“ “ An Engine for Future European An Engine for Future European Growth”Growth”
Economic and Social Development Economic and Social Development through Knowledge Intensive Service through Knowledge Intensive Service
Enterprises Enterprises
KIS Partnering Forum – Brussels 19th February 2009
Professor Alan Barrell
A Preview
Context – The World TodayThe World Today – What’s Changed ?
Globalisation, Europe and the Service Globalisation, Europe and the Service ImperitiveImperitive
Lets ImagineImagine A World of Innovations Innovations and EntrepreneursEntrepreneurs Symbiosis,Symbiosis, Synergy,Synergy, Size,Size, ScaleScale – – and and
Service DeliveryService Delivery ModelsModels and RealitiesRealities FundingFunding Innovative Service Companies $$$$$$ A A New AgeNew Age of of Creativity and and Innovation
Casting an Eye on the World’s Financial Crisis – What’s changed ?
Who said these words and When
“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”
Who said these words and When
“I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”
Thomas Jefferson 1778
And what about these…
“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”
And what about these…
“The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”
Marcus Cicero 55 BC
But - think BoomBoom ….not Gloom….many successful businesses startedstarted in
recessions….
“I started the Cobra Beer Company in a deep Recession – and it proved to be the best time for me….introducing something innovative and exciting changed the way people thought about Indian Food and Beer”
Lord Karan Bilimoria
Founder – Cobra Beer
But the eye on the World shows lotslots of changes….its not just the finances….
The Changing Horizon
EnvironmentIssues
The death ofdeference
New employmentpatterns
Organisations
Globalisation
Technology
Changes in Industrial Structure - UK% of Total Employment - UK Government Foresight Report
0
10
20
30
40
50
60
70
80
90
100
1971 1981 1991 2001 2011
Manufacturing
All Services
Changes in Industrial Structure - Europe% of Total Employment
0
10
20
30
40
50
60
70
80
90
100
1971 1981 1991 2001 2011
Manufacturing
All Services
Global Dynamics – Manufacturing has Migrated
Two fifths of the Worlds people live in the two fastest growing large economies – China and India
Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia
Growth in Asia is far ahead of Europe.
Dynamic Growth in Manufacturing Base
CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions of reserves
Labour and Material cost advantages +++++
Lets put CHINA into our picture and context….Some of China’s Achievements
• Compound growth of GDP at 9% since 1995, sixth in the world
• One of top 10 trading nations • The most popular FDI destination• The largest mobile phone market • The second largest PC market • The third largest advertising market
And we have no time to mention India, Brazil, Korea and others….
The World’s Factory
China alone already produces:
70% of world’s toys 60% of world’s shoes 65% of world’s air-conditioners 65% of world’s microwave ovens
Now more cars, laptops, ICs, mobile phones…
Realities – labour and materials costs give great competitive advantage. Trends not reversible.
Sources of Competitiveness
Creativity Risk
Speed Reputation
Cost Values
Learning Information
Wherever Competition comes from….things can change fast – Today’s Peacock can be
Tomorrow’s Feather Duster !
And then there is Technology - Impact of the Continuous Technology Revolution
Compared to an average DAY in 2003….
All international phone calls1971
All airline passengers1975
All mobile phones 1984
All emails 1992
All SMS1998
Source: Analysys, World Bank and ITU
And Technologies are working together -Three Pervasive and ConvergingConverging Technology
Platforms
BIO TECHPharmaceuticals
DiagnosticsResearch/Info
ToolsIndustrial
GenomicsBioinformatics
Proteomics
INFO TECHHardwareSoftware
Communications
NANO TECHElectricalStructural
BiomedicalEnergy & Environment
BiosensorsBiochipsBioelectronics
MicrofluidicsNanobiotechnology
Drug Delivery
NanodevicesNanosensors
Nanoelectronics
Europe and The Service Imperative
If Services are to be the economic engine – how can we excel?
Exploring Creativity, Imagination, Enterprise and Entrepreneurship
From Imagination to Realities – Living Examples
Harnessing Technology – Applications Focus The Inspiration of Untapped Human Potential Emerging Sectors to Explore – e.g. Cleanech
Spirit of Enterprise and InnovationDiscovery and New Knowledge
And - With this background….Let’s IMAGINE
Einstein on IMAGINATION….
“Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world”
Albert Einstein 1879 - 1955
Who ever heard of Albert-Szent-Gyorgyi ?
He, a Nobel Laureate said………
“Creativity is no more than looking at the same thing as everyone else and
thinking something different.”
“You look at things and ask - why?
but I dream of things that never
were and ask -
George Bernard Shaw
why not?”
So - thinking of Imagination….What’s different about EntrepreneursEntrepreneurs ?
Europe’s Entrepreneurial Imperitive – Josef Schumpeter - 1911
“Entrepreneurs blow gales of creative destruction.”
