M.Sc. in Engineering Policy and Management of Tehnology CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+

Instituto Superior Tcnico, Technical University of Lisbon

http://in3.dem.ist.utl.pt

Innovation, Engineeringand the Management of Technology:building a university agenda

Pedro Conceio and Manuel Heitor

Background: trends for the University ?

Conceico & heitor (1999)

Codified knowledge(software)Tacit knowledge(wetware)Valorization of human and intellectual capital?Challenges and Opportunities...

TRADITIONAL MECHANISMS TO PROMOTE UNIVERSITIES and R&D IN SOCIETYThe model: american university as reference1.Intellectual Property Protectionissues:economic impact negligiblepromotes institutional integrityrequires adaptation and flexibility2.Technology Infrastructures and Science Parksissues:emphasis local developmenthave not promoted U-I linkages

TRADITIONAL MECHANISMS TO PROMOTE THE ROLE OF UNIVERSITIES IN SOCIETY The trend: a process of institutional convergence

The result: universities today, despite their long historical I inheritance, are relatively new institutions with a complex set of incentive structures and organizational features (Rosenberg & Nelson, 1996)

The threat: institutional integrityThe analysis: standard, linear model has been implicit in m most studies

The knowledge gap (Scope: EUROPEAN REGIONS)2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years

QUESTIONWhich trends for science, technology and innovation policy, in a way to contribute for the challenges faced by engineering and technology to enhance innovation?

The scope:... the globalized learning society!

Our Argument...BUT, understanding research (R&D; R&T; R&L), promoting research for creative teaching, and integrating technology, policy and management!

1.The CONTEXT: a CONCEPTUAL FRAMEWORK

FACTS and RESULTS

3. HYPOTHESIS STRATEGIES, POLCIES and RECOMENDATIONSReference Terms e Scenrios Strategies and Policies ...http://in3.dem.ist.utl.pt/et2000/ CONTENTS

1. The new economy: the big boom2.Technological change: accelerating3.Social Dynamics: complexity and diversity4. Governance: a new model!

The CONTEXTOCDE: FUTURES, Hannover 2000EC: IPTS - Futures Report, 2000

The structure of the new economyKnowledgeera

The importance of Technology in corporate developmentCase study: Innovation in Italy (Evangelista & Sirilli, 1997)The convergence of sectors is emerging, with the growing importance of technology in corporate development

1. The new economy: the big boom2.Technological change: accelerating3.Social Dynamics: complexity and diversity4. Governance: a new model!

The CONTEXTOCDE: FUTURES, Hannover 2000EC: IPTS - Futures Report, 2000

Technological Change:materials, IPTS(1999)STEELSCAST IRONIRONCOOPERALLOYSTEELSGLASSY METALSAL-LITHIUM ALLOYSDUAL PHASE STEELSMICROALLOYED STEELSBRONZESKIN FIBRE GUMSRUBBERLIGHTALLOYSSUPER ALLOYSTITANIUMZINCONIUMETCNEW SUPER ALLOYSDEVELOPMENT SLOWMOSTLY QUALITYCONTROL ANDPROCESSINGCONDUCTINGPOLYMERSHIGH TEMPERATUREPOLYMERSHIGH MODULUSPOLYMERSBAKELITENYLONWOODPAPERSTONEFLINTPOTTERTGLASSCEMENTREFRACTORIESPORTLANDCEMENTFUSEDSILICACERMETSEPOXIESPOLYESTERSCOMPOSITESPOLYMERSMETALSCERAMICSPOLYMERSCOMPOSITESCERAMICSMETALSALLOYS10 000 BC5000 BC010001500180019001940196019801990200020102020GOLDCERAMIC COMPOSITESCOMPOSITESMETAL-MATRIXSURFACEENGINEERINGRELATIVE IMPORTANCE SUPERCONDUCTORSTOUGH ENGINEERINGCERAMICSKEVLARBRICKS (with STRAW)IVORY10000 BC5000 BC010001500180019001940196019801990200020102020

Technological Change: telecommunications

Technological Change:perspectives The Convergence: telecommunications and computers ... The QUESTION : scope and scalePRODUCTSPRODUCT

Source: von Tunzelmann (1999))

Technological Change: Emerging interactions...

fromto

Technological Change: impact ...11. Knowledge Diffusion 2. Knowledge Creation corporate competitiveness depends on innovation capacity globalization has increased market demand on nre products, processes and servicesIncreasing interdisciplinarity and complexity of the knowledge baseSignificant contribution of technology for scientific developmentQUESTION: inovation/ adoption of new technologies?QUESTION: Which, and how to develop the scientific base?

