Emerging technology innovation systems: key considerations for policy making and strategy...

National Consultative Workshop on Strengthening and Road Mapping of Emerging Technology

Innovation Systems of Sri Lanka17-19 November 2015 Colombo, Sri Lanka

Emerging Technology Innovation Systems: Key considerations for policy making and strategy

development

Satyabrata Sahu, Ph.D.Asian and Pacific Centre for Transfer of Technology (APCTT)

of the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP)

Outline1.Meeting Sustainable Development Goals 2.New and emerging technologies – policy

trends, issues & challenges3.Factors influencing high-tech innovation

systems4.Paths of emerging technology innovation

systems5.Evidence-based policy making – Biotechnology

& Nanotechnology6.Indicators at functional/operational level7.Impact of globalisation on innovation system

performance8.Strategies for SMEs for international

participation9.Country experiences (Germany, UK, Rep. of

Korea, China)10.Concluding remarks

1. Meeting Sustainable Development Goals

17 SDGs and 169 targets Goal 9: Build resilient infrastructure, promote

sustainable industrialization and foster innovation• 08 targets in the areas of: Infrastructure; Inclusive and sustainable industrialization; Access of SMEs to financial services, including affordable credit, and their integration into value chains and markets; Adoption of clean and ESTs and industrial processes; Enhance scientific research, upgrade the technological capabilities of industrial sectors; Domestic technology development, research and innovation; Access to information and communications technology

2. New and emerging technologies Range of dynamic new disciplines and technologies :

Biotechnology, genomics, nanotechnology, advanced materials, synthetic biology, ICTs, new and renewable energy

Should be part of national research and industrialization agendas because they are:• Instrumental in meeting global and national challenges• Strong contributors to future economic growth in an

increasingly technology-driven world

New and emerging technologies (cont.) Policy trends

Focus on developing specific technologiesCANADA – Medical isotope production and supply FINLAND - Fuel cell technologies GREECE - Microelectronics UK – Space technology - small satellites

To exploit specific resources in which the country might have a competitive advantage

ARGENTINA - Textile products based on the camelid fibres found in the Andean region CANADA - Forestry value chain

Focus on global challenges in areas such as the environment, energy or healthAUSTRALIA - Climate change science ISRAEL - Oil-substitute technologies

Hybrid approachNORWAY - R&D policy emphasis on nanotechnology, biotechnology and ICTs

New and emerging technologies (cont.) Issues and challenges

Multidisciplinary and interdisciplinary Converging technologies Challenges for integrating distinctly different IP doctrines for

different emerging technologies developed over time. Biotechnology may be heavily patent-oriented, while software has taken the path of copyright.

Development of statistics and metrics to measure emerging and converging technologies adequately

Development of new funding models to promote emerging technologies

Challenges to interdisciplinary research and to re-examine the structure of research institutes

Public engagement and acceptance of emerging technologies

3. Factors influencing high-tech innovation systems

• Study on Finnish innovation policy’s capabilities to promote emerging industries - the life sciences and the solar energy sectors

Underlying mechanisms which hinder system performances

• Limited commercial experience; Scarce venture capital; Weak local and global networks; Poor legitimation

Underlying mechanisms which induce system performances

• High-level research and education; Good infrastructure; Public R&D support

(Source: Matti Pihlajamaa, et al, Eur J Futures Res (2013) 1:8)

4. Paths of emerging technology innovation systems

• Four paths of emerging technology innovation systems

1. The Science and Technology Push (STP) motor2. The Entrepreneurial Motor3. The System Building Motor4. The Market Motor

• All four paths are complementary and supplementary to one another

(Source: Suurs R.A, Hekkert M.P, (2009), Cumulative causation in the formation of a technological innovation system:The case of biofuels in the Netherlands, Technological Forecasting & Social Change no 76)

Paths of emerging technology innovation systems (cont.)

• Allocation of financial resources• Setting up of government supported R&D

programs • Increasing research outcomes

1. The Science and Technology

Push (STP) motor

• Firms, utilities initiating innovative projects (e.g. adoption experiments and demonstration)

• Project funding and subsidies• Opportunities for commercial or societal gain

2. The Entrepreneurial

Motor


Paths of emerging technology innovation systems (cont.)

