Business Expenditure on Research and development (BERD) 2011/2012 FORFÁS BERD 2011/2012 ANALYSIS 1 Table of contents Table of contents 1 Executive Summary 3 Caveats 5
BERD by funding sources, 2007-2011 12 2. Human resources in Research & development 13 Figure 10: Total research personnel (headcount and FTES), 2003-2011 13 Figure 11:
2011 33 FORFÁS BERD 2011/2012 ANALYSIS 3 Executive Summary The biennial Business Expenditure on Research and development (BERD) Survey 2011/2012 is conducted jointly by the Central Statistics Office (CSO)
Medium and large enterprises (more than 50 employees) accounted for almost threequarters of BERD in 2011.89 per cent of BERD funding was from company funds in 2011, down from 92 per cent in 2009.
Human resources in R&d (2011) There were over 19,000 research personnel in the business sector, a 21 per cent increase since 2009 and more than 14,000 full time equivalents (FTES.
Small firms with less than 50 employees accounted for 69 per cent of all R&d active firms.
with medium/large firms with 50+employees holding the majority share between 2003 and 2011.
However, the share of total BERD accounted for by small firms (less than 50 employees) increased from 24 per cent in 2003 to 27 per cent in 2011.
13 2. Human resources in Research & development This section focuses on personnel in R&d in the business sector between 2003 and 2011.
R&d personnel includes researchers (Phd qualified and other) technicians and all other R&d support staff.
CSO databank, Forfás BERD 2003 and 2005 surveys Figure 10 shows that over 19,000 employees or 14,000 on a full time equivalent (FTE) basis were engaged in R&d in 2011.
Personnel engaged in R&d increased by 3, 295 (a 21 per cent increase) since 2009 and by 7, 034 employees over the decade.
, 000 10,000 15,000 20,000 25,000 2003 2005 2007 2009 2011 All research and development staff FTES All research and development staff (headcount) 6, 013
The following staff increases were observed between 2003 and 2011: the number of Phd qualified researchers increased more than threefold from 467 to 1,
18,000 20,000 2003 2005 2007 2009 2011 Phd qualified researchers Other researchers Technicians Support staff FORFÁS BERD 2011/2012 ANALYSIS
2007 2009 2011 Phd qualified researchers Other researchers Technicians Support staff 6, 305 6, 749 6, 022 6, 986 8
Small R&d firms (less than 50 employees) increased by 41 per cent since 2003, from 757 firms to 1, 109 firms in 2011.
Medium/large R&d performing firms (more than 50 employees) increased by 48 per cent since 2003 to 499 firms in 2011.
or theoretical work undertaken primarily to acquire new knowledge, without any particular application or use in view) 2. Applied research (original investigation undertaken
primarily directed towards a specific practicakl aim or objective) 3. Experimental development (systematic work, drawing on existing knowledge gained from research
2012 Global Entrepreneurship Monitor July 2013 Annual Employment Survey Forfás July 2013 Ireland's Competitiveness Performance 2013 Forfás May 2013 Making
Plan for Jobs 2013 Forfás, DJEI February 2013 A Review of the Equity Investment Landscape In Ireland Forfás January 2013 Regional Labour markets Bulletin 2012 EGFSN
September 2012 Annual Employment Survey 2011 Forfás August 2012 National Skills Bulletin 2012 NCC July 2012 Monitoring Ireland's Skills Supply
commentary on Europe's economy focuses on its precarious financial system and anemic employment recovery since the Great Recession.
While employment presents a formidable challenge in many European countries, sacrificing productivity for jobs that is, deliberately creating or maintaining inefficiencies is not the answer.
65 percent of American workers ages 55-65 are employed, while only 55 percent of European workers are. 22 Moreover,
a greater share of the EU population is above age 65.23 In 2013,18. 2 percent of the population of the EU-27 nations was 65 years
while at the same time ensuring that after-tax worker incomes continue to rise. However, if Europe's current low productivity growth rate persists,
and leaving no surplus for workers who would see no income growth. 24 BOX 1:
or services and input is typically an hour of labor, a single worker, or a combination of workers and physical capital.
