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Training on Promoting Innovation Systems in

Developing Countries

Dir. Jean PachecoDir. Lydia Guevarra

Innovation is new to the firm not necessarily new to

the world

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What is innovation?How does it differ from invention?

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Definitions of innovation Schumpeter(1930s-40s)Innovation is “new combinations” of existing resources

OECD (2005: p46) “implementation of a new or significantly improved product (good and service) or process, a new marketing methods or a new organizational methods in business practices, workplace organization or external relations”.

“ A common feature of an innovation is that it must have been implemented…it is when introduced on the market… (p47)

“new to the firm” as minimum entry level. It does not have to be “new to the market” nor “new to the world”. (p56-57)

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Main types of Innovation

• Product innovation: new or significantly Improved good and service

• Process innovation: production or delivery methods, changes in techniques, equipment and/or software

• Marketing innovation-implementation of new marketing methods involving significant changes in product design or packaging product placement, product promotion or pricing.

• Organizational innovation- organizational methods in the firm’s business practices, workplace organization or external relationsbuild to order, Just in time production, different ways to share knowledge

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What are the characteristics of Innovation process?

• Knowledge creation and diffusion is central

• Constantly changing• Continuous and dynamic• Uncertain– risk oriented, resistance to change,

‘lock in’• Diverse process– sector, country, regions….

• Require complementary assents– cannot use certain technology

without infrastructure/HR• Systemic– looking at one part cannot really

understand the whole process

Innovation Policy. We read it.

We hear about it. But do we understand it?.

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What is considered as ‘innovation activities’

• All activities intended to lead to the implementation of innovation is called Innovation activities that includes following:– Science & Technological activities– Organizational activities– Financial and legistrative activities– Education, Entrepreneurship activities

etc• Innovation policy covers wider policy

arena including science & technology policy

S&T Policy

Innovation Policy

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Policy components

• Policy institutions– Infrastructure– Procurement– Priority setting– Standard setting– Public finance

• Developing banks, trade support

• Government departments – Including

granting councils– Knowledge and

technology transfer

• Education– All levels (primary to

Higher)– Life long learning – Research

• Migration– Immigration policy– Foreign

experience/knowledge

• Health– Nutrition– Wellness– Disease control

• Monitoring and evaluation– Policy learning and

change

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Philippine Innovation PolicyPDP 2011-2016

Chapter 3

Government shall pursue innovation as an essential factor in harnessing culture of competitiveness. Along these lines government shall:

– review the role of higher education institutions in the country’s innovative system

– review investments in science, technology and innovation (STI) human resources to directly link them with strategies in retaining the “best” and “brightest” Filipino STI talents;

– promote a culture of multi-disciplinary collaboration, knowledge sharing, open dialogue and cross-fertilization of ideas as extremely relevant and important in the emerging global competitiveness

Assessment:State of innovation among Least Developing Countries, the same.

The Philippines included..

3% R&D Expenditure

share of GDP

Philippines 0.1%

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What is innovation systems?Why does it matter?

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Some key definition of national system of innovation

“The network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies” (Freeman, 1987)

“all parts and aspects of the economic structure and the institutional set-up affecting learning as well as searching and exploring” (Lundvall, 1992)

“a set of institutions whose interactions determine the innovative performance of national firms” (Nelson, 1993)

“the set of institutions which jointly or individually contribute to the development and diffusion of new technologies and which provides the framework within which government form and implement policies to influence the innovation process.” (Metcafe, 1995)

Recipe to a successful Innovation System

Ingredients:• Industry• Research institutions/Academe• Government

1.Nurture entrepreneurship2. Ensure Absorptive Capacity

3. PromoteCapacity Building4.Build Bridges between science and industry

5.Remove barriers, reduce risks through innovation policy

6.Set up innovation networks , Industry-Science research alliance

Innovation Indicators: Use or Misuse?That is the Question.

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World Economic Forum (WEF) Global Competitiveness Index 2014

Industry 4.0High Tech Strategy

Leading Edge Clusters

Stop Thinking about Global Value Chains.

Do It. Now.

BEST PRACTICES

Startup Academy

Steinbeis Technology Transfer Center in Associations

Innovation networksTechnical pre-incubationEco-innovationDesign and

Evaluation of Innovation Policies

ACCESS support to the creation of a Startup Academy

• 3-month training programme for 30 participants (2x per year)

• Provision of relevant knowledge, skills and contacts to empower graduates to become successful entrepreneurs

• Creation and development of a vibrant and encouraging environment for growth of start-ups and start-up community

• Promotion of self-employment and entrepreneurship as viable and attractive career paths amongst young professionals

• Target Group: students of all faculties, young and experienced IT professionals motivated to start their own businesses

Best Practice „Startup Academy“

SEE ICT Startup Academy

INNOVATION.Its not just DOST.

Its our Responsibility

too.

Chapter 3: Philippine Development Plan Results Matrix:

Improved GVA arising from Innovation in the I&S sector• Industry 5.2% (2004-2010 average) -

8.1-9.0% (2011-2016 average)• Services: 6.1% - 7.0-7.9%

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Lydia GuevaraDirectorResource Generation and Management Service (RGMS)

Mary Jean PachecoDirectorCorporate Planning Service

DR VOLKER STEIGERWALD, not in phto

PARTICIPANTSTraining on Promoting Innovation Systems in Developing Countries, 21-22 July 2014