituto di Ricerca sull’Impresa e lo Sviluppo – Via dei Taurini, 19 ROMA
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Start-ups
High Investment
Low Investment
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Future trajectories
1. Refocusing R&D in order to make it demand-driven and client oriented.
2. A further reform of the existing policy instruments mix in favor of R&D; To render the policy making process more effective towards for real growth of the Italian economic environment
3. A more selective and rewarding model to allow high-quality projects financing
4. Innovation incentive schemes promoted by government media organizations should be advertised more widely (ex : www.governo.it)
5. An Innovation coordination entity (MIUR-MAP) should improve its role from direct research funding to facilitator of R&D in a more generic sense
6. Human resource measures should focus more on “capacity-building” rather than “training” in the traditional sense.
7. More balanced and tailor-made policy making process at local level from the Central State to the Regional Policy entities
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EXAMPLES OF THE MOST INNOVATIVE COMPANIES IN ITALY
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Fiat Group’s Innovation & Technology R&D’s investment: 1.6 billion euros, or around
3.2% of net revenues of Industrial Activities
Fiat has been « innovative from the beginning »: FIRE (Fully Integrated Robotized Engine), Common
Rail injection diesel powerplants, Multijet, TetraFuel system, and more.
Now, Fiat Group’s Innovation and Technology is: Centro Ricerche Fiat & Elasis divisions.
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Fiat Group – Centro Ricerche Fiat Group’s « major source of expertise in
innovation » 42 new patent applications in 2007
Total patents 2,200, 700 pending. Activities:
Powertrain Research and Development Advanced Technology for Mobility and Safety (GPS-
type technologies, inter-vehicle communication) Vehicles & Advanced Manufacturing and Materials
(body architecture innovations) Cooperation with regional institutions.
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Fiat Powertrain Technologies Fiat Powertrain Technologies constructs engines for cars
and for other uses; gasoline, diesel, and a focus on alternative energies.
« annual output of around 3.1 million engines and 2.5 million gear boxes and axels »
Fiat Powertrain « will invest $32 million to build its first Chinese research and development center » in Shanghai.
Powertrain already has 12 R&D centers throughout the world.
« anti-pollution energies » a priority Fiat also investing in bigger R&D centres for India
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Fiat Group - Elasis
Highly specialized research « in the framework of development programs for Southern Italy »
Pomigliano d’Arco and Lecce (both in Southern Italy), 800 employees
Cooperation with universities, chambers of commerce. See map of technological regions above—Fiat spreads its R&D over the country’s regions rather than concentrating it.
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Fiat Group - Elasis
Innovative methodologies: More academic, computer-oriented in nature. Product modelling, virtual simulation of
performance, ergonomics analysis. Vehicle research: development of new cars. Electronics systems research/ ‘Fire engines’
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Finmeccanica
Finmeccanica S.p.A. is an Italian conglomerate, 30,2% state-financed
Finmeccanica is the second largest industrial group and the largest of the hi-tech industrial groups based in Italy. It works in the fields of defense, aerospace, security, automation, transportand energy.
The company has offices in over 100 countries.
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FinmeccanicaInnovation (1)
Last year: The Group invested 1.6 billion Euros in R&D, equaling 16% of its
revenue. It boasts 9,100 employees working on design and engineering and
3,100 skilled staff involved in Research and Development.
Finmeccanica actively cooperates with 19 Italian research institutes, 29 foreign research
institutes and universities, 41 Italian universities as well as national and international
institutions.
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FinmeccanicaInnovation (2)
A fundamental element in fostering innovation routes is provided by the Mindsh@re project: a process to
enhance common technological capital, designed with the aim of connecting people in a knowledge network
which multiplies the possibility of generating new ideas, products and talents, and is the engine for a real
innovation of value through "technological communities", a transversal organisational model focusing and
sharing research on subjects considered to be of top industrial priority.
The Group also dedicates considerable energy to intelligence activities which encourage innovation, fuelled by
continuous attention to markets, with a view to developing a network that involves clients and partners in order to
effectively manage the value chain.
The awarding of the Best Innovator 2005 prize by the research company AT Kerney and the importance
acquired by Premio Innovazione (Innovation Award), combining ideas from each company of the Group, in its
three years since inception, clearly confirm the absolute importance of a cultural element that is inborn in
Finmeccanica and in its industrial essence.
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Eni history
The history of Eni is a long one and is closely related to the development of Italy.
The board of Eni manages a company operating in around 70 countries, with more than 75,000 employees.
Eni is an integrated energy company, committed to growth through the exploration, production, transport, transformation & marketing of oil ans natural gas.
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R&D in Eni (1)
• Eni operates in competitive sectors and manages businesses based on a range of technological platforms. But generating innovation, also means conducting research, development and demonstration activities in line with the company's corporate strategies and technological plans.
• With longer-term objectives, the company also carries out research for the development of radical innovation in the field of hydrocarbons, alternative energy and the environment.
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R&D in Eni (2)
In this context, Eni's research staff is actively engaged at an international level at leading laboratories and are involved in projects with a high level of innovation and potential applicability.
Intellectual resources, instruments and avant-garde structures generate, and transfer to an industrial scale, the results of innovation for the generation of maximum value.
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Main technological areas of Eni's research activities
- Upstream Oil & Gas- Midstream Oil & Gas- Downstream Gas- Downstream oil: processes- Downstream oil: products- Power generation and renewables- Environmental sustainability and carbon management
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Sources http://www.oecd.org/
Ranking National Innovative Capacity: Findings from the National Innovative Capacity Index, MICHAEL E. PORTER, Harvard University, SCOTT STERN, Northwestern University and National Bureau of Economic Research
Economic reform in Italy: how to make it work?, Linda Lanzillotta, Minister for Regional Affairs and Local Communities, Centre for European Reform, London, Tuesday, 13th March 2007
Recherche et développement ] Repères et références statistiques - édition 2008 ]
http://www.finmeccanica.it/Holding/EN//index.sdo
http://www.edmunds.com/insideline/do/News/articleId=123820, www.fptpowertrain.com
www.Fiatgroup.Com
www.eni.it
www.lesechos.fr/