9. Structure f Egypt’s Innovation Policy
Measures
Academy of Science &
Technology The Egyptian Incubator
Association
Secretary of State For Scientific
IDSC Cabinet
Research
Information and
Decision Support
Supreme Council for
Center
Research Centers
Euro Med Free trade Zone
The TDP Industrial Modernization Program
Smart Village
Mubarek Science City
EU Association Agreement
The EDP incubator program Academy Innovation Program
Tale Incubator
10. The Global Competitiveness Report 2010-2011
12th pillar: Innovation
Egypt’s Rank
Capacity for innovation 109/139
Quality of scientific research
institutions.............................. 110/139
Company spending on
R&D.................................................... 74/139
University-industry collaboration in
R&D............................... 120/139
Govt procurement of advanced tech products
...................... 86/139
Availability of scientists and engineers
................................... 25/139
Utility patents per million
population*..................................... 84/139
11. The Global Competitiveness Report 2010-2011
Egypt’s Stage of Development
1 2 3
transition Transition
Factor Efficiency Innovation
Driven Driven Driven
EGYPT
Innovation and sophistication factors ............................68/139 ........3.5/7
13. Finance!
hire university
graduates
upgrade their
manufacturing and
management processes
organizing
awareness
workshops
build R&D
capabilities
Providing financial
support
16. A New Model …?
• Increases opportunities for innovation(Angello
Morelli 2009)
• () enables more effective use of resources and
capacities, better matching of capabilities with
market needs and benchmarking to improve
efficiency.(Hanna Bahemia & Briau Squire 2008)
• Shortenes development time (Danish Ministry of Science
2007)
• Diversifies risks and share uncertainties.(Keupp &
Gassmann)
22. Open Innovation Online
• Chaordix – Business innovation – Engaging crowds through the web
to solve your business problem
• Kluster – Brainstorming / feedback – Harness the power of your
own hand-picked crowd to brainstorm ideas
• Namethis – Brand names – A 48 hour competition site to find a
suitable brand name for your venture
• Innocentive – Problem solving – Brings together seekers who have a
problem together with solvers from around the world who may be
able to help
• Rent A Coder – Software development – International marketplace
to locate software coders
• Global Ideas Bank – Social innovation – A site which collects social
inventions that can change the world, which are rated by online
voters.
23. Open Innovation?
• Open innovation means that the company
needs to open up its solid boundaries to let
valuable knowledge flow in from the outside
in order to create opportunities for
cooperative innovation processes with
partners, customers and or suppliers. It also
includes the exploitation of ideas and IP in
order to bring them to market faster than
competitors can.(Gassmann & Enkel 2004)
25. Why SMEs?
• SME’s tend to have a greater need “ to look for
partners with different but complimentary
capabilities”(Tidd, Bessant & Pavit 2005) because they
don’t have the access to resources that
corporates do.
26. Factors Affecting OI at firm level
Product type
Partner type
Network Maturity
Industrial Communities
Science based
environment
Hi tech
Industry
Competitive intensity
ECOSYSTEM environment
Tech, turbulence
Economy Transaction rates
Firm macro
Culture size
age
ecosystem
Culture
Firm Experience with
characteristic technology
Foreign ownership
Location
Internal
Inter Product variety
organizational
man.
techniques R&D
Absorptive
Management
Knowledge Dispersive
management Degree of patent
protection
27. Conceptual Framework
Firm Characteristics
H5, H6, H7
Likelihood of
Open
Firm Management Innovation
H1,H2 adoption by
SMEs
Firm Industrial Environment
H3,H4
28. The Survey
3000
435
OI = f(absorptive capacity + size + location
+foreign ownership + public financial support
+ R&D costs + cooperative partners)
29. The Results
Size
Location
Absorptive
Capacity
R&D
Financial
Support
Cooperative
Partners
Foreign
Ownership
To help shed light on the opportunities — and the roadblocks — on innovation GE released a first-of-its-kind report based on an independent survey of 1,000 business executives in 12 countries. The “GE Global Innovation Barometer” found that 95 percent of respondents believe innovation is the main lever for a more competitive national economy. But just how to accomplish that will take a uniquely 21st century path, as respondents are prioritizing technology that addresses local needs; looking for innovation from smaller organizations; and pursuing strategic partnerships to make tangible innovation happen. All of these areas are converging as problems are now bigger — which involves a wider system of players. 88 percent of those surveyed felt innovation was the best way to create jobs
Talk about TIEC and ITAC
The structure of research and innovation activities in Egypt is presently undergoing significant changes. Until recently research funding suffered and strongly dependedon international grants. There was no clear national policy of research. It became clear that research is the only means to compete. The latest European charts on innovation shows that Egypt has an innovation policy implemented via measures to stimulate investment, venture capital, business incubators, industrial modernization, small and medium enterprises development and entrepreneurship. There is no formal coordination body yet. The delivery of innovation policy is carried out via the programs of related ministries often with assistance from donor organizations. An important factor is the Social Fund for Development (SFD) which finances business centers and incubators as well as the Industrial modernization Program(IMP) and GAFI, the General Authority for Investment and TIEC. The key drivers of innovation are industrial modernization and privatization of state industry.
Discussion : what is hindering innovationHow do we take the no out of innovation?
A recent research by Dr. nizar on barriers to innovation (Encouraging firms to hire university graduates in both technical and managerial areas, organizing awareness workshops and seminars on the importance for SMEsto upgrade their manufacturing and management processes, providing guidance to SMEs inscreening, choosing, adopting, and adapting the available technologies, providing financialsupport and tax incentives to encourage SMEs acquire advanced technologies and build R&Dcapabilities, reinforcing and tightening the linkages and collaboration between companies anduniversities and research centers,
What do we do if we want to innovate in the emerging markets? How do we overcome the financial barrier!
The solution
A number of online sites are available that specialise in bringing together different parties or groups to work on a particular project or solve a specific problem. Alternatively an organisation can also ask a question through one of its online networks such as Facebook or LinkedIn. A selection of crowd sourcing sites of interest are outlined below:
1-Environment: the total surrounding moderating creation, facilitating networking..etc The innovation system operating nationally, regionally, and locally2-Economy: market readiness for diffusion of new innovations3- Culture: a culture that connects people and technologies in an effective way4-Ecosystem: innovation and entrepreneurial ecosystem available for spinning off such as centers, workshops, incubators..etc. “A healthy ecosystem can further perpetuate the adoption of the open architecture through network effects”.(Chesbrough, Appleyard, 2007)1- Size: no of employees: i.e. SME, firm, corporate2-Age: no of years in business: startup..mature3-Culture: a learning culture, an open mindset, allows and accepts mistakes4-Experience with technology:5-ownership: what % of the firm is owned locally and what %international, government, private..etc6-Location: 7-Product variety: what are the products , and how diversified1- Inter organizational: top management attention, project management steering, process management2-Knowledgemanagement: the flow of knowledge with in firm and through the boundaries of the firm:
H1. SME’s with higher absorptive capacities are more likely to engage in open innovation.H2: SME’s in industries requiring high R&D costs for innovation will collaborate with partners.H3: The availability of financial support positively affects SME’s tendency to collaborate with partners to innovate.H4: The difficulty to find a cooperating innovative partner has a negative affect on an firms ability to innovate openly.H5. The size of a firm is positively associated with its ability to collaborate with partners to innovateH6: The location of a firm within a resourceful community positively affects its tendency to cooperate in innovation beyond its boundaries.H7: A % of foreign ownership has a positive effect on a firm’s ability to innovate openly