Fostering innovation-led clusters   Sponsored by
<ul><li>Developing clusters </li></ul><ul><li>Clusters are not a new idea – they’ve been around for years, across all indu...
<ul><li>Keys to success </li></ul><ul><li>Both top-down and bottom-up approaches can work </li></ul><ul><li>Most successfu...
Silicon Valley   – the world’s most famous cluster  
<ul><li>Case study:  Singapore </li></ul><ul><li>  </li></ul><ul><li>The small city-state is now a thriving R&D hub, throu...
Talent:  the central linchpin  <ul><li>“ People are the critical ingredient” – Charles Cotton, the Cambridge Phenomenon </...
<ul><li>Case study:  Start-Up Chile    </li></ul><ul><li>Seeks to attract early-stage hi-tech businesses from around the w...
Getting the  culture  right <ul><li>A supportive culture enables innovation to flourish </li></ul><ul><li>Recognise local ...
<ul><li>Case study:  South Korea </li></ul><ul><li>  </li></ul><ul><li>Asian crisis in late 1990s was a catalyst for actio...
<ul><li>Easing barriers to innovation:  policy and finance </li></ul><ul><li>Offer tax incentives & bring corporate stock ...
Skolkovo  – Russia’s Silicon Valley?   
<ul><li>Case study:  Skolkovo hi-tech cluster tears up the rulebook  </li></ul><ul><li>Russia is home to many skilled scie...
<ul><li>The right location </li></ul><ul><li>  </li></ul><ul><li>Clusters are people projects, not building projects </li>...
<ul><li>Pitfalls:  why some clusters fail </li></ul><ul><li>  </li></ul><ul><li>Investing in white  elephants without ensu...
<ul><li>Conclusion  1  2  3  4 </li></ul><ul><li>Take a long term approach </li></ul><ul><li>Success is measured in decade...
<ul><li>Conclusion  1   2   3   4 </li></ul><ul><li>Skills and education are the linchpin </li></ul><ul><li>Excellent univ...
<ul><li>Conclusion  1   2   3   4 </li></ul><ul><li>Fragile global economy creates opportunities  for Middle East </li></u...
<ul><li>Conclusion  1  2  3   4 </li></ul><ul><li>The Middle East is developing the right fundamentals </li></ul><ul><li>H...
If you wish to  download  a PDF of the full report, please CLICK HERE   Sponsored by
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Fostering Innovation-Led Clusters

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Fostering Innovation-Led Clusters

