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Open Innovation in Emerging Markets
- 1. Rasha Y. Tantawy Oct. 2011
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- 8. Where is Egypt?
- 9. Structure f Egypt’sInnovation Policy Measures Academy of Science & Technology The Egyptian Incubator Association Secretary of State For Scientific IDSC Cabinet Research Information and Decision Support Supreme Council for Center Research Centers Euro Med Free trade Zone The TDP Industrial Modernization Program Smart Village Mubarek Science City EU Association Agreement The EDP incubator program Academy Innovation Program Tale Incubator
- 10. The Global CompetitivenessReport 2010-2011 12th pillar: Innovation Egypt’s Rank Capacity for innovation 109/139 Quality of scientific research institutions.............................. 110/139 Company spending on R&D.................................................... 74/139 University-industry collaboration in R&D............................... 120/139 Govt procurement of advanced tech products ...................... 86/139 Availability of scientists and engineers ................................... 25/139 Utility patents per million population*..................................... 84/139
- 11. The Global CompetitivenessReport 2010-2011 Egypt’s Stage of Development 1 2 3 transition Transition Factor Efficiency Innovation Driven Driven Driven EGYPT Innovation and sophistication factors ............................68/139 ........3.5/7
- 12. Road blocks toInnovation in Egypt?
- 13. Finance! hire university graduates upgrade their manufacturing and management processes organizing awareness workshops build R&D capabilities Providing financial support
- 15. Solution? • Increase financefor R&D? • Share Costs?
- 16. A New Model…? • Increases opportunities for innovation(Angello Morelli 2009) • () enables more effective use of resources and capacities, better matching of capabilities with market needs and benchmarking to improve efficiency.(Hanna Bahemia & Briau Squire 2008) • Shortenes development time (Danish Ministry of Science 2007) • Diversifies risks and share uncertainties.(Keupp & Gassmann)
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- 22. Open Innovation Online •Chaordix – Business innovation – Engaging crowds through the web to solve your business problem • Kluster – Brainstorming / feedback – Harness the power of your own hand-picked crowd to brainstorm ideas • Namethis – Brand names – A 48 hour competition site to find a suitable brand name for your venture • Innocentive – Problem solving – Brings together seekers who have a problem together with solvers from around the world who may be able to help • Rent A Coder – Software development – International marketplace to locate software coders • Global Ideas Bank – Social innovation – A site which collects social inventions that can change the world, which are rated by online voters.
- 23. Open Innovation? • Openinnovation means that the company needs to open up its solid boundaries to let valuable knowledge flow in from the outside in order to create opportunities for cooperative innovation processes with partners, customers and or suppliers. It also includes the exploitation of ideas and IP in order to bring them to market faster than competitors can.(Gassmann & Enkel 2004)
- 24. Changing the Landscapeof Innovation
- 25. Why SMEs? • SME’stend to have a greater need “ to look for partners with different but complimentary capabilities”(Tidd, Bessant & Pavit 2005) because they don’t have the access to resources that corporates do.
