Do Technologické agentury ČR zavítál v rámci své dvoudenní návštěvy České republiky Dr. Yehoshua Gleitman, zakladatel a následně inovátor izraelského high-tech průmyslu a bývalý Hlavní vědec Státu Izrael. Jeho přednáška s názevm National Policy for Innovation: Israel Approach se uskutečnila 29. dubna 2015.

1. National Policy of Innovation
National Policy
for Innovation
Dr. Yehoshua (Shuki) Gleitman
Prague 4/2015

2. National Policy of Innovation
Presentation Intakes
• Innovation Ecosystem
• National Policy for Innovation
Approach, Principles
• Key Instruments
• Some Cases

3. National Policy of Innovation
Innovation
Critical Success Factor
Important and Sustainable “Tool” of Nations
for: Job creation, GDP Growth
• Improve Productivity and Competence
• Best Position in the World Competition
• The Factor Behind the Success of
Singapore, Finland, Chile, Israel and US!

4. National Policy of Innovation
“If you don’t get better, you get worse”
(My Mom)

5. National Policy of Innovation
…. So how can we
generate
innovation?
Or, at least,
influence its
creation?

6. National Policy of Innovation
Why focusing on Innovation
Ecosystems?
The linear model of innovation is dead!

7. National Policy of Innovation
Who are the Innovation Ecosystems’
principle actors?
• There are many essential
ingredients or elements of
innovation ecosystem
• The triple Helix:
Government – Industry – Academia.
In addition to fulfilling their
traditional functions, each
institutional sphere also
“takes the role of the other”
Government
Industry Academia

8. National Policy of Innovation
Government

9. National Policy of Innovation
• Efficient Way of “Job Creation”
• High Return on The Investment
• Building Modern Flexible Economy
• Market Failure
• Best way to establish National Advantage
• Effective Spillover
• Looks Good
Why spend tax payers money to
support innovation?

10. National Policy of Innovation
Government Role
infrastructure
• Technology: education, basic/applied R&D
• Financial: direct involvement, investment tools
• Business: ease of doing business
• Balanced Systems
• Risk Mitigation

11. National Policy of Innovation
risk
investment

12. National Policy of Innovation
Location of value added in the value chain
Source: Gary Gereffi, presentation at OECD workshop, September 2010.

13. National Policy of Innovation
Key Instruments
• First Step Support – Accelerators
Incubation Centers
• Matching Grants, Mini Grants
• Academic / Business Cooperation
• Financial Instruments
• International Cooperation

14. National Policy of Innovation
Some Issues
• Targeting / Neutrality
• Intellectual Property
• Level of Support
• Government Equity
• Large / SME
• Ownership – local / foreign
• IPO/Sell of the company out of country
• National Agenda - less developed zones
- minority groups

15. National Policy of Innovation
Practical Issues
• Due Diligence
• Attitude
• Time To Decision
• Schedule of Payment
• Royalties Payments/Loans/Tax Exemption
• Reporting System
• Impact Evaluation

16. National Policy of Innovation
The innovation ecosystem is complex
Entrepreneurs
Researchers
financing
Research
Facilities
High skilled workers
IP Protection Laws
Industry

17. National Policy of Innovation
Government plays a key role
in optimizing the ecosystem
Infrastructure Risk sharingSocial goals

18. National Policy of Innovation
Government should enable and nurture
• Actively encourage constant development of the
ecosystem
• Provide conditions for continuous growth of
companies
• Regulate and guard the “rules of the game”
• But! It is not the government’s role to replace the
private sector or to predict the “next big thing”

19. National Policy of Innovation
Even the brightest minds failed to predict
the future
“We do not have need of the
futureelephone. We have
plenty of messenger boys."
-- Sir William Preece , Chief engineer,
British Post Office
"There is no reason anyone
would want a computer in
their home.”
-- Ken Olson, president, chairman and
founder of Digital Equipment Corp.
(DEC)
"No one will need more
than 637KB of memory for a
personal computer."
–(attributed to) Bill Gates

20. National Policy of Innovation
Even the best technology companies
failed to understand their areas of activity
IBM
computers
NOKIA
cellular
MOTOROLA
cellular

21. National Policy of Innovation
Israel’s Approach
• Support System for All Innovation Stages:
• Entrepreneur Level
• Incubation
• Growth stage
• Generic pre competition
• Private Sector Financial Tools
• International Cooperation

22. National Policy of Innovation
Generic R&D
Magnet
Magneton
Competitive R&D
Industrial
R&D
Pre-Seed
Tnufa
Nofar
Technological
Incubators
Cooperative R&D
Long-Range
R&D
Seed Fund
Applied Academic
Research
Basic R&D Market Proximity
EUREKA
Bi-national Funds
ISERD
(Europe FP)
International
Global Enterprises
R&D Cooperation
Bi-national Agreements
Galileo
OCS Government Support Programs