Role of the entrepreneur in transforming economies by developing:
New products New methods of production New ways of organizing Untapped raw materials Enhanced competitive performance
Just what EuropeEurope Needs to build that future Growth Engine – but add
“New Ways to Deliver Services”“New Ways to Deliver Services”
Timing can be everything….Is the time right?....
““There is nothing more powerful than There is nothing more powerful than an Idea whose time has come……”an Idea whose time has come……”
Jules Verne
This strange looking team started in a recession….but got their timing right
And in 30 years, became a powerful engine of Growth, Change and Service Innovation
Microsoft Corporation, 1978
Charles Darwin – “Natural Selection Adaptability and Survival” Darwin’s
Bicentenary this year
Natural Selection, Adaptation, Symbiosis Synergy and Service Delivery
NHS Innovations East LtdSupporting vital Health Innovations
• NHS Innovations East Ltd is one of a national network of Innovation Hubs
• Funded by the Department of Health, the Department of Trade and Regional Agencies
• Provides Intellectual Property Services to NHS Organisations and Professionals in the East of England
• For the benefit of patients and the improvement of Healthcare
• Contributes to NHS revenue generation by Licensing Technology and Services
• Has Proof of Concept Fund for investment in Innovations
• Can help to spin-out and form new Companies from NHS
• Also known as NHS Innovations East Ltd• One of 11 Health Enterprise Hubs in UK (9 in England)• A Not for Profit Service Company
• 15 Professionals helping Health Care
• Professionals Exploit Innovations
• 70% of Innovations are “Service Delivery”• 30% Technology based• Founded 4 years ago – more than 600 Service Delivery Innovations
identified and 250 supported in development• Annual Innovations Competition attracts more than 100 entries –
many Service Delivery Innovations
Completing the Jigsaw – putting technology to work
TechnologyCustomer
need
Innovative service
company
Completing the Jigsaw – Service Delivery Innovation
TechnologyCustomer
need
Innovative service
company
Proximity of Learning, Research and Practical Application
“The Innovation Campus”
R&D Education
Applications
Where open innovation and new service companies can thrive
Technology and Service Companies and Synergy – Open Innovation and the “Innovation Campus”
HEALTH
KNOWLEDGE CREATION
INFORMATION and COMMUNICATIONS
TECHNOLOGY
Basic Research
Sound & vision
Bio-pharmaceuticalsComputing
Publishing
Medicalservices
Bio-informatics
Medical devices and scientific instruments
University/ Research Institutes
Inkjet printing
Wireless
Telecoms
Networking
Technology ConsultingMedicalresearch
Education
Entrepreneurial Overlap – “Joined Up Thinking and Actions” – Coherence and Common Purpose in
Communities
EDUCATION&
RESEARCHincluding Universities
INDUSTRY&
BUSINESS
GOVERNMENTNational & Local
Funding Innovative Service Companies – “Show me the Money $$$$!”
Maturity
Risk
“Our Money”“Our Money”
Family and Friends and FoolsFamily and Friends and Fools
Business AngelsBusiness Angels
Early Stage VCEarly Stage VC
Expansion CapitalExpansion Capital
B
A
N
K
F
I
N
A
N
C
E
??
Seed FundsSeed Funds
Pre-IPOPre-IPO
“How do we get to the money ? Where is the $$$$ trail ?” Connecting and Information
Points and Principles
Networks and Networking – importance +++++ Business Schools and Entrepreneurship Centres Region
wide and cross border Other Entrepreneurs / Support and Mentoring Structures Online Channels – numerous eg…. www.funded.com “Network Nodes” – Individual referrals Cross Border contacts Attitudes and Culture France and it’s Wealth Tax….Thank you M. Sarkosy !
Show me the MONEY! – So maybe we can we find Show me the MONEY! – So maybe we can we find investors hanging out here?....investors hanging out here?....
The Early Stage Business Balance – what do investors look for? In ANY innovative
company ?
And they like to see experienced Chairman and Directors - Mentors for Innovative Service Companies
Inspired Leadership
Enthusiasm
Bullshit
Courage
OptimismVision
Creativity
Management
Research & Analysis
Caution
Process
Financial Control
Market Knowledge
A New AgeNew Age of Creativity and Innovation – New Engines for Growth….
Knowledge Intensive Service Businesses – Knowledge Intensive Service Businesses – Catalysing the New European EconomyCatalysing the New European Economy
Seeking New Pathways to exploit potential for Seeking New Pathways to exploit potential for Knowledge and Wisdom Sharing – through Knowledge and Wisdom Sharing – through Open InnovationOpen Innovation
Harnessing Technology to Sustain and Harnessing Technology to Sustain and RenewRenew
Seeking Competitive Advantage through Seeking Competitive Advantage through Imaginative New Business FormationImaginative New Business Formation
In In Pursuit of Excellence ! of Excellence !
“Excellence can be achieved, if we:Care more than others think is wise,Risk more than others think is safe,
Dream more than others think is practical,
Expect more than others think is possible.”
Deborah Johnson-Ross
Maybe Entrepreneurs think this way?....Innovative Service Companies need to if they are to Excel….
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