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Liu inno work-9-5_2012


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  • 1. Ju Liu Senior ResearcherTaSTI, Tampereen Yliopisto InnoWork 9.5 Innovation in Globalizing Economy
  • 2. } Ju Liu B.E. in electric engineering MBA in international business Ph.D. in innovation study Worked in China, Denmark, Switzerland, Sweden Worked in both industry and university Interested in globalisation of innovation and innovation networks
  • 3. } Why are BIC countries important?} What is global innovation network and how do they look like?} What is the role of BIC countries in the global innovation networks now and what can it be in the future?} What are the policy implications to Europe? This presentation is mainly based on the findings of the EU 7th framework project, INGINEUS (impact of networks and globalisation and their interaction with EU strategies)
  • 4. } Because they are big?
  • 5. } Because they are populous? Brazil 3.1% India 17.9% China 20.5% EU 11% 2009 population as percentage to world population Calculation based on the Conference Board Total Economy Database September 2010
  • 6. } Because they are EMERGING! Shenzhen: China’ first sspecial economic zone 1983 1997 2005 Source: Visual Memory of Thirty Years Development in Shenzhen
  • 7. Percentage share of world income Labor productivity as percentage to EU- 15 Technology catching- up Brazil: biofuel India: ICT service China: ICT manufacturing Source: The Conference Board Total Economy Database, September 2010
  • 8. } The definition – A global organised web of complex interactions between firms and non- firm organisations engaged in the production of knowledge and the development of innovation (EU- INGINEUS, 2011)} The various forms – Joint venture – Strategic alliances – Research consortia – Outsourcing of R&D – Global distribution of R&D location of multinational companies – Joint public research projects – Co- financed PhD programs and research training INGINEUS (Impact of Networks, Globalisation, and their INteraction with EU Strategies, 2009- 2011) is a research project sponsored by the 7th Framework Programme (FP7) of the European Commission.
  • 9. Country No. of firms Industry Brazil, India, China, 636 ICT, Automobile, Denmark, Estonia, Germany, Norway, Sweden 495 Agro- processing GlobalnessInnovativeness • 63% somewhat global • 54% somewhat global innovation network (GIN, Gin, gin, giN, GiN)Networkedness • Once you are global, you tend to be innovative and networked Source: The 7th Framework project INGINEUS, 12- 12- 2011
  • 10. • 5 Subsidiaries of US MNCs • 5 subsidiaries of • Firms located in BIC countries are emerging MNCs • 3 standalone firms more involved in some forms of GINs • 1emerging MNC headquarter than those in Europe • India plays a disproportionately important role in the emergence of GINs • 1 standalone firm Firms in each category as percentage of all firms in the country Comparison among BIC countriesFirms in each category as percentage ofall firms in the country Comparisonbetween BIC and EuropeSource: The 7th Framework project INGINEUS, 12- 12- 2011
  • 11. } Why is that? a regional perspective – Institutional thickness – Organisational presence – Interaction among organisations – Legal system to prevent sectionalism and rogue behavior – Mutual awareness and common agenda – Three tiers of regions (for ICT industry) Tier of region Type of GIN Examples of regions Tier 1 Strong region gIn Stockholm, Bangalore, Beijing Tier 2 Neither strong nor GIN Malmö, Chennai, Shenzhen weak Tier 3 Weak region gin Helsinborg, Trivandrum, Shanghai
  • 12. } How much has been put into the innovation system? BIC countries are rapidly building up competence in creating new technology EU- 27School enrollment of tertiary Indiaeducation (percentage gross1997- 2007)Source: UNESCO database on education Gross expenditure on R&D as a percentage of GDP (1981- 2008) Source: OECD MSTI database and national sources
  • 13. } Trade in goods Imports to EU27 from partner countries Export from EU27 to partner countries Source: Eurostat Comext database
  • 14. } Trade in services Imports from BIC to EU27 Source: OECD Trade in Services Database
  • 15. } Foreign Direct Investment (FDI) FDI from OECD Europe to BIC FDI from BIC to OECD Europe Source: OECD Globalisation Database
  • 16. } Technology licensing Payments (imports) Receipts (exports) Receipts and payments for royalties and license fees from BICS (1999- 2007) Source: OECD Balance of Payments Statistics
  • 17. } Mobility of students and labor force EU 27 US Students from BICS countries enrolled in tertiary education in EU27 and the US Source: UNESCO and Eurostat
  • 18. } Making Europe the hub of GINs rather than a magnetic pole} Strengthening the knowledge competence of Europe} More open and flexible migration policies and creating a true European labor market