INNOVATION -DRIVING FORCE FOR ECONOMIC DEVELOPMENT

1. INNOVATION -DRIVING FORCE FOR ECONOMIC DEVELOPMENT Dr. Janis Stabulnieks, Latvian Technological Center 4th EVITA Project Meeting , Riga, June 7, 2010 Partly Financed by European Commission

2. INNOVATION ? Innovation is doing things differently in the realm of economic life J.Schumpeter, “Business Cycles”, 1939

3. Critical point 2005/10 SIX WAVE ? Pace of innovation 20 years The Economist, 1999

4. Three mutually reinforcing priorities: • SMART GROWTH – developing an economy based on knowledge and innovation • SUSTAINABLE GROWTH – promoting a more resource efficient, greener and more competitive economy • INCLUSIVE GROWTH – fostering a high-employment economy delivering social and territorial cohesion

5. 1 Seven Flagship Initiatives ( 3 of them directly relates to the priority “Smart Growth”): “INNOVATION UNION” – to improve framework conditions and access to finance for research and innovation so as to ensure that innovative ideas can be turned into products and services that create growth and jobs

6. 2 Seven Flagship Initiatives ( 3 of them directly relates to the priority “Smart Growth”): “YOUTH ON THE MOVE” – to enhance the performance of education systems and to facilitate the entry of young people to the labor market

7. 3 • Seven Flagship Initiatives ( 3 of them directly relates to the priority “Smart Growth”): • “A DIGITAL AGENDA FOR EUROPE” – to speed up the roll-out of high-speed internet and reap benefits of a digital single market for households and firms

8. Esko Aho, speach on the Openning Conference of the European year of Creativity and Innovation, Prague, January 7, 2009 EUROPEAN COMMISSION HAS ANNOUNCED THE YEAR 2009 AS A YEAR OF CREATIVITY AND INNOVATION

9. THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 1/4 Esko Aho, 2009 • creativity and innovation are the key elements of the future of Europe • it’s very important to understand that the crisis we are just facing now is simultaneously a great opportunity to make reforms necessary for the future of Europe • education is a key factor for creation of the knowledge-driven society in Europe; our education system is still tailored for industrial society and it is important to reform radically our education system so that it can meat the requirements of knowledge- based society

10. THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 2/4 Esko Aho, 2009 • it will be major mistake if the investments in R&D and education will be cut in today’s economic situation; cutting R&D spending in these circumstances is like eating seed potatoes – it is a big mistake to start eating seed potatoes since investments in education and innovation are necessary for the future • we need more collaboration and more partnerships between academia-business –government (triple helix)

11. THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 3/4 Esko Aho, 2009 • innovation includes always a risk – doing things in a different way includes always a risk and the fact is that in Europe we have a long tradition to underestimate the risks related with the present decisions and action plans and we are overestimating the risks related with the implementation of new methods of doing things and new processes in the future

12. THE MAIN STATEMENTS – BASICS FOR INNOVATION POLICY – 4/4 Esko Aho, 2009 • One of my favorite interpretations or explanation what is a real essence of innovation is the story I heard from Sweden VINNOVA president used that phrase, he said that there is one major difference between R&D spending and innovation. R&D spending is actually transforming money to knowledge and innovation is transforming knowledge to money, but not only money but well being and good human life as well. It is very important to understand that when promoting creativity and innovation, we are not only creating basis for better material life but we are simultaneously making a progress for better human life on a whole.

13. RESEARCH Gobal knowledge flow Knowledge Research Commercialization of knowledge Knowledge Science Entreprenurship Education Market Money Utilization of knowledge Economy Creation of knowledge INNOVATION

14. e-commerce Distribution/ Sales Ideageneration Organisation Marketing Transport Idea / Business plan Prototyping / Testing Production Market entry Q M R&D services Maintenance Design Technology Transfer WINNOVATION, Austria

15. INNOVATION SUPPORT PROGRAMMES IN LATVIA – 1/2 Existing to-day: • development of new products and technologies • business incubators • technology transfer contact points • attracting high-skilled experts • pre-seed funding

