Assuring Growth through Assuring Growth through Innovation and ResearchInnovation and Research

The essential role of Public-The essential role of Public-Private Partnerships Private Partnerships

Dr. Noureddine BoukhatemUniversité Mohamed Premiern.boukhatem@fso.ump.ma

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Assuring Growth through Innovation and ResearchThe essential role of Public-Private Partnerships

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Innovation and ResearchInnovation and Research

Innovation is the development of new products, services and processes, which may be based on cutting edge research.

Innovation and research are now increasingly international endeavors.

Global challenges in areas like climate change, security and the demographic shift are on an unprecedented scale

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Innovation and ResearchInnovation and Research•Innovation is essential to competitiveness and higher living standards through greater investment and increased collaboration.•A large body of evidence shows that innovative economies are more productive and faster growing. They deliver higher returns on investment and increased living standards. They are better at responding to changing circumstances through redeploying old activities and jobs•Developed countries are spending more on research and working to develop clusters of knowledge and innovation hotspots•To succeed in the global innovation economy, our Nation must strengthen its ability to accelerate the commercialization of emerging technologies

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Factors influencing the Factors influencing the effectiveness of innovation effectiveness of innovation systemsystem

•Governance•Regime• Taxation and regulation of enterprise•Enterprise access to finance•Size of manufacturing base•Organization of the university sector•Levels and orientation of government-funded•Research; and the Role and weight of different public institutions.•Industrial and technological specializationsN. Boukhatem UMP

Common characteristics of Common characteristics of successful national systems, successful national systems,

An ability to generate long-term and risky investment at scale for new ideas, both public and private. These new ideas are the result of relationships among people producing, sharing, applying and developing various kinds of knowledge through cohesive networks.

These networks also allow them to engage with international collaborators and adopt innovations that emerge elsewhere in the world.

The Governments, delivery bodies and agencies take a leadership role.

Developing technological capabilities through funding research and R&D.

They actively support strong collaborations between actors and take investment decisions on research and technological priorities, and institutional frameworks as well as education, regulation and infrastructure provision.N. Boukhatem UMP

ResearchResearch Budget BudgetAs an indication:UK have already maintained an annual £4.6

billion budget for science and research program

The UK’s universities secured over £3 billion from external sources last year

We have limited resources to invest, and must prioritize our investments into emerging technologies on the basis of rigorous criteria, and an independent assessment of national capability to exploit their potential and succeed in global markets.

We will prioritize our investments in emerging technologies that have wide application, where global markets are growing, helping create the enterprises of the future

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The The governmentgovernment rolerole

Fostering scientific and technological breakthroughs is a fundamental role of government

But the challenges from competing developed countries, and the burgeoning BRIICS (Brazil, Russia, India, Indonesia, China, South Africa) economies mean we need to work much harder

We must ensure that government policies stimulate, rather than hinders, national innovation

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The The governmentgovernment roleroleLooking for ways to encourage more

relationships between universities and business

Investing more in the Small Business Research Initiative

Helping more SMEs to win government contracts for their innovative products and services.

Increase our funding to support design driven innovation.

Encouraging large company research and development by making the R&D Tax Credit

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The The governmentgovernment roleroleStimulating innovation through

prizes and competitionsCreating a balance between

competition and collaboration◦Competition is important in driving the quality of research and business innovation. But there is overwhelming evidence to show that multi-partner collaborations can add more than the sum of their parts. N. Boukhatem UMP

The The governmentgovernment roleroleCreating a series of technology and

innovation centers which will commercialize innovation and research to be competitive on the world stage.

Centers for high value manufacturing,Centers for health technologiesCenters for renewable energy Centers for high-performance

computingN. Boukhatem UMP

Research Research InfrastructureInfrastructure

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NATIONAL DESIGN NATIONAL DESIGN COUNCIL COUNCIL

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DESIGN DESIGN The importance of design as a tool for

innovation, productivity and economic growth is largely accepted around the world.

China’s Premier Minister, Wen Jiabao has stated a desire to move from “Made in China” to “Designed in China”.

Other Asian governments are vigorously committed to the promotion of design, notably those in Singapore, Korea and Malaysia.

