API – Medellin- 2013

A PROPOSAL FOR API TO SPONSOR AN

INNOVATION & ENTREPRENEURSHIP INSTITUTE (Instituto innovacion y emprendimiento)

By

Robert D. Kersten, Ph.D., PE, D.WRE, F.NSPE. Dist.MASCE, API

Dean & Professor Emeritus

University of Central Florida

THOMAS MARSHAL (VP/EEUU) 1913-1921

“LO QUE ESTE PAÍS NECESITA ES UN

BUEN CIGARRO DE CIENTO CINCO”

“WHAT THIS COUNTRY NEEDS IS A GOOD FIVE CENT CIGAR.”

WE ARE IN A RUT (Doing same old thing,

expecting different results)

INTRODUCTION • Goal of EftA…”create jobs” (Innovation & Entrepreneurship)

• Support OAS ComCyT Working Group 2… (HR and Education)

• Support of OAS RIAC (Interamerican Network for Innovation)

Everybody wants to be an engineer

• Truth in Engineering - AUDI

• Engineering is beautiful - CHRYSLER

• Power of VW Engineering - VOLKSWAGEN

• Inspired Engineering - TOSHIBA

• Engineered to amaze – QUICKEN LOANS

• Liquid Engineering - CASTROL LUBRICANTS

• Financial Engineering – KUBA

• Engineered wheat - MONSANTO

Why “Engineering for the Americas?” A MATTER OF ENGINEERING LEADERSHIP!

“Either the engineering profession will broaden greatly or the society will suffer because the matching (between society and technology) will be too haphazard”…”a greater engineering needs to evolve”…”it will come to embrace much more of the issues at the technology-society interface.”

Simon Ramo (NAE)

New crises challenge global economies, with heavy consequences for Pan American countries.

Pan American Engineering must therefore play a still more important role. New challenges require

additional creativity, more technological resources, organization and a generous dose of courage.

Claudio Amaury Dall’ Acqua Presidente UPADI 2000-2008

PRIOR CONSIDERATIONS

FORBES on INNOVATION

“The skills, ingenuity, training and expertise of the human capital that you develop will determine the long-term prosperity of the economy, and indeed

will determine the long-term prosperity of the world.”

Hon. Alex Salmond, MP

First Minister of Scotland

UN Resolution

• Recognizing the important contribution entrepreneurship can make to sustainable development by creating jobs and driving economic growth and innovation, improving social conditions and contributing to addressing environmental challenges, and stressing the importance of giving appropriate consideration to the promotion of entrepreneurship in the context of the discussions on the post-2015 development agenda, Recognizes that technological improvement, particularly through the diffusion of technology, can provide new opportunities for businesses to improve their compectitiveness, and in this regard encourages Member States to increase cooperation in support of technology exchange and transfer, innovation, and capacity-building programmes for promoting the teaching of entrepreneurial skills; entrepreneurship also recognizes the value of teaching at all levels of education, ensuring the full and equal participation of women and girls, and encourages entrepreneurship education through skills development, capacity building, training programmes and business incubators

67th General Assembly

13

ENLIGHTENED VIEW…

“Building engineering capacity intersects the needs of multiple stakeholders, proving the broadest possible opportunities to improve economic vitality and security, mitigate poverty, foster community health and improve long-term quality of life.” (Insulza-OAS) “

THE PROBLEM

• Few direct measures of the global S & E

work force exist

• Define roles of professional engineers and scientists engaged in conception and creation of new knowledge , products, processes, methods and systems.

• What are the indicators that reveal progress toward stated objectives?