3. Knowledge Transfer the need to promote systems of education and training diversifiedQUESTION: Which education and training systems?

Entrepreneurial capacity : NTBF

Socio-economic inequality:The need to promote local systems of knowledge creation and diffusion Technological Change: impact ...2A strategic vision: developing technology platforms enphasizing clusters (the corporate value chain) ca de vlor. ...to promote SOCIAL CAPITAL in a technology contextKnowledge Diffusion

PROCESSES:complex and diversifiedINVESTMENT:education; R&D; learning-by-doingAGENTS:state, firms, universities, schoolsWhat we know

What we knowThe Chain Link Model Chain Linked Model of InnovationKline & Rosenberg

1.The CONTEXT: a CONCEPTUAL FRAMEWORK

FACTS and RESULTS

3. HYPOTHESIS STRATEGIES, POLCIES and RECOMENDATIONSReference Terms e Scenrios Strategies and Policies ...http://in3.dem.ist.utl.pt/et2000/ CONTENTS

Innovation in EUsource: Community Innovation Survey, OCT-PT

Facts and ResultsProductivityThe knowledge-based industriesResoucesScale vs intensityIndustrial structureInstitutional developmentThe regional dimensionSustainable developmentSocial capital for the inclusive development

1. Productivity

2. Knowledge-based industries

OECD(2000)Share in business sector value added in knowledge business industries (share year 1996)Average annual real value added growth of knowledge based industries (1985 share year)

3. RESOURCESExpenditure by Manufacturing Firms on Innovation

Perspectives for change:Public vs private R&D expendituresP97P95P81ESIRSEJPUSAFRDUK

Perspectives for change: Investments in R&D

4. Scale vs IntensityR&D Expenditure (OECD)

5. THE INDUSTRIAL STRUCTURE EU-13

5. Industrial structure: Dynamics

6. Institutional DevelopmentMarket Regulation and Employment ProtectionNicoletti, Scarpetta & Boylaud; OECD (2000)

7. The regional dimension:technology and innovation gap1. Input: HUMAN AND MATERIAL RESOURCES2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES3. determining factors : international cooperation sme`s: support services networks FDI: integration in local economies transports, communications, energy infrastructures

BUT, ALSO, INSTITUTIONAL FACTORS

Regional diversity in Western EuropeSource: Sixth Periodic Report DG XVI, 1998

Master EquationEnvironmental Impacte = (Population)*(GDP/Capita)*(Environmental Impacte /GDP)Increased eco-efficiencyPromoting engineering and technolgy for innovation!8. The sustainable development innovation and the environment

8. The sustainable developmentinnovation and the environmentEconomic growth in Portugal is associated with the highest european growth rate of materials consuption!

9. Social capital for inclusive development OECD(2000)

1.The CONTEXT: a CONCEPTUAL FRAMEWORK

FACTS and RESULTS

3. HYPOTHESIS STRATEGIES, POLCIES and RECOMENDATIONSReference Terms e Scenrios Strategies and Policies ...http://in3.dem.ist.utl.pt/et2000/ CONTENTS

Perspectives for changeThe notion of localised technological change:The science base: a joint process of production, learning and communication a fully endogenous, with strong interdependence between specialisation and diversification important, but limited role of demand based on mix of generic and tacit knowledge the aim of policy should be to create a broad and productive science base, closely linked to higher education, Pavitt (1998)Systems of Innovation and Competence Building!

THE ISSUE 1The evidence:The major source of economic growth in developed countries has been science-based technology, Kuznets (1966)The explosion in knowledge creation was concentrated in a few regions, and led to similarly concentrated distribution of income, World Bank (1999)The most daunting problem is that of spiritual inequality, Fogel (1999)

Regional diversity in Western EuropeSource: Sixth Periodic Report DG XVI, 1998

A fragmented regional innovation system: an institutionally blocked regional economyRegionalGovernmentBusinessServicesSMEsSMEs

Chamber ofCommerce

SMEsSMEsLargefirmsSMEs

Universities

TechnologyCentersSectoralAssociationsSMEsSMEsSMEsSMEsLargefirmsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsTechnologyConsultantsSMEsSMEsLargefirmsSMEsSMEsRegional economy

