Innovation Švandová Eva Business Management in the CR innovation What is innovation nSchumpeterian innovation ninnovation vs. imitation nInnovation according OECD (Oslo Manual) qProduct and process innovation (should be in balance) qOrganizational innovation qMarketing innovation nNew combination of existing production factors (Schumpeter) n schumpet What is innovation nInnovation is nthe renewal and enlargement of the range of products and services and the associated markets; nthe establishment of new methods of production, supply and distribution; nthe introduction of changes in management, work organization, and the working conditions and skills of the workforce. (European Commission definition) nInvention vs. Innovation, n Innovation levels according Valenta řády inovací It is necessary to supposrt innovation of all levels. The companies should apporach the innovation in komplex but different with regard to the level of innovation. Innovation of lower level are more internal business (matter) of the companie, but they should be supported by the suitable infarstructure – it means for example to start with a systematic education of the specialists within for example plastic industry (big problem with shortage of qualified workes) or to create apparent clear business environmenet( make clear proprietary and legal relations) Hugher innovation level should be supported by theincubators of regional financial support. These activities would help to finalize the invention phase it means to commercionalize innovation. If the company needs financial support to finalize innovation, it is neede to quote in the entrance form quantified results. It is impossible in the case of te highest level innovation. Innovation is whatever change in the internal structure of the production organism Rationalization: new combination of existing production factors. The results is to produce in given quality with lower costs Qualitative innovation: new products All level can be undestood as a sources of innovation – how to innovate Types of innovation nObject of innovation: qProduct innovation qProcess innovation qMarketing innovation qOrganizational innovation nRadicality of innovation qRadical innovation qIncremental innovation nChristensen innovation – according impact on existing market qdisruptive qsustaining n Defined by Oslo Manual Linux_logo windows Image:Disruptivetechnology.gif Open innovation Technological_Change Original model of three phases of the process of Technological Change Open Innovation, User innovation concepts x Linear Model of Innovation Enteprises cooperating on innovation (in %) Sources of innovation nInternal qOwn research and development qTechnical departments – projection, technology, construction qproduction qMarketing and selling qLogistics (purchasing and supply) qServicing qOwners nExternal qCustomers qSuppliers qCompetition qConsultants qUniversities and other research institution qExpert publication qInternet qExhibitions qInvestors q….. Sources of innovation Most valuable cooperations when innovating in the CR (in %) Companies within industry Suppliers Customers Competitors Private RD institutions Universities Public RD institutions Changes in the market in demographic structure, changes in the industry Barriers of innovation nMotivational nCommunication nEconomical nTechnological nPersonal nOrganizational nEcological Life cycle of innovation Absraktní pojetí zCI cyklus inovací Life cycle of innovation is expressed by the s-curve which is mapping thr groth of revenue or productivity against the time Innovation formation and difussion 1. Diffusion and withdrawal of first unsuccessful innovation 2. Quick accession of new product, maximization of performance and quick withdrawal 3. Late accession to product (performance) maximum followed by quick withdrawal The maturity phase is always difficult to border since the activity will target a feasibility documentation as a customer project presentation. Emergence of Ideas Maturity Phase Design Concept Phase Development Phase Production Phase Realization In-house funded Often Co-funded Always Customer funded Go Go Go > Intellectual Property Innovation process in general Innovation process in the CR develop produce realize •Excellence centres, Business incubators, Research and science parks, universities •Industrial Property Office •Grant agency (primary research) •Ministries (applied research) – especially MIT, MEYS •Innovative firms – they can be found in the Technological Profile of the Czech Republic database (operated by the AIP CR) •Czech Trade •Czech Export Bank •Export Guarantee and Insurance corporation •Czech Confederation of Commerce and Tourism Czech national innovation system n nNational Policy of Research, Development and Innovation in the Czech Republic for 2009–2015 appoved by the governmental resolution no. 729 n nNo legally defined institution responsible for innovation that prepares and implements innovation policy. nMIT, MRD, ME n nInnovation governance system: nGovernmental bodies: The Ministry of Education, Youth and Sports (MEYS), The Research and Development Council (R&D Council), The Ministry of Industry and Trade (MIT) . National Economic Council (NEC) , Technology Agency of the Czech Republic . nBodies responsible for implementation of policies: CzechInvest , Czech-Moravian Guarantee and Development Bank , Czech Science Foundation , The Technology Centre of the Academy of Sciences of the Czech Republic , The Association of Innovation Entrepreneurship of the Czech Republic , The Czech Chamber of Commerce n Czech national innovation system n n nlack of cooperation between the research sector and the business sector; nlack of human resources for innovation; ninefficiency in use of public resources for R&D and innovation. n n ngovernmental expenditures on R&D have been growing