Tech@Peripheria Mobile Monday Sum 02 03 2009

1. A technology model for Portugal: Creation of an IT cluster? The Case-Studies of Finland and Israel André Marquet Organization March, 2009

3. pe·riph·ery • Pronunciation: – pə-ˈri-f(ə-)rē 1. the perimeter of a circle or other closed curve ; also : the perimeter of a polygon 2. the external boundary or surface of a body 3. a: the outward bounds of something as distinguished from its internal regions or center : confines 4. b: an area lying beyond the strict limits of a thing periphery. (2008). In Merriam-Webster Online Dictionary. Retrieved December 10, 2008, from http://www.merriam-webster.com/dictionary/periphery

4. Finland Staying competitive in Euroland Portugal Economy! Israel “How did peripheric Preventing economies with small brain-drain sized markets get to be even with low world leaders in the IT salaries! sectors?”

5. quot;Man is by nature a political animal.quot; It’s not a causality that Aristotles “was made” in Greece.

6. Ibn Khaldun (May 27, 1332– March 19, 1406); Lived in Spain and North of Africa and did most of his work in the 14th century, almost 400 years before the works of Adam Smith and is considered the forerunner of economics and sociology. Ibn Khaldun was the first schoolar to do comparative economic analysis, as he was particularly interested in the why some regions developed so much while others remained under-developed. 03/03/2009 © 2009WIT-SOFTWARE – witness the difference. All rights reserved. www.wit-software.com

7. Portugal Population*: 10,676,910 GDP**: $223.3 billion GDP per capita: $20914 Defense spending***: 2.3% of GDP ($5.14 billion) Def. per capita: $481 Public R&D: 0,78% of GDP ($1.7 billion) R&D per capita: $163 Mobile operators: 3 GSM; 1 CDMA * - 2008 est. ** - 2007 est *** - 2005 est.

8. Israel Population: 7,112,359 GDP: $161.9 billion GDP per capita: $22763 Defense spending: 7,3% of GDP ($11.8 billion;) Def. per capita: $1659 Public R&D: 4,46% of GDP ($7.2 billion) R&D per capita: $1015 Mobile operators: 4 GSM; 1 CDMA; 1 iDEN * - 2008 est. ** - 2007 est *** - 2006 est. 03/03/2009 © 2009WIT-SOFTWARE – witness the difference. All rights reserved. www.wit-software.com

9. Finland Population: 5,244,749 GDP: $245 billion GDP per capita: $46713 Defense spending: 2,0% of GDP ($4.9 billion;) Def. per capita: $934 Public R&D: 3,46% of GDP ($8.5 billion) R&D per capita: $1616 Mobile operators: 4 GSM; * - 2008 est. ** - 2007 est *** - 2005 est. 03/03/2009 © 2009WIT-SOFTWARE – witness the difference. All rights reserved. www.wit-software.com

10. Myth #1: “The Portuguese Mobile Market is Small. ”

11. Mobile Telecom Market Sizes Total Mobile Market Size (1000M euros) Market-to-GDP (Country’s Mobile Effort Rate) 4 2,50% 3,5 2,00% 3 2,5 1,50% 2 1,00% 1,5 1 0,50% 0,5 0 0,00% Portugal Finland Israel Portugal Finland Israel (2007 consolidated values based on mobile carriers)

12. Israel, Negev Desert

13. Finland, not very far from the Helsinki…

14. Myth #2: “You need big urban centers to develop IT companies”

15. Myth #3: “There is lack of qualified jobs” The truth is that we don’t have enough qualified professionals!

16. Look to Past Efforts of Silicon Valley Cloning • Steven Usdin authored Communism Engineering, where he tells the story of two american nationals that founded the soviet silicon valley in the 1950’s. • After the collapse of the Soviet Union, a number of Jewish Russians left to help grow the Israeli Silicon Valley. • In 2007, Rosenberg Yaël; Vainunska Karen authored the study quot;Israel New Silicon Valleyquot;

17. Israeli companies Israeli engineers Metro Haifa developed the world’s first cell • Intel Research phone at • Microsoft Research Motorola’s lab in • IBM Haifa, its largest research center • Technion, Haifa Univ. in the World. Metro Tel Aviv • Motorola Research Pioneered • Checkpoint Voicemail, SMS • Amdocs and other cellular • Comverse phone services. • Tel Aviv Univ.

