220 likes | 349 Vues
Global innovation policies Bundling and competiveness. Lars Goldschmidt DI Confederation of Danish Industry. Content. Confederation of Danish Industries Value creation in Denmark Innovate or die Location of value chain elements Bundling Implications for industry policy .
E N D
Global innovation policiesBundling and competiveness Lars Goldschmidt DI Confederation of Danish Industry
Content • Confederation of Danish Industries • Value creation in Denmark • Innovate or die • Location of value chain elements • Bundling • Implications for industry policy
Confederation of Danish Industry • 10.000 large, medium and small companies • Collective bargaining • All business related policy areas
Broad range of members Membership by industry sector • Manufacturing 40 percentKnowledge services 17 percentTrading 14 percentTransport 13 percentServices 7 percentEnergy supply 4 percentOthers 5 percent
Small and big companies with much in common Employees totals in member companies • 80 percent less than 50 employees • 20 percent more than 50 employees 5
Vision • DI’s vision is an open and prosperous society that features both growth and balance. • The result of which recognises Denmark as the world's most attractive country for business to work in and from.
Major Challenges • Very high cost base, when operating in Denmark • 800.000 outside the labor market • Low growth on our European markets • Future supply of qualified workforce • Decrease in private research and development spending in Denmark
Future Danish products and services • Denmark competes on the global market by delivering solutions and services to upper middle markets • The end user customer demand moves towards uniqueness, identity and experience • The B to B and B to C demand moves towards more holistic solutions that solve more complex problems covering the full functionality triangle. • The financial and economic crises has shifted market strength towards Asia and market preferences towards price
Esthetic quality and individual identity signal The value triangle: Technical functionality Social functionality and acceptability
Location and competitive strategy Competitive Force = Cunning * Financial Strength * Framework Conditions Total Costs Relocatable business processes will be located where the competitive force has a maximum Processes located in Denmark will be knowledge intensive either because they are difficult or because they have a high innovation content
Radical changes and unsolved global problemsincrease demand for innovation • Financial crises • Global change in political and economical power from Europe and USA to Asia and emergent economies • Global changes in customer preferences • Dramatic increase in available knowledge • Population growth • Mega Cities • Climate change • Hunger • Environmental degradation • Unstable states and other conflicts • Ageing / immortality
Consequence • More for less • Innovate or die • Value in the eye of the different other
User need and demand The innovation triangle: Technical possibility Competition drive
Value chains Pharmaceutical Idea Lab Work Test Small scale production design Test Authority interaction Approval Large scale process design Pilot plant Production facility construction Etc. Construction Idea Drawing Detailed design Construction Transfer Operation De commissioning Manufacturing Idea Concept Design Prototype Test Series Mass customerisation Low cost mass production Bottom of the pyramid production
Value chain location • Location in Denmark member survay • Positive driversKnowledge intensityInterdependency between links in the value chain - bundlingBenefit from local resources costumers, knowledge institutions, business ecosystemAffordable cost structure • Negative driversHigh wages, taxes, etc.Limited markedLimited access to qualified employes Wage cost >= 12%
Bundling • Development – Production • Development – Costumers • Development – Knowledge institutions • Development – Business ecosystems • Production – Raw materials • Production – Production competence • Production – Transport convience
Innovation policy • Demand side • Demanding public customers, health sector, energy, water, education • Regulation creating demanding private customers, housing, environment • Facilitating regulation • Free trade, deregulation • visa policy • Tax incentives for research spending and visiting staff • Public reseach • High quality research in relevant areas • Access to statistical data and clinical research • Access to wold class research infrastructure ESS, MAXIV, XFEL • Innovation as a part of education
Innovation competence • The ability to see and seek out differences in needs and opportunities • The ability to search for solutions in an open solution space • The ability to transcend and combine in a professionally competent manner • The ability to introduce the new in an organization • Confidence in the competence to meet new challenges, not in the status quo • Wildness and enthusiasm • Excited multicultural empathy