HOWEVER…several attempts have been made… • Knowledge Economy Index

• Leading Indicators of Economic Competitive Index

• Innovation & Competitivity Index

• Patents & Publications

• Global Innovation Index

• R&D as % of GDP

• Doing Business Rankings

• Etc. Mostly WB, IDB, or NSF data

WB

IDB

Knowledge Economy Pillars

• The Economic Incentive and Institutional Regime Tariff & non Tariff Regulatory Quality; Rule of Law

• Education and Human Resources Adult Literacy Rate; Secondary & Tertiary Enrollments

• The Innovation System Researchers in R & D; Patent Applications in US PIO Scientific & Technical Journal Articles

• Information and Communication Technology Telephones, Computers, Internet Users per 1,000

World Bank Institute

LEADING INDICATORS OF TECHNOLOGICAL COMPETITIVENESS

• National Orientation

(Strategies, Social Influences, Entrepreneurial Spirit)

• Socioeconomic Infrastructure

(% Pop. in Secondary & Tertiary Educ. Mobility of

Capital, Foreign Investment

• Technological Infrastructure

(No. of S/E in R&D, Purchase of Electronic DPE,

Ability to train citizens in academic S/E)

• Productive Capacity

( Availability of skilled labor, existence of high-tech companies,

Level of management ability, Current production)

Global Competitiveness vs GDP per Capita – WEF 2012

y = 13.944ln(x) - 55.888 R² = 0.8621

0.0

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0 5000 10000 15000 20000 25000 30000 35000 40000

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GDP/Capita

COMPOSITE RANK (A Pareto Distribution)

• OAS REPORT TO MINISTERS OF CyT

• No Top-Ranked Engineering Universities:

Of the 100 Top Engineering Schools worldwide (76 in Developed Countries; 24 in Korea, China and India), none are from LAC countries.

• Low Innovation

LAC countries on average rank 91st out of 139 countries in technological innovation and 71st in innovative patent production, according to the Global Competitiveness Index. In contrast, South Korea ranks 11th and 5th in these respective categories.

• Declining Competitiveness

LAC as a region invests only 0.67% of its GDP in R&D, compared with 2.3% in OECD countries and 3.1% in South Korea.

• Few Partnerships

Limited Industry-government-university relationships and limited opportunities for entrepreneurship.

EftA TM

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MATTERS BECAUSE

EDUCATION MATTERS

An Example: FINLAND- AALTO UNIVERSITY

• FINLAND is one of the top performing countries in the world in terms of education, innovation and the quality of life. • A flagship project of the recent university reform in FINLAND. • Our goal is to become a world class university by the year 2020. Finland 2012

UNIVERSITIES ARE THE INCUBATORS OF PROSPERITY

• KNOWLEDGE

• RESEARCH

• INNOVATION

• ENVIRONMENT

• SUSTAINABILITY

• ENTREPRENEURSHIP

Charles Holliday

DuPont de Nemours

Invention/Discovery Favors the Prepared Mind

World Economic Forum Unlocking entrepreneurial capabilities to meet the challenges of the 21st Century

Thomas Edison and GE

The dynamo at the

1876 Centennial

would spark over a

century of dynamic

innovation at GE.

INNOVATION as a process

• change, alter, improve, adapt

• make it bigger, smaller, wider, taller

• alter materials, add IT in some way

• electrify, mechanize, automate

• consider sustainability, is it eco-friendly?

• add a function, simplify

• be an agent of change

• rethink possible

• “There is always a better way.” Thomas Edison

“ WHAT HATH GOD WROUGHT”

Leave the beaten track occasionally and dive into the woods. Every time you do so you will be certain to find something that you have never seen before. Follow it up, explore all around it, and before you know it, you will have something worth thinking about to occupy your mind. All really big discoveries are the results of thought."

Alexander Graham Bell

ORVILLE & WILBUR WRIGHT

1903

FORD a HISTORY of INNOVATION

INVENT, INVENT, INVENT

The country that uses this crisis to make its population

smarter and more innovative-- and endows its people

with more tools and basic research to invent new

goods and services– is the one that will not just survive

but thrive down the road.”

Thomas I. Friedman

NYT 27 June 2009

HEWLETT PACKARD-The Legendary Garage- 1939 367 Addison Avenue, Palo Alto, California

INNOVATION…CONSIDER A PROBLEM

• What is the problem?

• Do we understand the problem?

• Does it present an opportunity?

• What do you think about that?

• What’s in it for our stakeholders?

• How can I help do that?

• How could things work better?

• Open markets foster innovation!