• Firms and other actors organize themselves in platforms for sharing knowledge, co-ordinate further technological development, and lobby for resources

3. The System Building Motor

• Setting up of institutional structures to facilitate commercial demand for the emerging technology

• Increasing availability of resources for existing industry• Opening up of possibilities for new entrants to adopt the

emerging technology• The newly entered firms are likely to make large investments• They may also develop marketing strategies, thereby increasing

demand for the emerging technology further

4. The Market Motor


5. Evidence-based policy making Biotechnology and Nanotechnology

• STI policy making needs to be based on qualitative/quantitative evidences, i.e. indicators

• Macro / National level policy making & strategy development

• OECD approach:

a. Key Biotechnology indicators

b. Key Nanotechnology indicators

Evidence-based policy making (cont.) Key Biotechnology Indicators - OECD

Biotechnology firms• Number of firms active • % of small biotech firms

Biotechnology R&D• Biotech R&D exp. in the business sector• Biotech R&D intensity in the business

sector• % of biotech R&D exp. by dedicated

biotech R&D firms in the services sector• % of biotech R&D exp. performed by small

biotech/R&D firms

Public-sector biotechnology R&D• Intramural biotech R&D exp. in

government and higher education sectors• Intramural biotech R&D exp. In

government and higher education sectors as % of total government and higher education sectors R&D exp.

Biotechnology applications• % of dedicated biotech firms by

application• % of biotech R&D by application

Biotechnology patents• Share of countries in biotech patents• Revealed technological advantage in

biotechnologiesSource: http://www.oecd.org/sti/inno/keybiotechnologyindicators.htm

Evidence-based policy making (cont.) Key Nanotechnology Indicators - OECD

Nanotechnology firms• Number of firms active • % of small nanotech firms

Nanotechnology R&D• R&D exp. in the business sector• R&D intensity in the business sector• % of nanotech R&D exp. by dedicated

nanotech R&D firms in the services sectors

• % of nanotech R&D exp. performed by small nanotech R&D firms

Public-sector nanotechnology R&D• Intramural nanotech R&D exp. in the

government and higher education sectors

• Intramural nanotech R&D exp. in the government and higher education sectors as % of total government and higher education sectors R&D exp.

Nanotechnology patents• Share of countries in nanotech patents• Revealed technological advantage in

nanotechnologies

(Source: http://www.oecd.org/sti/nanotechnology-indicators.htm)

6. Indicators at functional/operational level• Functional/operational level indicators are required for designing

specific interventions at programme and institutional levels

• Necessary to delineate functional levels of innovation systems

• Main functions of a ‘model nanotechnology innovation system’

(a) Knowledge creation & development(b) Knowledge diffusion and development of positive externalities(c) Guidance & direction(d) Entrepreneurial activities(e) Market formation(f) Resource mobilization(g) Institutionalization and legitimation

Source: http://www.globelicsacademy.org/2011_pdf/Mohammadi%20Mehdi.pdf

Indicators at functional/operational level (cont.)

Activities/ Sub-functions

Main indicators

Volume of knowledge creation & development

• Publications; patents; • Research projects (academic and non academic); • Existence of national or big research projects;

Mode of knowledge creation & development

• Basic researches; developmental researches; • Commercialization of knowledge; • Problem-based or need-based researches

Process of knowledge creation & development

• Internal R&D; • Knowledge transfer and learning

(a) Knowledge creation & development


(b) Knowledge diffusion and development of positive externalitiesActivities/ Sub-

functionsMain indicators

Formation of division of labour and specialized value chain

• Existence of specialized actors in value chain; • Existence of extended and specialized labour market; • Size and number of networks and clusters

Information and knowledge flowsand spill-over

• Workshops, conferences and exhibitions; • International research and technological collaborations; • Industry-science interactions


(c) Guidance & directionActivities/ Sub-functions

Main indicators

Visions and expectations about the growth potential

• International and external trends and experiences; • Promotional activities by scientific community and activists;• Relevance of existing expertise

Policy development and priority setting

• Development of clear vision and objectives by the• government; • Development of priority areas; • Developing incentives, supports and complementary standards

Current and complementarybusinesses

• Status of related businesses in the country; • Tendency of national and big sectors or companies to enter in

this field; • Existence of technical bottlenecks in the current businesses


(d) Entrepreneurial activitiesActivities/ Sub-

functionsMain indicators

Mode of entrepreneurship

• Start-ups and spin-offs; • Diversified established firms;• Combination of current firms in this sector (private or

public)