Similar drives are evident around the world and there is enhanced focus in Europe

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What’s Design?What’s Design?Design is what links creativity and

innovation. It shapes ideas to become practical and attractive propositions for users or customers. Design may be described as creativity deployed to a specific end

It is the use of structured thinking, tools and processes to develop solutions that are human-centred and fit for purpose

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National design National design strategies in the Far East strategies in the Far East Asian governments are vigorously

committed to the promotion of design, notably those in Singapore, Korea, Malaysia and China

The scale of investment in building design capability in the Far East is considerable ◦ As an example: design investment by the

Korean Government as a proportion of GDP is nearly ten times greater than in the UK

◦ It has ambitions to increase the number of firms with in-house design teams from 20,000 to 100,000 and to treble the value of its design sector

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Design in European Design in European innovation policy innovation policy

In May 2010, the Ministers in charge of competitiveness in the Council of the European Union adopted conclusions on design as a driver of user-centred innovation and are introducing a European Design Innovation Initiative

Many individual European nations have design bodies that promote the use of design, notably Germany, France and the Scandinavian countries

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DesignDesign policies in North policies in North America America

US administration is currently considering plans for an American Design Council. Establishment of such a body to work in partnership with US Government underpins a series of proposals from the US National Design Policy Initiative

Canada currently has strong regional design support which has encouraged growth of design capability in Quebec and Ontario

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NDC ANDC Aactivitiesactivitiesactivities include: projects to improve business

competitiveness, such as design mentoring to help small businesses thrive and help universities to bring science to market

projects for the public sector to procure design effectively, improve service design and reduce cost

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Functions of the National Functions of the National Design CouncilDesign Council

1. Support : design mentoring for those who want to use design in business, universities and the public sector

2. Challenges : design-led projects and competitions for the private sector to help the public sector solve big social and economic challenges

3. Insight : research and advice on policy development

4. Investment : networks and resources to help share knowledge and develop design skills N. Boukhatem UMP

Technology and Technology and Innovation CentersInnovation Centers

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Technology and Innovation Technology and Innovation CentersCenters

(TIC)(TIC)The 21st Century will be a time of rapid

innovation and technological change that will be spurred on by the grand

challenges that we face, including climate change and the demands of an

ageing societyThere are already a number of candidate

technology areas including, stem cells and regenerative medicine; future internet technologies; plastic electronics; software & technologies addressing renewable energy and climat change; satellite communications; fuel cells; advanced manufacturing; and composite materials, amongst many others.N. Boukhatem UMP

TICs Definition TICs Definition TICs are defined as organizations

focused on the exploitation of new technologies, through an infrastructure which bridges the spectrum of activities between research and technology commercialization. These can be in both established technology areas and in new, emerging technologies.

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Role of Technology and Role of Technology and Innovation CentersInnovation Centers

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Economic ContextEconomic Context

It used to take many years, often decades, for academic discoveries to be commercialized. This has changed into a race between nations to bring new technologies to market more quickly, to gain first mover advantage and establish a dominant market position in the following years

Smaller countries can however compete, as Finland has shown with Nokia

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Role of TICsRole of TICsThe specific role of TICs varies

according to the innovation system and economic and social landscape of the countries they operate in.

However a shared rationale exists for TICs that bridge the gap between academic discovery and commercial exploitation N. Boukhatem UMP

Shared characteristics for Shared characteristics for developing TICsdeveloping TICs

It is common for TICs to be focused on sectors or technologies which capitalize on local and national strengths rather than have a wider spread of institutes in many technology or sectoral fields

Most benefit from long-term, sustained and predictable flows of public funding, although the level and type of funding varies significantly. N. Boukhatem UMP

shared characteristics for shared characteristics for developing TICsdeveloping TICs

The workforce is recruited from the academic and private sector and possesses research, technology development and commercialization skills

TICs are expected to supplement core funding by winning additional income from public and private sector contract research, and through the commercialization of IP

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shared characteristics for shared characteristics for developing TICsdeveloping TICs

Strong governance structures are in place in many to provide strategic direction and ensure the quality of services provided to business

Almost all operate with a high degree of autonomy to manage the achievement of their objectives

A strong brand has been found to reinforce a TIC or network of TICs by making them a more attractive partner to the private sector and for international collaborations

International collaborations are widely undertaken with many within the EU, and leveraging significant funding from the Framework Program

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Science and Technology Parks

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What is a Research What is a Research Park?Park?

