The Innovation Trap                          And How To Avoid It        New Economic School        Guest Lecturer on Innov...
Topics• Why countries are chasing innovation• Common traps they fall into• Specific challenges to innovation in Russia• Ho...
Why Countries areChasing Innovation                     3
Why countries are chasing innovation•   Prosperity through economic growth•   National security•   Fear of “falling behind...
Prosperity is no accident                             It is the result                              of planning,          ...
US R&D spending                  6
McKinsey innovation map                          7
So most countries chase innovation                                                Hsinchu                                 ...
If only it were this easy . . .                                  9
Typical InnovationTraps They Fall Into                       10
“We must be like Silicon Valley”• Tendency to blindly copy California model• But SV is a culture, not a place. . . easy to...
“We must have a shiny new city”• “Field of Dreams” approach• Try to avoid the “Edifice Complex”• Remember, these were all ...
“The parts will make a whole”• The abiogenesis approach:  abstract, sterile assembly of  “innovation components”  that mag...
Think of innovation as a Rubik’s Cube           ResearchEntrepre              Infrastr   • 6 different elements,          ...
Think of innovation as a Rubik’s CubeA few changes to anyside and pretty soonyou have this:                               ...
Specific Challenges to Innovation in Russia                         16
General ranking not great: 51st  Source: The Global Innovation Index 2012 (Insead, WIPO)   17
But innovation “efficiency” not bad    Russia                            • Just slightly                              belo...
The C-Word             • Karamzin said it best: «Воруют»               (“They steal”)             • Innovation will strugg...
Russia needs to “close the gap”                                  20
Russia needs to “close the gap”                                  21
Russia needs to “close the gap”                                  22
Weaknesses in projects like Skolkovo                                 http://www.rbcdaily.ru/politics/opinion/5629499853726...
Recommendations forSuccessful Innovation                        24
1. Don’t force the glass slipper• Innovation can’t be forced (though it can be encouraged)• Accept that Silicon Valley was...
2. Be careful what you wish for…                                   26
3. Can you handle the truth?                           Innovation often requires:                           • Great indivi...
4. Set “stretch” yet achievable goalsUAE example: can a tiny oil sheikhdom become a worldleader in cleantech and sustainab...
5. Don’t blindly follow “the experts”                     They’re often wrong                     (Nice shoes, Albert)    ...
Discussion             30
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The Innovation Trap (and How to Avoid It)

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23.01.2013 Public Seminar by Steven Geiger (Chief Operating Officer of Skolkovo Foundation (until December 2012))
"The Innovation Trap (and How to Avoid it)"

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The Innovation Trap (and How to Avoid It)

  1. 1. The Innovation Trap And How To Avoid It New Economic School Guest Lecturer on Innovation: Steven Geiger January 23, 2013 Moscow
  2. 2. Topics• Why countries are chasing innovation• Common traps they fall into• Specific challenges to innovation in Russia• How to avoid innovation traps and succeed 2
  3. 3. Why Countries areChasing Innovation 3
  4. 4. Why countries are chasing innovation• Prosperity through economic growth• National security• Fear of “falling behind”• It’s trendy 4
  5. 5. Prosperity is no accident It is the result of planning, investment, risk-taking and innovation 5
  6. 6. US R&D spending 6
  7. 7. McKinsey innovation map 7
  8. 8. So most countries chase innovation Hsinchu Tainan Leading global innovation centers 8
  9. 9. If only it were this easy . . . 9
  10. 10. Typical InnovationTraps They Fall Into 10
  11. 11. “We must be like Silicon Valley”• Tendency to blindly copy California model• But SV is a culture, not a place. . . easy to copy culture?• Timing issues; is SV model even still relevant?• You’ll never lead through imitation; find your own style 2% to make it Who do you want to be? 50% for innovative IP 11
  12. 12. “We must have a shiny new city”• “Field of Dreams” approach• Try to avoid the “Edifice Complex”• Remember, these were all built in a student dorm or garage: Masdar City Skolkovo Songdo 12
  13. 13. “The parts will make a whole”• The abiogenesis approach: abstract, sterile assembly of “innovation components” that magically come to life Coacervates Alexander Oparin• Create an “innovation ecosystem” …and hope the “magic” happens.• Magic doesn’t happen, you make it happen. 13
  14. 14. Think of innovation as a Rubik’s Cube ResearchEntrepre Infrastr • 6 different elements, & neurs academic ucture communities • Different needs Large Govt. VCs • Any change affects all Corp. Policy 14
  15. 15. Think of innovation as a Rubik’s CubeA few changes to anyside and pretty soonyou have this: Or worse, thisLooks simple, eh? Only a holistic approach succeeds. And experience helps. 15
  16. 16. Specific Challenges to Innovation in Russia 16
  17. 17. General ranking not great: 51st Source: The Global Innovation Index 2012 (Insead, WIPO) 17
  18. 18. But innovation “efficiency” not bad Russia • Just slightly below trend line • Reasonable chances to improve 18
  19. 19. The C-Word • Karamzin said it best: «Воруют» (“They steal”) • Innovation will struggle in Russia with current levels of corruption • “Brain drain” will accelerate • State innovation projects must be the vanguard of honesty 19
  20. 20. Russia needs to “close the gap” 20
  21. 21. Russia needs to “close the gap” 21
  22. 22. Russia needs to “close the gap” 22
  23. 23. Weaknesses in projects like Skolkovo http://www.rbcdaily.ru/politics/opinion/562949985372676• Scope is too broad (laser or flashlight?)• Misalignment of shareholder-management interests• Overly focused on building “shiny new city”• Lack of internationalization The good news: not difficult to solve these 23
  24. 24. Recommendations forSuccessful Innovation 24
  25. 25. 1. Don’t force the glass slipper• Innovation can’t be forced (though it can be encouraged)• Accept that Silicon Valley was a rare convergence of factors• Leverage your culture and strengths, don’t blindly imitate 25
  26. 26. 2. Be careful what you wish for… 26
  27. 27. 3. Can you handle the truth? Innovation often requires: • Great individual freedom • Tolerating unconventional ideas and lifestyles • Open exchange of information and ideas • High tolerance for failure • High risk-takingIn short, innovation is freedom: can you handle that? 27
  28. 28. 4. Set “stretch” yet achievable goalsUAE example: can a tiny oil sheikhdom become a worldleader in cleantech and sustainability? You bet!• worlds largest offshore windfarm• worlds largest single operating CSP plant• worlds first CSP plant using molten salt as a transfer fluid• worlds first graduate-level research university dedicated to renewable energy• worlds largest renewable energy conference & expo (25,000 annual visitors)• permanent UN headquarters for International Renewable Energy Agency 28
  29. 29. 5. Don’t blindly follow “the experts” They’re often wrong (Nice shoes, Albert) 29
  30. 30. Discussion 30

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