Finance and Regulations for Innovation and Economic Growth SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS Sinan Tumer Head of International Research Policy SAP Research November 20, 2009 ECFIN Conference Brussels
About SAP Research Objectives Created 1999 with the mission of talent developing and contribution to SAP's product portfolio. by identifying and shaping emerging IT trends. by generating breakthrough technologies through applied research. Tapping into the academic brainpool through campus based research centers Largest PhD program for IT in Germany Open Innovation model through Co- Innovation with partners Participation in EU and National programs Active in think tanks such as the International Research Forum SAP 2009 / Page 2
Requirements of Successful Innovation Policy Revolutionary Technology Financing Model Risk Taking Available Talent Pool. Ecosystem for Co-innovation SAP 2008 / Page 3
SAP Research Global Network Darmstadt Dresden Belfast Palo Alto Montreal Walldorf Sophia Antipolis Karlsruhe St.Gallen/ Zurich Shanghai Tel Aviv Bangalore Sao Leopoldo Pretoria Brisbane SAP Labs-based Research Centers Campus-based Engineering Centers Development Labs SAP 2007 / Standard Presentation / Page 4
Research in Dialogue to Realize its Value Proposition for Partners and Customers Demos Living Labs Exhibitions emotion Blogs 2nd Life Wikis, Pages Virtual Community Projects Publications Workshops Co-Innovation SAP 2009 / Page 5
Innovation through ICT ICT in Europe ICT = value driver of all sectors ICT= ICT Industry + commercial applications ICT solutions have to be well integrated Today: Europe is the largest ICT market in the world but it largely imports from the US, India and China instead of from its home countries. SAP 2009 / Page 6
European ICT Strategy (per ISTAG) - GOALS Mega Trends of ICT European ICT Strategy International Collaboration Cloud Computing The Future Internet Sustainable economic recovery to prevent us from future turbulences (as those in 2008). The increasing competition at a global scale and the emergence of new business models, not only fuelled by ICT, but also transforming the ICT sector itself. Sustainable collaboration through joint calls Consultation Workshops & Think Tanks Internet of Things Internet of Services Massively available ICT capabilities embedded, connected, ambient, and in the cloud. SAP 2009 / Page 7
Impact of Information Technology (IT) On Society and Economy ICT is the driver for innovation in every other sector, thus the Internet will become the dominant infrastructure of the future with respect to the GDP growth and will enable SUSTAINABLE and competitive economic and social growth in Europe ICT is becoming a key enabler for achieving all major policy objectives of Europe THUS EU should implement appropriate regulations and foster investments to promote ICT innovations in all facets science & technology. skill & know-how development, infrastructure for innovation culture dissemination & exploitations SAP 2008 / Page 8
Framework Program Historical Evolution Support Science & Technology Framework Started in the 80s 9B Euros of funding to ICT Research during FP7 FP7 Budget greatly increased + longer term focus (2007-2013) 55 50 45 40 35 30 25 20 15 10 5 0 FP1 FP2 FP3 FP4 FP5 FP6 FP7 Billion 3.27 5.36 6.6 13.12 14.96 17.5 53.2 SAP 2007 / Page 9
Incentives for Innovation in the Public Services The Commission should raise awareness and provide incentives to member states to act as early buyers by using instruments like precommercial procurement to accelerate adoption and implementation of innovative solutions developing forward-looking R&D procurement strategy impacts efficiency of public sector, innovation performance and competitiveness of Europe. The Commission should consider supporting pre-commercial procurement as part of FP7 research funds to share the risk with member states SAP 2008 / Page 10
Tax Incentives are Crucial to Foster Innovation In some countries, R&D efforts are promoted through tax incentives a very efficient instrument that is also frequently used by leading industrialized nations outside of Europe in order to create incentives for enterprises to invest in R&D For example in France and Canada, there is such a fiscal promotion. However, in Germany there is not. This weakens Germany s position as an innovative location and puts local enterprises at a disadvantage. Taxes are of course governed by the individual states but why is there, in this case, no European Union-wide uniform policy instrument? SAP 2008 / Page 11
Incentives for Deployment and Commercialization of Innovation Financial incentives should be in place to promote entrepreneurship and hightech start-ups Access to Venture Capital Commission can provide financial incentives to spin-off start-ups by further exploiting results of funded research Commission should. support dialogs between innovative ICT firms and venture capitalists/business Angels SAP 2008 / Page 12
Better Utilization of Structural Funds during Post-Research Stage Stimulates faster commercialization and exploitation of applied research, thus Europe can realize the deployment of investments in research faster part of such funds should be allocated to stimulate pre-commercial invention infrastructure like Living Labs, Industry Value Networks, PPP Center of Excellence SME s should have more. access to structural funds to develop their innovative ICT structure to utilize Cloud computing technology SAP 2008 / Page 13
Incentives for Cooperation with USA and China topics critical for Europe like homeland security, transportation, climate change, energy require such Cooperation to accelerate deployment of solutions at MS Commission should allow research and post research funds be allocated for transatlantic cooperation with USA and China China launched public technology. procurement program to encourage innovation. US public sector is spending $50B/yr in R&D procurement (20 times higher than Europe, 4 times higher in non-defense) SAP 2008 / Page 14
Thank you! QUESTIONS COMMENTS DISCUSSION SAP 2007 / Page 15