Using hours of work or the amount of workers as the denominator yields labor productivity (the measure used in this report unless otherwise specified),
while using the combination of workers, physical capital, and other inputs as the denominator yields total factor productivity (TFP;
TFP is called also multi-factor productivity, or MFP, when using only workers and physical capital).
Productivity is the main determinant of national income per person, because over the long term a nation can consume only what it produces
or is able to trade for. Nations can increase their productivity in two ways. If most industries, even low productivity ones, increase productivity, this is the growth effect.
or a new organizational method in business practices, workplace organization, or external relations. 28 The distinction between product and process innovation is important
The majority of jobs in Europe are traded in non sectors where productivity gains go directly to European workers and consumers.
& INNOVATION FOUNDATION JUNE 2014 Firms with high levels of ICT are more likely to grow (in terms of employment)
and expanded employment over the past year. 61 Castiglione measures the impact of ICT investments in Italian manufacturing firms
because growth can occur simply by adding more workers. While demographic shifts are important for the absolute size of the economy,
and purportedly leading to unemployment. 1 The main problems with this view are that productivity is clearly not speeding up,
and that productivity growth has been shown clearly to have no negative impact on either unemployment or workforce growth. 1 Reality,
and staff ICT training. 97 (See Figure 12) Figure 12: Average of 4 indicators of ICT use (1-7, where is 7 highest use;
because high levels of labour and product market regulation are associated with a lower productivity impact of ICT. 104 Overall,
and further work is necessary to determine whether ICT capital depreciation rates have a significant effect on investment.
The United states has a higher percentage of workers employed by large firms than all European countries.
and other Mediterranean countries stand out as having an unusually high proportion of their employment in small firms.
particularly because labor market regulation can limit the number of employees a firm chooses to have. 134 France,
for example, has a number of laws that apply only to businesses with 50 or more employees,
and this provides an incentive for firms to stay under the 50-worker threshold. 135 Land use regulations,
Previous work by Bloom and Van Reenen also found that American management quality was better overall than European management across a range of management quality indicators. 143 These indicators of management quality
This explains the overriding focus in Europe on job creation and the concern that productivity growth will conflict with job growth.
as the top priority. 156 As long as European policymakers continue to place job creation above productivity it will be difficult to close the productivity gap with the United states. To be clear, in the aftermath of the Great Recession and the relatively anemic job growth in Europe (and the United states),
job creation is important. But productivity growth is just as important, and will become even relatively more important as the years go on.
and PAGE 28 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 whether promotion of the former through higher tariffs or other restrictions (like on cross-border data flows) will be detrimental to the latter.
It's a lot harder to support a change in laws that would lead organizations to restructure work through ICT that might lead to some layoffs.
pay higher wages, injure their workers less, are more innovative, and export more. 174 This is not to say that small firms do not add value.
and the UK have the smallest proportion of workers in small firms and have some of the highest labor productivity rates. 176 On the other hand,
and has the highest percentage of small firms in Europe (two-thirds of Greek firms have under 20 workers).
OECD Statextracts (Short-term Labour market Statistics: Activity Rates, aged 55-65, all persons; accessed February 13, 2014), http://stats. oecd. org. 23.
Productivity, Workplace Performance and ICT: Industry and Firm-Level Evidence for Europe and the US, Scottish Journal of Political economy 52, no. 3 (2005): 359 86;
Philipp Koellinger, Impact of ICT on Corporate Performance, Productivity and Employment Dynamics (European commission Enterprise and Industry Directorate General, December 2006), http://ec. europa. eu
Simona Iammarino and Cecilia Jona-Lasinio, ICT Production and Labour Productivity in the Italian regions (European Urban and Regional Studies, February 7, 2013), doi:
Growth of labour productivity, in per cent, Business Services Sector; accessed February 24), http://stats. oecd. org/Index. aspx?
The Role of Information technology and Regulatory Practices, Labour Economics 11, no. 1 february 2004): 33 58, doi:
Cristiano Antonelli and Francesco Quatraro, Localized Technological Change and Efficiency Wages across European Regional Labour markets, Regional Studies 47, no. 10 (2013): 1686 1700.115.
