Global innovationLars Goldschmidt 10. dec. 13
Global innovation policiesBundling and competiveness
Lars GoldschmidtDI Confederation of Danish Industry
Global innovation 10. dec. 13Lars Goldschmidt
2
Content• Confederation of Danish Industries• Value creation in Denmark• Innovate or die• Location of value chain elements• Bundling• Implications for industry policy
Global innovation 10. dec. 13Lars Goldschmidt
Confederation of Danish Industry
• 10.000 large, medium and small companies
• Collective bargaining
• All business related policy areas
Global innovation 10. dec. 13Lars Goldschmidt
4
Broad range of members
Manufacturing 40 percent
Knowledge services 17
percent
Trading 14 percent
Transport 13 percent
Services 7 percent
Energy supply 4 percent
Others 5 percent
Membership by industry sector
Global innovation 10. dec. 13Lars Goldschmidt
55
Small and big companies with much in common
80 percent less than 50 employees
20 percent more than 50 employees
Employees totals in member companies
Global innovation 10. dec. 13Lars Goldschmidt
Vision
6
DI’s vision is an open and prosperous society that features both growth and balance.
The result of which recognises Denmark as the world's most attractive country for business to work in and from.
Global innovation 10. dec. 13Lars Goldschmidt
Major Challenges• Very high cost base, when operating in Denmark
• 800.000 outside the labor market
• Low growth on our European markets
• Future supply of qualified workforce
• Decrease in private research and development spending in Denmark
7
Global innovation 10. dec. 13Lars Goldschmidt
R&D spending pct. of GDP
8
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110
0.5
1
1.5
2
2.5
Pro
cent
Private
Public
Global innovation 10. dec. 13Lars Goldschmidt
Ofshoring of development spending
9
2007-2010 2008-2011 Prognose 2012-20140
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Pro
cent
Global innovation 10. dec. 13Lars Goldschmidt
10
Future Danish products and services
•Denmark competes on the global market by delivering solutions and services to upper middle markets
•The end user customer demand moves towards uniqueness, identity and experience
•The B to B and B to C demand moves towards more holistic solutions that solve more complex problems covering the full functionality triangle.
•The financial and economic crises has shifted market strength towards Asia and market preferences towards price
Global innovation 10. dec. 13Lars Goldschmidt
11
The value triangle:
Technical functionality
Social functionality and acceptability
Esthetic quality and individual identity signal
Global innovation 10. dec. 13Lars Goldschmidt
12
Location and competitive strategy
Competitive Force = Cunning * Financial Strength * Framework Conditions
Total Costs
Relocatable business processes will be located where the competitive force has a maximum
Processes located in Denmark will be knowledge intensive either because they are difficult or because they have a high innovation content
Global innovation 10. dec. 13Lars Goldschmidt
13
Radical changes and unsolved global problemsincrease demand for innovation• Financial crises• Global change in political
and economical power from Europe and USA to Asia and emergent economies
• Global changes in customer preferences
• Dramatic increase in available knowledge
• Population growth• Mega Cities• Climate change• Hunger• Environmental degradation• Unstable states and other
conflicts• Ageing / immortality
Global innovation 10. dec. 13Lars Goldschmidt
Consequence•More for less•Innovate or die•Value in the eye of the different other
14
Global innovation 10. dec. 13Lars Goldschmidt
15
The innovation triangle:
Technical possibility
Competition drive
User need and demand
Global innovation 10. dec. 13Lars Goldschmidt
16
0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5
LuxembourgItaly
DenmarkBelgiumMexico
SpainSwitzerland
NorwayNew Zealand
CanadaFrance
NetherlandsGermany
United KingdomIsrael
AustraliaPortugal
AustriaJapan
SwedenFinlandGreece
United StatesIcelandIreland
HungaryPoland
Czech RepublicKorea
Slovak Republic
Source: OECD and Confederation of Danish Industy
Productivity growthGrowth in Labour productivity 2000-2010
Global innovation 10. dec. 13Lars Goldschmidt
17
PharmaceuticalIdeaLab WorkTest Small scale production designTestAuthority interactionApprovalLarge scale process designPilot plantProduction facility constructionEtc.
Value chains
ManufacturingIdea ConceptDesignPrototypeTest SeriesMass customerisationLow cost mass productionBottom of the pyramid production
ConstructionIdeaDrawingDetailed designConstructionTransferOperationDe commissioning
Global innovation 10. dec. 13Lars Goldschmidt
18
Value chain location• Location in Denmark member survay• Positive drivers
Knowledge intensityInterdependency between links in the value chain - bundlingBenefit from local resources costumers, knowledge institutions, business ecosystemAffordable cost structure
• Negative driversHigh wages, taxes, etc.Limited markedLimited access to qualified employes
Wage cost >= 12%
Global innovation 10. dec. 13Lars Goldschmidt
Bundling• Development – Production• Development – Costumers• Development – Knowledge institutions • Development – Business ecosystems• Production – Raw materials• Production – Production competence• Production – Transport convience
19
Global innovation 10. dec. 13Lars Goldschmidt
20
Innovation policy • Demand side
• Demanding public customers, health sector, energy, water, education
• Regulation creating demanding private customers, housing, environment
• Facilitating regulation
• Free trade, deregulation• visa policy• Tax incentives for research spending and visiting staff
• Public reseach
• High quality research in relevant areas• Access to statistical data and clinical research• Access to wold class research infrastructure ESS, MAXIV, XFEL• Innovation as a part of education
Global innovation 10. dec. 13Lars Goldschmidt
Relevant research ?
21
Land TEK NAT TEK+NAT
Danmark 14,4 21,6 36
Sverige 22 18 40
Holland 21,5 20,5 42
Tyskland 22,9 37 59,9
Tjekkiet 21,9 45,4 67,3
Global innovation 10. dec. 13Lars Goldschmidt
22
Innovation competence• The ability to see and seek out differences in needs and
opportunities• The ability to search for solutions in an open solution
space• The ability to transcend and combine in a professionally
competent manner• The ability to introduce the new in an organization• Confidence in the competence to meet new challenges,
not in the status quo• Wildness and enthusiasm• Excited multicultural empathy
Top Related