Experiences in using technology and its applications

• Type and successfulness of technology applications and experiments


(e) Market formationActivities/ Sub-functions

Main indicators

Market size and its growth

• Market size and related niche markets; • Potential export market

Incentives and inducementmechanisms for market growth

• Existence of market competitive advantage by incentives and supports;

• Existence of local content policies and standards or governmental purchasing rules;

• Alignment with national economic and commercial policies

Customer groups and theirpurchasing behavior

• Existence of public or private customers; • The role of leading customers; • Role of specialized customers with non-routine purchasing

behavior

Indicators at functional/operational level (cont.)(f) Resource mobilization


Main indicators

Developing human capital andspecialized labour force

• Volume and quality of human resource (specially from• universities); • Existence of specialized & experienced HR• Existence of complementary expertise (management,

entrepreneurship, …); • Existence and quality of non-academic trainings

Mobilization of financial resources

• R&D investments by government and private sectors;• Volume of venture capital and financial supports for• entrepreneurship; • Existence of loans and grants for academic researches

Existence of complementary assets

• Existence of complementary infrastructures like incubators and technology parks, laboratories, networks;

• Existence of complementary products, services and know-how

Indicators at functional/operational level (cont.)(g) Institutionalization and legitimation


Main indicators

Developing necessary institutions and regulations

• Alignment with current regulations and laws;• Development of special institutions and regulations;• Development of product and service standards;• Development of IPR-related institutions

Formation of advocacy coalitions and interest groups and their lobby power

• Size and growth of advocacy coalitions & interest groups; • Existence of a powerful leading organization (policy maker); • Coherence between activists about priorities and future of

technology; • Existence of actors with high political and financial power in

the sector

Promotional and extension activities

• Exhibitions and meetings; • Promotional programs in the media and public extension for

introducing the new technology and its applications

7. Impact of globalisation on innovation system performance

• Opening national markets to foreign competitors’ products is a powerful means of strengthening competition.

• Openness facilitates access to foreign know-how and technologies.

• Trade openness and integration allows for economies of scale and specialisation.

• Trade openness leads economies to specialise in sectors which have a comparative advantage

Source: http://www.oecd.org/innovation/inno/50586251.pdf

Impact of globalisation on innovation performance

(cont.)While openness offers opportunities to tap into global knowledge stocks, the development of innovation capacity in national industries requires supportive policy measures from the Government :

• Access to finance for businesses• Easing conditions for entrepreneurship• Provision of suitable skills and improving access to

skilled human capital

Source: http://www.oecd.org/innovation/inno/50586251.pdf

8. Strategies for SMEs for international participation -

Biotechnology• Strengthen financing channel building and resolve the problem of difficult financing (Govt. funds & credit, fiscal incentives, venture capital, equity, etc)

• Build and promote enterprise clusters with international operations

• Base on self-advantages to find a position in the global value chain - low manufacturing cost for continual progress

• Improve technology innovation and shift to the high end of value chain

• Learn from international experiences and continue to improve managerial level

Source: Tech Monitor, Jul-Sep 2012

Strategies for SMEs for international participation - Nanotechnology

Major global companies involved in bulk production of nanomaterials

Source: Tech Monitor , Oct-Dec 2012

Name of the Company Country ProductsBayer Germany Baytube carbon nanotubes

BASF Germany Various types of nanomaterials (usage includes food additives and sunscreens)

Degussa Germany Range of ultrafine nanomaterials

ICI/Uniquema UK Nanomaterials (including nano titanium dioxide for sunscreens)

Elementis UK Nanomaterials (including nano ZnO based sunscreens) QinetiQ Nanomaterials Ltd. UK Range of nanomaterials Mitsubshi Chemical Corporation Japan Carbon nanotubes

Advanced Nanomaterials Australia Range of nanomaterials (usage include sunscreens, catalysts, cosmetics and coatings)

Nanophase USA Range of nanomaterials Hyperion Catalysis USA Nanotubes for incorporation into plastics Carbon Nanotechnologies Inc USA Carbon nanotubes Zyrex Technologies USA Carbon nanotubes

Umicore Belgium Nanomaterials (including nano titanium dioxide for sunscreens)

Nanogist Co., Ltd. South Korea Nanomaterials (anti- microbial silver nanoparticles)

Zhaong Pion Power-Tech Co.Ltd China Li-ion batteries

Suzhou Nanotech Co.Ltd China Nanomaterials for drug delivery systems

UC nanotechnologies Inc China Sensors

9. Country experiencesHigh-Tech Strategy of Germany

The High-Tech Strategy is based on five pillars:

1. Priority task areas: The digital economy and society, the sustainable economy and its energy, the innovative workplace, healthy living, intelligent mobility and civil security.

