Turlajs jarzemskis 19 oct sfk


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Presentation about innovation system in Baltic countries, nothern alliance, new businesses, etc.

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  • Reikia pakeisti slide’ubackground’ą, kad nebūtų “Civitta” logotipo.
  • It is evident that the moderate and modest innovators are characterised by an unbalanced research and innovation systems. This is particularly clear in the ‘Innovators’ dimension with very low shares of SMEs introducing product or process innovations as well as SMEs introducing marketing and organisation innovations.
  • Turlajs jarzemskis 19 oct sfk

    1. 1. Has the science and innovation «the green light»?European perspective inventions, «Apples» of LV, LT and EE.New business ideas.Dr.Andrius Jarzemskis Gints Turlajs 19 October 2012, Riga
    2. 2. Gints Turlajs PhD studies in business economics (2004-2010), degree candidate Master in Business Administration (2004) Studies in 4 universities: Stockholm School of Economics in Riga, University of Southern Denmark, University of Latvia, Riga Technical University Some academic activites at SSE Riga, RTU Author of more than 12 scientific publications, regular speaker in conferences CEO of SIA Institute (2011-) (www.aci.lv, www.itinstitute.info) CEO of SIA Ekoterm (2012-) (www.siaekoterm.com) 6 years in banking (SEB bank, Latvijas Banka) 3 years in international institutions and government (European Commission, Ministry of Economics of Latvia) Media experience: now columnist for business magazine Kapitals, blog, in magazine «ir», previously biggest newspaper «Diena», etc. Currently board member of Economists Association of Latvia, Association of Latvian Young Scientists (ex-president). Prevously president of Riga Ridzene Rotary club, founding initiator and board member, president: ESN Riga, AEGEE Riga, founder and member of many professional associations 2
    3. 3. Andrius Jarzemskis Doctor in Transportation (2005) Master in Business Administration (2001) Associated Professor in International Business School at Vilnius University 7 years experience in university teaching Managing Partner at Smart Continent LT consultancy (2005-2012) 7 years experience in business as shareholder 7 years experience in project management 4 years experience as employee in various companies (2001-2005) 1 year experience in position of public advisor to the Minister (2009) 5 years experience in representing Lithuania in European Bodies as national representative or expert (2007-2012) Pictures source: http://www.superchooha.com/ 3
    4. 4. Northern Europe, similar culturally, is differentin economics, «iron curtain» still exists... Figures for 2011 Source: Eurostat 4
    5. 5. Wannabees of North Eastern Europe 5
    6. 6. Some Baltic young stars and Nordic counterparts The iron curtain, mighty crack in the Baltic sea 6
    7. 7. How can young Baltic «apples» compete?In business, being young and smart might be an advantage, especially in young industries, however, much comes with time, history and established customer base.It is very hard for young enterprises from the Baltic countries to conquer world markets, especially given the very bad state of and support for research and innovation. Pictures source: http://www.superchooha.com/ 7
    8. 8. Triple Helix approachIntroduced by Henry Etzkowitz.In essence – cooperation of university, industry and government.It is a synergy in knowledge spillovers among universities, industry and the government.Other researchers stress also on the importance of the financial system as the 4th element of innovation. Pictures source: http://www.superchooha.com/ 8
    9. 9. Triple Helix – What we expect from the parts?In the context of innovations: Academia Business Government 9
    10. 10. Triple Helix – more explanatory illustrationdeveloped by Gints 10
    11. 11. Quadruple Helix approach: National innovationsystem, suggested by Gints Financial Academia system Innovation system Business Government 11
    12. 12. EU innovation performance, 2011Innovation Union Scoreboard Source: Innometrics, 2012 12
    13. 13. The economist noticed development of EE startups 13
    14. 14. Interim conclusions... Summary Innovation Index quite closely follows GDP figures. Estonia is somewhat ahead of other Baltic countries, especially in innovation. The performance of Latvia is especially catastrophic in innovation index. The Baltic Sea, it seems, has the deepest dividing crack on the Earth – Latvia to the East is the last in the EU, Sweden just nearby to the West is the first in the EU in innovation measures. Most of us intuitively understand the reasons, however, deeper investigation is interesting. Pictures source: http://www.superchooha.com/ 14
    15. 15. Innovations factors: Source: Innovation Union Scoreboard 2011 15
    16. 16. Innovation performance per dimension Source: Innovation Union Scoreboard 2011 16
    17. 17. Youth aged 20-40 having attained uppersecondary education Source: Innovation Union Scoreboard 2011 17
    18. 18. R&D expenditure in public sector as % of GDP 18
    19. 19. R&D expenditure in business sector as % of GDP 19
    20. 20. Thermometer of innovativeness ability InnovationsESA, NASA TPL classification Mass production and delivery TRL9 Introducing pilot into market TRL8 Experimental develoment Manufacturing of pilot batch of product TRL7 Demonstration of prototype TRL6 Prototype manufacturing TRL5 Testing model TRL4 Preparing model of product TRL3 Testing and validation of concept TRL2 research Conceptualization of product Applied TRL1 Formulation of idea for new product Fundamental research
