Challenges for a more innovative Sweden. Kjell-Håkan Närfelt, Vinnova
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1 Challenges for a more innovative Sweden Kjell-Håkan Närfelt, Vinnova kjell-hakan.narfelt@vinnova.se
2 Some words on Vinnova
3 Vinnova in brief We are Sweden s innovation agency We report to Ministry of Enterprise We have a budget of 2,6 billion SEK in 2015 We are about 200 employees We have offices in Stockholm, Brussels and Silicon Valley
4 Ministry of Health and Social Affairs 1,3% Other 18,0% Swedish Council for Working and Social Research 1,3% Other civilian R&D Ministry of Enterprise, Energy and Communications 14,3% Space 3,1% Energy 4,5% VINNOVA 6,7% 10,5% Defence agencies 7,5% Swedish Research Council FORMAS 3,1% Universities 47,8% Ministry of Education and Research 63,3% Ministry of the Enviroment 3,1% Swedish Research Council 15,6% 5
5 We are driven by expected innovation policy outcomes! Sustainable growth Societal benefits Competitiveness of industry and academia Sweden an attractive place for research and innovation Slide 6
6 Vinnova s three roles: Funding Research & Innovation National EU Contact Agency Expert Agency
7 Collaborative initiatives Target group initiatives Tematic initiatives Strategic R&I programmes Innovative SME Health and wellbeing International collaborations Knowledge triangle Innovation facilitators Services and ICT Transport and environment Challenge driven innovation Innovation in public sector Production, manufacturing and organisation development Vinnova s strategic areas Bild 10
8 Connect Stimulate Catalyze
9 Sweden as an innovation nation
10 Sweden has a diversified industry with a large focus on export Wood & Paper Mining/Machine/MetalTrade Transport-Automotive Military Pharma/Biotech ICT Energy/Cleantech Bild 13
11 We have been successful in creating multinational companies
12 Swedish research and innovation in figures (billion SEK) 118 Total Swedish R&D 1 31,0 Total government R&D 2 Equivalent to 3.4% of Sweden s GDP for 2011 invested in R&D. 3 GDP 2,2 Innovation Union Scoreboard 2012 World Bank Economy Index Sweden 1.Sweden 2. Denmark 2. Finland 3. Germany 3. Denmark 4. Finland 4. Netherlands 5. Belgium 5. Norway 6. United Kingdom 6. New Zealand 7. Netherlands 7. Canada 8. Austria 8. Germany 9. Luxemburg 9. Australia 10. Ireland 10. Switzerland VINNOVA s grants to R&I 3 3,4% of GDP equivalent to annual R&D investment in Sweden Sources: 1 SCB (forecast for 2011) 2 VINNOVA SCB (forecast for 2009) 4 Innovation Union Scoreboard 2010, The Global Competitiveness Report
13 Swedish Innovations
14 Source: Roland Berger Can European Start-ups Crack the Code?
15
16 Bild 19 but there are challenges
17 Development of government R&D funding 1993 Formas FAS 6,3 procent VINNOVA, STEM och Rymd styrelsen 22,2 procent Statsanslag till UOH + SFO 56,1 procent VINNOVA, STEM och Rymd styrelsen 17,8 procent 2012 Formas FAS 5,8 procent Statsanslag till UOH + SFO 56,3 procent Vetenskapsrådet 15,3 procent Vetenskapsrådet 20,1 procent Total volym: 15,1 miljarder i 2009 års priser Total volym: 24,5 miljarder i 2009 års priser
18 Industry/Business R&D (% of GDP ) 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Source: Innovation Union Competitivness report
19 R&D and Innovation account for a remarkable small part of total government aid to firms Källa: Innovation Union Competitiveness report, 2011 edition, p Bild 22
20 FIN SWE Source: OECD Scoence technology Innovation Scoreboard 2013 Bild 23
21 High level of start-up activity Bild 24 Source: OECD Scoence technology Innovation Scoreboard 2013
22 Time of establishment of the 50 largest Swedish firms in 2001 Number Before Source: NUTEK & ALMI 2001
23 57 hi-tech companies have been aquired during the last 10 years
24
25
26
27 The Swedish Landscape of Firms Industry policy No employees > Commercialisation of Research & Entreprenaurship Company structure in Sweden
28 Source: A look at business growth and contraction in Europé, NESTA Working paper No 11/02e
29 What is Innovation?
30 Laila Ohlgren
31 Bild 34
32 That s innovation Bild 35
33 Kent and Britta Lindvall Slide 36
34 37
35 This is also innovation
36 Opposite to innovation?
37 Kopiera Imitation!
38 Is this the way forward? Imitate and compete with prices
39 Innovation is the only way to sustain competitive in a fast changing world
40 Exxon Mobil Wal-Mart Stores Royal Dutch Shell BP General Motors Chevron DaimlerChrysler Toyota Motor Ford Motor ConocoPhillips General Electric Total ING Group Citigroup AXA Allianz Volkswagen Fortis Crédit Agricole American Intl. Group Assicurazioni Generali Siemens Sinopec Nippon Telegraph & Telephone Carrefour Bild 43 No iphone No Spotify No Instagram No Angry Bird
41
42 Trends in innovation Digitalization of everyting Computing power is everywhere Bandwidth and connectivity for everyone Innovations as building blocks Recombinant growth Innovation capacity = capacity to test out new combinations of ideas and innovations
43 "No matter who you are, most of the smartest people work for someone else Bill Joy, Sun Microsystems
44 Foldit game leads to AIDS research breakthrough In a matter of 10 days, gamers were able to do what biochemists have been trying to do for a decade: decipher the structure of a protein called retroviral protease, an enzyme that is key to the way HIV multiplies. Slide 47
45 With more eyeballs, more powerful combinations will be found From the book The Second Machine Age by Brynjolfsson, McAfee
46 So What Is Innovation All About?
47 It is not only about developing new products and services Innovation? New value creation, not new creations
48 Innovation has many shapes Market impact Disruptive, Game changing Uber Self-driving cars Sustaining Volvo XC 90 (SUV) Tesla Incremental Radical Product impact
49 Innovation has many shapes examples at Apple Market impact Disruptive, Game changing Itunes IPhone and Appstore Sustaining IMac IPod Incremental Radical Product impact
50 We need a broader view on innovation Eco-system Innovations WHAT? Traditional value creation Offering Innovations WHERE? Operational Innovations WHO? Customer Innovations HOW? New areas for value creation Based on Innovation Radar
51 You need to improve your Innovation Management skills! Innovation strategy Organisation & Leadership & Culture Innovation processes Slide 56
52 The Management Challenge? Execute! Operational strategy Search & Learn! Innovation strategy 57 Day-to-day Operations Organisation Leadership & Culture Production of Goods and Services Value creation which delights customers Innovation processes
53 Innovation requires collaboration and co-creation!
54 Demand and use of innovations is essential for national growth! Buy things that do not exist = innovation procurement Co-creation in value chains
55 We need to balance the production of knowledge and technology with the import of it! The ability to import and apply externally developed knowledge and technology is key to innovation driven growth!
56 The strategic management of intellectual assets needs to be improved! Its role in innovation processes Its role as a tool for value creation
57 We need more chefs in the research
58 To sum up... Focus on growth rather than on birth and survival of ventures Have a broad view on innovation to drive business renewal Stimulate collaboration and co-creation to drive innovation Stimulate value creation driven management of intellectual assets Promote more Chefs in the research
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