elements of national innovation strategy

Governmental Programs

© 2006 IBM Corporation

Elements of a

National Innovation Strategy3rd Steering Committee Mtg.—Sept. 25, 2007

Alejandro P. Melchor III—IBM Philippines, Inc.


© 2006 IBM Corporation2

Why Does a National Innovation Strategy Matter?

1. Why does a National Innovation Strategy matter? It is estimated that that 91

million new jobs will be created worldwide over the next decade. The most

pressing question is: Where? Europe? The United States? China and India?

The Philippines?

2. Many of the best jobs, and corresponding economic growth, will flow to those

countries that create the most fertile environment for innovation – the Innovation

Ecosystem—underpinned by a well thought-out National Innovation Strategy and

corresponding structures, programs, incentives and investments.

3. In a highly competitive global environment, not only businesses but also national

governments have realized that innovation is the best strategy for both

collaboration and competition, and is the key to survival and competitiveness.

4. Even cities are creating their own innovation strategies.



US

UK

Philippines…

Korea

India China

Japan

Thailand

Malaysia

Vietnam

Russia

Mexico

Canada

Australia

European Union

National Innovation Strategies



National Innovation Strategies

USA: National Innovation Initiative & Innovate America Report, Legislation in Congress, President’s Innovation Agenda.

Ireland: Strategy for Science, Technology & Innovation, 2006-2013

UK: Competing in the Global Economy: the Innovation Challenge (2004)

Europe: 33 European countries have innovation strategies/policies

Canada: Achieving Excellence & Knowledge Matters:Canada’s Innovation Strategy

Germany: Partners for Innovation Initiative

Korea: Comprehensive National Innovation Strategy.

Australia: Backing Australia’s Innovation Ability – National Innovation Program with Au $3.2 Billion in funding.

India: Innovate India Report.

Thailand: InnovAsia, National Innovation Roadmap.

Malaysia: National ICT and Innovation Roadmap.

Vietnam: National Innovation Strategy



“Globalisation has made knowledge and networks key

sources of competitive advantage… We must

differentiate ourselves from others by competing not just

on cost but also on service, quality and innovation. As

we become a key node in a global network of people,

ideas, and businesses, we will create opportunities that

extend beyond the shores of an island of just four million

people...”

Mr Lee Hsien Loong, Prime Minister of Singapore

“Innovation must become a way of

life, a norm. Only then will countries

be able to compete against the best in

the world.”

YAB Dato’ Seri Abdullah bin Haji

Ahmad Badawi

Prime Minister of Malaysia

“Government support for

scientific research is not

enough. We also need to make

sure that scientific innovation

gets translated into applied

uses in business.”

Mr. Tony Blair, Outgoing Prime

Minister of the United Kingdom

“By making our economy

more flexible, more

innovative, and more

competitive, we will keep

America the economic

leader of the world.”

Mr. George W. Bush,

President of the United States

“We will seize the

opportunity of the 2008

Olympic Games,

implement innovative,

coordinated and

sustainable

development in Beijing”

Mr. Wang Quishan,

Mayor, Beijing City

“Innovation is the

foundation of the

research-based

pharmaceutical,

biotechnology and

vaccine industries.”

Dr. Harvey Bale Jr.

Director General,

IFPMA

“Continuous innovation and the

full, unfettered expression of

human capacity are

indispensable to Japan’s

economic rebirth

and revitalization.”

Mr. Junichiro Koizumi,

Former Prime Minister, Japan

Public Sector leaders speak about innovation…



Elements of a National Innovation Strategy

Talent Investment Infrastructure

Catalyze the Next Generation of Filipino Inventors & Innovators

Craft a National Innovation Education/HRD Strategy for a diverse, innovative and technically-trained workforce

Empower Filipino Workers to Succeed in the Globally Integrated Economy

Embed new academic disciplines for the New Economy in RP schools

Energize the Entrepreneurial Economy

Reinforce Risk-Taking and Long-Term Investment

Develop R&D Capacity &

Global Linkages, Determine

R&D Priorities & Reallocate

Resources

Intensify Support for S&T

and Engineering

Develop Innovation

Hotspots Through

Incubation Strategies

Create National Consensus for Innovation Growth Strategies

Create a 21st-Century Intellectual Property Regime

Embrace Open Standards, Open Source & Open

Document Format

Create networks & structures for collaboration



Talent: the Human Dimension of Innovation

Encompasses knowledge creation, education/HRD, workforce support,

with these Components:

– Create a National Innovation Education/HRD Strategy for a globally

competitive, innovative & technically skilled workforce

– Catalyze the next generation of Filipino inventors & innovators

– Empower Filipino workers to succeed in the Globally Integrated

Economy

– Embed new academic disciplines for the New Economy in universities

Policy recommendations support a culture of collaboration,

strengthening the relationship between R&D and commercialization, and

lifelong skills development



Value of education increases during times

of change

Curricula must transform to reflect the

realities of today and tomorrow

Cross-disciplinary programs and degrees

Fusing technical competency with

industry-specific knowledge and business-

process expertise

Success requires open collaboration

among academia, government and

industry

The 21st Century Demands Uniquely-Skilled People



Investment: the Financial Dimension of Innovation

Innovation—and the entrepreneurial spirit behind it—needs financing, proper incentives, and a willingness to take calculated risks.

Encompasses R&D investment, intensified support for Science, Technology & Engineering, support for risk-taking & entrepreneurship, and encouragement of long-term innovation strategies, with these Components:

– Strengthen Philippine R&D capacity, determine priorities, reallocate resources & develop global R&D linkages

– Intensify policy & financial support for the physical sciences, technology & engineering

– Energize the Entrepreneurial Economy

– Devise Incentives to Reward Risk-Taking, Long-Term Investment & Innovation

– Develop Innovation Hotspots in Key RP Cities through Incubation Strategies

Policy recommendations aim to give inventors & innovators the resources and incentives to succeed



Product and Services Innovation

Process Innovation

Business Model Innovation

Societal Innovation

Types of Enterprise Innovation



History of Innovations

60 Years of World Class Research



Infrastructure: the Physical and Policy Structures that support Innovation and Invention

Encompasses intellectual property protection, business regulation and structures for collaboration among innovation stakeholders, with these Components:

– Create a National Consensus for Innovation Growth Strategies

– Build a Government-Industry-Academia-Civil Society Partnership for Innovation as a structure for collaboration

– Create a 21st Century Philippine Intellectual Property Regime

– Embrace Open Standards, Open Source & Open Document Format

– Develop structures for open, multi-cultural, cross-industry, cross-boundary, global innovation collaboration

– Develop Innovation Metrics to measure, understand, monitor and manage innovation more effectively

– Develop Industry Roadmaps for R&D, policy and investment prioritization

Policy recommendations support a Government-Industry-Academia Partnership for Innovation, a 21st century innovation infrastructure, flexible intellectual property regime, and institutionalizing openness.



Innovation Accelerators Enable Open, Multicultural, Cross-Industry, Cross-Boundary Collaboration

Open Source

Software

Open

Standards

Open Document

Format



IP Central to Economic Growth & Competition

0

2

4

6

8

10

12

14

1954 1964 1974 1984 1994 2004

% o

f G

DP

US investment in intangible assets (>$1T/year)

equivalent to investment in tangibles

~80% of the value of modern companies

comes from intangible assets

Tangibles

Intangibles

Sources: US Federal Reserve – Nakamura, Ned Davis Research

“The competition of the future

world is a competition for

Intellectual Property Rights”Chinese Premier

Wen Jiabao

Japan intends to “bring about a

nation founded on intellectual

property”Former Japanese Prime Minister

Junichiro Koizumi

“Intellectual property is the

backbone of America's economy”

U.S. Commerce Secretary

Carlos Gutierrez


© 2006 IBM Corporation15

National Innovation Strategy Should Utilize the Tools of Public Policy to Shape the Six Foundations of the Innovation Ecosystem

THE SIX FOUNDATIONS OF A NATIONAL INNOVATION ECOSYSTEM:

Infrastructure and networks;

Collaboration;

Open Systems and Processes;

New Frontiers for Intellectual Property Development and Protection;

Skills and Training; and

Metrics and Measurement



National Innovation Strategies Shape the Innovation Ecosystem Through Tools of Public Policy

Skills and Human Resources Policies

Research and Development Funding

Labor, Trade, Tax Policies

Intellectual Property Rights

GovernmentalInitiatives

Embracing Openness

Incentives