Also referred to as research parks, science parks, technology parks, technopoles, science centers, business innovation centers, and centers for advanced technology

The International Association of Science Parks defines a Science Park as: “an organization managed by specialized professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge-based institutions.N. Boukhatem UMP

S&T Parks a rapidly S&T Parks a rapidly growing phenomenongrowing phenomenon

S&T Parks are a rapidly growing phenomenon and an increasingly common tool of national and regional economic development. They are designed to:◦ Facilitate the cooperation that generates

higher returns on existing investments in R&D and large-scale research facilities;

◦ Meet the special needs of high-tech industries for infrastructure and associated services; and

◦ Achieve critical mass in terms of co-located research facilities and staff.N. Boukhatem UMP

Goals to be met through a Goals to be met through a Science Park Science Park

Stimulating and managing the flow of knowledge and technology amongst universities, R&D institutions, companies and markets

Facilitating the creation and growth of innovation-based companies through incubation and spin-off processes

Providing other value-added services together with high quality space and facilities

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Common characteristic of Common characteristic of successful research parkssuccessful research parks

Champions: Committed champions who match sustained, high-level attention with significant support for the growth and development of a research park.

Leadership: Effective leadership and professional management to facilitate networking among the entrepreneurs, researchers, investors, and others within and around the research park’s innovation ecosystem

Funding: Designated and sustained public funding and active private participation, combined with effective public policies to support companies that seek to convert ideas into innovations and innovations into products for the market N. Boukhatem UMP

Common characteristic of Common characteristic of successful research parkssuccessful research parks

Bridging institutions: A Board on Science and Technology, that preserve the vision of the research park over the long period it takes for parks to mature and become successful

Human resources : This term captures the positive human capital built over many years of public investments in education and skills training, public policies that encourage an entrepreneurial culture, and the presence of networks among professionals

Metrics: Effective metrics to help management set clear goals and, over time, gauge the effectiveness of the research park

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Role of Public-Private Role of Public-Private PartnershipsPartnerships

• Partnerships facilitate the transfer of scientific knowledge to real products; they represent one means to improve the output of the national innovation system

• Partnerships help by bringing innovations to the point where private actors can introduce them to the market.

• Accelerated progress in obtaining the benefits of new products, new processes, and new knowledge into the market has positive consequences for economic growth and human welfareN. Boukhatem UMP

Nonlinearity of Nonlinearity of Innovation and Research Innovation and Research

ParksParks

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University Research University Research ParksParks

University research park is defined as a “cluster of technology-based organizations that locate on or near a university campus in order to benefit from the university’s knowledge base and ongoing research”

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Win-win PartnershipWin-win Partnershipwhile parks gain knowledge and

prestige from their university partners, the universities gain as well. Association with a successful park can bring multiple benefits to a university such as:◦Higher publication rates;◦More successful patenting activities;◦ A greater ability to hire eminent scientists◦An ability to garner larger extramural

grants

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Laboratory Research Laboratory Research ParksParks

Like universities, national laboratories are also repositories of knowledge and scientific aptitude and thus represent promising nuclei for the growth of innovation clusters

The Importance of Champions“Parks don’t just happen. They

require energy, devotion, passion from leaders not only of the institution but also of the region.”N. Boukhatem UMP

Successful Research Successful Research Parks FactorsParks Factors

A strong science and industry base.

The availability of finance.The presence of entrepreneurs.The presence of trust networks

at an individual level.The opportunity for collaboration

among universities, businesses, and other organizations.

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Mega Parks in ChinaMega Parks in ChinaChina has more than 54 state-

level economic and technological development zones, and 53 national high-tech development zones,

Here after, the description of the development of three large science parks as a leading examples of Chinese policy and achievement.

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Shanghai Zhangjiang Hi-Shanghai Zhangjiang Hi-Tech ParkTech Park

Established in July 1992 in the middle of Pudong New Area, the park comprisesn the Technical Innovation Zone, Hi-Tech Industry Zone, Scientific Research and Education Zone, and Residential Zone.

The Zhangjiang High-Tech Park emphasizes three major areas of innovation: life science, which accounts for about 50% of revenues; software; and information technology

Its corporate tenants in the life sciences include six of the world’s top ten pharmaceuticals and information technology companies. Chinese tenants include more than 60 small molecule drug development companies, 35 medical device and diagnostics firms, and more than 15 traditional Chinese medicine companies.

The park now accounts for 25% of Shanghai’s GDP, 50% of foreign trade, and 30% of foreign investment.

