P.Nightingale - presentation at the Digital Business Innovation Paths Event organised by FutureEnterprise on 8 July 2014 in Brussels, Belgium

1. On Business
Innovation Policy
Prof Paul Nightingale
SPRU, University of Sussex

2. Traditional view

3. Evidence

4. Alternative

5. Traditional view?

6. Entrepreneurship constrained by
1. Culture & Market failures
2. Creating barriers to entry
3. Growth then easy

7. Policy – remove barriers
1. Enterprise culture
2. Funding
3. Tax breaks
4. Reduce red tape
5. Schumpeterian Universities
£7bn a year

8. Evidence

9. Market Entry Hard?

10. Growth Easy?

11. Performance
Convergence?
Brutal Selection

12. Churn

13. Skewed performance
distributions
(business models)

14. Evidence
 Excessive entry
 Low survival & churn
 Skewed performance
US v EU
 Not >> entrepre or innovation
 Faster growth
 Faster entry into new industries,
 Universities & Scale

15. Alternative?

16. Theory “Schumpeter”
Confuses invention (an event) with
innovation (a long term process)
 New, small firms maybe at a
disadvantage
 Lifecycle technology not same as
firms

17. Encouraging market entry
 Excessive churn
 Subsidies little effect
 Demand side constraints
 Thin markets

18. Growth not Entry constrained
 Quality not quantity matters
 High growth very difficult
 BM innovation to capture value
 Raising performance of long tail

19. Policy
 Realism in enterprise policy
 Alignment with market needs
 Upgrade quality
 Universities ‘talent not technology’
 Competition policy

20. Conclusion

21. Conclusions
 Realism
 Better not more entrepreneurship
 Skewed performance
 Innovation & upgrading (diffusion)
 Value capture not just value creation