23. National Policy of Innovation
Israel is a global leader
in research and innovation
Level of innovation
QualityofScientificResearch
Source: World economic forum, 2011
Israel

24. National Policy of Innovation
Israel is…
• 1st in the world for scientific
research
• 1st in the world for
entrepreneurship
• 1st in the world for information
technology skills
• 1st in the world for expenditure on
R&D (as % of GDP)
• 2nd in the world for innovative
capacity
• 2nd in the world for venture capital
IMD World Report 2011
The Global Competitiveness Report 2010-
2011 (World Economic Forum)
VC Investment, $ per capita

25. National Policy of Innovation
0
5
10
15
20
25
30
35
40
BillionsUSD
IndustrialExports
But this was not always the case
~25 B$
10% of
current
GDP
This change was led by the hi-tech sector

26. National Policy of Innovation
Jaffa Oranges vs. Software
0
500
1000
1500
2000
2500
3000
3500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Citrus Software
Source: Dept. Economic & Planning Admin., Ministry
Industry, Trade and Labor, State of Israel
Exports
($ millions)

27. National Policy of Innovation
Integrated Model –
Total Returns to the Economy
Return On
Gov. Money
Total
Value Added
Increment to the
Economy
Spillover
Effect
Derived
Own
Effect
Technological
Intensity
473%28.617.710.9Hi-Tech
751%42.625.317.3Mid-High Tech
1323%71.232.838.4Mid-Low Tech
828%46.47.339.1Low-Tech

28. National Policy of Innovation
Israel’s advantages
• Human Capital
• Scientific Base
• Excellence in - IT, Life science
• Government Support
• Disruptive Perception
• Supportive Environment
National DNA

29. National Policy of Innovation
Achievements
• High Tech - 35%+ of the Industrial Export
• Start Up nation
• 5X Direct Return on the Government
Investment (5-7 years)
• Major Tool of Job Creation
• Substantial Additionality and Spill Over

30. National Policy of Innovation
Israel’s weak points
• Financial - VC major investment tool,
No Equity Funds, Institutional Investors are out of
the game
• Weak transition from Start Ups to Mature
companies
• Academic Infrastructure
• Technology Absorption

31. National Policy of Innovation
Serbia Case
• IF start operation 2011
• Operational Budget – over 1M euro
• Support Budget – 6M euro
• Two operational Programs – Mini Grants
- Matching Grants
• IF Organs – Management, IC, Board, DD org.

32. National Policy of Innovation
Serbia Case (2)
• 100+ Applications at Last Call
• Capacity Building
• Positive Public Attitude
• Government Commitment
• Future Budget
• Fund Governance
Achievements
To be Corrected
Very Impressive Outcome

33. National Policy of Innovation
Serbia Case (3)
The agency was on hold for 5
months
Due to election and change
of power – Late approval of
Operational budget

34. National Policy of Innovation
Key Success Factors
• Education
• Basic Science Infrastructure
• National “DNA”
• High In National Priorities
• Well Balanced System
• Execution !!!!!!!
• Long Term Commitment

35. National Policy of Innovation
THANK YOU
Dr. Shuki Gleitman

36. National Policy of Innovation
R&D Centers In Israel
Maps: Wikipedia
Haifa Region
Tel Aviv Region
Jerusalem Region
Southern Region
Northern Region
 Over 240 foreign companies have established R&D centers in Israel
 Over 50,000 personnel are employed in these R&D centers in Israel

37. National Policy of Innovation
What were the most important Bottlenecks for self
discovering new exports activities?
What type of government intervention?
Horizontal Vertical
•IP Protection
•Bankrupsy Laws
•Contract
•Enforcements
• Ease of doing
Business
•Sanitary
Protection for
fruit and meet
sector
•Matching grants
•Tax Credit on
R&D
•Subsidies on
Training
•Proof of
Concept
Labs For Specific
Technology/sect
•Technology
Consortium in a
sector/technolog
y
Public or semi
Public goods
Strong
Intervention
Appropriation
Failures Lead to
Horizontal
Interventions
Coordination
Failures lead to
Vertical
Interventions

38. National Policy of Innovation
VC’s in Israel:
from traditional banking to VC industry
1992
• The Israeli government understands that well-
functioning venture capital markets are the key
sources of finance for many innovative start-ups
and therefore need to be developed
• 1 VC

39. National Policy of Innovation
Yozma (Initiative in Hebrew)
1993
• A governmental initiated program “Yozma” was
established to encourage venture capital in
Israel
• Began operation in 1993, privatized in 1997

40. National Policy of Innovation
The outcome
“The solid availability of venture capital has
further contributed to making Israel an
innovation powerhouse”
The Global Competitiveness Report 2011-2012 - World Economic Forum