Removing Barriers to Growth and Employment in France and Germany (Mckinsey Global Institute, March 1997), http://www. mckinsey. com/insights/europe/removing barriers to growth and employment in france and germany. 117.
a country would have to replace 20 percent of its jobs with average value-added per worker with jobs having a value-added of over 50 percent more, an unlikely transformation at best.
Murat Seker, Rigidities in Employment protection and Exporting, World Development 40, no. 2 (2012): 238 50.181.
Human resources, Open, excellent and attractive research systems as well as Finance and support. Firm activities capture the innovation efforts at the level of the firm,
The performance of Croatia (HR), Czech republic (CZ), Greece (EL), Hungary (HU), Italy (IT), Lithuania (LT), Executive summary Innovation Union Scoreboard 2014 5 leaders
Sweden, Finland, Ireland and United kingdom score best in Human resources; Denmark, The netherlands, Sweden and United kingdom reach top positions in Open, excellent and effective research systems;
The differences in performance across all Member States are smallest in Human resources, where the best performing country (Sweden) is performing more than three times as well as the least performing country Malta.
While Human resources and openness of the European research system have seen the highest growth in innovation performance
followed by growth in Human resources. Looking at individual indicators, Community trademarks contributed most to the increase of the innovation performance,
‘Human resources'includes 3 indicators and measures the availability of a highskilled and educated workforce. The indicators capture New doctorate graduates, Population aged 30-34 with completed tertiary education
or within their organisations, covering both technological and non-technological innovations and Employment in fast-growing firms of innovative sectors.‘
‘Economic effects'includes 5 indicators and captures the economic success of innovation in Employment in knowledge-intensive activities,
the place holder for the 25th indicator has been filled in with Employment in fast-growing firms of innovative sectors.
indicator on employment in fast-growing firms of innovative sectors. This last indicator is added to the Innovators dimension in the IUS measurement framework.
By adding data on Employment in fastgrowing firms of innovative sectors there are positive rank changes for Estonia, Ireland and Spain and negative rank changes for Austria, Cyprus and Portugal (cf.
Denominator Years covered ENABLERS Human resources 1. 1. 1 New doctorate graduates (ISCED 6) per 1000 population aged 25-34 Eurostat Eurostat 2004
2008,2010 3. 1. 2 SMES introducing marketing or organisational innovations as%of SMES Eurostat (CIS) Eurostat (CIS) 2004,2006, 2008,2010 3. 1. 3 Employment in fast-growing
2010 Economic effects 3. 2. 1 Employment in knowledge-intensive activities (manufacturing and services) as%of total employment Eurostat Eurostat 2008 2012 3. 2
The 1st column in Table 2 also shows that the spread in performance across all Member States is smallest in Human resources (1. 82%)and Economic effects (2. 19%.
This shows e g. that there are no clear shortages in the supply of highly skilled labour across the Member States.
for Human resources between the Innovation leaders and followers and between the Moderate and Modest innovators, for Open, excellent and effective research systems and Linkages & entrepreneurship between the Innovation leaders and followers and for Intellectual assets between the Moderate
Innovation Union Scoreboard 2014 13 Human resources (Enablers) In the first dimension Human resources Finland and Sweden, two of the Innovation leaders, perform best,
1. 43%Variance across all Member States Human resources Low (1. 82%)-Research systems High (5. 88%)-Finance
Member States'performance in Human resources 14 Innovation Union Scoreboard 2014 Open, excellent and effective research systems (Enablers) In Open, excellent and effective research systems
This also results in faster employment growth linked to innovation activities. Cyprus, Slovenia and the UK are the weakest performing Innovation followers
marketing or organizational innovations, Employment in knowledge-intensive activities and the Contribution of medium and high-tech product exports to the trade balance have been the main drivers of the country's strong growth performance.