16. INNOVATION SUPPORT PROGRAMMES IN LATVIA – 2/2 Will be introduced in 2010: • innovation motivation and popularization • centers of competence • technology transfer centers • Riga Science/Technology Park (-s)

17. I II III IV Cash flow Time 4 Development Stages “Corporate management” “Strategic focus” “Systemsbuilding” “Start-up” VC ? TT Pre-seed Cent. Comp MoRe Ideas cup BI EC funds GA Mentors Source: Presentation on the IASP Conference by Prof. Jerome S. Engel, University of California at Berkeley, Lester Center for Entrepreneurship and Innovation

18. Global Competitiveness Index (GCI) 2008

19. LATVIAN TECHNOLOGICAL CENTER International projects to promote the development of the Innovation System Partly Financed by European Commission

20. Facts about LTC: • The first innovation support structure in Latvia • Established in June 3, 1993 • supported by Ministry of Education and Science • Legal Status – non-profit Ltd, • Foundation (2006 - )

21. 15 years - LTC 93 companies ( success rate 90%) 25% exporting 30% international cooperation 5 turnover > 1milj. Euro 400 jobs 10 times recovery of the State investments 27 EU projects (FP6/7, EEN, IRC, RIS, Interreg (BSR), Leonardo da Vinci, etc.) From business incubation to business acceleration 1993 2007

22. Activities: • business incubation (till year 2007) • business acceleration (from year 2007) • innovation related projects • international cooperation • science communication • expertize of the state programmes on innovation

23. Ministry of Education and Science Market Oriented Reaserch Programme Research project: How to evaluate innovative capacity and innovation degree of companies (2007 – 2010)

24. INNOVATIVE COMPANY

25. EEN LATVIA Module b: Technology Transfer Lead Partner: Investment and Development Agency of Latvia

26. Focus:development of competitive innovationenvironments in BSR non-metropolitan regions with a shared development view and by transnational cooperation Duration: January 2009 - June 2011 Lead partner: The Baltic Institute of Finland Partners: regional authorities and development organizations representing 12 non-metropolitan regions in Finland, Germany, Poland, Estonia, Lithuania, Latvia, Russia

27. Objective:EVITA strives to strengthen and support ICT products and services amongst Small and Medium Enterprises (SMEs) and to increase their competitiveness by improving their accessibility to the global digital economy and transferring successful policy practices from regions who have successfully adopted IT and e-business practices, to less-developed areas in European Union countries. Duration: 2008 – 2011 Lead Partner : Greek Research and Technology Network (GRNET) Partners: Greece, Spain, Sweden, France, Malta, Bulgaria, Slovenia, Latvia

28. SMEDGE Objective:to prepare the local companies for expansion into other Central Baltic markets through combination of activities: conducting market research, consultation services (market positioning, partner search, etc.), organizing international brokerage events, joint trainings, seminars and exhibition exchange Duration: 2009 – 2011 Lead partner: Tallinn Technology Park – TEHNOPOL Partners: Estonia, Sweden, Finland, Latvia

29. Policies for Research and Innovation in Small Member States to advance the European ResearchArea Objectives: 1.The development, improvement and use of appropriate R&I indicators for more effective benchmarking of policies 2. Adapting the use of public procurement to stimulate research and innovation 3. To create information platform in accordance of Pro-InnoTrendchart, the ERAWATCH, theCREST OMC, etc. Duration: 2009 - 2011 Partners: Small countries - Malta, Estonia, Latvia, Iceland, Slovenia with the assistace of UK, France, Sweden

30. OMC-PTPPublic Technology Procurement(OMC - Open Method of Coordination ) Objective:to provide a platform for exchanging past and present experiences and to draw up conclusions for good practices in PTP which will be brought together in a PTP Manual. Lead Partner:Institute for the promotion of Innovation by Science and Technology in Flanders (IWT) - Belgium Duration: 2007-2009 Partners: Belgium, Germany, The Netherlands, Sweden, France, Latvia, Slovakia, Spain, UK, Romania.

31. ! Europe and its citizens should realize that their way of life is under threat but also that the path to prosperity through research and innovation is open, if large scale action is taken now by the leaders before it is to late Aho Report “Creating an Innovative Europe” January 2006

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