Creating knowledge markets for diffusion
With bridging institutions that link
entrepreneurship and finance with local
research institutions
Bob Hodgson Zernike (UK) Limited
Rio de Janeiro October 2011 ZE RN IKE (U K)
The geography of innovation and policy design
Creating knowledge markets for diffusion
With bridging institutions that link
entrepreneurship and finance with local
research institutions
Bob Hodgson Zernike (UK) Limited
Rio de Janeiro October 2011 ZE RN IKE (U K)
The geography of innovation and policy design
Session 5: Should countries pursue policies at the sub-national level?
Structure
The sub-national agenda – some key points
Focus on the market for knowledge
Demand supply and place
Bridging institutions
Finance and its articulation
End with a concrete example
Bob Hodgson Rio de Janeiro, October 2011
The first question – sub-national innovation?
No brainer – YES!!!!! But how?
Regional performance – persistent and strong differences
The capital question, often dominates
With differential delegated powers
And differential starting points and endowments
Bob Hodgson Rio de Janeiro, October 2011
ZE RN IKE (U K)
Two main themes: Mexican State’s Innovation Plan
SELECTIVITY – focus where there is already some strength
Jalisco – specific aspects of ICT
but – isolated initiative of driver group
no shared or inclusive vision
ARTICULATION – align and join up efforts of all agents
Guanajuarto – a strong administrative culture
with academic underpinning
emphasis on defining collaborative processes
not yet addressed content
success requires both to be covered
Bob Hodgson Rio de Janeiro, October 2011
ZE RN IKE (U K)
What makes the difference?
Four crucial ingredients
Bob Hodgson Rio de Janeiro, October 2011
Vision - having a clear shared vision of future
Language - being able to talk to each other
Incentive - funding to lubricate and rewards
Think about complexity and the chaos model
Fractals containing fractals containing fractals
Relatively simple deterministic relationships
Each understandable but together complex
And entropic so able to be energised
Bob Hodgson Rio de Janeiro, October 2011
Some common themes
The grand plan v Pragmatic incrementalism
Central delegation v Local legitimacy
Building on best v Dragging up the least
Investing in infrastructure v Changing behaviour
Tight cohesion v Open engagement
Bob Hodgson Rio de Janeiro, October 2011
Three hypotheses
Lots of ideas BUT no risk capital
So lets build a Venture Capital industry
Lots of money BUT no ideas
So lets change the science base
Lots of money AND lots of ideas BUT cannot talk to each other
So develop interaction language and culture
Capital finds ideas it does not generate them
ZE RN IKE (U K)
Knowledge markets: demand supply and place
Demand – three differential aspects
missionary work with MSMEs
working with the willing
partnering the leading edge
Supply – four key strategies
IP and Licensing
new firm formation
strategic alliances
faculty advisory roles
Place – with essential characteristics
information
services
infrastructure Bob Hodgson
Bridging institutions: soft and hard
The knowledge transfer task:
TTOs/OTRIs
UC San Diego, Connect model
Mexican UVTCs
Portuguese UTEN
Norwegian reporting
And infrastructure to help make the bridge:
Incubators – sales and business orientation
Technology Centres – member firm led
S&T Parks – service rich triple helix
Bob Hodgson Rio de Janeiro, October 2011
> Market consolidation > Market expansion > Market penetration > Product enhancement > Sales & distribution > Product development > Marketing & research > Prototyping
> Market definition > Innovation & R&D
Tier 0 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
Product
Development Stage
The Commercialisation Cycle
Tier 3 - Post-incubation Funding Structuring Relationships etc Tiers 4/5 - Commercial Maturity
Business Development Tiers Risk Of Failure HIGH LOW Commercial Value R&D Angels /3F’s Seed VC/IIF VC/ Expansion IPO/MBO /Trade Sale Sources Of Funding Tiers 0/1 - Pre-incubation Direction Collaboration Guidance Resources etc Pre-Seed funding Tier 2 - Incubation Mentoring Seed funding Contacts Consulting Clients Fiscal approaches
Things to concentrate upon
Risk and its management
The role of finance intermediaries
With four key sources – technology, commercial, financial and personnel
Investment readiness
Most ideas need a lot of work before they are ready
And reference to mentors and role models
With different needs at different stages
Deal flow and its stimulation
Covering all the bases
Structured to reward desirable outcomes
Guiding intelligence for strategy
ZE RN IKE (U K)
ZE RN IKE (U K)
Example region – Cambridge, England
Elite and wealthy research University
started in 13th century
Lots of engineering and sciences
Alumni remain, so rich people resource
Strong resistance to development
Business
1,300 firms, creating 35,000 jobs
high tech sectors – CAD to Bio
80 start-ups per annum
businesses creating businesses
specialist service periphery
Bob Hodgson Rio de Janeiro, October 2011
Cambridge London CAMBOURNE WEST UNIVERSITY CAMPUS ST JOHN’S INNOVATION CENTRE CAMBRIDGE SCIENCE PARK PETERHOUSE
THE BABRAHAM INSTITUTE GRANTA PARK MELBOURN
SCIENCE PARK
The Corridor, Manchester
Manchester Technology Park Manchester Science Park Manchester Bio Incubator Medi linked building
Thank You
Bob Hodgson Rio de Janeiro, October 2011
BOB HODGSON ZERNIKE (UK) Ltd The Grove High Street Sawston Cambridge UK CB2 4HJ 0(044)1223 833179 [email protected]