and innovation is having positive effects on exports and employment. For Finance and support(-0. 5%)and Firm investments(-1. 4%)growth has even been negative,
Also in Human resources (2. 3%)and Intellectual assets (2. 1%)growth has been relatively strong. In Human resources performance has increased most for New doctorate graduates (2. 8)
%and Population aged 30-34 with completed tertiary education (3. 6%).Growth in Intellectual assets is driven mostly by a strong performance increase in Community trademarks (6. 9)
and Economic effects where it has best performance in two indicators (Employment in knowledge-intensive activities and License and patent revenues from abroad).
and Employment in knowledge-intensive activities and innovation performance has been improving rapidly at an average annual growth rate of 5. 5%.others (9. 4%compared to 11.7%for the EU)
Denominator Most recent year Date not available for ENABLERS Human resources 1. 1. 1 New doctorate graduates (ISCED 6) per 1000 population aged 25-34 OECD, Eurostat OECD,
Employment in knowledge intensive-services and Knowledge-intensive services exports. Relative weaknesses are in Community designs and Non-R&d innovation expenditures.
Growth declines are observed in Venture capital investments, Non-R&d innovation expenditures, Community designs and Employment in knowledgeintensive activities.
Non-R&d innovation expenditures and in Employment in knowledge-intensive activities. Very high growth is observed for Community designs
No data for Venture capital investments, PCT patent applications in societal challenges and Employment in fast-growing firms of innovative sectors.
Employment in knowledge-intensive activities and Youth with upper secondary level education. Relative strong weaknesses are in Community designs, Community trademarks and R&d expenditures in the business sector.
PCT patent applications in societal challenges and Employment in fast-growing firms of innovative sectors. 76 Innovation Union Scoreboard 2014 Turkey is a Modest innovator.
The IUS 2014 for the first time included an indicator on Employment in fast-growing firms in innovative sectors.
E g. for Spain the drop in 1 rank compared to the IUS 2013 can be explained by a combination of a positive effect adding the indicator on Employment in fast-growing firms in innovative sectors
Adding the indicator on Employment in fast-growing firms in innovative sectors has an effect on 6 countries.
Current performance EU27 BE BG CZ DK DE EE IE EL ES FR HR IT CY LV LT LU HU ENABLERS Human resources 1
6 12,7 18,1 17,8 Economic effects 3. 2. 1 Employment in knowledge-intensive activities 13,9 15,2 8, 3 12,5 15,5 15,8
EU27 MT NL AT PL PT RO SI SK FI SE UK TR IS NO CH RS MK ENABLERS Human resources 1. 1. 1
2 14,3 14,6 17,9 20,4 15,8 13,3 16,6 16,7 18,0 Economic effects 3. 2. 1 Employment in knowledge-intensive activities 13,9
Growth performance EU27 BE BG CZ DK DE EE IE EL ES FR HR IT CY LV LT LU HU ENABLERS Human resources 1
, 2%0, 0%1, 6%Economic effects 3. 2. 1 Employment in knowledge-intensive activities 0, 7%0, 3%0, 2
85 EU27 MT NL AT PL PT RO SI SK FI SE UK TR IS NO CH RS MK ENABLERS Human resources 1. 1
%-0, 5%Economic effects 3. 2. 1 Employment in knowledge-intensive activities 0, 7%1, 1%-1, 3%0, 4%2
Eurostat (CIS) Eurostat (CIS) 3. 1. 3 Employment in fast-growing enterprises in innovative sectors(%of total employment) The sum of sectoral results for the employment in fast-growing enterprises
Fast-growing enterprises are defined as firms with average annualised growth in employees of more than 10%a year, over a three-year period
and with 10 or more employees at the beginning of the observation period. Total employment in fast-growing enterprises in the business economy (without financial sector) The indicator shows the degree of innovativeness of successful entrepreneurial activities.
It captures the capacity of a country to transform its economy rapidly to take advantage of emerging demand.
Eurostat Eurostat 3. 2. 1 Employment in knowledgeintensive activities(%of total employment) Number of employed persons in knowledge-intensive activities in business industries.
Knowledgeintensive activities are defined, based on EU Labour force Survey data, as all NACE Rev. 2 industries at 2-digit level where at least 33%of employment has a higher education degree (ISCED5
or ISCED6) Total employment Knowledge-intensive activities provide services directly to consumers, such as telecommunications, and provide inputs to the innovative activities of other firms in all sectors of the economy.
