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Proposed Models on Open Innovation in Indonesia - Tatang A. Taufik


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Bahan paparan dalam AIST – BPPT Workshop on “Innovation Ecosystem in Indonesia”, Jakarta International EXPO Conference Hall (6F) -- Jakarta, Indonesia, December 20, 2013

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Proposed Models on Open Innovation in Indonesia - Tatang A. Taufik

  1. 1. PROPOSED MODELS ON OPEN INNOVATION IN INDONESIA Dr. Tatang A. Taufik Deputy Chairman Agency for the Assessment and Application of Technology (BPPT) - Indonesia AIST – BPPT Workshop on “Innovation Ecosystem in Indonesia” Jakarta International EXPO Conference Hall (6F) Jakarta, Indonesia, December 20, 2013
  4. 4. OPEN INNOVATION • “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” [Chesbrough, 2003]. • Innovating with partners by sharing risk and sharing reward (innovating in partnership with those outside your company by sharing the risks and rewards of the outcome and process) []  Key : Connecting to the best partners (and the smartest innovators) on the planet . . .
  5. 5. INTERNATIONAL OPEN INNOVATION • “More“ open innovation ~ neccessity to all of us, not just the wants of advanced countries : – Common vision : one world – better society (quality of life of human being), inclusive (equitable), and sustainable (living & environment) – Unavoidable trends : globalization, networked economy & knowledge communities (interconnectedness) • . . . But needs to be put in the context : – – – – – Common/shared understanding & goals Adapted to economic, socio-cultural & political contexts Leadership movement Partnerships ~ mutually beneficial settings Implementable initiatives with a multiyear roadmap.
  6. 6. SOME OI MODELS 1. 2. 3. 4. 5. Product platforming : extends the platform product's functionality while increasing the overall value of the product for everyone involved. Idea competitions : encourages competitiveness among contributors by rewarding successful submissions Customer immersion : incorporates customer input, while also allowing them to be more closely involved in the design process and product management cycle Collaborative product design and development : incorporates their contributors into the development of the product & ensuring that the correct product is developed as fast as possible, while reducing the overall cost of development Innovation networks : leverages a network of contributors in the design process by offering a reward in the form of an incentives; the network of contributors are used to develop solutions to identified problems within the development process, as opposed to new products.
  7. 7. IMPORTANT ISSUES • What levels of ‘openess’ that we agree on. • Any international open innovation initiative needs to address & convince the stakeholders that it can bring practical benefits to solve development or real life problems faced the participating countries/parties. • What to agree on : – common goals – sustainable initiative model – key performance indicator measurements for the initiative – the starting points • Start from small, grow as we go …. the roadmap.
  9. 9. OPEN INNOVATION ~ OPEN TO and/or ON WHAT (?) General Innovation Openness Architecture STI/R&D Partnerships : •Specific STI/R&D collaborative projects • Join R&D Management • HR exchange/mobility Innovation System Strengthening at : • International level • National Level System/Policy Platform Other Partnershp Schemes • Common Recognition : Accreditation & Certification • STI/R&D Human Resource Qualifications • Prototyping : TRL • MSTQ Facility (Measurement/ Metrology, Standard, Testing, Quality Management) • STI/R&D Facility Accreditation -Certification & Facility Utilization OPEN INNOVATION Innovation (Product/ Technology) Utilization Flagship Program related Platform Specific Policy Instrument related Platform • Specific goals • The setting • Standard • IPR • Mutual Recognition Agreement (MRA) on particular STI areas • IPR Grants (waiver & election) • Free IPR licencing
  10. 10. THE IMPORTANCE AND GOALS OF INTERNATIONAL OPEN INNOVATION - GENERIC Strengthen synergetic STI partnerships (BPPTAIST, Indonesia-Japan) : 1. to support STI contributions on more progressive & better economy advancement, inclusive, and sustainable development; 2. to increase STI-based industries (innovative businesses) in national as well as international markets; and 3. to enhance STI contributions on the common vision of one world – better international society (quality of life of human being), inclusive (equitable), and sustainable (living & environment) development.
  11. 11. THE IMPORTANCE AND GOALS OF INTERNATIONAL OPEN INNOVATION - SPECIFIC To strengthen synergetic STI partnerships (BPPTAIST, Indonesia-Japan) : by establishing International Open Innovation Network Hubs on Renewable Energy in order 1. to support STI solutions on common platforms in renewable energy; 2. to increase renewable energy industries (innovative businesses) in Indonesia, Japan and international markets; and 3. to enhance collaborative STI contributions by providing affordable renewable energy technology options in supporting – better international society, equitable, and sustainable development around the world.