  1. 1. Fostering innovation-led clusters Sponsored by
  2. 2. <ul><li>Developing clusters </li></ul><ul><li>Clusters are not a new idea – they’ve been around for years, across all industries, from furniture to finance </li></ul><ul><li>Definition: a group of co-located businesses and institutions in a particular field </li></ul><ul><li>The most famous examples include Hollywood, Bordeaux and the financial sector in New York </li></ul><ul><li>A successful cluster is a magnet for businesses and individuals: it’s self-reinforcing </li></ul><ul><li>This report focuses specifically on innovation-led clusters, which include R&D at their core </li></ul>
  3. 3. <ul><li>Keys to success </li></ul><ul><li>Both top-down and bottom-up approaches can work </li></ul><ul><li>Most successful clusters such as Silicon Valley have had government support </li></ul><ul><li>Focus on a niche: identify and support existing activities </li></ul><ul><li>Co-location is not enough: collaboration is an essential feature of successful clusters </li></ul><ul><li>This report focuses on 4 elements of clusters: talent; culture and quality of life; policy and finance; infrastructure and local market </li></ul>
  4. 4. Silicon Valley – the world’s most famous cluster  
  5. 5. <ul><li>Case study: Singapore </li></ul><ul><li>  </li></ul><ul><li>The small city-state is now a thriving R&D hub, through a government-led approach </li></ul><ul><li>One of the core drivers has been its long-term focus in education and skills </li></ul><ul><li>Investment sustained over decades, to bolster supply of high quality talent </li></ul><ul><li>Supports all aspects of the R&D ecosystem </li></ul><ul><li>“ If there’s one thing that is important in all this, it is talent, talent and talent”: Lim Chuan Poh, chairman, Agency for Science, Technology and Research </li></ul>
  6. 6. Talent: the central linchpin <ul><li>“ People are the critical ingredient” – Charles Cotton, the Cambridge Phenomenon </li></ul><ul><li>Specialist skills are key: quality more important than quantity </li></ul><ul><li>Universities help provide a supply of skills </li></ul><ul><li>Attracting prominent researchers or industry names speeds development </li></ul>
  7. 7. <ul><li>Case study: Start-Up Chile   </li></ul><ul><li>Seeks to attract early-stage hi-tech businesses from around the world </li></ul><ul><li>Offers US$40,000 funding, a free place to work, a one-year visa and mentoring </li></ul><ul><li>Nearly 1000 start-ups have applied for around 200 positions so far </li></ul><ul><li>Participants are expected to share knowledge and network </li></ul><ul><li>“ We want to achieve an economic change through cultural change”: Start-Up Chile executive director Jean Boudeguer </li></ul>
  8. 8. Getting the culture right <ul><li>A supportive culture enables innovation to flourish </li></ul><ul><li>Recognise local champions </li></ul><ul><li>Remove the stigma and penalties of failure </li></ul><ul><li>Tolerate different views and perspectives </li></ul><ul><li>Support quality of life: good schools, personal freedom, a thriving cultural scene </li></ul>
  9. 9. <ul><li>Case study: South Korea </li></ul><ul><li>  </li></ul><ul><li>Asian crisis in late 1990s was a catalyst for action, when 11 of its 30 largest chaebol collapsed </li></ul><ul><li>Government decided to incentivise entrepreneurship, as an alternative career choice </li></ul><ul><li>Reformed tax code and bankruptcy rules </li></ul><ul><li>Gave a higher profile to entrepreneurs </li></ul><ul><li>More recently, specific initiatives set up, such as Seoul’s “Youth 1,000 project” </li></ul>
  10. 10. <ul><li>Easing barriers to innovation: policy and finance </li></ul><ul><li>Offer tax incentives & bring corporate stock structures in line with international norms </li></ul><ul><li>Remove red tape and ensure a competitive marketplace </li></ul><ul><li>Make immigration easier </li></ul><ul><li>Ensure IP protections </li></ul><ul><li>Match any government investments with private sector funds to ensure rigour </li></ul>
  11. 11. Skolkovo – Russia’s Silicon Valley?  
  12. 12. <ul><li>Case study: Skolkovo hi-tech cluster tears up the rulebook </li></ul><ul><li>Russia is home to many skilled scientists and mathematicians, thanks to its educational legacy </li></ul><ul><li>But bureaucracy and corruption stifle innovation </li></ul><ul><li>A new Skolkovo cluster has US$5bn government funding </li></ul><ul><li>Partnership with MIT to ensure top quality talent </li></ul><ul><li>Unique operating environment set up to facilitate greater freedom: its own police force, Skolkovo-specific laws, IP courts </li></ul><ul><li>“ We’re creating a protective ecosystem that is necessary in Russia to nurture these very early stage companies”: Steven Geiger, COO, Skolkovo Foundation </li></ul>
  13. 13. <ul><li>The right location </li></ul><ul><li>  </li></ul><ul><li>Clusters are people projects, not building projects </li></ul><ul><li>Governments should focus on supporting infrastructure – such as schools, transport, hospitals </li></ul><ul><li>A large local market can help, but is not essential </li></ul><ul><li>Israel and Singapore have secured large global markets, despite relatively tiny local demand </li></ul><ul><li>The sophistication of demand can be more important than the quantity of demand </li></ul>
  14. 14. <ul><li>Pitfalls: why some clusters fail </li></ul><ul><li>  </li></ul><ul><li>Investing in white elephants without ensuring demand – e.g. Malaysia’s BioValley biotechnology cluster </li></ul><ul><li>Neglecting market fundamentals – investing in inappropriate areas or technologies </li></ul><ul><li>Trying to pick winners – e.g. Michigan’s US$1.6m investment in a hybrid vehicle startup, which failed despite strong state backing </li></ul>
  15. 15. <ul><li>Conclusion 1 2 3 4 </li></ul><ul><li>Take a long term approach </li></ul><ul><li>Success is measured in decades, not years </li></ul><ul><li>Silicon Valley, Cambridge and Singapore </li></ul><ul><li>… all took a long time to establish themselves </li></ul>
  16. 16. <ul><li>Conclusion 1 2 3 4 </li></ul><ul><li>Skills and education are the linchpin </li></ul><ul><li>Excellent universities (e.g. Cambridge, Stanford) </li></ul><ul><li>A steady supply of local talent – good schools and colleges </li></ul><ul><li>The ability to draw in talent from elsewhere </li></ul><ul><li>A focus on bringing locals back – reversing the brain drain </li></ul>
  17. 17. <ul><li>Conclusion 1 2 3 4 </li></ul><ul><li>Fragile global economy creates opportunities for Middle East </li></ul><ul><li>A historically underdeveloped market </li></ul><ul><li>A youthful demographic </li></ul><ul><li>A well-educated population </li></ul><ul><li>Fewer restrictions on immigration </li></ul>
  18. 18. <ul><li>Conclusion 1 2 3 4 </li></ul><ul><li>The Middle East is developing the right fundamentals </li></ul><ul><li>Huge increase in the number of universities </li></ul><ul><li>Substantial government investment in R&D </li></ul><ul><li>A focus on a handful of key sectors </li></ul><ul><li>Improving local amenities and infrastructure </li></ul>
  19. 19. If you wish to download a PDF of the full report, please CLICK HERE   Sponsored by

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