Challenges for a more innovative Sweden Kjell-Håkan Närfelt, Vinnova kjell-hakan.narfelt@vinnova.se
Some words on Vinnova
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
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
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
Vinnova s three roles: Funding Research & Innovation National EU Contact Agency Expert Agency
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
Connect Stimulate Catalyze
Sweden as an innovation nation
Sweden has a diversified industry with a large focus on export Wood & Paper Mining/Machine/MetalTrade Transport-Automotive Military Pharma/Biotech ICT Energy/Cleantech 2016-03-08 Bild 13
We have been successful in creating multinational companies
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 2012 1. 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 2010 3 SCB (forecast for 2009) 4 Innovation Union Scoreboard 2010, The Global Competitiveness Report 2010-2011
Swedish Innovations
Source: Roland Berger Can European Start-ups Crack the Code?
Bild 19 but there are challenges
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
Industry/Business R&D (% of GDP 2000-2009) 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Source: Innovation Union Competitivness report 2011 2009 2000
R&D and Innovation account for a remarkable small part of total government aid to firms Källa: Innovation Union Competitiveness report, 2011 edition, p. 341 2016-03-08 Bild 22
FIN SWE Source: OECD Scoence technology Innovation Scoreboard 2013 Bild 23
High level of start-up activity Bild 24 Source: OECD Scoence technology Innovation Scoreboard 2013
Time of establishment of the 50 largest Swedish firms in 2001 Number 16 15 14 12 10 10 11 8 8 6 6 4 2 0 Before 1870 1871-1890 1891-1913 1914-1945 1946-1969 1970-2000 0 Source: NUTEK & ALMI 2001
57 hi-tech companies have been aquired during the last 10 years
The Swedish Landscape of Firms Industry policy 850 7000 No employees >500 500 32000 50 Commercialisation of Research & Entreprenaurship 210000 10 700000 0 Company structure in Sweden
Source: A look at business growth and contraction in Europé, NESTA Working paper No 11/02e
What is Innovation?
Laila Ohlgren
5 000 000 000 2016-03-08 Bild 34
That s innovation 2016-03-08 Bild 35
Kent and Britta Lindvall Slide 36
37
This is also innovation 10-10-18 38
Opposite to innovation?
Kopiera Imitation!
Is this the way forward? Imitate and compete with prices
Innovation is the only way to sustain competitive in a fast changing world
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 2016-03-08 Bild 43 No iphone No Spotify No Instagram No Angry Bird
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
"No matter who you are, most of the smartest people work for someone else Bill Joy, Sun Microsystems
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
With more eyeballs, more powerful combinations will be found From the book The Second Machine Age by Brynjolfsson, McAfee
So What Is Innovation All About?
It is not only about developing new products and services Innovation? New value creation, not new creations
Innovation has many shapes Market impact Disruptive, Game changing Uber Self-driving cars Sustaining Volvo XC 90 (SUV) Tesla Incremental Radical Product impact
Innovation has many shapes examples at Apple Market impact Disruptive, Game changing Itunes IPhone and Appstore Sustaining IMac IPod Incremental Radical Product impact
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
You need to improve your Innovation Management skills! Innovation strategy Organisation & Leadership & Culture Innovation processes Slide 56
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
Innovation requires collaboration and co-creation!
Demand and use of innovations is essential for national growth! Buy things that do not exist = innovation procurement Co-creation in value chains
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!
The strategic management of intellectual assets needs to be improved! Its role in innovation processes Its role as a tool for value creation
We need more chefs in the research
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