Within the SEE MIKTA seminar held in November 2017 in Belgrade, discussing the topic of investing in innovation, Dr Reinhard Scholl, Deputy Director of Telecommunications Standardization Sector in the International Telecommunications Union - ITU, presented the technology requirements - infrastructure for innovation, and a path from innovation to commercialization. ITU is the United Nations specialized agency for information and communication technologies. Mr Reinhard Scholl presented the innovation ecosystem within the seminar SEE MIKTA: Innovation and Entrepreneurship, organized on 23 November 2017 in Belgrade, by NALED and embassies of MIKTA countries - Mexico, Indonesia, Korea, Turkey and Australia.

1. Towards ICT-centric
Innovation Ecosystems
Reinhard.Scholl@itu.int
Beograd, 23 November 2017

2. ITU

3. 3
ITU manages the radio frequency spectrum and
satellite orbits

4. 4
ITU develops standards
Hollywood, 26 Nov 2017

5. 5
ITU assists developing countries in setting up their
ICT infrastructure

6. Serbia’s digital infrastructure

7. 7
This makes an innovation high performer …
• Public & private investment in education, R&D and
skills
• Innovation partnerships among companies and
with academia
• Innovation-friendly business environment,
including strong digital infrastructure
Source The Economist Intelligence Unit

8. 8
Fixed Broadband Penetration
0
5
10
15
20
25
30
35
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
FIXED BROADBAND SUBSCRIBERS PER 100 CAPITA
Source ITU; 2016 data

9. 9
Mobile Broadband (= data) Subscriber Penetration
0
10
20
30
40
50
60
70
80
90
100
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
MOBILE BROADBAND SUBSCRIBERS PER 100 CAPITA
Source ITU; 2016 data

10. 10
International Internet Bandwidth is low
0
50
100
150
200
250
300
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
INTERNATIONAL INTERNET BANDWIDTH/USER (KBPS)
Source ITU; 2016 data

11. 11
Broadband Prices (%GNI)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
BROADBAND PRICES (% GNI)
Source ITU; 2016 data

12. 12
ITU offers national reviews of the ICT centric
innovation ecosystem based on ITU methodology

13. 13
ITU-D Innovation
All Ecosystem Stakeholders are important
Source ITU

14. 14
ITU-D Innovation
Pre Idea &
Culture
Ideation
Startup “Valley of Death”
SME High
Growth
Entrepreneurial Lifecycle
Profit
Loss
Entrepreneurship
Phase
Pre-Idea Ideation Startup The “Valley of
Death”
SME
Entrepreneurs Entrepreneurial
Interest
Engage with
problems
Develop Business
Models
Build Collaboration Expand
Finance Research Funding Seed Funding Angel Investment Venture Capital Business Finance &
Loans
Entrepreneurial
Support
Entrepreneurial
Events
Hackathons &
Competitions
Co-working &
Support
Incubators &
Accelerators
Business Association
Private Sector Success Stories Research Programs Lab programs B2B & Support
Services
Skill Training
Programs
Academia Entrepreneur
Community
Basic Research Spin Offs Soft skill trainings Human capital
Public Sector Vision & Strategy IP & R&D Support Tax Support Public Procurement Trade Policy
Source ITU

15. 15
Serbia’s SW industry is “resounding success…
• … in terms of innovation at a sector level”
• 6’000 people in 2’000 companies and growing
• But need to increase IT graduates per year
Source The Economist Intelligence Unit

16. 16
Source: New York Times, 4
November 2017
blue: # of graduates
pink: # of job openings
Life Sciences
Engineering
Physical Sciences
Mathematical
Sciences
Computer Science
(US-data

17. Three Case Studies

18. M-PESA

19. 19

20. 20
Light regulation helped kick-start M-PESA
C U S TO M E R S U S I N G M - P E S A
24,698,20
0AV E R A G E T R A N S A C T I O N S
390m tpm
13m tpd
A N N U A L T R A N S A C T I O N G R O W T H
34% Source Safaricom @
ITU-WTSA Oct 2016
tpm = transactions/month
tpd = transactions/day

21. infobip.com

22. 22
/

23. 23

24. 24

25. 25
infobip: from a town with 6000 inhabitants to a
global company (and Croatia’s biggest SW company)

26. goopti.com

27. 27

28. 28

29. Join us:

30. 30

31. 31
2nd Summit:
15-17 May 2018

32. 32
2nd Summit:
15-17 May 2018

33. 33
Thank you

34. Backup slides

35. 35
Cellular (= voice, SMS) Subscriber Penetration
Source ITU; 2016 data
0
20
40
60
80
100
120
140
160
180
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
CELLULAR SUBSCRIBERS PER 100 CAPITA

36. 36
% Households with Internet
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
% HOUSEHOLDS WITH INTERNET
Source ITU; 2016 data

37. 37
% Internet User Penetration Rate
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Europe Serbia Albania Bosnia &
Herzegovina
Bulgaria Croatia Hungary Macedonia Montenegro Romania Slovenia
% INTERNET USER PENETRATION RATE
Source ITU; 2016 data

38. 38
Selected Regional IXPs
Source: Packet Clearing House; https://www.pch.net/ixp/dir
Country No
IXP
s
Title No.
Particip
ants
Peak Speed Average
Speed
Date
Established
Albania 2 Albania IX
Albanian Neutral
Internet Exchange
8 ? ?
2011
Bulgaria 8 Balkan IXP, Sofia
IXP, Bulgaria IXP…
100 195, 311,
187G/s
132, 207,
127G/s
2009-13
Croatia 1 Croatia IXP 36 84G/s 2005
Hungary 1 Budapest IXP 59 193G/s 117G/s 1996
Serbia 1 Serbian Open Exch 23 100G/s 2010
Slovenia 1 Slovenian IXP 23 49.1G/s 26.9G/s 1994

39. 39
All ITU data in one chart
Country Cellular
subs per
100 cap
Fixed BB
subs per
100 cap
Mob BB
subs per
100 cap
*BB
prices
(% GNI)
% HHs
with
Internet
% Int
Users
Intl Int
BW/use
r, kbps
Europe 118.0 30.2 80.1 1.1% 82.5% 77.9% 178.0
Albania 105.1 8.3 52.6 2.4% 37.0% 66.4% 57.0
Bosnia &
Herzegovina
89.2 17.4 37.4 2.0% 57.1% 69.3% 98.5
Bulgaria 127.2 24.1 88.3 2.8% 63.5% 59.8% 175.9
Croatia 104.1 24.6 76.7 1.1% 77.2% 72.7% 119.0
Hungary 119.1 28.5 44.5 2.0% 78.6% 79.3% 154.8
Macedonia 97.2 18.1 56.4 2.9% 70.4% 72.2% 109.0
Montenegro 167.5 18.5 60.7 1.9% 69.8% 69.9% 202.9
Romania 106.4 20.7 73.7 0.8% 72.4% 59.5% 155.5
Serbia 120.6 19.2 67.4 3.0% 64.7% 67.1% 26.3
Slovenia 114.6 28.3 62.2 1.0% 78.4% 75.5% 239.2
* Average of mobile
and fixed broadband
prices (% GNI)
Source ITU;
2016 data