The OCS and its Particular Role Shaping the Innovation EcoSystem in Israel

Transcription

1 The OCS and its Particular Role Shaping the Innovation EcoSystem in Israel The Mission: Innovation Friendly Country How Can Japan & Israel Cooperate? Japan-Israel Joint Forum Tokyo, 09 October 2013 Noam Bar-Gal Office of the Chief Scientist, Ministry of Economy, State of Israel

2 Innovation is the central issue in economic prosperity (Michael Porter) Employment Growth Innovation / R&D Branding 2

3 Quality of Scientific Research Israel is a Global Leader in Research and Innovation 3 Source: World economic forum, 2011

4 Israel at a Glance Population: 8 million Area: 22,145 km 2 GDP 2012: $260B, per capita: $32.2K 2010: +4.8%, 2011: +4.7%, 2012: +3.3%, 2013E: +3.8% OECD member avg: +1.9% Exports: 2010: $44B, 2011: +4.3%, 2012: +3.6% 4 Sources: MOF, Bank of Israel, Israeli Central Bureau of Statistics, The World Bank

5 Israel Comparison to Japan Population: ~6% compared to Japan Area: ~6% compared to Japan GDP 2012: ~4.6% of Japan s GDP, per capita: ~69% of Japan s GDP p.c. 5 Sources: MOF, Bank of Israel, Israeli Central Bureau of Statistics, The World Bank

6 Israel s Competitive Edge VC Investment, $ per capita Business Expenditure on R&D ( % GDP) Total Expenditure on R&D ( % GDP) 1 st 1 st Entrepreneurship Skilled Labor Venture Capital Flexibility and Adaptability 2 nd 4 th 5 th 6 th Source: IMD World Competitiveness Yearbook

7 Massive presence of foreign MNCs Share of local-affiliates of foreign companies in BERD Source: OECD

8 R&D Centers In Israel MNC s Presence Haifa Region Northern Region Tel Aviv Region Jerusalem Region Southern Region Over 250 foreign companies have established R&D centers in Israel Over 50,000 personnel are employed in these R&D centers in Israel 8

9 Massive presence of foreign MNCs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Israel Austria UK Ireland Belgium Hungary Netherlands Sweden Italy Denmark Norway France Finland Switzerland Singapore Poland Spain Portugal Germany Turkey Japan South Korea USA 9 GERD by financing sector (2010) Forigen Business sector Higher Educ+GOV+PNP Source: OECD

10 Israel s special characteristics: No Natural Resources Development of water, agriculture and alternative energy technologies Security Needs Human capital and development of defense technologies Commercializatio n of technologies Very Small Domestic Market Unique entrepreneurial spirit, dynamic bottom-up approach Companies target foreign markets Economy based on human capital, innovation and knowledge 10

11 But this was not always the case This change was led by the hi-tech sector 11

12 And another example 12

13 The innovation ecosystem is complex Researchers Entrepreneurs High skilled workers Funds Research Facilities Industry IP Protection Laws 13

14 Government plays a key role in shaping and optimizing the ecosystem Infrastructure Risk sharing Social and National goals OCS R&D Law 14

15 The OCS programs support most of these paths Bio-Bank Young Entrepreneurs MEIMAD Horizon 2020 Large Firms Agreement R&D NATAF Centers for MNC s Agricultural R&D TZATAM Research Institutions Multi- National Corporations Program EUREKA! TNUFA Renewable Energy Water Technology Industrial R&D Technological Incubators Traditional Industry R&D Fund BioTech Fund Financial R&D Nanotechnology Centers Magneton Industrial Incubators KAMIN Industry- Academia Cooperation MAGNET programs NOFAR Domestic / National Mixed: Nat l + Int l Specially Targeted for International Cooperation Bi-National Agreements 15

16 The OCS programs: Location on the Product Value Chain National vs. International MAGNET programs Basic Research Pre-Competitive Research R&D Centers for MNC s Technological Incubators Competitive R&D Multi- National Corporations Program R&D Fund Bi-National Agreements 16

17 The Network of International Collaboration in R&D North America United States: BIRD (Foundation) New York Massachusetts Maryland Oregon Virginia Wisconsin Colorado Illinois 17 Canada: CIIRDF (Foundation) Ontario South America Argentina Uruguay Brazil Europe* France Russia (Rusano, Skolkovo) Italy Germany Greece Denmark Hungary Turkey Portugal Finland Sweden Czech Republic Bulgaria Lithuania Slovenia Ireland Belgium (Flandria) Netherlands Cyprus Asia China (Shanghai, Shenzen, MOST) Jiangsu (Foundation) India KORIL-RDF-Korea (Foundation) SIIRD-Singapore (Foundation) * Most of the countries - through EUREKA (40 countries Multilateral Initiative) Australia (Victoria)

18 Multinational Corporations Program Abbott Alcatel-Lucent Alstom Arkema B. Braun Bombardier Transportation BT Cisco Coca-Cola Deutsche Telekom DuPont GE HP IBM Multinational from all over the world participate: $6.8M granted to >90 Joint Projects (since launching the program in 2005) Infosys Intel Life Technologies Merck Microsoft Novozymes Oracle Philips Posco Procter & Gamble Punj Lloyd Renault Roche SAP Telecom Italia Telefonica

19 Government Should Enable and Nurture Actively encourage constant development of the ecosystem Provide conditions for continuous growth of companies But! It is not government s role to replace the private sector nor to predict the next big thing 20

20 Adding the Industrial R&D Perspective The OCS designs and executes R&D programs related to all relevant government initiatives, including: Alternative fuels for transportation Emissions reduction program NewTech National program for green growth Cyber security 21

21 A small step for man Argo Medical invented the external wearable skeleton enabling the walking of paraplegic patients. TNUFA grantee Technological Incubator graduate BIRD joint project with Allied Orthotics & Prosthetics 22

22 23 Thank you!