Eurostat Eurostat 90 Innovation Union Scoreboard 2014 3. 2. 2 Contribution of medium and high-tech products exports to the trade balance The contribution to the trade balance is calculated as follows:(
Performance scores per dimension HUMAN RESOURCES RESEARCH Systems FINANCE AND SUPPORT FIRM INVESTMENTS LINKAGES & ENTREPRENEURSHIP INTELLECTUAL ASSETS INNOVATORS ECONOMIC EFFECTS EU 0, 583 0, 539 0, 558 0, 417 0, 550
The Human resources dimension includes 3 indicators and measures the availability of a high-skilled and educated workforce.
The Economic effects dimension includes 5 indicators and captures the economic success of innovation in employment
The comparable EIS 2009 indicator focuses on doctorate graduates in science and engineering (S&e) and social sciences and humanities (SSH) following the recommendations received from Member States and experts during the revision of the EIS in 2008
) 2010 MAIN TYPE/Innovation dimension/indicator COMMENT Data source Reference year (s) latest year used for IUS 2010 ENABLERS ENABLERS Human resources Human resources
indicator N/A n/A Economic effects Economic effects 3. 2. 1 Employment in medium-high
& high-tech manufacturing as%of workforce---EIS 2009 indicator no longer used 3. 2. 2 Employment in knowledge-intensive services as%of workforce---EIS 2009 indicator no longer used---3. 2. 1
Employment in knowledge-intensive activities (manufacturing and services) as%of workforce New indicator Eurostat 2008,2009
or user characteristics these are product innovations), New media or techniques for product promotion (i e. the first time use of a new advertising media, a new brand image, introduction of loyalty cards, etc),
New methods of organising work responsibilities and decision making (i e. first use of a new system of employee responsibilities, team work, decentralisation, integration or de-integration of departments, education/training systems,
and compelling (young innovative firms need to grow to create employment), mobilizing (it stresses the role of business in innovation), analytically very relevant,
Not yet available 3. 2. 1 Employment in knowledge-intensive activities as%of total employment Numerator:
Number of employed persons in knowledge-intensive activities in business industries. Knowledge-intensive activities are defined, based on EU Labour force Survey data,
as all NACE Rev. 2 industries at 2-digit level where at least 25%of employment has a higher education degree (ISCED5A or ISCED6).
These industries include: Extraction of crude petroleum and natural gas (06) Mining support service activities (09) Manufacture of coke and refined petroleum products (19) Manufacture of basic pharmaceutical products and pharmaceutical preparations
Total employment. Rationale: Knowledge-intensive activities provide services directly to consumers, such as telecommunications, and provide inputs to the innovative activities of other firms in all sectors of the economy.
The indicator on knowledge-intensive activities replaces EIS 2009 indicators 3. 2. 1 on employment in medium-high
and hightech manufacturing and 3. 2. 2 on employment in knowledge-intensive services. The indicator is correlated highly with the EIS 2009 indicator on knowledgeintensive services but not with the EIS 2009 indicator on medium-high and high-tech manufacturing. 3. 2. 2 Medium and high technology product exports
and are generally a source of high value added and well-paid employment. Data source: UN Comtrade/Eurostat 3. 2. 3 Knowledge-intensive services exports as%of total services exports Numerator:
or process innovations CH---3. 1. 2 SMES introducing marketing or organisational innovations DE DE DE--3. 2. 1 Employment in knowledgeintensive activities LU
3. 2. 1 Employment in knowledge-intensive activities as%of total employment Employment in knowledge-intensive activities 05 10 15 20 25 TRROLT BGPT
Luxembourg The indicator on knowledge-intensive activities replaces the European Innovation Scoreboard indicators on employment in medium-high and high-tech manufacturing and employment in knowledge-intensive services.
Knowledgeintensive activities are defined as those industries where at least 33%of employment has a university degree (ISCED5 or ISCED6.
or close to 5%.Growth performance Employment in knowledge-intensive activities has been growing for the EU27 and for most countries.
