Innovation

Presentation to the EEESTA Seminar

10 November 2004

Patrick RobinsonDirector

Innovation Strategy Team, DTI

Competing in the Global Economy:

The Innovation Challenge

Innovation

Dramatic Change in Life Cycle

Conventional

Vo

lum

e

Intro-duction Ramp-up Maturity

End of life

Development Dramaticend of life

Shorter time to market

Fas

t ra

mp

-up

Demand fluctuation

Higherpeak

New Digital Consumer

3-5 years 1 year

Source: Dr Tsugio Makimoto - Hitachi/Sony

Innovation

The innovation challenge - create value in a knowledge economy …

Value added by knowledge based services and industriesG7 comparison, 2000Per cent of total value added

0

10

20

30

40

50

Germany UK France Japan US Canada* Italy

Finance, insurance, other business services, community,social and personal servicesCommunication services

High and medium-high tech

Source: OECD (*1999 data)

Innovation

Source: US Department of Labor

Increasing intensity of global competition

0

5

10

15

20

UK Hong Kong SAR Taiwan

Hourly compensation costs, 2001, for production workers in manufacturing in US dollars

Innovation

The Government’s Response

Competing in the Global Economy – the Innovation Challenge, Dec 2003

Increase Business Demand for New & Emerging TechnologiesThe Technology Strategy & Programme

Science & Innovation Investment Framework 2004-2014, July 2004

Innovation

Innovation Report – Key Proposals

Management & skills

Public Procurement

Technological Innovation Strategy

International and EU

Regional Innovation

Regulation

National assets

Innovation

TECHNOLOGY TECHNOLOGY PROGRAMMEPROGRAMME

Collaborative R&DKnowledge Transfer

Networks

CUSTOMERS

CUSTOMERS BI-ANNUAL BI-ANNUAL

CALLS FOR CALLS FOR PROPOSALSPROPOSALS

TECHNOLOGY TECHNOLOGY STRATEGYSTRATEGY

IDENTIFICATION AND JUSTIFICATION

OF TECHNOLOGY PRIORITIES

NETWORKNETWORKSS feed into decision making

Technology Strategy & Programme

Innovation

Intellectual Property: Awareness

Business Advice Open Dayshttp://www.patent.gov.uk/about/marketing/thinkkit/index.htm

Innovation

New approaches to Procurement

• £109bn pa goods/services purchased by Government in 2001/2002

• Strong Ministerial interest in joined up work across government

• Capturing Innovation guidance for policymakers

• Reinvigoration of Small Business Research Initiative underway

• Joint DoH/DTI seminar on Innovation in the NHS for suppliers and buyers

Innovation

HEIs/SET Base BusinessBusiness

RDAs

ResearchCouncils dti

TechnologyStrategy

ResearchPriorities

Culture change neededfor better exploitation

Science andIndustry Councils

Businesssupport

Higher levelSET skills

Regional Innovation

Innovation

Measuring our success

Businesses see more value added from goods and services

Economy sees more productivity (e.g. output per hour).

Better public services - - Improved quality of life

Innovation

Presentation to the EEESTA Seminar

10 November 2004

Patrick RobinsonDirector

Innovation Strategy Team, DTI

Competing in the Global Economy:

The Innovation Challenge