“ An Engine for Future European Growth”

1. “ An Engine for Future European Growth” Economic and Social Development through Knowledge Intensive Service Enterprises KIS Partnering Forum – Brussels 19th February 2009 Professor Alan Barrell

2. A Preview • Context – The World Today – What’s Changed ? • Globalisation, Europe and the Service Imperitive • Lets Imagine • A World of Innovations and Entrepreneurs • Symbiosis,Synergy,Size,Scale – and Service Delivery • ModelsandRealities • FundingInnovative Service Companies $$$ • A New Age of Creativity and Innovation

3. Casting an Eye on the World’s Financial Crisis – What’s changed ?

4. Who said these words and When “I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”

5. Who said these words and When “I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered” Thomas Jefferson1778

6. And what about these… “The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance”

7. And what about these… “The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance” Marcus Cicero 55 BC

8. But - think Boom ….not Gloom….many successful businesses started in recessions…. “I started the Cobra Beer Company in a deep Recession – and it proved to be the best time for me….introducing something innovative and exciting changed the way people thought about Indian Food and Beer” Lord Karan Bilimoria Founder – Cobra Beer

9. But the eye on the World shows lots of changes….its not just the finances….

10. Organisations Environment Issues Technology The death of deference Globalisation New employment patterns The Changing Horizon

12. Changes in Industrial Structure - UK% of Total Employment - UK Government Foresight Report

13. Changes in Industrial Structure - Europe% of Total Employment

14. Global Dynamics – Manufacturing has Migrated • Two fifths of the Worlds people live in the two fastest growing large economies – China and India • Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia • Growth in Asia is far ahead of Europe. • Dynamic Growth in Manufacturing Base • CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions of reserves • Labour and Material cost advantages +++++

15. Lets put CHINA into our picture and context….Some of China’s Achievements • Compound growth of GDP at 9% since 1995, sixth in the world • One of top 10 trading nations • The most popular FDI destination • The largest mobile phone market • The second largest PC market • The third largest advertising market And we have no time to mention India, Brazil, Korea and others….

16. The World’s Factory China alone already produces: • 70% of world’s toys • 60% of world’s shoes • 65% of world’s air-conditioners • 65% of world’s microwave ovens Now more cars, laptops, ICs, mobile phones… Realities – labour and materials costs give great competitive advantage. Trends not reversible.

17. Sources of Competitiveness Information Learning Risk Creativity Reputation Speed Values Cost

18. Wherever Competition comes from….things can change fast – Today’s Peacock can be Tomorrow’s Feather Duster !

19. All international phone calls 1971 All airline passengers 1975 All mobile phones 1984 All emails 1992 All SMS 1998 And then there is Technology - Impact of the Continuous Technology RevolutionCompared to an average DAY in 2003…. Source: Analysys, World Bank and ITU

20. BIO TECHPharmaceuticalsDiagnosticsResearch/InfoToolsIndustrial INFO TECHHardwareSoftwareCommunications GenomicsBioinformaticsProteomics BiosensorsBiochips BioelectronicsMicrofluidicsNanobiotechnologyDrug Delivery NanodevicesNanosensorsNanoelectronics NANO TECHElectricalStructuralBiomedicalEnergy & Environment And Technologies are working together -Three Pervasive and ConvergingTechnology Platforms

21. Europe and The Service Imperative • If Services are to be the economic engine – how can we excel? • Exploring Creativity, Imagination, Enterprise and Entrepreneurship • From Imagination to Realities – Living Examples • Harnessing Technology – Applications Focus • The Inspiration of Untapped Human Potential • Emerging Sectors to Explore – e.g. Cleanech

22. Spirit of Enterprise and InnovationDiscovery and New Knowledge

23. And - With this background….Let’s IMAGINE

24. Einstein on IMAGINATION…. “Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world” Albert Einstein 1879 - 1955

26. Who ever heard of Albert-Szent-Gyorgyi ? He, a Nobel Laureate said……… “Creativity is no more than looking at the same thing as everyone else and thinking something different.”

