Spain Prez


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Spain Prez

  1. 1. Is Innovation a Turks&apos; Game<br />to Create New Wealth?<br />A. Mete Çakmakcı<br />HE Ambassador of Spain’s Residence in Istanbul<br />February 18th, 2010<br />
  2. 2. Innovation Mercenaries<br />Source : Sak (2009) “KüreselleşmeninTürkKOBİ’lerineetkileri”, TEPAV<br />
  3. 3. Catching up or Lagging Behind?<br />Turkey is labeled under “catching up with moderate growth”<br />Source : European Innovation Scoreboard 2008<br />
  4. 4. Demographics<br /><ul><li> In 2009, 2,731,878 students were</li></ul>registered in undergrad university <br />programs. 397,884 graduated from <br />undergrad programs.<br /><ul><li> 28,681 master and 3,744 PhD degrees</li></ul>were awarded.<br />Source : US Census Bureau, 2010<br /><ul><li> In 2009, 13,263 Turkish students were enrolled in the US universities, (10,2% increase from 2008 and 8th most populous group)
  5. 5. Many return with business ideas.</li></li></ul><li>A Definition of Innovation<br />Often worshiped as a “myth” or “taboo” innovation still deserves a <br />simple definition.<br />Creating new <br />VALUE<br />using/utilizing<br />existing/available <br />KNOWLEDGE.<br />
  6. 6. Innovation and Enterpreneurship<br /><ul><li>The who has the will, means and ways to manage the conversion of knowledge into value is an enterpreneur.
  7. 7. Market is where value is converted into other forms of value.
  8. 8. Value is a perception and highly context dependent. Hence innovation is a dynamic process.
  9. 9. Innovation involves acquisition/processing of knowledge.</li></ul>Knowledge (not necessarily technical or scientific) is the main barrier to/frontier of innovation.<br />
  10. 10. Innovation Cycle<br />Public Intervention Comfort Zone<br />Knowledge<br />VISION<br />INVESTMENT<br />Opportunity<br />Equity<br />EXECUTION<br />Value<br />MARKET<br />Value<br />
  11. 11. Our Ecosystem of Innovation<br /><ul><li> KNOWLEDGE – RESEARCHERS : highly motivated to publish, low motivation for research projects, often on own devices to pursue business, lured to easy cash from consultancy (corporate researcher is a difficult carreer choice)
  12. 12. OPPORTUNITY – BUSINESS DEVELOPMENT : Almost always focused on immediate opportunity, more of a follower’s attitude
  13. 13. VALUE – DEVELOPMENT/PRODUCTION/SALES : Strongest component of the eco-system. Often top skills and top innovators around.
  14. 14. EQUITY – OWNERS, INVESTORS, BANKER : Strongly conservative, often orthodox non-believers in innovation, often believe what they see on paper in numbers. </li></li></ul><li>Innovation Dynamics<br />Knowledge is GLOBAL, value is LOCAL<br />
  15. 15. Innovation Dynamics<br />Intrapreneurial Company is the Future<br />Organizational skills to adopt new ideas<br />and diversity.<br />Intrapreneurship is underrated, <br />enterpreneurship is overrated.<br />High Value Add ≠ New Company<br />
  16. 16. Value Pyramid<br />Cost of Innovation<br />Barriers for Competition<br />Risk of Innovation<br />
  17. 17. Technical & Non-technical Innovation<br />Source : OECD STI Scoreboard, 2008<br />
  18. 18. Systemic Linkages<br />Firms collaborating on innovation with higher education institutions by size, 2004-06<br />Firms collaborating on innovation activities by size, 2004-06<br />Firms collaborating on innovation with government institutions by size, 2004-06<br />Source : OECD STI Scoreboard, 2008<br />
  19. 19. Structural Performance<br />Elements of design for R&D Structure : <br />Profile of researchers, performers and<br />Cross financing based on the <br />Characteristics of priority areas.<br />Source : OECD STI Scoreboard, 2008<br />
  20. 20. Converting High-Tech to Low-Tech<br />Source : OECD STI Scoreboard, 2008<br />Source : TUSİAD, (2008) “Türkiye Sanayiine Sektörel Bakış”<br />
  21. 21. Capturing Value<br />Source : Linden, Kraemer, Dedrick (2007) “Who captures value in a global innovation system? The case of Apple’s iPod”<br />
  22. 22. Cost of Innovation<br /><ul><li> Cost of innovation (rather cost of </li></ul>failed innovation) is probably the single<br />most important barrier to innovation.<br /><ul><li> Recent tax incentives had limited</li></ul>additionality for various reasons. <br /><ul><li> In spite of “unlimited” supply of youth,</li></ul>talent and skills are limited.<br /><ul><li> Investment in skills is extremely limited</li></ul>and conservative.<br />Innovator<br />Value Increases<br />
  23. 23. A Map of Technological Innovation<br />
  24. 24. A Regional Production Specialist<br />Source : The World Bank<br />
  25. 25. Global Benchmarking<br />Source :<br />
  26. 26. European Benchmarking<br />Source : European Innovation Scoreboard 2008<br />
  27. 27. About Technoparks<br /><ul><li>37 Technology Development Zones are approved, 23 are operational
  28. 28. 1,254 firms (of which 53 are foreign owned with a total investment of 450 M USD) are operating in the region with 8,708 R&D staff
  29. 29. 3,403 projects are active, 297 patents received, 540 M USD in exports</li></ul>Source : OECD STI Scoreboard, 2008<br />
  30. 30. Cluster Development<br />
  31. 31. Cluster Development<br />
  32. 32. Outlook<br /><ul><li> New generation of young enterpreneurs (especially out of top universities) have the proper skills and high capacity to learn fast. They ask and learn.
  33. 33. Second/third generation is taking over in the family owned SMEs.
  34. 34. Investors and Banks are quickly adopting to finance innovation.
  35. 35. Big companies are still a big ?
  36. 36. Capacity on the demand side is developing faster than the suppy side of policy and programs. Civil initiatives are mobilizing.
  37. 37. Innovation and related buzzwords are still crowding out the agenda.
  38. 38. Buttom up processes is still a requirement.</li></li></ul><li>Türkiye Teknoloji Geliştirme Vakfı<br />Cyberpark, Cyberplaza B-Blok Kat : 6 <br />Bilkent 06800, Ankara<br /><br />