Of 25 square kilometers, 17 are already developed, hosting more than 3,600 companies, more than 140 of them foreign, and more than 100,000 employees. N. Boukhatem UMP

Zhongguancun Science Zhongguancun Science Park in BeijingPark in Beijing

The park hosts over 20,000 enterprises and 950,000 employees, receiving total income of 850 billion Yuan (about US$124 billion)

More than 800 enterprises have income exceeding 100 million Yuan

Of the industries represented in the park, the majority (56.6%) are classified as information technology, 12.5% as “new energy,” 12.3% as biomedicine, 9.4% as advanced manufacturing, and 8.4% as new materials

The park has attracted almost 10,000 “sea turtles” (Chinese scientists who return home after acquiring skills abroad) that have set up 4,200 companies in Zhongguancun Science Park.

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Suzhou Industrial ParkSuzhou Industrial Park

Established in 1994, Suzhou Industrial Park is a unique joint development between the Chinese and Singapore governments. Located 80 kilometers west of Shanghai,

Suzhou has taken its place at the high-tech frontier of the global economy.

In land area only 0.1% and in population 0.5% of China, it accounts for 2.3% of GDP, 1.5% of financial revenue, 10% of imports and exports, and 8.3% of foreign investment

Of the Fortune 500 companies, 113 have set up operations in Suzhou.N. Boukhatem UMP

Evaluating Research Parks Evaluating Research Parks As countries, regions, and cities around

the world invest sometimes on a massive scale to create new research parks as a means to accelerate technological and economic transition, the task of measuring the contribution of becomes more important

Research parks should be evaluated to make them more accountable to the public that invests in them and to understand, improve, and measure the benefits they provide to universities, laboratories, and businesses and to contributing scientists and engineersN. Boukhatem UMP

The Challenge of The Challenge of EvaluationEvaluation

Some Possible MetricsSome Possible MetricsMeeting the goals of legislation. Return on public investments. Enhanced firm performanceEnhanced university performanceValue of the park to tenants.

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RéférencesRéférences Understanding Research, Science and Technology Parks:

Global Best Practice: Report of a Symposium. Charles W. Wessner, Editor; Committee on Comparative Innovation Policy: Best Practice for the 21st Century; National Research Council. ISBN 978-0-309-13789-8

Innovation and Research Strategy for Growth. Presented to Parliament by the Secretary of State for Business, Innovation and Skills by Command of Her Majesty. December 2011

The Current and Future Role of Technology and Innovation Centres in the UK. A Report by Dr. Hermann Hauser For Lord Mandelson Secretary of State Department for Business Innovation & Skills

THE DESIGN COUNCIL. A Review by Martin Temple CBE OCTOBER 2010 . Department for Business, Innovation and Skills . UK

S&T Strategies of Six Countries: Implications for the United States. Committee on Global Science and Technology Strategies and their Effect on U.S. National Security; Standing Committee on Technology. Insight-Gauge, Evaluate & Review; National Research Council. THE NATIONAL ACADEMIES PRESS 500 Fifth Street, N.W. Washington, DC 20001

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S&T strategies of countries achieving remarkable growth

in their S&T capabilities:

Japan, Brazil, Russia, India, China, and Singapore

(JBRICS)N. Boukhatem UMP

BrazilBrazilIncrease in national spending on

research, development, and innovation (RD&I) from 1.02 percent of GDP in 2006 to 1.5 percent of GDP in 2010

Increase in private investment in RD&I from 0.51 percent of GDP in 2006 to 0.65 percent of GDP in 2010

Substantial increases in scholarships for researchers, and the creation of new technology centers

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BrazilBrazilThe National Council for Scientific

and Technological Development (CNPq) created the National Institutes of Science and Technology

Located in 16 different states in Brazil and function as a national S&T network.

The institutes were funded with approximately $330 million in investments N. Boukhatem UMP

BrazilBrazilBrazil is attempting to

strengthen ties between industry and academia to engage professors directly in industrial development.

The government currently runs a program that pays half the salaries of Ph.D. researchers for their first three years of employment in industryN. Boukhatem UMP

BrazilBrazilBrazil’s academic base has

grown significantly during the past 10 years, as the number of master’s and Ph.D. degrees has grown about 12 percent per year

In 2007, 10,000 doctoral degrees were awarded, and the nation hoped to reach 16,000 by 2010.

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ChinaChinaChina’s economic growth and

subsequent investment in S&T is transforming it into a regional and global hub for not only industrial production but increasingly also for industrial R&D, and to a lesser extent, basic research.

