ASEAN Open Innovation and Entrepreneurship Platform: Three Programs

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1 ASEAN STI Forum Oct 14, 2017 International Convention Center Ⅱ Nay Pyi Taw, Myanmar ASEAN Open Innovation and Entrepreneurship Platform: Three Programs Jeong Hyop LEE Senior advisor, STIPI, KMUTT

2 Contents Definition and Concept Platform Strategy Platform Business Model Platform Programs Platform Governance Proposed Milestone and Expectations

3 1. Definition and Concept Conceptual design to address three variables of low market affordability, weak capacity and regional coordination for greater regional challenges ASEAN: Many challenges to be converted to new market opportunity through policy intervention Open Innovation: Global technology localization partnership Entrepreneurship: Local industrial diversification and deepening Platform: Architecture design to accommodate various stakeholders for coordinated implementation 1

4 Platform mechanism to overcome uncertainty and complexity in innovation for development 1960s 1990s 2000s present days Technology Push vs Market Pull Conceptual development for bounded rationality and uncertainty Evolutionary economics Path dependence Regimes and trajectories Dominant design Innovation System for complexity with structure and process National Regional Sectoral Technological Platform ASEAN Plan of Action in S&T (APAST) ASEAN Plan of Action in STI (APASTI)

5 Platform concept Structural bottlenecks of Valley of death and Darwinian Sea Lack of domestic capacities and low market affordability Potential technology providers: individuals, institutions and agencies International PPP consortia with local producers and institutes Potential demands: mostly from networks of local communities Demand articulation & patent prospecting Public & private investment arrangement Support of talent mobility, joint research and capacity development Market driven innovation support schemes 3

6 Platform value creation Local communities: expectations to solve their problems of energy, health, water, agricultural productivities and others. Technology providers (and local producers): access to potential demands Access to platform services by which interactions are facilitated Access to curation mechanisms that enhance the quality of interactions 4

7 Platform architecture Platform services P1: tech foresight P2: IPR management P3: joint research P4: talent mobility Capacity building Bilateral International PPP Consortia Technology suppliers Technology suppliers Technology suppliers Technology suppliers Local producers/ institutes Local producers/ institutes Local producers/ institutes Local producers/ institutes Investors Public funding Private investment MDBs Crowd funding Beneficiaries Community 1 Community 2 Community 3 Community 4 Community 5 Community 6 Community 7 Platform Multilateral Community 8 5

8 2. Platform Strategy Fragmented, intermittent and not sustainable nor scale-up Low market affordability Aid-based technology extension 6

9 Future affordable market? Products and services at affordable prices Current low affordable market Platform Technology transfer and capacity development partnership International stakeholders Regional stakeholders Local industrialization facilitation 7

10 3. Platform Business Model PPP quality management Tech providers Local producers Local universities Three phase Ex Ante evaluation Minimum Ex Ante evaluation then Ex Post evaluation with capacity building assistance User participa tion Revenue share Money side Revenue structure Demand articulation through networks of local communities Yes or No, If yes, direct (service charge) or in-direct (equity participation) 1 st : Public entities 2 nd : PPP consortia 3 rd : Communities Platform Investment Platform management Platform marketing Public funding: subsidies, grants, etc Indirect: Tax incentives etc Private funding venture, PF, etc Planning, management and M&E Policy alignment with AMSs, ASEAN and bi/multi-lateral agencies Activities: On-line and off-line (flagship programs and contest) Platform services: centralized (project based) vs. distributed (general) Voucher & Procurement Long-term payback guarantee End product & service marketing 8

11 Public funding Profit sharing STIPI Platform management business model o Cost center Cost and profit center (service charge and equity participation) o Profit share with program service providers 9

12 Chicken or egg?: eight successful platform launch strategies Strategies Definition ASEAN Platform The-follow-therabbit strategy The piggyback strategy The seeding strategy The marquee strategy The single-side strategy The producer evangelism strategy The big-bang adoption strategy The micromarket strategy 4. Platform Programs Non-platform demonstration projects to model success Connection with an existing user base Value unit creation relevant to at least one set of potential users Incentives to attract key users Business creation around products or services for a single set of users Platform design to attract producers One or more traditional push marketing to attract a high volume of interests Targeting a tiny market of members already engaging in interactions Contest MI DB and others Rural development projects Flagship programs Capacity development programs Platform services ASEAN Summit Khon Khaen 10

13 Platform program 1: on-line platform First generation: Database Model (Eg. APCTT technology offer and request DB) Second generation: Interactive Model (Eg. European Technology Platform) Third generation: Serendipitous Discovery centered Ecosystem Development Model linked with a few local DBs (Eg. RecordFarm) 11

14 On-line platform: ecosystem development Serendipitous discovery proponents are provided online platform tools and services of business development in deep learning based interactive process. After qualification and business development process, they are introduced automatically to other platform stakeholders including investors, researchers and producers which are linked to a few DBs. If they are seeking crowd funding, the requests can be linked to relevant platforms such as Kickstarter, Indiegogo and others. Then platform stakeholders are to be requested to interact with the proponents when they like the proposals. 12

15 On-line platform: demand articulation For demand articulation, user-friendly interface is designed to effectively and efficiently collect demands from local communities. Simultaneous translation and voice recognition in partnership with google are a few of them. 13

16 Tentative online platform milestone May 2017, Brunei COST Concept 1 Oct 2017, Myanmar COST Concept 2 In partnership with CROSSENT First half of 2018 Mock-up version Second half of 2018 Beta version In partnership with dialogue partner(s) 2019 Official launch 14