in the Czech Republic faster than in other European countries, their relative amount is still below the EU average (0.55 % GDP in the Czech Republic compared to 0.65 % in the EU-27). nThe intensity of innovation (share of expenditure on innovation in the overall turnover of innovation companies) has significantly increased in the Czech Republic over the past few years and at present (with 2.4 %), it has reached the average intensity of innovation in the EU. nBusiness expenditures on R&D have been growing in the recent years in the Czech Republic. However, with 1 % of the GDP they still reach neither the level of advanced EU-15 countries nor the level desired by Lisbon strategy (Barcelona targets). n Operational Programme 'Enterprise and Innovation' (OP EI); Operational Programme 'Research and Development for Innovation' (OP RDI); Operational Programme 'Education for Competitiveness' (OP EC). Intelectual property rights nIndustrial property office nPatents nUtility models nTrademarks nIndustrial designs nGeographical indications and appeallations of origins coca-cola junior Industrial property office: Patents - A patent granted in the Czech Republic is valid for 20 years from the filing date of the application and its basic effect represents the right for the patentee to prevent anybody from its utilizing without his agreement. Utility models - Patent protection does not necessarily have to be the unique best way to protect technical solution. So called utility model protection may be more appropriate for the subject-matter of the lower inventive level or less economically important, being simpler, faster and less costly. Utility models are new technical solutions susceptible of industrial application, exceeding the common technical skill. The maximum validity term of the utility model is 10 years than Industrial designs - Legal protection of an industrial design by its registration in the industrial design register is intended for designer solutions. Industrial design is intended to mean appearance of a product or a part thereof, consisting particularly in signs of lines, contours, colors, shape, structure or materials of the product per se or ornamentation thereof. The term of protection of a registered industrial design is 5 years from the date of the industrial design application filing with the Office. On request of the industrial design holder the duration of protection can be repeatedly extended for further 5 years up to the total 25 years from the date of the industrial design application filing. Trademark - A trademark is a designation capable to be graphically represented, consisting especially of the words, letters, numbers, colours, drawings or the product shapes or the packages, serving for distinguishing goods or services on the market. With the registration in the trademark register the owner of a trademark acquires an exclusive right to use this trademark. The term of protection is ten years. On request of the trademark owner the duration of protection can be renewed for another ten years. The renewal fee is required. Number of patent triads per 1mil. Inhabitants (EPO, JPO, USPTO) Number of patents granted in the CR Number of patents granted in the CR according the county of an applicant Why are innovations important (academic researches) and factors influencing them? nIncrease in customer value, starting the growth nRelationship between country employment and radicalism of the innovation nTraditional companies which have survived, are those employing qualified personnel, being less bureaucratic, investing more in flexible production nDecentralized companies within uncertain environment were more innovative than centralized one (Russel 1990) nInnovative industrial companies = higher level of formalization x innovative service companies = lower level of formalization (Damanpour 2007) nsuccessful innovation is normally a source of temporary market power, eroding the profits and position of old firms, yet ultimately succumbing to the pressure of new inventions commercialised by competing entrants. n Importance of the innovation in the CR Share of innovative enterprises in the CR according size of the company Share of innovative companies in key sectors in chosen EU countries Revenues from sale of innovative products (services, products) according size of the company Intenzity of innovative activities according size of the company The innovative enteprises according Eurostat methodologyare the enterprises which implemented innovation of product or innovation of proces. Other ypes of innovations re not counted to the innovativnes of the company. There were executed 4 surveys of innovation - in years 2001, 2003 and 2005, 2006. There were enlisted some changes from the yer 2005. Marketing innovation and organization innovation were something new. The sample of the companies surveid also expanded and the industries researched as well. Tools to influence innovations nSystematic innovation management qCorporate strategy qCollection of innovative incentives qStipulate the priorities of innovation topics qSeeking for innovation ideas and creation of innovation specification qDiscussion on the specification qFeasibility study qDecision qProcessing of the project qRealization of innovation qInnovation work evaluation qInvestment into the RaD ????? qhigher R&D spending does not guarantee "more creativity, higher profit or a greater market share (Aerospace and Defense: Inventing and Selling the Next Generation. Center for Strategic and International Studies, 2009) qCooperation q Innovation environment in the CR nWeaknesses qLow number of students studying technical studies and science qLower support of innovation by national institutions qLow number of innovative companies qlow support of spin-off firms qLow emphasis on patents qBad experience