Creating New Innovation model for Future Society and Economic Growth

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OECD The 3rd Meeting of Innovation Strategy Expert Advisory Group 28-29 Jan, 20010 Creating New Innovation model for Future Society and Economic Growth Prof. Ichiro SAKATA Todai Policy Alternatives Research Institute, Innovation Policy Research Center University of Tokyo, JAPAN

1. Our New Policy Approach Contents - Past Trend of Our Innovation Policy Citation Network Analysis of Academic Papers - New Approach Promoting Social Innovation for Solving Global Challenges 2.Changes in Innovation Model -Rapid Growth and Segmentation of Knowledge -Globalization of Industrial Activities -Huge Potential of International R&D Collaboration -Higher Science Linkage 3.Some Policy Recommendations Appendix : PPH and benefits from PPH Page 2

Analysis of Academic Innovation Research #1 Innovation Fundamentals #3 Innovative Organization #2 Technological Management Page 3

Analysis of Academic Innovation Research #1 Innovation Fundamentals #3 Innovative Organization Market Orientation Organizational Innovation Regional Innovation Economic- Growth Academia-Industry Relations Intellectual Property Right Product Development #2 Technological Management Industry and Technology Network Knowledge Management Leadership Communication 1st subcluster 2nd subcluster 3rd subcluster 4th subcluster Page 4

Academic Landscape of Innovation Research #10 Drug 173papers, 3.7 ages drug discovery, R&D, #4 Diffusion of pharmaceutics Innovation 554 papers, 7.9 ages market, technology, timing #8 Innovation Source 283 papers, 7.7 ages user, manufacturer, technology #1 Innovation Fundamentals 3,178 papers, 6.3 ages regional learning, intellectual property right, antitrust public research, academia-industry relations from 40,856 papers (1970-2007, connected component = 11,608 papers) #7 Policy 305papers, 7.3 ages policy-making, diffusion #9 Strategy 269papers, 6.7 ages company, value creation, institutional #2 Technological Management 2,706 papers, 5.9 ages absorptive capacity, architectural innovation knowledge management product, profiting, licensing #6 Service Innovation 326 papers, 9.7 ages education, promotion, implementation #3 Innovative Organization 2,647 papers, 8.8 ages organizational innovation leadership, champion, team communication market orientation, adoption #5 Medical & Healthcare 414 papers, 8.9 ages education, promotion, implementation # Rank, Cluster name Cluster size, Average years after publication Keywords in the cluster PICMET 09(M.Hashimoto,I. Sakata, Y.Kajikawa et al.)

Dynamic evolution of innovation research 1980 1985 1990 #3 Innovative Organization 2 Technological Management #1 Innovation Fundamentals 1995 2000 2005 Page 6

Trend in Academic research & Policy reformation 1980 1985 1990 #3 Innovative Organization 2 Technological Management #1 Innovation Fundamentals 1995 2000 2005 Academic research 80 s~90 s 90 s~ 90 s~ Organization Technology Fundamentals NIS Japan I: 1950 s~60 s II: 70 s~ III: 00 s~ delayed NIS US I: 1950 s~60 s II: 80 s III: 80 s~ advanced

Paradigm Shift in Innovation Research from Organization, to Technological Innovation, and to Fundamentals! Our Next Approach? Our Next Target? Page 8

Innovation Opportunity for Global Challenges Climate Change Health / Aging Society Food Security Poverty / Economic Development Identify Policies, Frameworks, and Governance Mechanisms, that can Accelerate Scientific and Technological Progress And Diffuse Innovation as Widely as Possible (Source)2009 Interim Report on the OECD Innovation Strategy Page 9

Innovation System at the Global Frontiers of Social problems Accumulated knowledge Utilization and Integration of knowledge Policy discussion: Feasibility of new social system, new industry etc. Global Challenges Sustainability Energy Survey on academic and Industrial research front Stimulating social innovation Aging society Design new social system Improve institutional settings Food security Identification of To-Be model etc. Page 10

Academic Landscape of Sustainability Science #4 Forestry (Agroforestry) 614 papers, 1999.7 #1 Agriculture 1,584 papers, 1998.9 #2 Fisheries 1,419 papers, 2000.5 #9 Forestry (Biodiversity) 353 papers, 2000.6 #13 Health 221 papers, 5.2000.2 #6 Business 450 papers, 2000.5 #14 Soil 208 papers, 2000.5 #3 Ecological Economics 1,135 papers, 5, 2000.5 #5 Forestry (Tropical Rain Forest) 450 papers, 1999.5 #12 Energy 229 papers, 2001.1 #11 Rural Sociology 271 papers, 1999.4 #15 Wild Life 161 papers, 2000.1 from 29,391 papers (1970-2006, connected component = 9,973 papers) #7 Tourism 423 papers, 1999.5 #8 Water 361 papers, 2000.5 #10 Urban Planning 277 papers, 2000.1 # Rank, Cluster name Cluster size, Average years publication Source: Y. Kajikawa et al. Sustainability Science 2(2007) pp.221-231

Exponential growth of Information and knowledge! Volume of Knowledge Renaissance Before modern history Web Industrial Revolution Time Distributed information cannot be automatically used. We are drowning in the information sea. Page 12

Case : Solar Cell #of Papers Data Source: Web of Science Page 13

Structuring Knowledge for Social Innovation Social & Industrial Needs Environment Energy Food Security Aging Society Structuring Knowledge Social Innovation Solution Technology Business model Social system Deepening scientific knowledge Segmentation of scientific knowledge Academic discipline Page 14

Next Target and Approach Global Issues (Sustainability/ Climate Change, Health/Aging, Security) as Next Target Structuring and Integration of Knowledge and Stakeholders as Next Approach Page 15

Other Dynamic Changes in Innovation -Rapid Growth and Segmentation of Knowledge -Globalization of Industrial Activities and Patent Application -Huge Potential of International basic R&D Collaboration -Higher Science Linkage in the near future (Green Technology, Silver New deal, Service Innovation) Page 16

International Collaboration : A Case of Fuel Cell (1945-2009,TOP 76Institute) (source) Hajime Sasaki, Ichiro Sakata and Yuya Kajikawa, UT Page 17

Academic Research and Industrial Technology :A Case of Solar Cell- Closer Linkage (source) Nikkei Keizai-Kyoshitu (Ichiro Sakata) 2009/6/24 Page 18

Policies Recommendation 1.Tracking fast developing academic research to reflect R&D Policies 2.Fostering skills for structuring knowledge and designing new social systems 3.Encuraging discussion between technology and institutional setting (Law, Standard, Guideline etc. ) 4. Mechanism for promoting the cooperation beyond countries or regional clusters (Broader co-funding system) 5. Further expansion of PPH and work sharing of patent offices 6.Bridging academia and industrial or public sector (Green Innovation, Silver New Deal, SSME etc.) Page 19

Appendix: Benefits from Patent Prosecution Highway <Benefits> Quick Results Higher Allowance Rates Most Cost-Effective Compact Prosecution (Jon Dudas, Former Commissioner, US PTO) Denmark Singapore UK Japan Austria IP Australia USA Hungary Russia Canada EPO Korea Germany Finland

Appendix : Link mining approach (Academic Landscape) Bibliographic records (Web of Science) Citation network analysis Journal Paper Citation Clustering Visualization Research Field