Marcus Wallenberg Prize Symposium Oct 1, 2004 Per Eriksson, Director General VINNOVA, Swedish Agency for Innovations Systems

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1 Per Eriksson Stockholm, Sweden Director General, Vinnova

2 A Swedish Perspective on Driving Innovation and Entrepreneurship for Prosperity Marcus Wallenberg Prize Symposium Oct 1, 2004 Per Eriksson, Director General VINNOVA, Swedish Agency for Innovations Systems

3 Knowledge Based Economy and Global Competitiveness The economy is becoming more and more knowledge based and global The European Union has set the goal to become the world s most dynamic knowledge based economy This makes R&D very important, but R&D has to be strongly linked to business need, need-driven R&D

4 R&D expenditure in relation to GDP 2001 Ireland New Zealand Norway Canada (2002) United Kingdom Netherlands Belgium France (2002) Denmark Universities & colleges Government organisations Business sector Germany (2002) Switzerland United States (2003) Korea Japan Finland Sweden Israel (2002) 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 5,0% Per cent of GDP Source: OECD MSTI, 2004

5 R&D expenditure in relation to GDP Per cent of GDP 5,0% 4,5% 4,0% 3,5% 3,0% 2,5% 2,0% 1,5% 1,0% 0,5% Israel Sweden Finland Japan Korea United States Germany Switzerland Denmark France Netherlands United Kingdom 0,0% Source: OECD MSTI, 2004

6 Index of real GDP per capita (PPP USD) Index (1970=100) Source: OECD M STI, 2003 Switzerland Denmark Sweden Netherlands Canada USA EU Finland Japan Norway

7 Investments in R&D are high but the pay-off in economic growth is low a Swedish R&D-paradox! Why? The R&D-investments are not well chosen? The innovation system is not effective, weak interplay between companies, universities and politics? Some important actors are to weak and create bottlenecks in the innovation system? Some regulations create hindrances? Attitudes?

8 Research and Innovation Research: Money transformation to Knowledge & Competence Innovation: Knowledge & Competence transformation to Money Developing innovation system is to make above efficient, i.e. to make investment in R&D profitable.identify bottlenecks and possibilities. Pay back from IT/Telecom and Biotech Programs are times, 25 years!

9 Innovation system An innovation system is the network and interplay of public and private institutions in which production, distribution and use of new knowledge and technology take place. Most innovations from interplay, up to 9 of 10!

10 Innovation System perspectives National Region I Region II Region III Sector A Sector B Sector C

11 Triple Helix Government Public sector Business University Depending Actor Groups in the Knowledge based economy Knowledge is not transferred but co-developed Learning by fighting OK to fail!

12 1. Development is good. Change is not good. But for development change is needed! Therefore often learning by fighting. 2. From PPP, Public Private Partnership, to Public Private Univ. Partnership, i.e. Triple Helix

13 Different University Culture and History Humboldt University ( old European way ) Priests,Teachers, Lawyers, Civil Servants Entrepreneurial university ( American way ) Engineers, Agricultural, Medicine

14 Swedish National Innovation System Characteristics: The economy strongly internationally linked The big international companies dominate the R&D-system SME invest very little in R&D Universities dominate the public R&D-system and they have a third task, to cooperate with companies and society Small sector of Research-institutes Government invests very little R&D-money in companies (most to universities)

15 A Limping Innovation System - Two strong right legs - Two weak left legs The strong legs The big international companies dominate the R&D-system Universities dominate the public R&D-system and they have a third task, to cooperate with companies and society The weak legs Small sector of research institutes SME invest very little in R&D

16 R&D-years in technology for univ. & institutes, R&D years and 1999, in Sweden and Finland in absolute figures Public Institutes Universities in tech Private institutes Sweden Finland Sweden Finland

17 Mission for VINNOVA Promote sustainable growth by financing need-driven R&D and developing innovation systems

18 VINNOVA s challenge Long-term economic growth in Sweden is weak, despite large investments in R&D Increasing returns on Swedish R&D investments is one of VINNOVA s challenges Matching money from companies, cooperative research, need-driven R&D Many countries invest federal R&D money in private companies

19 National Innovation System Programs SBIR, Small Business Innovation Research Incubators & seed financing, start-ups Research Institutes Center of Excellence in Research and Innovation Universities in Innovation Systems International Learning, 6 th FP is supported

20 Sectorial Innovation System Programs, matching money from companies Information & Communication Technology Biotech, Lifescience Manufacturing and Materials Transport system, Automotive Working Life Science BioNanoIT Triple Helix Composed Decision Boards

21 Regional Innovation System Programs Competitive Regions (by letting the regions compete) New Program VINNVÄXT (WIN Growth) Cooperative, Triple Helix and regional based, R&D International Learning

22 The VINNVÄXT (WIN-Growth) Program Cooperative Triple Helix and regional based R&D Regional Growth Through Dynamic Innovation Systems in a focus area Competition between functional regions to get funding for cooperative R&D A focus area with growth potential from every competing region A world leading regional innovation system in the focus area is the goal Triple Helix leadership - University, excellent cooperative research - Industry cooperation, support and cluster - Regional Goverment & Public sector support

23 The VINNVÄXT (WIN-Growth) Program Cooperative Triple Helix and regional based R&D 10 years support 12 MEuro from VINNOVA over 10 years to every winning region for R&D 12 MEuro from the winning region Triple Helix panels in the decision board First call 2002/2003 gave 59 proposals and 3 winners Supportive learning process and international benchmarking

24 Efficient innovation systems Sustainable growth requires interaction between business, research, and policy/the public sector Triple Helix. Entrepreneurs move among these actor groups The interactions result in new products, services, and processes. Interaction between Business Research Policy/Public Sector

25 Investments in R&D are high but the pay-off in economic growth is low a Swedish R&D-paradox! Why? The R&D-investments are not well chosen? Weak need-driven R&D! The innovation system is not effective, weak interplay among companies, universities and politics? Weak Triple Helix Interplay! Some important actors are to weak and create bottlenecks in the innovation system? SME and Research Institutes are weak in R&D! Some regulations create hindrances? Taxation and Bureaucracy! Attitudes? Entrepreneurs should be heroes! Less Humboldt and more Entrepreneurial Universities are needed!

26 Triple Helix Government Public sector Business University Depending Actor Groups Knowledge based economy From PPP, Public Private Partnership, To Public Private Univ. Partnership, i.e. Triple Helix

27 A Swedish Perspective on Driving Innovation and Entrepreneurship for Prosperity Marcus Wallenberg Prize Symposium Oct 1, 2004 Per Eriksson, Director General VINNOVA, Swedish Agency for Innovations Systems

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29 The 2004 Marcus Wallenberg Prize Symposium

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