The employment share has decreased with more than 1%annually in Cyprus, Hungary and The netherlands. Employment in knowledge-intensive activities-2%-1%0%1%2%3%4%NL CY HU BE HR MT IT PT FI TR GR
SK UK CZ EU ES DK DE SE CH AT FR BG IS NORO LT LU IE SI PL EE LV 51 3
and are generally a source of high value added and well-paid employment. Export shares are very high in Hungary,
The existence of entrenched, non-standardised work practices tailored to specific patient populations or organisational systems or cultures means that ICT can fail to meet health professionals'specific needs,
and high levels of autonomy among staff, and their unique requirements, mean they often remain unconvinced of the potential gains from ICT.
When technology does not integrate into everyday work practices, things can go wrong. 4, 5 An Australian survey of 10 000 nurses in 20076 revealed that only 40%felt ICT was making their working lives easier.
the installation of a new electronic reporting system at her workplace did not replace the four paper-based systems already in use;
I now spend more time filling out paper work and far less time face to face with patients.
the potential streamlining of work processes is hard to realise, and staff put great effort into maintaining multiple systems.
These factors all contribute to suboptimal outcomes. Stable investments are required that allow organisation-wide, flexible systems to be implemented in a relatively short time,
with a focus on training and on integrating systems into the realities of the complexity of clinical work.
ICT has the capacity to transform work practices and processes by creating opportunities for health professionals to take on new roles
when experts may not be at hand. Available evidence suggests outcomes do not suffer. For instance, nurses'performance in answering clinical questions unaided generally falls below that of doctors
To date, the focus has been on automating clinical work practices such as ordering tests and prescriptions, which significantly improves efficiency and safety.
and the results less favourable than anticipated for various reasons, including poor integration of systems into complex clinical work processes, limited training,
staff frustration, and outcomes below expectation. The focus must shift from automation of clinical work to innovation;
from evolutionary application of ICT to revolutionary uses. Health professionals must embrace ICT as a disruptive technology that will produce significant changes in their roles and responsibilities and lead to real health reform with new, innovative models of health care delivery.
New technologies do not automatically lead to improvements in accompanying work practices organisational structures and models of care.
Most efforts to reform clinical work practices as part of health ICT implementation projects have adopted traditional business process re-engineering22 methods,
top-down and linear. 23 But this is the wrong fit for the complex, collaborative nature of medical work and for the unique organisational and workforce characteristics of the health sector,
or failing to deliver the much-touted benefits. 25-27 We need fresh approaches that look at how work is conducted in realworld clinical settings not as specified in linear policy
application and adaptation of their practices and behaviours to make things work in new ways.
RAND Corporation, 2005.22 Hammer M. Reengineering work: don't automate, obliterate. Harv Bus Rev 1990; 68: 104-112.23 Zuboff S. The emperor's new information economy.
Information technology and changes in organizational work proceedings of the IFIP WG82 working conference on information technology and changes in organizational work.
an attitude survey of doctors, nurses and allied health staff in clinical directorates. J Health Serv Res Policy 2005;
Does the Patent Cooperation Treaty work? A Global Analysis of Patent applications by Nonresidents. G. De Prato and D. Nepelski, JRC-IPTS Working Paper,(2013.
Examples of such externalities may include increased competition for skilled labour or R&d spillovers available to other companies.
In this context, our work delivers a valuable contribution by extending the analysis of knowledge networks by using a different type of information
Contrasting Experts'Views, organized by IPTS in Seville in November 2011. Finally, thorough checking and editing of the text by Patricia Farrer is acknowledged gratefully. 3 Preface This report is the result of a study conducted in 2011 and 2012,
3 Executive Summary...7 1. Introduction...11 2. US-EU Innovation Performance in Web Services, Display Technologies and Robotics...
105 7 Executive Summary Innovation in US and EU companies was analysed in three ICT subsectors (web services, display technologies,
We tackled these questions by building on previous work, in particular, through reference to selected ICT sub-sectoral studies for IPTS covered in the COMPLETE project. 2 The three sub-sectors were chosen because of the potentially disruptive nature of the technologies involved
and also overall numbers of staff may be small even after eight years of operation, Facebook has only 3, 200 staff yet 800 million users (Waters, 2012).