  12. 12. THE SETTING Notes PRIORITIES Hubs 1. ISTP 1. Biomass / Biofuel 2. Geothermal Roles/Functions International & National Hub • Integrated national STI facilities • Adequate STI HRs • Main location of BPPT’s renewable energy R&D activities • Indonesia potentials on renewable energy • BPPT competence & priority programs Notes International stakeholders : • BORC (in Thailand) • AIST National stakeholders , e.g., : • MEMR • MRT • BPPT • LIPI • ITB • MAKSI • GAPKI
  13. 13. THE SETTING (2) Hubs 2. Pelalawan Technopole Roles/Functions Notes Regional Hub for Biomass/Biofuel Tech Transfer & initial regional project location • Abundant biomass resources • Chalenging energy needs • Rapid regional growth • Proactive local government • Supporting local stakeholders AIST BORC Pelalawan Technopole ISTP Regional stakeholders : • Pelalawan Regency • Riau Prov. Gov. & local govs. • PPKS (Medan) • Local universities, industries & associations
  14. 14. A REGIONAL INNOVATION NETWORK : PELALAWAN TECHNOPOLE PELALAWAN REGENCY – THE PROVINCE OF RIAU Area of 3,754 ha. Industries Offices Sport Center Research & Dev’t University Main Gate Housing Services & Commercials Sekolah Tinggi Teknologi Pelalawan (STTP)  “New” smart & green city
  15. 15. STANDARD & IPR RELATED ASPECTS/ISSUES Type STANDARD Open standard technology Notes 1. Key technologies (e.g., energy conversion; energy storage; energy efficiency; possible hybrid technology) 2. End –products (quality; environmental aspects) – Mutually recognized national & international standards INNOVATION UTILIZATIONS Technology/Industrial Schemes IPR Licensing (Proprietary IPs) Model Options 1. Medium & Large scales 2. Fuel cell based Fee-based licensing Small scale Free fee-based licensing (royalty fee is waived) for small enterprises/industries
  16. 16. ACCREDITATION-CERTIFICATION & FACILITY UTILIZATION Issues Needs Notes Accreditation & Certification Systems Common Recognition Establish an agreeement setting STI/R&D Human Resource Qualifications • Professional grading system • HRD development HR Exchange • HR mobility agreement Technology prototyping status How to assess the Technology TRL assessment/ Readiness Level (TRL) measurement methods STI/R&D Facility, including MSTQ Facility (Measurement/Metrology, Standard, Testing, Quality Management) Shared Facility Utilization • Partnership forms • Mechanisms
  17. 17. OTHER STI/R&D PARTNERSHIP INITIATIVE ISSUES Issues Needs Notes Starting points Where & how to start STI/R&D collaborative projects within IOIN framework • Consensus on the initial projects Join R&D Management How to manage collaborative/ join R&D projects • Organization • Resources provision & resource sharing • Partnership management scheme Knowledge assets • Knowledge/information access • Publication • Knowledge Management • IP policy • IP ownerships • IP Management • Business models
  19. 19. FRAMEWORK OF COLLABORATIVE ACTIVITIES BPPT - PARTNERS Innovation System Initiatives Integrated International Open Innovation Network Initiative National level activities Regional level activities Specific IOINI Integrated International Open Innovation Network Initiative Specific IOINI Particular regions
  20. 20. INTERNATIONAL OPEN INNOVATION INITIATIVE : NATIONAL HUB Innovation System Initiatives National level activities Regional level activities Indonesia S&T Park : Open Innovation Hub in Renewable Energy Examples: • Universitybased Technoparks • Related R&D activities (Biomass & Geothermal) Regional/ Local IOINI Examples: • Pelalawan Technopole
  21. 21. INTERNATIONAL OPEN INNOVATION INITIATIVE : REGIONAL HUB Innovation System Initiatives National level activities MAKSI (Indonesia Palm Oil Society) Palm Oil Research Center in Medan Other Palm Oil Research Centers Indonesia S&T Park : International Open Innovation Network Hub in Renewable Energy (Biomass & Geothermal) Examples: • Universitybased Technoparks • Related R&D activities Smart & Green Citiy (Region) Regional level activities Region-to-region, partnerships Regional PO Industries Local Universties; Incl. animal husbandry project Innovation Center (Local Business Incubators) Local/regional projects; incl. renewabe energy Pelalawan Technopole : International Open Innovation Network Hub in Biomass (Palm Oil based Industries & Biomass) Pelalawan, Riau
  22. 22. INTERNATIONAL OPEN INNOVATION NETWORK Strengthening synergetic partnerships as the power of “WE” for clean energy, better society, and sustainable development
  23. 23. Gerakan Membangun Sistem Inovasi, Daya Saing dan Kohesi Sosial di seluruh Wilayah Nusantara (National movement to develop innovation system, competitiveness, and social cohesion through out the Country) ... in harmony we progress ... Arigatou gozaimasu Thank You Dr. Tatang A. Taufik Deputy Chairman Agency for the Assessment and Application of Technology Badan Pengkajian dan Penerapan Teknologi (BPPT) Gedung II BPPT, Lt 13 Jl. MH. Thamrin 8, Jakarta 10340 - INDONESIA Phone (+6221)-316 9441 / 9442 Facs. (+6221)-319 24127 E-mail:
  24. 24. COUNTRY BACKGROUND • • • • • • • • Heterogeneous country in many respects South East Asia, Equator, average 27ºC, 90% humidity Archipelago (stretched 5,200 km East to West, 67% sea) 1,904,569 square km landmass (13,466 islands ~ 400 inhabited, main islands : Java, Sumatera, Kalimantan, Sulawesi, Papua, Maluku, Nusa Tenggara) ± 108,000 km coastline ± 257,516,167 people (est. 2012, 4th most populated country, ~ 60% in Java) ± 300 ethnic groups (major ethnics : Javanese, Sundanese, Melayu, Bugis, Balinese) 16th largest economy. • Decentralization ~ 542 Autonomos regions : • 34 provinces (led by Governors) • 98 cities (mayors) • 410 regencies (regents) • All governmental services/functions are co-governed/co-administered (by central & regional governments), including STI, exept : 1. foreign affairs; 2. religion; 3. justice; 4. security; 5. defence; 6. national monetary & fiscal.
