Rasha Y. TantawyOct. 2011

Why

Competitive Advantage?

Growth?

Profit?

Where is Egypt?

The TDP

Academy of Science & Technology

IDSC Cabinet Information and Decision Support Center

The Egyptian Incubator Association

Secretary of State For Scientific Research

Supreme Council for Research Centers

Mubarek Science City

The EDP incubator program

Euro Med Free trade Zone

Industrial Modernization Program

Smart Village

EU Association Agreement

Academy Innovation Program

Tale Incubator

Structure f Egypt’s Innovation Policy Measures

The Global Competitiveness Report 2010-201112th 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............................... 120/139Govt procurement of advanced tech products ...................... 86/139 Availability of scientists and engineers ................................... 25/139 Utility patents per million population*..................................... 84/139

The Global Competitiveness Report 2010-2011

Egypt’s Stage of Development

1Factor Driven

transition2

Efficiency Driven

Transition3

Innovation Driven

EGYPT

Innovation and sophistication factors ............................68/139 ........3.5/7

Road blocks to Innovation in Egypt?

Finance!

hire university graduates

organizing awareness workshops

upgrade their manufacturing and

management processes

Providing financial support

build R&Dcapabilities

Solution?

• Increase finance for R&D?

• Share Costs?

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)

Open Innovation

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.

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)

Changing the Landscape of Innovation

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.

Factors Affecting OI at firm level

ECOSYSTEM

Industrial environment

Partner type

Network

Communities

Industry

Product type

Maturity

Science based

Hi tech

Competitive intensity

Tech, turbulence

Transaction ratesmacro

environment

Economy

Culture

ecosystem

Internal

Firm characteristic

size

age

Culture

Experience with technology

Foreign ownership

Location

Product variety

R&D

Management

Inter organizational

man. techniques

Knowledge management

Absorptive

Dispersive

Degree of patent protection

Firm

Conceptual Framework

Likelihood of Open Innovation adoption by SMEs

Firm Characteristics

Firm Management

Firm Industrial Environment

H5, H6, H7

H1,H2

H3,H4

The Survey

3000

435OI = f(absorptive capacity + size + location +foreign ownership + public financial support + R&D costs + cooperative partners)

The Results

SizeLocation

Absorptive Capacity

R&DFinancial

SupportCooperative

PartnersForeign

Ownership

The Conclusion