27. So - thinking of Imagination….What’s different about Entrepreneurs ? “You look at things and ask - why? but I dream of things that never were and ask - why not?” George Bernard Shaw

28. Europe’s Entrepreneurial Imperitive – Josef Schumpeter - 1911 “Entrepreneurs blow gales of creative destruction.” • Role of the entrepreneur in transforming economies by developing: • New products • New methods of production • New ways of organizing • Untapped raw materials • Enhanced competitive performance Just what Europe Needs to build that future Growth Engine – but add “New Ways to Deliver Services”

29. Timing can be everything….Is the time right?.... “There is nothing more powerful than an Idea whose time has come……” Jules Verne

30. This strange looking team started in a recession….but got their timing right

31. Microsoft Corporation, 1978 And in 30 years, became a powerful engine of Growth, Change and Service Innovation

32. Charles Darwin – “Natural Selection Adaptability and Survival” Darwin’s Bicentenary this year

33. Natural Selection, Adaptation, Symbiosis Synergy and Service Delivery

36. NHS Innovations East Ltd Supporting vital Health Innovations • NHS Innovations East Ltd is one of a national network of Innovation Hubs • Funded by the Department of Health, the Department of Trade and Regional Agencies • Provides Intellectual Property Services to NHS Organisations and Professionals in the East of England • For the benefit of patients and the improvement of Healthcare • Contributes to NHS revenue generation by Licensing Technology and Services • Has Proof of Concept Fund for investment in Innovations • Can help to spin-out and form new Companies from NHS

37. Also known as NHS Innovations East Ltd • One of 11 Health Enterprise Hubs in UK (9 in England) • A Not for Profit Service Company • 15 Professionals helping Health Care • Professionals Exploit Innovations • 70% of Innovations are “Service Delivery” • 30% Technology based • Founded 4 years ago – more than 600 Service Delivery Innovations identified and 250 supported in development • Annual Innovations Competition attracts more than 100 entries – many Service Delivery Innovations

38. Completing the Jigsaw – putting technology to work Customer need Technology Innovative service company

39. Completing the Jigsaw – Service Delivery Innovation Innovative service company Customer need Technology

41. Proximity of Learning, Research and Practical Application“The Innovation Campus” R&D Education Applications Where open innovation and new service companies can thrive

42. Technology and Service Companies and Synergy – Open Innovation and the “Innovation Campus” INFORMATION and COMMUNICATIONS TECHNOLOGY HEALTH Telecoms Medicalservices Bio-informatics Medical devices and scientific instruments Networking Computing Bio-pharmaceuticals University/ Research Institutes Wireless Inkjet printing Sound & vision Medicalresearch Technology Consulting Publishing Basic Research KNOWLEDGE CREATION Education

43. EDUCATION & RESEARCHincluding Universities INDUSTRY & BUSINESS GOVERNMENTNational & Local Entrepreneurial Overlap – “Joined Up Thinking and Actions” – Coherence and Common Purpose in Communities

44. Funding Innovative Service Companies – “Show me the Money $$$$!” “Our Money” B A N K F I N A N C E ?? Family and Friends and Fools Business Angels Seed Funds Risk Early Stage VC Expansion Capital Pre-IPO Maturity

45. “How do we get to the money ? Where is the $$$$ trail ?” Connecting and Information Points and Principles • Networks and Networking – importance +++++ • Business Schools and Entrepreneurship Centres Region wide and cross border • Other Entrepreneurs / Support and Mentoring Structures • Online Channels – numerous eg…. www.funded.com • “Network Nodes” – Individual referrals • Cross Border contacts • Attitudes and Culture • France and it’s Wealth Tax….Thank you M. Sarkosy !

46. Show me the MONEY! – So maybe we can we find investors hanging out here?....

47. The Early Stage Business Balance – what do investors look for? In ANY innovative company ? Inspired Leadership Management Creativity Enthusiasm Research & Analysis Process Bullshit Market Knowledge Courage Caution Vision Optimism Financial Control And they like to see experienced Chairman and Directors - Mentors for Innovative Service Companies

48. A New Age of Creativity and Innovation – New Engines for Growth…. • Knowledge Intensive Service Businesses – Catalysing the New European Economy • Seeking New Pathways to exploit potential for Knowledge and Wisdom Sharing – through Open Innovation • Harnessing Technology to Sustain and Renew • Seeking Competitive Advantage through Imaginative New Business Formation

49. In Pursuit of Excellence ! “Excellence can be achieved, if we:Care more than others think is wise,Risk more than others think is safe,Dream more than others think is practical,Expect more than others think is possible.” Deborah Johnson-Ross Maybe Entrepreneurs think this way?....Innovative Service Companies need to if they are to Excel….

50. Thank you for your attention…. More on my website – www.alanbarrell.com E-mail – alan@alanbarrell.com