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The fundamental role of Universities on the The fundamental role of Universities on the inception and growing of Innovation and Business Clusters inception and growing of Innovation and Business Clusters

with real Economic Impactwith real Economic ImpactJosé Basílio Simões

Founder CEO of ISA, Invited Professor at University of Coimbra

IICM Mateus Meetings, 23rd-25th September - Universities, Knowledge Partners for Intelligent Communities

We have a competitiveness issue…

Evolution of the position of Portugal in the ranking:

2001 2005 2010 201125º 22º 46º 45º

Top 50...

Position 45 of Portugal corresponds to 77% of the score of the leader: Switzerland

Idea is not enough...

What is the Competitiveness?

“We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the level of prosperity that can be earned by an economy. The productivity level also determines the rates of return obtained by investments in an economy, which in turn are the fundamental drivers of its growth rates”

Portugal must act immediately in order to increase the capability of creating and delivering value into the economy!

Idea is not enough...

Where should we act?

Portugal is in the stage 3 of development, which means that we have an Innovation-driven Economy

(not anymore based in the low price of the goods or low labor costs...)

Why did we lose competitiveness?

Portugal is improving the pillars that were already good, and getting worse in the weak pillars!

How we compare with “countries like us”?

In terms of Competitiveness, Portugal is dangerously in the tail of this club of “countries like us”…

How we compare with “countries like us”?

Portugal ranks very well in Infrastructure and Technological Readiness pillars, but very bad in Institutions and Innovation pillars!

Portugal and “Countries like us” benchmarking...

Innovation is turning into the best opportunity for business growth!

Top 5 countries confirm the importance of Innovation!

Innovation, Labor market efficiency and Country’s Institutions are crucial to the Competitiveness!

Innovation

We need Innovation. … but that is not simply having an idea!

Innovation is the creation and delivery of new customer value into the marketplace with a

sustainable profit for the enterprise.

So… we need customers!We must focus into the important customer and market needs! ... and this is true also for the Universities!

Investing in R&D is also not enough…!

However… remember that Productivity level determines the rates of return obtained by investments in an economy… which in turn are the fundamental drivers of its growth rates”

We must improve our capability of converting R&D investment into economic value! That is Innovation!

Since 2005 Portugal has been the European country with the higher increase in the R&D budgets! (we are now the 16th in Europe, spending more than Norway and Spain for instance, as a percentage of the GDP)

Entrepreneurship is the key!

We must develop an entrepreneurial mindset in our young people. That mindset should be present everyday, everywhere, either when we are students, employees or promoters of a new venture!

This should be a key priority for the University (and for the School...). Customer and Market Focus, Value Proposition, Negotiation techniques, Business Model, Planning of Operations, Taking Risks...

-> are topics that should be addressed by the Universities!

As a CEO, I need to hire entrepreneurial people in order to grow my business. Customer and Market Focus, Value Proposition, Negotiation techniques, Planning of Operations, Taking Risks... -> topics that should be addressed by the Universities!

I also need new local innovative companies that I can subcontract! (Innovation Ecosystem...)

So... The University must align with those goals:- the criteria to finance the University- the KPIs of each Group/Department- the Compensation Plans of the Professors- the criteria to conduct the performance appraisals and

sorting of the Professors

Role of the University

Role of the University

Entrepreneurs and new startups are not enough!

We need to create and deliver to the market sustainable value... It is mandatory that companies grow, as fast as possible. If they have a sustainable and scalable business model, they should be “easily” internationalized...

Universities should be very concerned with that.Universities should “work” to help local companies to grow (be focused in the market and customer needs; be aware of the market dynamics!).Helping companies to grow is the best strategy to translate R&D budget into real economic value.So, Universities should measure and be ranked by the creation and delivering of economic value into the society.

We are what we share!

As important as the entrepreneurial mindset is the development of a truly sharing attitude. Sharing is crucial to build an innovation ecosystem that could help everybody, every company to grow and to succeed faster. Sharing contacts, sharing ideas, sharing experiences and, above of all, sharing the failures and the reasons of that. All of us learn with our mistakes, but wisdom is really learning from other people’s mistakes. That’s why smart people love to share, because we cannot receive if we are not used to give!

Silicon Valley

If you look into the reasons why Silicon Valley is what it is, you quickly find out that main reason is due to the innovation ecosystem. For long time world-class engineering, marketing and sales talent from all over the globe are attracted to that environment where academics, investors, lawyers, public relation specialists and many others who understand their role in starting and scaling the hottest tech companies are used to share not only their successes but also their failures. Young people who want to startup their own new venture can easily learn from experienced investors and serial entrepreneurs.

What is and Why a Living Lab?

ISA Living Lab

Platform for exchanging the best practices towards the user driven open innovation of products and services, in our case specially focused but not limited to the metering and sensing domains of Energy and Health.

Open community / ecosystem that facilitates the establishment of partnerships between the different actors involved in the co-creation and full life cycle of a new product or service from idea to the market launch.

ISaLLISaLL - - Intelligent Sensing and Smart Services Living LabIntelligent Sensing and Smart Services Living Lab

SmartBuildings

SmartSchools

SmartHome

SmartHealth

SmartMobility

SmartCity, SmartRural

International Connections

Luleå LLLuleå LL Helsinki LLHelsinki LL

Lisbon LLLisbon LL Amsterdam LLAmsterdam LL

ISAISA

KyabKyab PVPV

PWPW

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Par

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Integrated Solutions Partnership

Integrated Solutions Partnership

Technology TransferTechnology Transfer

Vitória LLVitória LL

Business Partnership

Business Partnership

HAEHAE

Integrated Solutions Partnership

Integrated Solutions Partnership

Escelsa Escelsa LLLL

Bandeirantes LLBandeirantes LL

ISA LLISA LL Electro-Paulo LLElectro-Paulo LL

ISAISA

Bus

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usin

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Par

tner

ship

Business Partnership

Business Partnership

Vitória LLVitória LL(APOLLON pilot)(APOLLON pilot)

APOLLON Pilot

APOLLON Pilot

R&D PilotsR&D Pilots

R&

D P

ilots

R&

D P

ilots

R&D Pilots

R&D Pilots

Business PartnershipBusiness Partnership

Business ModelBusiness Model

North of Europe… Brazil…

The role of the University

Entrepreneurial and sharing attitudes are characteristics that we cannot teach, neither we can learn reading a book or an excellent paper. We should practice them! The University should be aware of that and promote and facilitate that kind of behaviours.

The University has a fundamental role on the inception and growing of Innovation and Business Clusters with real economic impact.

Thank you for your attention

Contact:Jose Basilio SimoesPresident and CEOjbasilio@isa.pt