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Audit of Innovation in the BMW Region An Evaluation of a Regional Knowledge Economy

Audit of Innovation in the BMW Region An Evaluation of a Regional Knowledge Economy. Gerry Finn, Director. Presentation Overview. Why do an innovation Audit? Approach Undertaken The BMW Region Challenges & Opportunities Performance of the Innovation System

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Audit of Innovation in the BMW Region An Evaluation of a Regional Knowledge Economy

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  1. Audit of Innovation in the BMW Region An Evaluation of a Regional Knowledge Economy Gerry Finn, Director

  2. Presentation Overview • Why do an innovation Audit? • Approach Undertaken • The BMW Region Challenges & Opportunities • Performance of the Innovation System • Conclusion, Recommendations & Next Steps

  3. 1. Why do an Innovation Audit? • Regional Innovation has been a key priority for the BMW Regional Assembly for many years • Innovation, ICT & the Knowledge Economy is the 1st Priority of the BMW Regional OP 2007-13 (€200m out of €458m)

  4. 1. Why do an Innovation Audit? • Regional Assembly has managed two Regional Programmes of Innovative Actions (€3.1m) • Several submissions made to Government on RTDI policy e.g. Strategy for Science Technology and Innovation, Innovation Taskforce

  5. 1. Why do an Innovation Audit? • 2004 Audit of Innovation • Benchmarking Document for Innovation • Update and Revisit Progress Achieved • Funding to Update Awarded Under Inter-Regional project

  6. Importance of a Functioning Innovation System? • A strong innovation system is one of the hallmarks of a knowledge-based economy • BMW Region Challenge • - Creating Sustainable Jobs • - Current Lack of Higher Value-Added jobs

  7. Importance of a Functioning Innovation System? • - Government Policy: • Building Ireland’s ‘Smart’ Economy • Strategy for Science, Technology and Innovation • (€1bn+ invested since 2000), • Innovation Taskforce • Central to the Programme for Government 2011 – Ireland as an Innovation Hub

  8. 2. Research Approach Adopted

  9. 2010 Audit of Innovation + CISC (Centre for Innovation & Structural Change, NUIG)

  10. Methodology

  11. What are Knowledge Intensive Services? KIS = Innovation Service Providers Organisations (public or private) that provide Innovation Services i.e. Knowledge-based support, including applied R&D, innovation activities Positive impact on business processes and activities - thereby assisting them to innovate and grow.

  12. Examples of Innovation Services • R&D services; • prototyping and design services; • technology transfer services.; • ICT services; • innovation management; • strategic consultancy; • Public: Institutes of Technology, Universities, Publicly Funded Research Centres • Private: ICT, R&D and Management Services

  13. Role of Sector in the Innovation System? Participants in the Innovation System Framework for Delivery Outputs for Economic Development

  14. 3. The BMW Region Challenges & Opportunities

  15. Challenges for the Region to Turn Potential into Job/Growth • Rural Region – High Reliance on ‘Primary Sectors’ • Recession has impacted heavily on the BMW Region: lags on a range of economic indicators compare to the EU27 & S&E Region • Up-skilling a key challenge – move out of the low-skills equilibrium

  16. Challenges for the Region to Turn Potential into Job/Growth • BMW Region’s Share of Public R&D Expenditure Remains Low • e.g. 13% Programme for Research in 3rd Level • 11% Science Foundation Ireland Funding • 19% Enterprise Ireland • BMW National Share • Population 27% - Labour Force 25% • - Output 19% (GVA)

  17. Business Expenditure on R&D by region, 2007 BMW Region 19% of Total BERD Expenditure in the State

  18. Headcount of Research Personnel (Number) by Region, Sex, Year and Type, 2007 BMW Region 21% of Total Research Personnel

  19. Applied Research Centres & Incubation Centres • NUI Galway (St. Angela’s College) • Athlone IT, Dundalk IT, Galway/Mayo IT • Letterkenny IT, Sligo IT • The Marine Institute (Oranmore) • Teagac Rural Economy Research Centre (Athenry) • Líonra- Collaborative Research & Innovation Strategy

  20. Dynamic Knowledge-Led Sectors Emerging in the BMW Region • Companies in the Knowledge Intensive Services Sector worth €1bn to Regional Economy • (ICT, R&D & Management Services) • World Leading Medical Devices Cluster, Galway (Manufacturing of Medical Devices, employing circa 9,000)

  21. Dynamic Knowledge-Led Sectors Emerging in the BMW Region • Other Leading Technology Sector Identified: • Computer & Communication Hardware (6,500) • Pharmaceuticals (6,100) • Software and Communication Services (5,300) • Graduate Employee Levels High (78%)

  22. 4. Performance of the BMW Region’s Innovation System 4. Performance of the Innovation System

  23. Why are Companies Engaging in the Innovation Process? • Grow Sales, Turnover and Market Share • Develop the Capacity/Skills of Employees • Necessary for Survival

  24. How is the innovation system performing in the BMW Region? • Knowledge Transfer & Innovation Support Activities are a Priority • HOWEVER funding limitations & concerns around return-on-investments in innovation remain a challenges for private companies • Networks & Networking identified as key sources of information for the KIS Sector

  25. How is the innovation system performing in the BMW Region? • Innovation is market-led rather than grant driven • However public grants remain a key consideration

  26. How is the innovation system performing in the BMW Region? 92% 77%

  27. Challenges for Public Sector • Slowness of Response • Culture Gap between Academia & Industry:- Not Sufficiently Business Orientated

  28. Challenges for Public Sector • Lack of Co-ordination/Appropriate Points of Contact • Inadequate Delivery/ Quality Issues • Poor Understanding of Needs/Different Expectations Regarding Research Outcomes

  29. How is the innovation system performing in the BMW Region? • Further barriers in the innovation system included: • Lack of awareness of available funding • Opportunity Cost of Investing in Innovation/R&D Activities • Difficulty in access appropriate services

  30. 5. Conclusions, Recommendations & Next Steps

  31. Conclusions, Recommendations & Next Steps • Dynamic cluster of knowledge intensive services – leading transition to knowledge/smart economy in the BMW Region • Opportunities to exploit potential and translate to jobs and growth

  32. Conclusions, Recommendations & Next Steps • National innovation policy – Needs a more Explicit Regional Dimension (reflect local & regional economic realities, linkages/networks) • Lead to the development of Regional Innovation Strategies + robust monitoring & evaluation systems • Single point of industry/academia to address barriers to accessing services • A bottom-up approach

  33. Conclusions, Recommendations & Next Steps • Greater exploitation of regional assets • – identify the evident regional comparative advantages along with the innovation and capacity required to deliver the optimum output • (Smart Specialisation) • Build upon Líonra Collaborative Strategy

  34. Conclusions, Recommendations & Next Steps • More sustained investment is required in Innovation Centres & Incubation Centre to Commercialise R&D Activity • The role of HEIs in knowledge and technology transfer should be expanded - could yield more tangible returns for Government invest in R&D • EU co-financed ERDF focus on Innovation should be maintained

  35. www.bmwassembly.ie

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