Third, as illustrated by these numbers, the rate of growth owing to network effects can be extremely high.
By starting in the USA, Amazon also benefitted from more relaxed privacy laws labour laws that allowed flexibility in employing staff according to the needs of the business
and fire staff as needed was a key factor in its early survival and perhaps restricted its start-up location to the USA.
Moreover, the literature shows that stricter regulation of labour is correlated with lower labour force participation and higher unemployment, especially of the young (Botero et al, 2004.
However it also shows how a determined niche strategy can work. So if there is to be government support for new ventures in the web services sub-sector (with support for clusters, tax-breaks,
producing a source of high quality staff from academic research. Looking more widely, KUKA illustrates how Europe has gained a critical mass of intensity in robotics research
or expand its global position of supplying some 40%of all robots worldwide by using a‘triple helix'that works between academia, private sector companies and public sector supported institutions.
This is shown in the use of university staff and even students to introduce robotics through business cases and technical integration services, at reduced costs to new users.
primarily in order to expand local high-tech employment. 33 3. Lessons for Innovation Policies 3. 1 Key inputs in the innovation process We have identified in our case studies,
http://www. thecityuk. com/research/our-work/reports-list/sovereign-wealth-funds-2012/37 Sovereign funds can spur entrepreneurial activity owing to their abundant capital resources and long-term outlook
and further work in jeopardy of being found in infringement of a patent, however remotely related.
it is likely that fear and uncertainty‘in the shadow of litigation'leads to inefficiencies in how well the market for ideas and the market for entrepreneurs work.
1999). 23 Recent work shows how"econometric estimates indicate that entrepreneurial ventures collaborating with the OSS community exhibit superior innovation performance compared with their non-collaborating peer"(Piva, Rentocchini and Rossi-Lamastra, 2012),
Today this is no longer the case as it is increasingly recognized that software is at the heart of the modern economy based on high technology and knowledge work.
many countries will move to absolute dependence on software in all major sectors of employment and economic prosperity, from health to banking to steelmaking.
But there has to be a critical mass of human capital for this process of interchange of people between companies to work.
This multiplies the supply of human capital as confidence is gained in this system for work and new funding
Employment is seen as a transient state, something that may be necessary between entrepreneurial ventures. Thus there is a tradition of workers moving between start-ups, a mechanism
which provides both job security and mobility of the skilled workforce, to assure investors that the right skills are easily available.
A culture of flexibility and constant change in working conditions is imbued. The case studies of Google Apple, E Ink, irobot and Amazon emphasize that moving on to a new company is normal,
and most importantly, failure of a start-up may be a useful learning experience. In the EU on the other hand, failure and renaissance in a new company is not so welcome.
and so can leave a trace through the rest of working life, making the search for funding difficult in some Member States.
The internal corporate culture is shaped by the prior experience of the key workers and decision takers in the industry,
Regulatory interventions to improve the policy environment for innovation (e g. in our cases we observed the stigma of bankruptcy, restrictions on mobility by labour laws,
a location in a centre of brains is more important than a location near markets, raw materials, transportation or factory labour.
But there has to be a critical mass of human capital for this process of interchange of people between companies to work.
which provides both job security and mobility of the skilled workforce, to assure investors that the right skills are easily available,
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DG Enterprise and Industry (2009), Making Public Support for Innovation in the EU More Effective, PRO INNO Europe paper no. 13, European commission, Commission Staff Working Document
Good practice and future developments, Expert Group on Impacts of R&d Tax Incentives, Final Report, European commission, DG Research, http://ec. europa. eu/invest-in-research
Assessing Europe's University-based Research, Expert Group on Assessment of University-based Research, EUR 24187 EN, DG Research,
Despite this activity, some analysts believe that as the company has got bigger so quickly it is finding it difficult to maintain its success. 39 Google has insisted famously that its employees be allowed to spend 20%of their time working on projects other than their core work (Innovation Time out ITO.