INNOVATION

• To win…”Think like an entrepreneur.” (Audrey MacLean, Investor/Angel)

• “Nothing is impossible. The idea that everything

is possible was ingrained in me from my time

in the military.” ( Doron Kempel, former Israeli

Soldier, now Tech. Innovator/Entrepreneur.)

Consider the ENVIRONMENT

• The tale of the 1911 race to the South Pole between GB’s Robert Scott and Norway’s Roald Amundsen provides an interesting example.

• The Norwegian adapted many techniques already in use by the Inuit Eskimos in the Arctic, including sealskin clothing worn inside out to keep his men warm and dry.

• He used sled dogs and fed on seals and penguins along the way.

Consider the ENVIRONMENT • In contrast Scott bet on the superiority of “modern” science…after all

GB’s technology had been instrumental in its world dominance.

• Scott use crawler tractors, which either sunk in the ice and snow or were abandoned.

• He took Siberian ponies, which breathe and sweat through their skin.

They promptly got ice sheets on them and died.

• Norway planted its flag first with no casualties.

• The entire British team perished.

Courtesy Gary Schilling

Forbes.

Suggested Solution

• “DRAFT”

• PROPOSAL

• FOR ESTABLISHING AN

• INNOVATION AND ENTREPRENEURSHIP INSTITUTE

• BY THE PAN AMERICAN ACADEMY OF ENGINEERING

OBJECTIVE – Creation of STARTUPS…

… the introduction of something new or different into a product, system or process; a new idea,

method, or device ; the act of innovating;. In this context, innovation include, but not limited to, creation of new business tools, optimizing the output of, reducing the liabilities due to, improving the productivity of, and increasing the reliability of devices, systems and processes

INSTITUTE ORGANIZATION

Headquarters collocated with API Board of Directors & Director Partnerships with leading Universities Cooperation with Professional Engineering Societies Instruction sites in various countries Opportunities for Creative Public-Private Partnerships (P3)

Who Are The STUDENTS

• It is recommended that we start with new

career professionals, i.e. post graduates.

• Persons exposed to productive sector.

• Persons excited by their interests.

• Persons recognizing things can be done another way.

• Persons asking why not?

THE CURRICULUM

Program development

Fundamentals of business

Innovation process

Proposal for ‘start-up’ enterprise

Information resource

Incubator sites

Cooperation with major universities

One week full-time short course (for example)

ROEBLINGS & BROOKLYN BRIDGE - 1883

THE INCA ROAD

An Era of Change… Democratic Republic of Congo

“I’m convinced the question of development is mainly an issue of governance and leadership.”

Augustin Matata Ponyo

Prime Minister – DRC (Forbes 2013)

Engineering - R&D CENTERS - DESIGN CENTERS Entrepreneurship Culture – Incubators - Partners

INTERRELATIONSHIPS

Pan American Academy of Engineering

INNOVATION & ENTREPRENEURSHIP INSTITUTE

Time Day One Day Two Day Three Day Four Day Five

Location Location2 Location3 Location4 Location5

8:30-9:00 Introduction Introduction Introduction Introduction Introduction

9:00-10:00 Innovation Process Patent Law Mnagement Proof of Concept Buyout Fundamentals

10:00-10:30 Break Break Break Break Break

10:30-11:30 Entrepreneurship Intellectual Property Import-Export Testing Business Development

11:30-12:30 Business Fundamentals Licednsing of Products Int'l Banking Research Commerciaalization

12:30-2:00 Lunch Lunch Lunch Lunch Lunch

2:00-3:00 Basic Accounting Contracts Consultants Incubators Best Practices

3:00-4:00 Balance Sheets Financing Emvironmental Scan Prototyping Oral Defense

4:00-4:30 Break Break Break Break Break

4:30-5:30 Banking Market Research Regulatory Matters University Partnerships Oral Defense

5:30-6:30 Investor/Angels Case Studies Case Studies The Innovative Idea Start-up Enterprise

Dinner Dinner Dinner Dinner Dinner

Draft Schedule for Five Day Event