17 Platform programs 2: flagship (and rural development) programs Commitment and Policy alignment AMS National Socio-economic Development Goals UN Sustainable Development Goals International & local stakeholder participation Planning & Open Call for International PPP Consortia Implementation Monitoring & Evaluation 15

18 Tentative flagship program milestone Thailand multi-year project for ASEAN capacity development 1 st year 2 nd year 3 rd year 4 th year Strategy development Business development Pilot implementation Scale-up implementation Program design Thai biopharma platform strategy Oct 2017 to Jan 2018 Scoping and networking (two day) workshops in CLM benchmarking Feb to May 2018 CLM officials for (two week) on-the-job strategy development in BKK June to Sep 2018 Final delivery workshops in CLM 16

19 Platform program 3: off-line contest On-line submission of local demands Demand articulation and open call for contest Network(s) of local communities with endorsement of local/central government Patent prospecting & invitation A few of them can be designed for rural development projects by the platform manager Off-line contest Joint off-line contest ASEAN and APEC joint workshop and contest 17

20 Tentative ASEAN and APEC joint off-line contest milestone First year the contest will be focused on college students for their capacity development. April 2018 On-line registration Joint contest design and open call for submission by Feb 2018 May 2018 June 2018 July 2018 August 2018 First on-line selection Second on-line selection Final on-line selection Off-line contest Problem and solution articulation Stakeholder networking and coordination Sustainable Business model Knowledge Exchange Center (KX), Bangkok, Thailand 18

21 5. Platform Governance Platform governance considerations (Parker et al, 2016) Laws: Transparent rules to govern stakeholder behaviors Norms: Boundary definition/member influence on the decision making process for resource appropriation/monitor on behavior and graduated sanctions/low-cost dispute resolution system/structure in nested tiers of simple problems by small users and complex problems by large users Architecture: Open architecture and governance with no central authority Market: Social currency, risk pooling and insurance Self-governance principles: internal transparency, participation, just and fair governance 19

22 APASTI and coordinated implementation New initiative of APASTI: Active participation of private sectors and coordinated implementation by AMS scientists and engineers to address ASEAN challenges The ASEAN Platform positioned as an experimentation program to align existing subcommittees led by BAC Inter-Committee program steered by COST with talent mobility, joint research and capacity development programs Bridge for scale-up implementation of UN SDGs 20

23 Alignment of APASTI, sub-committees and other committees for scale-up implementation with UN SDGs Scale-up Implementation Bridge for UN SDGs Pilot Implementation Inter-Committee Coordination APASTI Driving Mechanism Objectives and Priorities by Sub-committees ASEAN Open Innovation and Entrepreneurship Platform New Guidelines 21

24 Proposed planning partnership and management Target countries and sectors: Cambodia, Laos, Myanmar for their Water-food-energy nexus, Health and medical (Malaria and Dengue Vaccine), Smart farm, etc. AMS planning partners: Malaysia (foresight), Singapore (tech transfer), the Philippines (leadership agenda setting & joint research), Thailand (talent mobility) Thai stakeholders: NSTDA, TCELS, NIA, Mekong Institute and others Bi/multi-lateral capacity development partners: USAID, JASTIP, KAIST and others Biz consortia partners: Thai and international private companies Platform management: STIPI and KX (KMUTT, Thailand) 22

25 Partial success of innovation service capacity development among AMSs Tech foresight Initial phase of policy learning in Malaysia Talent mobility Policy-driven mobility from university to industry in Thailand Joint research Tech transfer/ IPR Inter-regional joint research dominates while intra regional joint research carried out among CLMVT Startup ecosystem incubation with the FDI-based industrialization legacies of Singapore, expanding to ASEAN 23

26 Gateway capacity development for innovation service functions through ASEAN work with ASEAN and ASEAN work for ASEAN Advanced countries Innovation service gateway Contextualization for Cambodia, Laos and Myanmar Tech foresight Joint research Talent mobility Tech transfer/ IPR General and project-based interfacing strategies Effective for individual AMS innovation services Strategy development Business development Pilot implementation Scale-up implementation ASEAN Open Innovation and Entrepreneurship Platform 24

27 6. Proposed Milestone and Expectations Sep 2016 BKK ASEAN STI Forum Platform articulated as a conclusion of the forum Nov 2016 Cambodia ASEAN COST/AMMST Platform endorsed at the AMMST May 2017 Brunei ASEAN COST Platform concept and business model Oct 2017 Myanmar ASEAN COST/STI Forum Three platform programs May 2018 Flagship program/off-line contest Nov 2018 Online platform (beta version) 25

28 Platform expectation Talent Mobility and others for AMSs Industrial Competitiveness Programs New and Challenge Market Creation Dialogue Partners Capacity Development Programs International PPP Consortium ASEAN Open Innovation and Entrepreneurship Platform Coordination and Alignment Collective Responses for Individual and ASEAN Challenges Proactive Industry 4.0 Strategies 26

29 Platform metrics Startup phase Liquidity Matching quality Trust Growth phase Status/definition A minimum number of producers and consumers and high percentage of successful interactions The search algorithm accuracy and the navigation tools intuitiveness Definition measurement The percentage of listings that lead to interaction within a given time period Sales conversion rate as the percentage of searches that lead to interactions User comfortability with the level of risk associated wi th engaging in platform interactions Change in size of the user base over time Producer-to-consumer ratio, lifetime value of producers and consumers ASEAN Platform # of linked DBs with quality and quality # of local demands articulated # of tech proponents # of PPP Mature phase Continuous platform innovation Ratio of profit share Actionable, accessible and auditable metrics by Parker et al (2016) 27

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