Many of the Google's original employees became instant paper millionaires. IPR was of great concern to Page
they were expected to present their work and so a paper was prepared eventually and delivered in January 1998.44 Location:
Page and Brin were notoriously choosy about who they allowed to join as a partner or as employees.
In the early days, interviews for new staff were protracted and could go on for many months. There was an acid test the airplane test that asked how would you feel
which provided a source of skilled staff for Skype. Luxembourg was an attractive location for the official headquarters,
The company founders, Niklas Zennström and Janus Friis, bid adieu to salaried work and dove headlong into enterprise.
Germany and it has 420 employees worldwide. Its revenues from its services announced 29 february 2012 rose by 22%over the 2010 results, to €66. 2 million.
A typical member is not a senior executive but a middle manager. As stated in its annual report,
but to cater 72 for local languages for middle management professionals who network in that language. Its aim is also to be more than a directory of business contacts.
with more than 24,000 expert groups and networking events from London to Beijing to New york. Another much used feature of XING is that it allows users to see how people are connected,
The high quality of service also has led to low churn rates-with its customer services department employing around two thirds of all employees.
and not do needed the work to develop it,'comments Friend. The university lacked the resources and skills to licence
avoiding the need for them to do independent development work. It would also give licensees immediate access to all materials required for display manufacture The growth in CDT's patent portfolio is a measure of the company's R&d achievements,
Holst Centre has over 145 employees from around 25 nationalities and a commitment from close to 20 industrial partners.
The overall mission of these Fraunhofer institutes is to help drive technological innovation by performing contract research and development work in support of industry and government agencies.
At buyout E Ink had around 127 employees, with its VP for R&d coming from Kodak.
With this approach, E Ink avoided the need for far larger capital injections, for production facilities and staff, of the order of billions of dollars.
This good fortune led to a company heavy with staff, needless jobs many layers of management and generous employee benefits.
Plenty of cash allowed Kodak to invest in research of all kinds and branch out into other lines of business.
MA in January 2011 the company employed 657 full-time staff, of whom 304 were in research and development, 156 in operations, 78 in sales and marketing and 119 in general and administration.
) Later, the company adopted Google-like practices with employees encouraged to use"free time"to work on their own ideas to develop prototypes.
and The Droid Works. The latter has received also SBIR support, while Jeff Bezos'investment company (Bezos Expeditions) has invested $7 million in the former.
The same software works on many different robots, so a single software engineer can quickly and easily program many robots without having to learn specialized languages for each one.
and the commercialization of the resulting work. irobot views collaboration with external developers as an essential way to provide a broad range of new capabilities to its products. irobot is happy, for instance,
ergonomics research, and repetitive handling of fragile objects, such as fruits or eggs. Shadow received its first order for the Dextrous Hand in 2004, curiously from the University of Bielefeld in Germany.
Carnegie mellon University also bought one in 2005 for their research work, 94 but the main customer was again NASA who placed an order in 2005 in connection with their Robonaut project.
90%of its staff are engineers. It is noteworthy that in 2006 the company made an appearance on the BBC TV programme Dragon's Den a reality show with entrepreneurs pitching to real business angel investors.
It has some 5, 990 employees and revenues of €1. 079 billion for an operating income of €24. 8 million (all FY 2010.
Starting with minimal staff, Amatec now has over 50 employees, with a major focus being the combination of vision and force.
KUKA has participated also in other major EC projects notably SME Robot-The SME worker‘s third hand and Phreinds for a safe human-robot collaboration.
The work of the Realsim project was funded in part by the EC DG INFSO's IST Programme.
RUR works with leading universities and other technology providers to gather the latest and most relevant technology for each application it sees its advantage as being able to deploy the very latest in robotics technology.
The company operates with a 101 small permanent core of only four staff but has currently 16 subcontractors and a rapidly mounting volume of project work.
Growth has been slow and organic with no external funding the original seed capital came from the founder Geoff Pegman.
and 25%allowance for R&d for work delivered to external customers. Each year it is necessary to negotiate again with the tax authorities to receive this
who are anxious to expand employment in high technology. The overall objective of the VINNVÄXT programme is to create‘winners'who can become internationally competitive in their respective fields within 10 years.
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