2. Better transfer: Creating new instruments for improved regional, national and international networking between science and industry.

3. Greater dynamism in innovation: Providing special support for SMEs, and technology-oriented start-ups, with a view to enabling such companies become technology leaders that can shape future markets.

4. Improved framework conditions: Supply of skilled personnel; availability of innovation financing; providing other societal, technical and legal foundations

5. Intensified dialogue: Active participation by society; openness to technology; public participation; social innovation

Source: https://www.bmbf.de/pub/HTS_Broschuere_engl_bf.pdf

Emerging technologies & industries strategy – UK

• Identified and invested in seven high-potential technologies of strategic national importance – synthetic biology, energy efficient computing, energy harvesting, non-animal technologies, emerging imaging technologies, graphene and quantum technologies.

• Strategic themes: (1) To identify and evaluate emerging technologies with disruptive potential; (2) To create a coordinated programme; (3) To accelerate the journey to market; and (4) To build critical mass and nurture capability.

• Objectives: (1) Identify exciting early-stage technologies and evaluate their global market potential; (2) Invest in a pipeline of emerging technologies with high commercial potential and help to accelerate their journey to market; (3) Invest in the creation of demonstrators (of varying kinds), roadmaps and standards, taking an international perspective; (4) Help to build connected ecosystems that support growth.

(Source: Innovate UK. https://www.gov.uk)

Innopolis of Rep. of Korea R&D-leading innovation clusters wherein science, technology, and knowledge are

efficiently created, transferred, and utilized (Daedeok, Gwangju, Daegu, Busan)

INNOPOLIS Daedeok has been known as ‘The Heart of the Creative Economy’ for Korea’s science and technology growth and a rapidly evolving innovation hub for high-tech commercialization

• Hosts top-class scientific and technical human resources, national research laboratories and research universities within, and continuously attracts major contracts from private sector R&D organizations.

• 60 public (25) and private (35) research institutes operating within the ecosystem

• Supported over 906 technology transfer between the domestic/global stakeholders. (31 of start-ups have gone public at KOSDAQ)

• Number of internationally registered patents exceeds 10,000.

(Source: https://www.innopolis.or.kr/eng_sub0201)

Hightech industrial zones of ChinaMajor thrust of China’s STI policy in 1985

739 incubators, 50 national university-sponsored science parks, 441 technology transfer institutions, 175 productivity promotion centers, 732 products inspection and examining organizations, 504 strategic alliances of industrial and technological innovation, industrialization bases for new and high technologies, etc.

Produced more than 13,000 companies with assets over 100 million yuan, about 18,000 tech-based enterprises, over 1,000 companies that are publicly traded in different stock exchanges in international financial centers, and, in 2012 alone, 65,000 newly registered business ventures.

(Source: China Science and Technology Newsletter (No. 19), 2013/12/05)

10. Concluding remarks• New and emerging technology policy based on national strengths

and capacities• Development of appropriate statistics and metrics to measure new

and emerging and technologies • Indicators at functional and operational levels for designing

interventions at programmatic and institutional levels• Trade openness and liberalization to facilitate competition, access

to foreign know-how and technologies, and specialization• Supportive policy measures for promoting innovation capacity in

national industries to cope with trade liberalization and competition

• Critical factors - Regional, national and international networking; Technology-based entrepreneurship, start-ups, incubators, innovation clusters; Availability of innovation financing

Thank you

For more information, contact

Satyabrata Sahu, Ph.D.UNESCAP-APCTTP.O. Box 4575, C-2, Qutab Institutional Area, New Delhi – 110 016, IndiaTel : 91-11-30973756 | Fax : 91-11-26856274Email : [email protected] | Website : www.apctt.org, www.techmonitor.net

Date post:	24-Jan-2017
Category:	Science
Upload:	costi2014
View:	395 times
Download:	0 times