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Iceland’s strategy and investments in R&D

Iceland’s strategy and investments in R&D. Dr. Jon Thorhallsson CECUA President KSG SIA Chairman Information Society 2004 Vilnius October 19, 2004. Can the example of Iceland be useful to other states in creating strategies?.

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Iceland’s strategy and investments in R&D

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  1. Iceland’s strategy and investments in R&D Dr. Jon Thorhallsson CECUA President KSG SIA Chairman Information Society 2004 Vilnius October 19, 2004 Can the example of Iceland be useful to other states in creating strategies? (c) KSG SIA 2004

  2. (c) KSG SIA 2004

  3. (c) KSG SIA 2004

  4. Marel has a history that goes back to 1977 when two engineers at the University of Iceland began to examine the possibility of developing and manufacturing scales for the effective control of production in fish processing plants. (c) KSG SIA 2004

  5. Foreign Currency (c) KSG SIA 2004

  6. Software exports (c) KSG SIA 2004

  7. Resources for R&D in Iceland 1950-2001 Millj kr FTE 25.000 3,0% 2.500 2.250 2.000 1.750 1.500 1.250 1.000 750 500 250 0 22.500 2,5% 20.000 R&D/GDP Important years: 17.500 2,0% Major events R&D Personel 15.000 OECD reviews 12.500 1,5% 10.000 1,0% 7.500 5.000 0,5% 2.500 0 0,0% 1 1 2 3 2 4 3 4 1950 1955 1960 1965 1970 1980 1990 2000 Total R&D exp (c) KSG SIA 2004 R&D by firms R&D/GDP Manyears Útgj RoÞ Þar af fyrirt RoÞ/VLF Ársverk

  8. The Key Role of S&T • Scientific management of fisheries • Profitable national fisheries -compared to 40% operating losses world wide • Hydropower -Geothermal energy development -unique - Sustainable energy economy • Management of natural hazards – environment - land erosion • Emerging knowledge based industry: • Food processing machinery, software, biotech, medical technology products, human genomics, bioinformatics (c) KSG SIA 2004

  9. The Problems of S&T Policyin Iceland • Problems of scale and resources • Total spectrum of modern societal needs • We do everything other nations do! • Dispersion of efforts • Institutional fragmentation • Small units-resource and management problems (c) KSG SIA 2004

  10. The S&T policy statement 1December 2003 • To increase the share of competetive funding from public sources – Doubling over the next four years (government term)! • To strengthen the universities as research institutions! • To redefine the role of public research institutions and their relations to the universities and to industries (the economy)! (c) KSG SIA 2004

  11. S&T policy statement 2Follow up actions! June 2004 • To strengthen the role of competetive public funding • Linking funding to policy objectives – Better coordination between funds • Requesting a proposal for a new strategic funding program from the S&T community • To strengthen the universities as research institutions. • Redefine criteria for doctoral programmes – Role of the Graduate Research Fund • Flexibility in the division of academic staff time – Research vs Teaching • The evaluation of the quality as well as the relevance of university research • To redefine the role of public research institutions • Implementing (Prime Ministry Committe) recommendations on the reorganisation of sectoral research institutions and their relation to the universities • Other policy issues • Strong internationl participation – Nordic, EU, N-America, Arctic • Continuity of funding instruments – from science to innovation and social benefit! • Innovation support programmes to be coordinated • Equal gender opportunities improved • Promoting interest of students in primary and secondary schools in science and technology. (c) KSG SIA 2004

  12. Innovation drives the economy • 70 % from start ups • 9 out of 10 fail Where does it come from? What happens with it? (c) KSG SIA 2004

  13. European Startup Culture? Your Company? (c) KSG SIA 2004

  14. European Start up Culture • Technical perfection • Technically good product will sell • The product will sell itself • Money spent on sales is wasted (c) KSG SIA 2004

  15. USA Startup Culture Wouldn't this be better? (c) KSG SIA 2004

  16. USA Start up Culture • Make money • What sells is good • Why develop if nobody buys? • Get marketing & sales assistance (c) KSG SIA 2004

  17. ConclusionsEurope/USA gap • USA • Companies are there to make money • Risk takers • Failures are there to learn from • Europe • Technical perfection • Risk avoiders • Failure and no second chances (c) KSG SIA 2004

  18. Icelandic Experiment CLOSING THE EUROPE/USA GAP Icelandic Trade Council New Business Venture Fund (c) KSG SIA 2004

  19. Icelandic experiement set up • Put 3-4 companies in a Business Cluster • Set up a local office • Hire an experienced marketing/sales mgr • Companies get local • Business Address • Phone number • Email • Find local partners (c) KSG SIA 2004

  20. Business cluster approach (c) KSG SIA 2004

  21. Company selection criteria • Niche product • Home market penetration • Co-operative management (c) KSG SIA 2004

  22. Support • Help the companies to help themselves • 2 years financial support • Trade Council of Iceland (c) KSG SIA 2004

  23. Business Cluster Copenhagenfor Nordics • Companies have partners • Making revenue COPENHAGEN CLUSTER A SUCCESS www.ecpint.com (c) KSG SIA 2004

  24. Business Cluster Riga for Baltic States • Copenhagen model and experience • Companies found Latvian Partners • Looking for Lithuanian and Estonian ones www.ksg.lv (c) KSG SIA 2004

  25. Cluster Network also for local companies Power of the network (c) KSG SIA 2004

  26. Questions? (c) KSG SIA 2004

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