Innovation Strategy Management Lecture 22

Programme Part 1 – The basis of Innovation Part 2 – Innovation and New Product Development Part 3 – Innovation and Technology development Part 4 – Innovation and Intellectual Property Part 5 – EU Green paper of Innovation Part 6 – Innovation policies

Part 6 Innovation policies

Lecture 22: General information about Innovation systems Overall data about Innovation systems Industrial Parks and the role of science in economic development (Sweden) LEBIC (Latvia) Development of National Innovation System (Latvia)

Overall data about Innovation systems Existance of different types of innovations during the life time of the product Development stages of innovative product to market State budget expenditure on R&D as a percentage of GDP and state budget The innovation system of State Risk distribution

Existance of different types of innovations during the life time of the product The roduction process turns out to the capital intensive Life time of productions Existance of semarkable innovations Product innovations Process innovation

Development stages of innovative product to market Technology domain Marketing domain Company project Idea Pre- feasibility study Prototype Planning manufac- turing process Production Marketing researchSales research Search of technology development

State budget expenditure on R&D as a percentage of GDP and state budget

The innovation system of State Government Resource of finance Information of market and copotence of managemtn Technical knowledge and labour R&D Domestic market International market Industrial innovation Enterprises of State Science and technology Education Information Agents of abroad Services of trade States services State purchase OfferDemand Output Finance Tax Legislation Regulation Political

Risk distribution between banks and government organizations (50:50) Fixed capital 40 % Loan 60 % Government keep pawn Bank keep pawn

Risk distribution between banks and government (20:80) Fixed assets 40 % Government keep pawn 80 % Bank keep pawn 20 %

Innovation State Investment Inter-state Investment Own enterprise Investment EU Program Investment Entrepreneurship (1) Entrepreneurship (2) Existent products Existent services New products Research results and new technologies New products

Industrial Parks and the role of science in economic development An institutional theory of economic policy Gunnar Eliasson The Royal Institute of Technology (KTH), Stockholm

Abstract –Science plays a critical role in economic development –Science is an area where the market is conventionally assumed to fail –A decisive responsibility for science has been «assigned» to Government –The roles of science and Government are different

What they do: –First, they identify additional and complementary sources of scientific knowledge in industry outside academia. –Second, they elaborate on the long and very competence demandingtransformation of scienofoc knowledge. –Third, they clarify the nature of industrial competence as being embodied in individuals or groups of individuals. –Hence, they explore the institutional foundation of industrial policy.

The science park is introduced into this context as a policy instrument. The conclusion is that to succeed as a catalyst for industrial competitiveness and growth the park administration should be less concerned with science and technology and more with the ecomonics of the transformation process.

Business Innovation Centre of Latvian Electronic Industry is founded for supporting of small enterprise development in Latvian Electronic Industry branch, enterprise technological modernisation and production for export promoting and professional training for technical personnel. LEBIC is located on the territory of microelectronics enterprises "ALFA" to promote modern industry zone arrangement.

LEBIC is founded in October Founders of the centre: –LATVIAN ELECTRICAL AND ELECTRONICSINDUSTRY ASSOTIATION –RIGA TECHNICAL UNIVERSITY –LATVIAN UNIVERSITY –THE INSTITUTE OF SOLID STATE PHYSICS OF LATVIAN UNIVERSITY –JOINT STOCK COMPANY "ALFA" –JOINT STOCK COMPANY "VEF" –JOINT STOCK COMPANY "LATVIANCENTRE FOR DISABLED" –"J. SMILGAS TECHNOLOGICALSERVICE, LTD" –INNOVATION COMPANY "DOMAS BALTIKUM" LTD –"OPTRON" LTD –SCIENTIFIC CENTER "MIKROELEKTRONIKA" LTD –"VELTAS" LTD

Aim –to stimulate creation of new technology oriented SMEs and to involve more research laboratories and institutes in state industrial development. In this concept is outlined that innovation policy is one of the most important components of the states industrial policy. Development of National Innovation System

Latvian Government on March 24, 1998 accepted the concept for creation of the National Innovation System (NIS). The main aim of the concept is to promote development of the state economy and process of integration of Latvia in European Union (EU).

The concept foreseen: –to evaluate activities performed up to now in creation of NIS in Latvia and on the basis on EU documents "Green Paper on Innovation, 1995", "The First Action Plan for Innovation in Europe,1996", "Frascati Manual, 1993", etc., to develop proposals for new legislative acts, regulations and operational plans on innovation; –to work out proposals on financing the innovative projects and business activities from the state budget; –to develop proposals on foundation of the innovation fund.