  25. 25. TRENDS : STI INTERNATIONALIZATION Some Current Implementation, Public Discourse & “New” Initiatives 1. More advanced countries & International Organizatios, e.g. : – – Reverse Innovation (e.g., Japan) Brain Circulation / STI HR Mobility 2. Some regional economy integration, e.g. : – – APEC AFTA 3. New Industrilized Countries (NICs) ~ Emerging Economies, e.g. : – – – – TNCs; Open/joint international infrastructural projects STI-based product exports Reverse brain-drain (e.g., STI Diaspora) 4. International Open Innovation Initiatives.
  26. 26. INTERNATIONALIZATION : STI (R&D) – BUSINESSES Why Do Businesses Locate R&D Facilites Elsewhere? 1. 2. 3. 4. 5. 6. 7. R&D is an integral part of Business Strategy The consequences of Open Innovation Access to Human Capital Localized Knowledge and Access to Markets Cost reduction Regulation and public attitude Intellectual property and the protection and movement of knowledge. Source : Bharawadj and Kapoor, 2008 (
  27. 27. INDONESIA SCIENCE & TECHNOLOGY PARK 35 km from Jakarta, 460 hectares, 30 Labs, 3000 S&T people Industrial Engineering Technology Labs Material & Process Technology Labs Defense Tech. Labs ICT Labs Agro & Biotech Labs Geosystem Tech. Labs Energy Tech. Labs Innovation Center & Tech. Business Bldg.
  28. 28. HUMAN RESOURCES Number of Employees [by Educational Degree] 257 496 101 847 High School Diploma Undergraduate Master Doctorate 1210 As of April 2013, total number of BPPT’s employees: 2.911 [81% Scientists & Engineers, 19% Administrative]
  29. 29. INNOVATION POLICY FRAMEWORK AND STRATEGIC INITIATIVES Vision & Missions of the National & Regional Sustainable Development Strategic Initiatives Innovation Policy Framework RIS Industrial Innovation Network Cluster Technopreneurship General conditions Institution, S&T support, Absorptive cap Interaction, knowlegde-based services Innovation Culture Focus & Coherences Adaptability to global changes Flagship Programs Thematic Pilars
  30. 30. MAIN AGENDA AND STRATEGIC INITIATIVES TO STRENGTHEN THE INNOVATION SYSTEM Innovation Policy Framework : The Hexagon Strategic Initiatives: 1 2. 3. 4. 5. 6. 2 5 1. 6 1. 3 4 Develop conducive general framework/conditions for inovation and business. Strengthen knowledge institutions and S&T supports, and enhance absorptive capacity of industry (esp. SMEs). Develop synergetic collaboration for innovation and its diffusion, and increase knowledge/technology-based services. Foster innovation culture. Develop and strengthen integrated efforts of innovation system and industrial cluster development (at the national and regional levels). Develop and adapt strategic responses to global changes and challanges. 2. 3. 4. 5. Strengthening Regional Innovation System (RIS) : as a vehicle to strengthen pillars for fostering creativity-innovation at regional levels (as an intgeral part of the National Innovation System). Industrial Cluster Development : as a vehicle to develop the best potencies and to enhance industrial competitiveness. Innovation Network Development : as a vehicle to develop linkages and partnerships among actors, and dynamizing the flow of knowledge, innovation, diffusion, and learning. Technopreneurship Development : as a vehicle to modernize business/economy & society, and to develop innovation culture. Strengthening Thematic Pilars : as a vehicle to improve the thematic and contextual elements of the innovation system.
  31. 31. EXAMPLES OF INTEROPERABILITY ISSUES : OPEN STANDARD (?) • “Standard” : – Technologies; Products; and/or related Rules/Regulatory aspects are chosen based on a consensus by a “formal” (and joint) committee of various stakeholders, and the standard is implemented upon the consensus; and/or – Interchangeable Document/data or data format. • “Royalty” : Based on certain fee (e.g., reasonable and non-discriminatory patent licensing : ITU-T) OR royaltyfree basis (e.g., European Interoperability Framework for Pan-European eGovernment Services).