    21. 21. Proposition by Gints: Enhanced Porter’s diamond Natural endowment Factor conditions Business Business Related & development,development, Demand supporting market size, conditions market size, industries openness openness Firm strategy, Bargaining power structure & of customers rivalry Bargaining powerProduct needed by Competitiveness of of suppliers consumers individual enterprise Threat of entrants Attractive price Effective marketing Threat of substitutes 21
    22. 22. The path from basic research to innovationResearch and experimental development InnovationsResearch Experimental developmentFundamental Applied(basic) (industrial) Introducing newresearch research products in manufacturing Application of knowledgeProducing of knowledge 22
    23. 23. R&D in GDP, %1.40%1.20%1.00%0.80%0.60%0.40%0.20%0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LT, % GDP, State Expenditures in R&D LT, % GDP, Private Expenditures in R&D EU27, % GDP, Private Expenditures in R&D EU27, % GDP, State Expenditures in R&D 23
    24. 24. How the companies look like in Lithuania? Scale: 1 000 and more employees 55 65 500–999 employees 106 138 250–499 employees 294 323 150–249 employees 432 570 100–149 employees 807 933 50–99 employees 2727 2803 20–49 employees 5890 6259 10–19 employees 7821 7586 5–9 employees 14865 12226 0–4 employees 50627 42441 0 10000 20000 30000 40000 50000 60000 2012 2006 24
    25. 25. Changes in GDP content (Lithuania) Financial and Insurance activity Healtcare and social work Electricit, gas suply Profesional, scientific and technical… Food production Information and Communication Rent of housing agriculture, fishery Education Real estate operations Public administration and State defence Construction Transportation and warehousing Wholsale and retail Manufacturing 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2010 2006 Source: Survey, Smartcontinent, 2012 25
    26. 26. Things relevant to Lithuanian companies:before, during and after crisis Funding of R&D projects Searching of foreign partners Construction and reconstruction of new production infrastructures Instaliation of new IT New management systems and methods Increasing number of staff Increasing of qualification of staff and trainings Purchaising and medernisation of equipment Increasing export Production of new products Increasing labour productivity 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% now 2008-2011 until 2007 Source: Survey, Smartcontinent, 2012 26
    27. 27. Things that companies expect from Government:before, during and after crisis Subsidies for non-material assests (licences) VAT privilegies Subsidies for credits interest rates reduction Subsidies for consultation and trainings. Subsidies for R&D activities funding (except infrastructure) Subsidies for IT infrastructure Profit tax privilegies Subsidies for participation in exhibitions Subsidies for new work places Subsidies for salaries Subsidies for manufacturing infrastructure and equipment 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% now 2007-2011 until 2007 Source: Survey, Smartcontinent, 2012 27
    28. 28. Capacities of production lines 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009 2010 2011 More than necesary Enough Not enough Source: Survey, Smartcontinent, 2012 28
    29. 29. New business ideasForesight exercise is an important tool in the development of national direction and creation of new businesses in it, excellently used historically in Finland, but now also everywhere else.Wayne Gretzky approach: «I am an average player, but I concentrate on where the puck will be in 10 seconds instead of on where it is now»!Meet the future today, create blue ocean! Good luck with it! 29
    30. 30. Innovation process or cycleSource: Turlajs, Riiaschenko (2011) 30
    31. 31. Some good examples of industrial policy in pastFinland – SITRA (www.sitra.fi), Estonia – Arengufond (www.arengufond.ee), government initiated investment funds doing foresight and seed/venture investment.Taiwan – common foreign marketing of taiwanese brands abroad financed by the state.Japan in the 60s-80s: very influential Ministry of Trade and Industry subordinating other tasks under export development. 31
    32. 32. Suggestion by Gints: industrial policy 3.0 isneeded!Education policy is very important and its connection with industry.Promotion of sophisticated industries and production of goods and tradeable services.Direct cash subsidies without specifying purpose not effective, more catalisation.Promotion of knowledge and information society helps all sophisticated industries.All elements of the innovation system have to be in place. 32
    33. 33. A new northern allianceWe believe a new Northern alliance is possible, let this presentation be a proof of it! & 33
    34. 34. ConclusionsThe light for science and innovation is rather red in Lithuania, and especially in Latvia. Estonia is somewhat ahead.However, some young and perspective companies manage to struggle to conquer world markets despite the difficulties.Urgent action is needed to improve the situation. We hope the future is bright! 34
    35. 35. We believe in innovation progress in the Baltic countries!Do you?Please contact:Andrius Jaržemskis Gints Turlajslt@smartcontinent.com gints@aci.lv Tel: +371 29409509 Skype, LinkedIn, facebook, SlideShare: search for Gints Turlajs 35