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Gilbert Nicolaon Ancona June 19 , 200 8

The World Bank Knowledge Economy Forum VII Plenary session VII Nurturing Partnerships between SMEs & Technology Transfer Institutions. Gilbert Nicolaon Ancona June 19 , 200 8. Industry in Europe. Large Multinational groups SMEs Medium Size Entreprises Small Entreprises

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Gilbert Nicolaon Ancona June 19 , 200 8

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  1. The World BankKnowledge Economy Forum VIIPlenary session VIINurturing Partnerships between SMEs &Technology Transfer Institutions Gilbert Nicolaon Ancona June 19, 2008

  2. Industry in Europe • Large Multinational groups • SMEs • Medium Size Entreprises • Small Entreprises Based on size (Nb. Of Employees)

  3. Firms’ « Internal » expertise

  4. Industry in Europe • Multinational : a few hundred • Medium Size E. : a few thousand • High Tech SEs : a few thousand • Traditional SEs : several hundred thousand (+ Recently, Services sector SMEs) TRADITIONAL SECTOR S.E.s OFFER A VERY LARGE POTENTIAL, USUALLY UNDERESTIMATED

  5. SMEs in Europe In most country SMEs(*) represent : • More than 50% of GNP • More than 50% of industrial employment In recent years : • Employement by large groups decreased • Employement by SMEs increased SMEs COMPETITIVENESS IS ESSENTIAL FOR EVERY NATIONAL ECONOMY (*) Including commercial SMEs

  6. The diversity of S.E.s S.E.s : extremely diversified • Size • Industrial sector • Market • Technological level • International experience There is no such thing as a « typical » S.E. 200000 industrial S.E.s in Europe : Not 2 are alike

  7. SEs’ challenge In order to stay competitive S.E.s must : • Innovate • Absorb technology BUT… ….They usually do not have « internally » all the needed expertise

  8. A « UNIVERSAL » CHALLENGE • A gap between Research and Economy • Limited impact of R&D on competitiveness • Limited cooperation between RDI and SMEs • A challenge all over the world • Most countries support R&D • Gvts. expect to get R.O.I. from their R&D spending A UNIVERSAL CHALLENGE ALL OVER THE WORLD

  9. A « DOUBLE » CHALLENGE • Res. Scientists are not motivated to work with S.E. • S.E. are not motivated to work with « academic » scientists STRONG INCENTIVES ARE NEEDED

  10. Push or Pull ?

  11. Technology Push From the Lab to the market Idea of a scientist Limiting step : selling the idea (and the project) to industry TOP DOWN Market Pull (Technology absorption) From market needs to the lab AND Back to market Need identified by industry Limiting step : Identifying the customer Identifying the need BOTTOM UP Push or Pull ?

  12. Push or Pull ? • Technology Push Give more « fancy » results but it will take more time and it is very risky • Market pull (Technology absorption) Give less « exotic » results but much more frequent + a higher success rate

  13. Push or Pull ? SUCCESS RATE : • Technology push : Low (a few %) • Market Pull High (50%,with some experience) Market pull offers a potential usually underestimated

  14. A Challenge !!! • RDIs think almost exclusively…. « TECHNOLOGY PUSH » • S.E.T.S(*) are more interested by «  MARKET PULL » (*)S.E.T.S. : Traditional Sectors Small Entreprises

  15. A 3 Partners cooperation • Technological Institutes (RDIs) • Provide the appropriate technology services • S.E.s • Identify the market needs • Manage innovative projects • The Government(Ministries, agencies ..) • Stimulate the process to boost the economy • Provide incentives (for Scientists and for Industry) • Provide assistance • Often provide some funding

  16. Targeting SEs The main issue is to : • Identify potentially interested S.E.s AND • « Sell » them technology services

  17. Targeting S.E. • Conferences, seminars… • Commercial fairs • Brokerage events • Existing networks • Regional networks (Chambers of commerce) • National networks (Innovation agencies) • European networks • E.U. « networking » activity (ERA-NET) • V.C. forums • Private consultants • Data Banks ? • ……

  18. Targeting S.E. Communication towards S.E.s The most efficient way to communicate is not to present what an RDI can do BUT : To ask the manager of an S.E. who has had a successful partnership with an RDI to testify in front of other S.E.s managers

  19. The « next » step Building up mutual respect • It takes some time • Personal contacts • Usually the first cooperation are « modest » • At that stage Gvts. Support is needed

  20. S.E.s –RDI cooperation Numerous way to cooperate • R&D contracts • Consulting • Technology « diagnostic » • …… • Licensing

  21. The role of Governments:Public-Private Partnerships

  22. Governmental programs • Many programs to support SMEs: • National • Regional • International • One common goal : to bring assistance to SMEs to improve their competitiveness

  23. Governmental programs • To strengthen SMEs competitiveness Assistance for: • Identifying partners • Preparing a Business Plan • IPR and legal matters • To provide some public funding • Financial support for project preparation • Matchning grants • Soft loans

  24. A few National Programs • United States : SBA • Europe : • Finland : TEKES • France : Oséo-Innovation • The Netherlands : Senter • Spain : CDTI • ….. + Numerous Regional programs • Ex. Flanders

  25. International Programs • World Bank projects on Tech. Dvp. • Far East (India, Korea…) • Latin America (Mexico…) • Eastern and Central Europe (Croatia, Ukraine…) • European Union Framework Program • Research for the benefit of SMEs • Other European programs • Eureka initiative • Intergovernmental (Mkt. Oriented, nationally funded) • European Space Agency • Technology Transfer program

  26. E.U. programs for SMEs • Research for SMEs (former CRAFT) Coordination of SMEs RTD co-operation • ERA-NET • Eurostar • SMEs participation to RTD projects + • Various supporting actions • Network of National Contact Points • Coordination and support actions

  27. The role of Governments To create a favourable environment • Fiscal laws • Patent laws • Encourage mobility • R&D funding allocation

  28. The role of Governments • To provide infrastructures • Incubators • Technology parks • To provide assistance • Financial • Legal • Economical

  29. The role of Governments Incentives, Incentives Incentives…. • Incentives for SEs • Incentives for Scientists

  30. The role of Governments • A stable legal framework over a long time • A rigorous monitoring process • To follow progress • To learn (from failures)

  31. To conclude

  32. To conclude • A fascinating topic • A large potential for SEs-RDIs cooperation • Mutually potentially very profitable BUT • Which faces some « misunderstandings » ? The question is not : can they do it ? BUT : Do they want to do it? ???

  33. To conclude A « tough » challenge BUT : A major tool for development Countries, or Regions, which will succeed will gain a major competitive advantage

  34. Thank you for your attention Gilbert Nicolaon Win.tech@club-internet.fr

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