Strategies and Challenges for ICT and                  Innovation Systems in Emerging                  Economies and Devel...
3                       VTT Group in brief   Turnover 307 M€ (2011) • Personnel 3,187 (31.12.2011)Customer sectors        ...
5                 Innovation and Information Society for DevelopmentInnovation policy and information society    Ready net...
7                            Innovation in ICT industries    Continued global growth in innovation– despite of     indust...
9ICT Research Trends – Some Stylized Facts    Digital Convergence    Convergence of service and     technology driven bu...
11Bibliometric assessment Scientific and Technological Research    Bibliometrics:        Metrics for quantity / quality;...
13        The role of national innovation systems Developing and emerging countries differ radically in their ability to ...
15ICT and Economic & Development Impact                                                16        ICT & Development        ...
17                     ICT and Development                                                    Source: Heeks 2010          ...
19     Thank you! Further info and  publications on I4D@VTT:  http://www.vtt.fi/i4d Contact:  Hannes.Toivanen@vtt.fi    ...
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Hannes toivanen presenation 07062012

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Hannes toivanen presenation 07062012

  1. 1. Strategies and Challenges for ICT and Innovation Systems in Emerging Economies and Developing Countries WB Training 7th June 2012 Hannes Toivanen, Ph.D., Principal Scientist Innovation and Knowledge Economy VTT Technical Research Centre of Finland 2 VTT Technical Research Centre of FinlandVTT IS a globally networked multitechnological applied research organisation a not-for-profit and impartial research centreVTT HAS extensive cross-disciplinary technological and business expertise unique research infrastructure comprehensive global partnership networks in business, industrial and research communitiesVTT CREATES new technology and science-based innovations in co-operation with domestic and foreign partners 1
  2. 2. 3 VTT Group in brief Turnover 307 M€ (2011) • Personnel 3,187 (31.12.2011)Customer sectors Focus areas of VTT’s operations- Biotechnology, research - Research and pharmaceutical and food - Applied materials Development industries - Bio- and chemical - Strategic Research- Chemical industry and processes - Business Solutions environment - Energy - Business Development- Electronics - Information and - Group Services- Energy communication- Forest industry VTT’s companies technologies- ICT - VTT Expert Services Ltd - Industrial systems- Machine, vehicle and (incl. Labtium Ltd, Enas management metal industries Ltd) - Microtechnologies and- Real estate and - VTT Ventures Ltd electronics construction - VTT International Ltd - Services and the built- Services and logistics (incl. VTT Brasil LTDA) environment - VTT Memsfab Ltd - Business research 4 Services 2
  3. 3. 5 Innovation and Information Society for DevelopmentInnovation policy and information society Ready networks for I4D / ICT4D  Strategy development  ICT (e.g. wireless interent, social media)  Foresight, evaluation & monitoring  Construction  Program development and planning  Energy, especially renewable energy  Over 20 dedicated innovation and  Over 2000 experts in wide array of information society experts technological and business areas 5 6 ICT and Knowledge in Emerging Economies 3
  4. 4. 7 Innovation in ICT industries  Continued global growth in innovation– despite of industry transition and cyclical slow-downs;  Continued global push to expand R&D bases and search for talent;  Intensified global competition to create ”Innovation Hot-Spots”, which combine strong R&D base and business acumen;  What will be the division of labour between emerging markets and traditional high-technology areas?  What will be the winning strategy to combine proximity to growth markets, user driven innovation and S&T research driven innovation? 8 The ICT Ecosystem Consumers Global trade Platforms, contents &  applications Financial  markets Networks Regulation Networked elements Standardization Global tradeModified after: Fransman M, 2007;  Toivanen H, 2011.  4
  5. 5. 9ICT Research Trends – Some Stylized Facts  Digital Convergence  Convergence of service and technology driven business models  Rivalry of Ecosystems: Turning products into technology platforms  Continued relevance of S&T and continued growth of research & patenting  High-end markets attract most business focus, but BOP markets are most reliable source of growth ICT related patenting grew 4,7% In 2005, over 50 000 international / year 95‐05 ICT patents were filed 10 ICT Research Trends – Bibliometric Snap-Shot 5
  6. 6. 11Bibliometric assessment Scientific and Technological Research Bibliometrics:  Metrics for quantity / quality;  Static and dynamic analysis;  Descriptive analysis;  Social networks data; ISI Web of Science data, the most comprehensive database providing a snapshot of African knowledge production;  Excellent coverage of medical and basic sciences, agricultural research;  Good coverage of humanities and social sciences (incl. economics and business)  Moderate coverage of technology and engineering (30-50 %) 12 Finnish ICT related research – publication totals by subject, 1988-2008 Hannes Toivanen, work-in-progressNOTE:• Data source: Thomson Reuters Web of Science; VTT Database• Articles, Proceedings and Meeting Abstracts;• N: 16 494 – NOTE: Data cleaned, includes cross-disciplinary papers – work in progress 6
  7. 7. 13 The role of national innovation systems Developing and emerging countries differ radically in their ability to valorize knowledge;  Some are confined to ”knowledge traps” – Use foreign knowledge and technology without really making progress in national knowledge economy  Some are embarking on powerful ”catch-up” trajectories, progressing at fastest pace in knowledge economy The key difference appears to be what types of national systems of innovation countries have, and what role domestic knowledge creation plays; 14 Conclusions Research continues to matter for innovation in ICT industries; User driven innovation continues to gain importance; Plethora of new innovation system and ecosystem models are emerging;Perspectives on developing country and emerging economies: ICT research Need to stand out and develop distinct, region specific winning formula European and North American models do not pay serious attention to poverty or societal challenges in ICT agenda Define strategy how to integrate to and capture value from the global ICT ecosystem 7
  8. 8. 15ICT and Economic & Development Impact 16 ICT & Development  Mobile telephony has positive impact on economic growth and this effect is twice as large in developing countries compared with developed countries (Waverman et al 2005)  Between 1996-2003, 10 mobile phones per 100 population added 0.59 percent units to per capita GDP (Waverman et al 2005)  Macro-economic evidence is more or less clear, but not without problems:  Inherent unreliability for developing country data;  Remains investment focussed;  Does not provide guidance on pro-poor or inclusive strategies, and thereby falls short of connecting ICT with development. 8
  9. 9. 17 ICT and Development Source: Heeks 2010 18 Standard ICT4D impact models Key channels for ICT to advance development (Aker & Mbiti 2010):  Enhanced access and use of information (search cost)  Improve firm’s productivity by allowing better management of value chains  Creation of local ICT-related jobs in rural and urban areas  Enhanced communication among social networks reduces exposure to risks (natural disasters, political violence, etc.)  Enhanced delivery of services (financial, health, education, etc) via m- and e-delivery platforms. We have relatively solid (theoretical and empirical) understanding of user- benefits and impacts, though not in monetary figures. We have scant evidence of how ICT boosts jobs and entrepreneurial opportunities, and much less on how such impacts are or can be pro-poor. 9
  10. 10. 19 Thank you! Further info and publications on I4D@VTT: http://www.vtt.fi/i4d Contact: Hannes.Toivanen@vtt.fi 20 VTT - 70 years of technology for business and society 10

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