UNIVERSITIES IN THE NATIONAL SYSTEM

1
PROMOTING NETWORKS OF INNOVATION FOR DEVELOPMENT
AND JOBS
UNIVERSITIES IN THE NATIONAL SYSTEM
Collaboration between Higher Education and
companies International experience
Bob Hodgson Zernike (UK) Limited
Buenos Aires June 2006
2
Structure and purpose
Structure

• Messenger
• General points about innovation
• Focus on universities
• Examples of innovative practice
• Some generalisations about success

• Purpose
• display differences and stimulate interest in
  change

Bob Hodgson
Buenos Aires, June 2006
3
Messenger Zernike model
PRIVATE with partnership culture

• International integrated technology
  entrepreneurship
• Specialist property
• Seed and start-up funds
• Business networks and globalisation
• Consultancy and positioning

BIOLOGICAL CULTURE
Divide to grow combine for value
Bob Hodgson
Buenos Aires, June 2006
4
Components of the Innovation System

• The main components of the innovation system
• Knowledge generators
• Knowledge based firms/knowledge users
• Innovation culture
• Active tools
• Competences and skills
• Processes and procedures for interaction
• Policies to stimulate innovation
• Specialist infrastructure
• Incentives and rewards

Bob Hodgson
Buenos Aires, June 2006
5
Components of the Innovation System

• Universities in the innovation system
• Knowledge generators
• Knowledge based firms/knowledge users
• Innovation culture
• Active tools
• Competences and skills
• Processes and procedures for interaction
• Policies to stimulate innovation
• Specialist infrastructure
• Incentives and rewards

Bob Hodgson
Buenos Aires, June 2006
6
Typical Systems Model of Innovation
Innovation system
Bob Hodgson
Buenos Aires, June 2006
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Really much more like this!
Vision
Infrastructure
Culture
Processes
Knowledge based firms
Active funds
Competences
Policies
Knowledge generators
RD performers
Civil Society
SHARING OVERLAPPING INTERACTING
INTER-DEPENDENT MULTIDIRECTIONAL COMPOST HEAP
Bob Hodgson
Buenos Aires, June 2006
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Typical models the classic linear system
SCIENCE PUSH
Commercial Application
Applied Science
Development Technology
Pure Science
Bob Hodgson
Buenos Aires, June 2006
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Underlying models classic systemic models
Bob Hodgson
Buenos Aires, June 2006
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Typical model Kline-Rosenberg
Bob Hodgson
Buenos Aires, June 2006
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Typical model Callon et al
Bob Hodgson
Buenos Aires, June 2006
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Technology sources
Where do firms look for technology and innovation?

• Customers
• Capital equipment suppliers
• Competitors
• Shows and exhibitions
• Peer professionals
• .
• .
• .
• .
• Public research agencies
• Universities

Bob Hodgson
Buenos Aires, June 2006
13
Universities contribution and role
Contributions in order of significance

• Graduates
• Knowledge reservoir
• Facilities and equipment
• Magnet and networks
• Social and cultural
• Research and development

Be wary of current emphasis on spin outs
Bob Hodgson
Buenos Aires, June 2006
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Sources example region Cambridge, England

• Elite research University started in 13 century
• Lots of engineering and sciences
• Alumni remain, so rich people resource
• Strong resistance to development
• Business
• 1,500 firms, with 35,000 jobs
• high tech sectors CAD to Bio
• 80 start-ups per annum
• businesses creating businesses
• specialist service periphery

Bob Hodgson
Buenos Aires, June 2006
15
Cambridge University roll call
Glaxo
SmithKline Beecham
Marconi
Bob Hodgson
Buenos Aires, June 2006
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Cambridge key contributions

• Government Nill Zero Nada Rien Niet
• A micro level initiative benign neglect
• from the science and entrepreneurial base
• key role of private science service
  organisations
• enabling and networks from university
• public and private service infrastructure
  followed
• now a business to business process
• with some coordination
• STICKY PEOPLE

Bob Hodgson
Buenos Aires, June 2006
17
Turkish universities

• Istanbul Technical University building on
  alumni
• Bilkent University, Ankara a business based
  model
• Hattchetepe University engineering partners
• Middle East Technical University creating a
  technology park

Bob Hodgson
Buenos Aires, June 2006
18
Tomsk universities

• An isolated city with 6 universities
• Change over last decade -
• Funding move to professional development income
• Teaching move to project based/problem solving
• Research breaking down the divide
• Entrepreneurship joint student business
  incubator

Bob Hodgson
Buenos Aires, June 2006
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People aspects

• Attracting young talent
• Gender boys, girls and engagement
• Migrants and returnees
• Entrepreneurs
• Combinatorial skills especially the translator
• Academic gene one genius does not a research
  team make but it sure helps to have one
• Moving the mountain shifting the centre of
  gravity in Oslo

Bob Hodgson
Buenos Aires, June 2006
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Strategies for partnership

• My door is open why dont they come?
• Alternative approaches for best results
• Formal protocol
• Ferrets and guerrillas
• Research team leadership