with realization of research results in practice qLow volume of risky capital qAbsence of the innovation law qinsufficient innovation infrastructure Innovation environment in the CR nStrengths qTradition of industrial production and traditional innovative potential of workers qGrowing interest of Universities to cooperate with industrial companies qDevelopment of science and technology parks qProgrammes supported by government qInterest of the public in innovation issue n Innovation and European Union nInnovation and EU qLisbon strategy nAdopted in Lisbon nGolas translated into the Framework Programmes for Reserach and Technological development nNovember 2009 – Wim Kok revised qEUROPE 2020 nTrendchart qEIS qInnobarometr qCIS EU Years to Catch Up or Decline to EU25 Average Innovation Performance zdroj: European Innovation Scoreboard 2005, str. 13 source: European Innovation Scoreboard 2005, page 13 Innobarometer n2001: experience and priorities, role of European integration in access to advanced technologies, mobilisation of human resources, protecting and sharingknowledge, access to funding and customer acceptance of innovations. n2002: strengths and needs in innovation, investments made in innovation, output achieved, actual practice of co-operation and sharing of knowledge, role of training and education, development of managerial approaches to innovation and the contribution of enterprises to the public debate on innovation. n2003: experience and priorities in the field of innovation, role of European integration in access to advanced technologies, mobilisation of human resources, protecting and sharing knowledge, access to funding and customer acceptance of innovations. n2004: "Experience of European managers in innovative n2005: “Readiness for innovation in Europe”. n2006: “The role of clusters in facilitating innovation in Europe”. n2007 ways in which enterprises innovate, role of non-R&D based innovation, and the extent to which innovation is outsourced or transferred from other businesses or organisations. The survey investigated product- and process-related innovation separately The most innovative companies 2008 No. 1: Apple Our repeat winner has rocked the wireless handset world with the iPhone, spurring rivals to imitate the touch-screen design. After just nine months on sale, it’s already No. 3 in the global smartphone market. Meanwhile some 150 million iPods have been sold since 2001. No. 2: Google The search giant, which last year hiked R&D spending 72%, took on Microsoft in its own backyard with a concerted push into online office software. This year Google will try to expand beyond search ads into banner and video ads with its $3.2 billion acquisition of display-ad firm DoubleClick. No. 3: Toyota Motor Determined to retain its mantle as the hybrid leader among carmakers, the Japanese company plans to roll out a more fuel-efficient Prius in 2009. It’s also trying to match rival GM’s promise to deliver a plug-in gas-and-electric car using lithium ion batteries. Toyota is targeting 1 million hybrid sales annually by the early 2010s. No. 4: General Electric CEO Jeff Immelt is so encouraged by GE’s “ecoimagination” initiative that he’s raising the revenue target for green projects from $20 billion to $25 billion by 2010. This year, the industrial giant tapped Dartmouth prof Vijay Govindarajan to be its own in-house “chief innovation consultant.” No. 5: Microsoft Often mocked for following rather than leading, the software giant tapped its vast research arm to launch Surface, a new touch-screen computer that moves a step closer to the Holy Grail of natural user interfaces. To catch up with Google, it continues to pour research funds into perfecting search algorithms. No. 6: Tata Group The Mumbai-based conglomerate jumps onto our list for the first time, fueled by its paradigm-busting $2,500 “Nano” car for the masses. The car, from its Tata Motors unit, is the world’s cheapest, thanks partly to a distribution model that sells the auto in kits to entrepreneurs who assemble them for buyers. No. 7: Nintendo The video gamemaker is new to our top 25 after its wildly popular Wii console tapped an entirely new gaming audience. It recently launched a Wii fitness game that makes staying in shape a family affair. New service WiiWare will soon offer indie programmers a low-cost way to deliver games online. No. 8: Procter & Gamble The world’s largest consumer-products maker has out-hustled rivals in new product launches through more spending on design and willingness to turn to outsiders for ideas. But P&G is just as creative in finding new markets: It's now pushing to sell its products in overlooked neighborhood stores in developing regions. No. 9: Sony Now that its electronics business is healthy and Blu-ray is the new DVD standard, Sony's priority is online content. Its PlayStation 3 video game consoles will soon feature Home, a 3D social networking and gaming world, and PlayStation Network, an expanded channel for music and videos. No. 10: Nokia The Finnish handset maker employs anthropologists who study mobile-phone users in emerging markets. Their insights have made Nokia the leader in India and China. As it pushes beyond hardware into Web services, it’s tapping outsiders to create games and offer feedback. Most Innovative Companies survey of senior executives 2007 nBusinessWeek-Boston Consulting Group What are the biggest obstacles to generating a return on your investments in innovation? How does your company measure its success with innovation? If your company is planning to increase its R&D investment in low-cost regions this year, in which of the following regions will you focus your attention? If your company is planning to increase its R&D investment in low-cost regions this year, which of the following types of investment will you make?