A learning region: An efficient regional innovation systemRegionalgovernmentBusinessservices &tech. con-sultantsSMEsSMEsBusinessintermediaries:Cham. of Comm.;Local AgenciesBICsSMEsLarge firms;Tech. Centers;Sect. Associa-tionsSMEsSMEsSMEsClusterScience base:Universities;Public R&D;LaboratoriesTechnologyCentersSectoralAssociationsSMEsSMEsSMEsSMEsLargefirmsSMEsSMEsSMEsValorisation of R&D and Tech. Transfer OfficeSMEsGlobal economySMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsSMEsOpen gate: International technology transfer networksOpen gate: International value chainsOpen gate: International business consultants & specialized business servicesOpen gate: International R&D/academic excellence networksSMEsSMEsRegionaleconomy

Regional Innovation StrategiesLandabaso et al. (1999)

Internal coherence of the regional innovation system by connecting its different key elements: R&TDI supply with well identified Demand and business needs, from SMEs in particular.

Increase the amount and, more importantly the quality of innovation public spending through innovation projects (bigger and better spending in this field through regional policy).

Rationalise the regional innovation support system by raising awareness, eliminating duplications, filling gaps and promoting synergies. Successful stories: The Regional Technology Plans Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle-Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).

What type of Social Capital ?

Source: Conceico, Gibson, Heitor & Sirilli (2000)

Table1- What Type of Social Capital?

_1005564691.doc

Generic Description

Type of Networks

Type of Relationship

North Italy

Dense civil society

Networks of Civic Engagement

Informal, familial and

Putman [47]

leading to a rich

communal trust

social community

Silicon Valley

Collaborative

Networks of Innovation

Legally binding

Cohen and Fields [48]

partnerships for

formal contracts

innovation and

competitiveness

THE ISSUE 2With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs, Henderson & Morgan (1999)

A specific issue: EUROPEAN DIVERSITY

The regional dimension: technology and innovation gap cont.Most development programmes stand on their ability to build social capital: a relational infrastructure for collective actionThis requires a shift in development studies: from state-led or market-driven processes, regardless time, space or milieu to institutional perspective, looking at the quality of institutional networks

The regional dimension: technology and innovation gap cont.INSTITUTIONAL NETWORKS to mediate:mediate information exchange knowledge creationcapacity for collective actionpotential for interactive learningefficacy of voice mechanisms Henderson & Morgan (1999)

CONTENTS SERVICESE-TAILERS

THE INTERNET

ALTERNATIVE MEDIAE-CHANNELS

ACCESS PROVIDERSINTERNET SERVICESSoftware SolutionsEnabling TechnologiesCONSUMERBUSINESSDevelop software solutions Designed to enhance the Internet experience for both Consumers and businessCreate hardware/software solutions which enable the efficient operation of the internetBuilding Social capital in technology contexts:a case study the internet industry

TraditionalCorporationsTechnological Innovationa case study: internet business modelSource: joint Venture Sillicon Valley Network, 1999

Building Social capital in technology contexts:a case study - internet clusteringIt is unlikely that technological clusters aimed at supporting service integration will emerge, unless incentives exist to integrate elements in the value chain... Hawkins (1997)Continuous evolution to a new value chainThe need to extend the analysis to the context:communities of usersRegional/local context

Internet business models: creative destruction, as usual !! (McKnigth et al, 2000)

ENTREPRENEURIAL CULTUREIDEASINTERNETCOMPANIESBuilding CONTEXT: the importance of LOCATION in a virtual medium

The need to consider engineering research and teaching in a broader context, leading to innovation:Promoting value, by exploiting changeUnderstanding institutional developmentIntegrating systems of competence building and social cohesionThe ISSUE ...concludingOUR GOAL: to discuss the emergence of a university agenda on engineering policy and the management of technology

POLICY ISSUESTHE CONTEXT:increase importance of knowledge for developmentTHE CHALLENGE:how to promote the learning society?Towards an Agenda for innovation and technology policy:1. the framework: interactive nature of innovation2. balancing innovation and diffusion3. wetware/software interaction4. the inclusive development 5. the institutional development

advanced education and research in engineering policy and management of technology...Which relevant topics? Advanced Research Methods for decision support and policy analisisManagement of technology and innovationOrganizational design and institutional developmentTechnology policy (environment; industrial; communications)

debatechallenges and opportunities for a University Agenda on: Engineering Policy and the Management of Technology !

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