18. Portuguese companies Metro Porto/Braga First quantum • Mobicomp chip project in the • Ndrive world. • Qimonda (??) • INESC Porto, FEUP. Aveiro • PT Inovação • Instituto de Telecomunicações, Univ. Aveiro Coimbra • Critical Software Pioneered WAP • WIT Software Portals, • Instituto Pedro Nunes, Univ. Coimbra. SMS/MMS and Metro Lisboa other cellular • Nokia Siemens Networks phone services. • Microsoft Research • Ydreams • INESC/INOV, IST, ISEL, Nova.

20. • Israel has also the highest rate of scientists and engineers per population. Engineers per 10.000 employees (2002)

21. Stock and IP markets • Israel has the third largest number of companies trading in Wall Street after the US and Canada. • Portuguese stock market has only three companies, Novabase, Reditus and Compta. • Israel 2nd place in patent applications to Europe Patent Office. • Israel produces more scientific papers per capita than any other nation with 109 per 10.000 people. • Israel has the highest percentage in the world of home computers per capita. • Highly advanced in renewable energies like thermic and photovoltaic solar.

22. • eBuddy, one of the first web based IM platforms was created by a Paulo Taylor, a Portuguese national. – Bad news: He based the company in the Netherlands because he didn’t find financing in Portugal; – Good news: Paulo wants to come back to live in Portugal. He says the weather, the food and the people are more enjoyable. Wit Software is also taking IM to new levels by leveraging the mobile world. 03/03/2009 © 2009WIT-SOFTWARE – witness the difference. All rights reserved. www.wit-software.com

23. Action Items for Technology Agenda • Portugal 2025. First carbon free economy in the World. • In Infrastracture for the XXI century, ICT should be top of mind for governments (NGN are a good example). • The solution is more technology (not more steel, concrete or “TGVs”), we need a better connected future. • There are very high returns for ICT. • We have to increase, not by 50% but, by an order of magnitude our investments in Public R&D, to be on pair with top performers like Israel and Finland. The production of top level engineers must be a priority.

24. • Portugal needs a strong lobby in Silicon Valley and other IT hubs. (What is AICEP doing regarding this?) • Israel has aero-space program (only 9 countries in world have this capability). • If Portugal wants to have leading IT sector it has to reborn its IT Defense and Aero spaceindustry. – Portugal should look to Brazil for serious technological options. • We need to stop Lusophobia that is dominant in some national and international media e.g.“The Economist”.This terminology is simply not acceptable. • We need to stop being the P of PIGS (Portugal, Italy, Greece, Spain). And start being the P of Prosperity. SAY STOP TO LUSOPHOBIA.

25. Action Plan Conference Tech@Edges to be held in Portugal in 2009 This conference pretends to debate the technological models to be adopted by Portugal, and confront those politics with other international practices, such as that of Finland and Israel and other small sized countries like Portugal. A Technological Plan (version 2.0) should come out of this conference.

26. Leading Companies (Invitation List) • Ydreams • Empordef • Wit Software; • Critical Links; • Nokia Siemens Networks Portugal • Vodafone Portugal • Inov Capital • Conectivity Score Card (coordinated by LEGC) • Tagus Park

27. Institutes (Invitation List) • APCOMTEC • INDEG Business School • INESC-INOV • Tel Aviv University • mbaESG-Paris Graduate School of Management

28. Institutional (Invitation List) • AICEP • IAPMEI • ANACOM • Camara de Comércio Portugal-Israel • Camara de Comércio Finlandia-Portugal • Gabinete do Plano Tecnológico • Israeli Association of Electronics and Software Industries • The Federation of Finnish Technology Industries

29. Media Coverage (Invitation List) • EETimes Europe • SIC Noticias • OJE (Jornal Económico) • Mobile Monday

Tech@Peripheria Mobile Monday Sum 02 03 2009

Andre Marquet

Tech@Peripheria Mobile Monday Sum 02 03 2009