China is host to more than 1,200 foreign-invested R&D centers, which represents 3% of developed countries’ global R&D investmentsN. Boukhatem UMP

To gain technological and therefore economic self-sufficiency :◦Increasing the domestic technological input to 60 % of economic growth

◦ limiting the overall dependence on foreign technology to less than 30%

ChinaChina

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China aims to raise national investment in R&D to 2 percent of GDP by 2010 and 2.5% by 2020, from the current percentage of about 1.5%

China’s share of scientific and engineering citations grew by about 20% annually between 1974 and 2005.

China’s patent outputs have risen sharply in recent years but only 1 percent are regarded as being of high value

ChinaChina

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IndiaIndiaIndia’s system for S&T innovation

is comprised of central and state government agencies as well as public and private organizations.

400 national laboratories, 400 R&D institutions in the government sector

1,300 R&D organizations in the industrial sector

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300 universities and educational institutions produce more than 450,000 S&T personnel every year

400,000 personnel are employed in R&D establishments

Recognizing that India’s skill base is growing, more than 300 multinational companies have opened their R&D centers and laboratories

IndiaIndia

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R&D expenditures were expected to reach a level of $330 billion in 2005-2007 and $380 billion in 2007-2008.

Stated Goals include: ◦The increase of R&D expenditures

from 0.9% to 2% of GDP◦The increase of education

spending from 4% to 6% of GDP

IndiaIndia

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JapanJapanSeveral ministries are involved in S&T

policy, but coordination is managed by a cabinet office called the Council for Science and Technology Policy (CSTP), which reports directly to the Prime Minister

Japan’s total R&D expenditures equaled 3.67% of its GDP, the highest among industrialized nations (compared to 2.68% in the United States),

A 5 to 1 ratio of private-sector to public-sector spending N. Boukhatem UMP

Japan changed its funding model for research by increasing the fraction allocated to competitive funding

The combination of institutional reforms and increased funding for research has led to significant increases in the number and citations of papers published in major scientific journals

Japanese policymakers have placed strong emphasis on reform of the patent system. Japan has taken major steps to strengthen IP protection, including the enactment of the Basic Law on Intellectual Property

JapanJapan

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The number of university industry joint research projects has increased from about 1,400 in 1995 to more than 6,000 in 2003

Most of Japan’s S&T plans for the future consist of short-term goals to be completed in five years or less. Goals aimed at specific tasks, such as refinement of a particular manufacturing process or development of a new generation of equipment, are generally met

JapanJapan

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RussiaRussiaMore than 50 percent of the

Russian population has a higher education, compared with 24 percent of the American population

Russian S&T planning processes and investment strategies are top-down and highly centralized with political leaders playing a dominant role

Russia’s strategies attempt to address the current weaknesses of the Russian S&T system, which include:

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Lack of entrepreneurship and experience in transferring basic research into innovative technologies and ProductsOverwhelming dominance of government S&T fundingObsolete (and often corrupt) top-down funding mechanismsInsufficient system of IP rights to encourage entrepreneurshipOutdated higher education system with little research at universitiesEmigration of young talent, further exacerbated by Russia’s population decline, resulting in an aging S&TEstablishment that will resist culture change

RussiaRussia

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Recently, Russia has been improving the basic elements of its innovative infrastructure through the development of the following :

55 technological parks66 innovative-technological centers

(ITCs)80 business incubators86 centers for technologies transfer10 national information-analytical

centers, that is, digital libraries (NIACs)

RussiaRussia

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SingaporeSingaporeCurrent plan for developing S & T, almost tripled research and development (R&D) funding, raising it to U.S.$9.8 billion. At the onset of this plan, a high-level Research Innovation and Enterprise Council (RIEC), chaired by the prime ministerThe RIEC has a three-part mission :

◦Catalyze new industries through strategic research programs

◦Expand research capacity to create new knowledge

◦Nurture innovation and entrepreneurship to exploit new knowledge

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SingaporeSingaporeVenture capital firms are working

closely with the research institutes and technology incubators to develop spin-off companies

As of 2008, 72 percent of R&D funding was supplied by the private sector.

As an example of knowledge-based economic growth, the number of nanotechnology-related companies has grown from 10 in 2004 to 58 in 2009 N. Boukhatem UMP

Singapore Economic Development Board executes strategies to make Singapore a global hub for business investment and talent

The Standards, Productivity, and Innovation Board (SPRING) supports the development of small- to medium-sized enterprises with funding to execute intellectual property (IP) strategy

Recruitment of international scientists and engineers has been initiated at an impressive level.

Unique facilities at Biopolis and Fusionopolis, coupled with an extended funding commitment that liberates top R&D talent from the obligations of proposal preparation

SingaporeSingapore

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