Bob Hodgson
Buenos Aires, June 2006
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Bridging or translation institutions
Linking technology and business

• OTRI model industrial liaison, reactive style
• Competence Centre approach Taguspark
• Network development inside and outside, EMSEN
• Region wide Oslo technopole

Bob Hodgson
Buenos Aires, June 2006
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The Commercialisation Cycle
Risk Of Failure
HIGH
LOW
Product Development Stage
CommercialValue

• gt Market consolidation
• gt Market expansion
• gt Market penetration
• gt Product enhancement
• gt Sales distribution
• gt Product development
• gt Marketing research
• gt Prototyping
• gt Market definition
• gt Innovation RD

IPO/MBO /Trade Sale
VC/ Expansion
Fiscal approaches
VC/IIF
Seed
SourcesOf Funding
Angels/3Fs
RD
Tier 0
Tier 1
Tier 3
Tier 4
Tier 5
Tier 2
Business Development Tiers

• Tier 2 - Incubation
• Mentoring
• Seed funding
• Contacts
• Consulting
• Clients

• Tier 3 - Post-incubation
• Funding
• Structuring
• Relationships etc

• Tiers 4/5 - Commercial Maturity

• Tiers 0/1 - Pre-incubation
• Direction
• Collaboration
• Guidance
• Resources etc
• Pre-Seed funding

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White Rose Consortium, UK
Competitive funding for university spin outs

• Competitive bid for university challenge funds
• Consortium of three universities
• York Sheffield Leeds
• 3 million euro
• Managed by private agents
• After proof of concept and before seed
• Emphasis on biotech

Bob Hodgson
Buenos Aires, June 2006
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Example region Pais Vasco, Spain

• Rebirth of an old industrial area
• Multiple strategies art, tourism and technology
• Plan for Science and Technology second cycle
• Research Centres industry led and owned
• multiple funding streams
• young talent
• perspective of global excellence
• creation of a joint strategic approach

Bob Hodgson
Buenos Aires, June 2006
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IP rights and commercialisation

• Protecting the Right
• laws and practice essential but not sufficient
• publish but protect timing and management
• Whose is it anyway?
• legal default owned by employer
• practical reality shared with investor
• Creating the Wealth
• accidents and scale active commercial
  management essential
• licence or new business different demands

Bob Hodgson
Buenos Aires, June 2006
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Route choice for application of knowledge
Asking the right question

• Developing strategic partnerships
• Service provision
• Licensing IP
• Setting up a new business

Bob Hodgson
Buenos Aires, June 2006
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Incubation and incubators
A process to develop high growth firms

• Climate and culture valuing enterprise
• Assistance pre launch Incubator of Ideas
• Launch and market - INCUBATOR
• Harden and move on
• Celebration and empowerment
• Post graduate assistance and pay back

Bob Hodgson
Buenos Aires, June 2006
28
Differentiation and focus
One size does not fit all

• Market dynamic innovate and die v innovate or
  die
• Technology imperative bio compared to ICT
• Purchasing dynamic security and health

BUT SUSTAINED SUPPORT IS ESSENTIAL
Bob Hodgson
Buenos Aires, June 2006
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Differential research intensity
Bob Hodgson
Buenos Aires, June 2006
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Incentives

• Integrated policy framework needed
• action oriented incentives aligned with actors
• with specific provision for
• firms - to promote investment and linkages
• academia - to secure core and to exchange
• government - explicit responsibility and funds
• finance - especially seed and venture capital

Bob Hodgson
Buenos Aires, June 2006
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Key lesson 1

• Stress the interaction more than the
  infrastructure
• Integrate the instruments at delivery point
• Create a unified and shared vision
• Have the highest quality of management
• Be market oriented for sustainability

Its an accelerating escalator
Bob Hodgson
Buenos Aires, June 2006
32
Key lesson 2

• WHAT MAKES THE DIFFERENCE?
• Four crucial ingredients

• Vision - having a clear shared vision of
  future
• Language - being able to talk to each other
• Incentive - funding to lubricate and rewards
• History - no substitute for doing it

Bob Hodgson
Buenos Aires, June 2006
33
Messages to remember now

• Broadly chaotic system so needs persistent
  external energy source to achieve coherent
  stable outcomes
• Recognise and design for diversity
• People are the question and the answer
• Build and use influence and dont take things as
  fixed
• Culture is crucial but can be changed over long
  term
• Create the history no substitute for doing it

Bob Hodgson
Buenos Aires, June 2006
34
Critical success factors recent films!

• Lost in Translation cultural differences matter
• Habler con Elle keep communicating
• The Incredibles being super can be the problem
• and the solution

Bob Hodgson
Buenos Aires, June 2006
35
Thank You
BOB HODGSON ZERNIKE (UK) Ltd The Grove High
Street Sawston Cambridge UK CB2 4HJ 0(044)1223
526980 bhodgson_at_zernikeuk.com
Bob Hodgson
Buenos Aires, June 2006