1. Ju Liu
Senior Researcher
TaSTI, Tampereen Yliopisto
InnoWork 9.5
Innovation in Globalizing Economy

2. } Ju Liu
B.E. in electric engineering
MBA in international business
Ph.D. in innovation study
Worked in China, Denmark, Switzerland, Sweden
Worked in both industry and university
Interested in globalisation of innovation and innovation
networks

3. } Why are BIC countries important?
} What is global innovation network and how do they look like?
} What is the role of BIC countries in the global innovation
networks now and what can it be in the future?
} What are the policy implications to Europe?
This presentation is mainly based on the findings of the EU
7th framework project, INGINEUS (impact of networks and
globalisation and their interaction with EU strategies)
www.ingineus.eu

4. } Because they are big?

5. } Because they are populous?
Brazil 3.1%
India 17.9%
China 20.5%
EU 11%
2009 population as percentage to world population
Calculation based on the Conference Board Total Economy Database
September 2010

6. } Because they are EMERGING!
Shenzhen:
China’ first
s
special economic zone
1983
1997
2005
Source: Visual Memory of Thirty Years Development in Shenzhen
http://jingji.cntv.cn/special/tequ30/05/index.shtml

7. Percentage share of world income Labor productivity as percentage to EU- 15
Technology
catching- up
Brazil: biofuel India: ICT service China: ICT
manufacturing
Source: The Conference Board Total Economy Database, September 2010

8. } The definition
– A global organised web of complex interactions between
firms and non- firm organisations engaged in the
production of knowledge and the development of
innovation (EU- INGINEUS, 2011)
} The various forms
– Joint venture
– Strategic alliances
– Research consortia
– Outsourcing of R&D
– Global distribution of R&D location of multinational companies
– Joint public research projects
– Co- financed PhD programs and research training
INGINEUS (Impact of Networks, Globalisation, and their INteraction
with EU Strategies, 2009- 2011) is a research project sponsored by
the 7th Framework Programme (FP7) of the European Commission.

9. Country No. of firms Industry
Brazil, India, China, 636 ICT, Automobile,
Denmark, Estonia, Germany, Norway, Sweden 495 Agro- processing
Globalness
Innovativeness
• 63% somewhat global
• 54% somewhat global innovation network (GIN, Gin, gin, giN, GiN)
Networkedness
• Once you are global, you tend to be innovative and networked
Source: The 7th Framework project INGINEUS
http://www.ingineus.eu/UserFiles/INGINEUS_D10.1.pdf, 12- 12- 2011

10. • 5 Subsidiaries of US MNCs
• 5 subsidiaries of • Firms located in BIC countries are
emerging MNCs
• 3 standalone firms more involved in some forms of GINs
• 1emerging MNC
headquarter
than those in Europe
• India plays a disproportionately
important role in the emergence of
GINs
• 1 standalone firm
Firms in each category as percentage of
all firms in the country
Comparison among BIC countries
Firms in each category as percentage of
all firms in the country Comparison
between BIC and Europe
Source: The 7th Framework project INGINEUS
http://www.ingineus.eu/UserFiles/INGINEUS_
D10.1.pdf, 12- 12- 2011

11. } Why is that? a regional perspective
– Institutional thickness
– Organisational presence
– Interaction among organisations
– Legal system to prevent sectionalism and rogue behavior
– Mutual awareness and common agenda
– Three tiers of regions (for ICT industry)
Tier of region Type of GIN Examples of regions
Tier 1
Strong region
gIn Stockholm, Bangalore, Beijing
Tier 2
Neither strong nor GIN Malmö, Chennai, Shenzhen
weak
Tier 3
Weak region
gin Helsinborg, Trivandrum, Shanghai

12. } How much has been put into the innovation system?
BIC countries are rapidly building up
competence in creating new technology
EU- 27
School enrollment of tertiary
India
education (percentage gross
1997- 2007)
Source: UNESCO database on education
Gross expenditure on R&D as a percentage of GDP
(1981- 2008)
Source: OECD MSTI database and national sources

13. } Trade in goods
Imports to EU27 from partner countries Export from EU27 to partner countries
Source: Eurostat Comext database

14. } Trade in services
Imports from BIC to EU27
Source: OECD Trade in Services Database

15. } Foreign Direct Investment (FDI)
FDI from OECD Europe to BIC FDI from BIC to OECD Europe
Source: OECD Globalisation Database

16. } Technology licensing
Payments (imports) Receipts (exports)
Receipts and payments for royalties and license fees from BICS (1999- 2007)
Source: OECD Balance of Payments Statistics

17. } Mobility of students and labor force
EU 27 US
Students from BICS countries enrolled in tertiary education in EU27 and the US
Source: UNESCO and Eurostat

18. } Making Europe the hub of GINs rather than a
magnetic pole
} Strengthening the knowledge competence of
Europe
} More open and flexible migration policies and
creating a true European labor market