- 26. Factors Affecting OIat firm level Product type Partner type Network Maturity Industrial Communities Science based environment Hi tech Industry Competitive intensity ECOSYSTEM environment Tech, turbulence Economy Transaction rates Firm macro Culture size age ecosystem Culture Firm Experience with characteristic technology Foreign ownership Location Internal Inter Product variety organizational man. techniques R&D Absorptive Management Knowledge Dispersive management Degree of patent protection
- 27. Conceptual Framework Firm Characteristics H5, H6, H7 Likelihood of Open Firm Management Innovation H1,H2 adoption by SMEs Firm Industrial Environment H3,H4
- 28. The Survey 3000 435 OI = f(absorptive capacity + size + location +foreign ownership + public financial support + R&D costs + cooperative partners)
- 29. The Results Size Location Absorptive Capacity R&D Financial Support Cooperative Partners Foreign Ownership
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Editor's Notes
- #8 To help shed light on the opportunities — and the roadblocks — on innovation GE released a first-of-its-kind report based on an independent survey of 1,000 business executives in 12 countries. The “GE Global Innovation Barometer” found that 95 percent of respondents believe innovation is the main lever for a more competitive national economy. But just how to accomplish that will take a uniquely 21st century path, as respondents are prioritizing technology that addresses local needs; looking for innovation from smaller organizations; and pursuing strategic partnerships to make tangible innovation happen. All of these areas are converging as problems are now bigger — which involves a wider system of players. 88 percent of those surveyed felt innovation was the best way to create jobs
- #9 Talk about TIEC and ITAC
- #10 The structure of research and innovation activities in Egypt is presently undergoing significant changes. Until recently research funding suffered and strongly dependedon international grants. There was no clear national policy of research. It became clear that research is the only means to compete. The latest European charts on innovation shows that Egypt has an innovation policy implemented via measures to stimulate investment, venture capital, business incubators, industrial modernization, small and medium enterprises development and entrepreneurship. There is no formal coordination body yet. The delivery of innovation policy is carried out via the programs of related ministries often with assistance from donor organizations. An important factor is the Social Fund for Development (SFD) which finances business centers and incubators as well as the Industrial modernization Program(IMP) and GAFI, the General Authority for Investment and TIEC. The key drivers of innovation are industrial modernization and privatization of state industry.
- #13 Discussion : what is hindering innovationHow do we take the no out of innovation?
- #14 A recent research by Dr. nizar on barriers to innovation (Encouraging firms to hire university graduates in both technical and managerial areas, organizing awareness workshops and seminars on the importance for SMEsto upgrade their manufacturing and management processes, providing guidance to SMEs inscreening, choosing, adopting, and adapting the available technologies, providing financialsupport and tax incentives to encourage SMEs acquire advanced technologies and build R&Dcapabilities, reinforcing and tightening the linkages and collaboration between companies anduniversities and research centers,
- #15 What do we do if we want to innovate in the emerging markets? How do we overcome the financial barrier!
- #18 The solution
- #23 A number of online sites are available that specialise in bringing together different parties or groups to work on a particular project or solve a specific problem. Alternatively an organisation can also ask a question through one of its online networks such as Facebook or LinkedIn. A selection of crowd sourcing sites of interest are outlined below:
- #27 1-Environment: the total surrounding moderating creation, facilitating networking..etc The innovation system operating nationally, regionally, and locally2-Economy: market readiness for diffusion of new innovations3- Culture: a culture that connects people and technologies in an effective way4-Ecosystem: innovation and entrepreneurial ecosystem available for spinning off such as centers, workshops, incubators..etc. “A healthy ecosystem can further perpetuate the adoption of the open architecture through network effects”.(Chesbrough, Appleyard, 2007)1- Size: no of employees: i.e. SME, firm, corporate2-Age: no of years in business: startup..mature3-Culture: a learning culture, an open mindset, allows and accepts mistakes4-Experience with technology:5-ownership: what % of the firm is owned locally and what %international, government, private..etc6-Location: 7-Product variety: what are the products , and how diversified1- Inter organizational: top management attention, project management steering, process management2-Knowledgemanagement: the flow of knowledge with in firm and through the boundaries of the firm:
- #28 H1. SME’s with higher absorptive capacities are more likely to engage in open innovation.H2: SME’s in industries requiring high R&D costs for innovation will collaborate with partners.H3: The availability of financial support positively affects SME’s tendency to collaborate with partners to innovate.H4: The difficulty to find a cooperating innovative partner has a negative affect on an firms ability to innovate openly.H5. The size of a firm is positively associated with its ability to collaborate with partners to innovateH6: The location of a firm within a resourceful community positively affects its tendency to cooperate in innovation beyond its boundaries.H7: A % of foreign ownership has a positive effect on a firm’s ability to innovate openly