SARIMA Annual Conference 2016 Umhlanga, Kwa-Zulu Natal, South Africa The Norwegian ecosystem for innovation lessons learned. Karl Klingsheim, RTTP Professor Dr.Ing. Science and Technology Counsellor Royal Norwegian Embassy in Pretoria
I m Karl right off the boat Since April: Science and Technology Counsellor, supporting research, innovation and business development in and between Norway and South Africa. Previously: RTTP, founder & CEO: NTNU Technology Transfer AS President-elect: ASTP-Proton Professor: NTNU in Trondheim, Norway Visiting professor: Politechnika Warszawska, Poland Serial entrepreneur: start-ups in Norway and in USA Executive manager: Telenor and General Electric Co Director of research: SINTEF Group Basically, a «jack of all trades» with work experience from all(?) aspects of new business development.
Talking points: The Norwegian «ecosystem» for innovation. Positive effects from some programs. New initiatives are being piloted in 2015-2016. Opportunities for win-win between Norway & South Africa?
Norwegian Ministry of Education and Research The Panorama-strategy sets our global priorities (https://www.regjeringen.no/en/dokumenter/panorama/id2457714/)
Brazil, Canada, India, Japan, China, Russia, South-Africa, and USA South Africa, because: Relationship and cooperation over many years. SA most scientifically advanced in Africa. Main objective: «Strengthen efforts towards these prioritized countries and make collaborations more targeted. (http://www.forskningsradet.no/en/article/roadmaps_for_bilateral_research_cooperation_with_priority_partner_countries/1254013119815?lang=en)
Norway Population: 5.1 million Total area: 385,155 km 2 GDP (2015): 356 billion R&D exp. (2012): US$ 5.3 billion NVCA (2015): 29 full members Export N SA (2015): ZAR 1.5 billion South Africa Population: 56 million Total area: 1,221,040 km 2 GDP (2015): 287 billion R&D exp. (2012): US$ 4.8 billion SAVCA (2015): 89 full members Export SA N (2015): ZAR 2.7 billion and both countries have 3-4 universities among the top 500 in the world (and none among the top 100 )
Great results to date from cooperation with South Africa South Afrika Canada Russia World USA Brazil/India/Japan China
Challenges for Norway and Africa Increase variety More competitive Improve productivity
Increasing demands from governments and taxpayers: Public INVESTMENTS in research...... must produce RETURNS to society!
Technology Transfer in Norway Professors privilege eliminated 1 January 2003: The (six) major universities subsequently established TTOs. Overall objective: dissemination of knowledge: Win-win partnerships with stakeholders, investors and industry. Operations: answerable to universities, but commercial mindset: Efficient production of spin-off companies & industry relations.
An ecosystem approach is essential!
Education: 2-year specialization in entrepreneurship. Recruiting both hard and soft sciences. First graduates 2005 now 30 students/class. Creating job makers, not job takers. New spin-off companies every year:
The Take-Off program an accelerator for new business formation exposing students to real-life case-learning
BEHOV AppLab - Offering students a creative meeting place and appropriate infrastructure for conceiving and cultivating ideas for new apps. - Located at the Department of Computer and Information Science, providing access to faculty members and industry. - The ambition is to create new, commercial successes.
20 Bridging the gap: Proof-Of-Concept fund. ZAR 79 mill over 5 years from the university, regional authorities and a local bank. Exclusively soft funding. Decisions by independent committee of techtrans professionals. No «red tape»! Result oriented. www.ntnudiscovery.no
New companies supported by NTNU Discovery Simis AS
National program: FORNY2020 Facilitates innovation and commercialisation of R&D results emerging from publicly-funded research, cooperating with tech trans offices at: universities research institutes university hospitals regional colleges http://www.rcn.no/forny2020 22
FORNY2020/Proof-of-concept support Reduce commercial and technological risk by supporting activities to test scalability and effectiveness of research results in a commercial. Two calls for projects (April and September). NOK 170 mill (ZAR 304 mill) funding in 2015. Eligible to apply for project support: Technology Transfer Offices (TTOs) Micro-enterprises (EU definition) originating from research communities at universities, research institutes, hospitals or regional colleges.
FORNY 2020 / Local Support to TTOs In 2015: NOK 60 mill (ZAR 107 mill) distributed to TTOs as yearly lump sums to support identifying and developing new projects for commercialization. All TTOs representing public funded research institution are eligible to apply. 24
FORNY2020 effects and results IP deals Start-ups 120 100 80 60 40 20 54 65 70 97 108 50 40 30 20 10 25 25 37 43 43 0 2011 2012 2013 2014 2015 Active projects 0 2011 2012 2013 2014 2015 Revenue 600 500 400 300 Millions 140 120 100 80 60 Aksjesalg Lisensinntekter 200 40 100 20 0 2011 2012 2013 2014 2015 0 2011 2012 2013 2014 2015 26
Overall objective: improve global competitiveness in regional clusters through long-term internal and external collaboration Stronger interaction and cooperation Increased innovation capabilities Better access to R&D and education Stronger international focus Cluster expansion Attracting customers and investors Immature clusters 3-5 years 20 clusters NOK 3 mill/year each Mature clusters, national position 10 years 14 clusters NOK 5 mill/year each Improved competitiveness! GCE Mature clusters with global position 10 years NOK 10 mill/year each
Government support to the clusters: Financial support: 50% co-funding with cluster partners: Facilitation, strategy development, networking, branding, pre-studies Advisory services: Experienced project advisors Capacity building: Courses, seminars, study trips Networking: Between cluster projects, transnational cooperation PR: Cluster branding and communication All with a strong emphasis on internationalization!
Lessons learned Members of cluster tend to grow significantly faster, both in revenue and in # employees. Clusters accelerate regional development and provide vital input to national innovation strategies. Clusters also drive the development of new curricula at colleges and universities. A growing awareness in the business community to form partnership and a growing willingness to invest in cluster development!
It s all about people! i.e. people who are both able and willing to create and pursue new opportunities!
FORNY2020 / Student start-up stipends Covering living expenses and direct cost for up to one year (max ZAR 1,8 mill pr project). Universities have to support the project with facilities, office, equipment and mentors (scientific and commercial). Pilot is being launched as we speak, with ZAR 45 mill allocated for 2016. Odd M Reitevold 32
New program in 2015-2016: ZAR 160 mill allocated for governmental «gearing» of private pre-seed investors Offering un-secured loans to TTOs, using the TTOs as (unpaid) intermediaries: Government assumes all risk and all profits. Qualified investors and/or business angels must contribute minimum 50% of every transaction. Max ZAR 5 mill per spin-off company, that must be < 5 years old. Overall objectives are to complement and strengthen the nation ecosystem in order for more start-ups to emerge. The upside to the TTOs: Strengthening their position and negotiation power. Making more capital available to university spin-off companies.
Opportunities for win-win cooperation? Leveraging respective strengths of start-ups in different countries while mitigating their relative weaknesses? Involving faculty members at universities and their students? Securing funding from Eureka/Eurostars? (www.eurostars-eureka.eu) and/or from national programs?
South Africa - Norway Science Week 2016 31 October in Pretoria + 1-4 November in Cape Town Value Creation in Ocean Space; Business and Research Opportunities in the Blue Economy
Thank you for your attention! karl.klingsheim@innovationnorway.no www.linkedin.com/in/karl-klingsheim-790912 www.norway.org.za www.innovationnorway.no