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DC10 Frans van Vught - keynote - a European innovation strategy for the services sector
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DC10 Frans van Vught - keynote - a European innovation strategy for the services sector

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Frans van Vught from Nether is presenting at the First National Annual Services Innovation Conference, November 2, 2010, organized by Exser and partners. See http://www.exser.nl/jaarcongres/ for more ...

Frans van Vught from Nether is presenting at the First National Annual Services Innovation Conference, November 2, 2010, organized by Exser and partners. See http://www.exser.nl/jaarcongres/ for more information.

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DC10 Frans van Vught - keynote - a European innovation strategy for the services sector DC10 Frans van Vught - keynote - a European innovation strategy for the services sector Presentation Transcript

  • A European Innovation Strategy for the Services Sector Frans van Vught
  • Globalisation
    • economic
    • political
    • socio-cultural
  • Globalisation and Innovation
    • globalisation triggers national innovation policies
    • national innovation policies focus increasingly on stimulating the creation, transfer and application of knowledge
    • national innovation policies are influenced by the “National Innovation system” (NIS) perspective
  • The perspective of National Innovation Systems (NIS)
    • emerged during 1980s as a new approach to the economics of innovation
    • emphasises interactions between scientific knowledge and new products and services
    • takes an explicit policy orientation
    • identifies academic institutions as playing a critical role
    • distinguishes two crucial outputs of these institutions:
    • - research outputs (publications, patents)
    • - highly skilled human capital
    • focuses on linkages between actors in innovation processes:
    • - hard linkages (science parks, incubators)
    • - soft linkages (internships, conferences)
    • addresses institutional framework conditions of innovation processes (regulations, incentives)
  • Research project
    • international comparative study of national innovation policies
    • Australia, Canada, Europe, Japan, US.
    • to be published in:
    • David D. Dill & Frans A. van Vught (eds),
    • “ National Innovation and the Academic Research Enterprise: Public Policy in Global Perspective”
    • Johns Hopkins University Press, Baltimore, 2010
  • National innovation policy strategies
    • clearly influenced by the NIS perspective
    • relate policy instruments to policy objectives regarding innovation
    • consist of some combination of the basic notions of market coordination and central planning
    • two large categories:
    • - prioritisation strategies
    • - competition strategies
  • Prioritisation strategies
    • reflects notions of central planning
    • characteristics like: foresight analyses, priority allocation, concentration of resources, quality assessment of outputs
    • examples - Australia’s research priority setting
    • - Canada’s centres of excellence
    • - Finland’s TEKES agency
    • - UK’s foresight assessments and RAEs
    • - Netherlands’ innovation platform
  • Competition strategies
    • reflects notion of market coordination
    • characteristics like: competitive allocation of resources,
    • encouraging entrepreneurial academic behaviour,
    • deregulation, diversifying funding base
    • examples - US federal science policy
    • - Japan’s competitive grants scheme for
    • doctoral training
    • - Canada’s competitive research matching
    • funding
    • - Germany’s excellence policy
    • - UK’s competitive ‘third sector’ funding
  • Globalisation and ‘Geo-Regionalisation ’ *) data 2006 Source: UNCTAD Handbook of Statistics 2008 Trade volumes in billions dollars 1990 1995 2000 2005 2007 Total % internal Total % internal Total % internal Total % internal Total % internal* ECOWAS 23 7 21 9 36 8 65 8 66 8 SADC 35 3 39 11 51 9 98 8 139 7 MERCOSUR 46 9 70 20 85 21 164 13 224 14 NAFTA 562 40 853 46 1.225 55 1.480 56 1.851 54 ASEAN 145 19 324 25 432 23 653 25 866 25 ASEAN+3 560 27 1.048 35 1.333 35 2.294 35 3.165 - EU27 1.547 67 2.098 66 2.454 67 4.071 67 5.284 67
  • Economic growth in the EU
    • 20 th century: manufacturing / technology as the
    • engine of prosperity
    • 21 st century: the rise of service industries
    • and
    • increasing service focus of manufacturing firms (‘servitisation of products’)
  • The European Economy is a ‘Services Economy’
    • nearly all employment growth in the EU between 1995 and 2007 was due to services
    • 69.2% of total employment was in Services Sector
    • 71.6% of gross value added took place in Services Sector
  • A New Engine of Growth
    • while total employment grew by 1% per year, service employment increased by 1.8% per year (1995-2007)
    • while total gross value added per year grew by 2.1% per year, the Services Sector showed an increase of 2.3% per year (1995-2007)
    • most important factor for services growth is the income increase in high income countries; EU Member States with high levels of GDP per capita also have high service shares in employment and gross value added
    • the most dynamic Services Sectors in the EU are: communication, financial services, business services, computer activities, energy, transport & distributive services
  • Knowledge-intensive Services
    • high knowledge intensity; relative capital intensity; high degree of specialisation
    • main source of job creation in EU
    • high-tech knowledge-intensive services contribute most to growth of value-added
    • a real driver of innovation:
    • - in industries
    • - in regions and nations
  • Services Sector in Clusters
    • the ‘cluster concept’ provides a way to understand economic dynamics
    • clusters are: groups of firms, and other institutions that are located near each other and have reached a sufficient scale to develop specialised expertise and to create economic innovation and growth
    • the Services Sector:
    • - combines with the manufacturing sector to create joint
    • clusters
    • - offers the core of specialised service clusters (182 service
    • clusters of the 788 clusters in the EU; European Cluster
    • Observatory)
  • An EU Innovation Policy for the Services Sector?
    • services innovation has only recently entered the EU policy discussions
    • Europe still lacks innovative service enterprises with a global reach
    • EU Services Sector innovation policy needs to differ from technological innovation policy
    • Service Directive (2006): cross-border trade of services; easier market access
    • European Services Innovation Memorandum (2007): ‘emerging services innovation policy in Europe is in a unique situation where it has a possibility to renew the entire innovation policy towards a more balanced and demand driver concept’
    • EU Member States are developing Services Sector cluster policies (Finland, France, Netherlands, Spain, UK)
  • An EU Innovation Policy for the Services Sector?
    • existing Community instruments can be better used : Framework Programmes (R&D), European Institute of Technology (KICs), Lead Markets Initiative (eHealth, sustainable construction, renewable energies), Competiveness and Innovation Programme (CIP), Cohesion Policy (Structural Funds)
    • knowledge base for services must be broadened : more R&D, better skills development, better knowledge exchange and distribution
    • new forms of support for service clusters must be developed: users focus, open innovation systems, clusters networks, public procurement
    • ‘ The future prosperity of Europe will to a large extent depend upon our ability to develop and implement new and better innovation support mechanisms for the Services Sector’
    • Thank you for your attention!
    • Frans van Vught
    • Nether
    • [email_address]