It offers a website (including calls for tenders), a forum and a resource centre. The initiative is supported by the European commission.
http://interreg-minieurope. com/29 GP described on the DISTRICT+website: http://districtplus. it/30 GPS described in the ERIK ACTION Good Practices Report:
The different approaches followed by the projects in this regard have highlighted that many skills may be needed 34 GPS described on the DISTRICT+website:
http://interreg-minieurope. com/41 GPS described on the DISTRICT+website: http://districtplus. it/42 GPS described in the ERIK ACTION Good Practices Report:
Information is provided to companies through a website containing business opportunities, reports on the business environment and selected sectors such as water, energy, construction in 22 countries.
to establish a web presence and to enhance their digital skills. 37 3. 2. 4 Lack of internal research
in establishing a web presence and in enhancing their digital skills. The target was well-defined,
and CSR practices through a website. 38 Technology transfer promotion Three projects identified GPS related to the promotion of technology transfer
http://www. eriknetwork. net/erikaction/index. html 46gps described in the project's final publication and on the DISTRICT+website:
but also includes marketing, website and e-commerce development and product design. The Creation of R&d departments GP from PERIA helps SMES to recruit new staff in R&d.
http://www. unicreds. eu 51 GP described on the project's website: http://www. cross-innovation. eu/GPS addressing access to finances via grants for collaborative R&d activities (section 3. 2. 1) also address the lack of internal research
public and business sectors) 54 Sub-project described in the project's final publication and on the DISTRICT+website:
sector in developing websites for international sales(§3. 2. 3). High Public Procurement INNOMOT IVEX Support for participation in international procurement processes from multilateral organisations
The INTERREG IVC website has a GP database, which is useful for an initial benchmark,
the two regions need to go on site. During the capitalisation 56 http://s3platform. jrc. ec. europa. eu/home Regional Policymakers can build on this favourable framework of the INTERREG IVC programme,
http://www. know-man. eu/61 GP described on the Cross Innovation website: http://www. cross-innovation. eu/62 http://urbact. eu/49 Whereas the INTERREG programme supports Regions to work together
which partners have assisted directly these businesses to develop a web-presence in order to capture international clients.
such as peer-to-peer lending services or crowdsourcing (fund-raising for specific projects from individuals, normally using web platforms to reach scale).
This trend towards‘virtual'support through web-based platforms seems promising for support programmes, and should help them to reach a larger number of SMES. 67 H2020 SMES innovation call:‘
01/01/2010-31/12/2013 Website: www. districtplus. eu BUDGET Total budget: €4 600 000 ERDF contribution:
and cooperation with external parties 72 GPS described on the DISTRICT+website: http://districtplus. it/KNOW-ECO sub-project (workshops) Pioneers (coaching) Inno assistants (coaching) Product Competence Center (coaching) Net of Competence (Tech Transfer) NICER sub-project (internationalisation
and web/cloud platforms for improved provision of services that could be followed by other projects. 66 Upgrading the innovation capacity of existing firms:
01/07/2008-30/06/2010 Website: www. eriknetwork. net/erikaction BUDGET Total budget: €1 893 783 ERDF contribution:
01/01/2010-31/12/2012 Website: www. innohubs. eu BUDGET Total budget: €1 469 086 ERDF contribution:
01/01/2012-31/12/2014 Website: www. innomot. net BUDGET Total budget: €2 274 728 ERDF contribution:
Information is provided to companies through a website containing business opportunities, reports on the business environment and selected sectors such as water, energy, construction in 22 countries.
01/09/2008-30/11/2011 Website: www. interreg-minieurope. com BUDGET Total budget: €1 991 640 ERDF contribution:
01/01/2010-31/12/2012 Website: www. peria. eu BUDGET Total budget: €1 669 643 ERDF contribution:
01/01/2010-31/12/2013 Website: www. smartplusinnovations. eu BUDGET Total budget: €4 004 000 ERDF contribution:
and R&d institutions to effectively collaborate within local and international networks, through a web-based training programme and a service website.
to establish a web presence and to enhance their digital skills. The target was defined well
Websites URBACT Programme. ESPON Programme. INTERACT Programme. S3 Platform. INTERREG Programme. COSME Programme. Innovation Union.
and external sources of finance) Prizes for inventions and discoveries, fiscal incentives, IPRS Incentives for public sector innovation (e g. procurement) Public web consultations Regional workshops Innovation Vouchers
Web consultations: The development of the information and technology communications (ICTS) has facilitated strongly the connectivity and communication within regions (and inter-regions.
In Poland and The netherlands, the prioritisation process involves citizens through web consultations. Cross-regional governance structure:
a‘follow the money'website. iii) Dashboards that describe the ambition, goals, and activities for every sector, with corresponding indicators and target values.
In whole Lower Austria a technology network was built up to strengthen lead sites and to help peripheral and structural weak areas.
http://cemi. epfl. ch/files/content/sites/cemi/files/users/178044/public/Measuring%20smart%20specialisation. doc Forschungszentrum Seibersdorf, W. Hesina
Cisco, Google, Motorola (R&d centre), IBM (R&d centre), HP, Delphi (R&d centre. Stakeholder and policy dialogues to achieve the ambitions One of the main goals of the regional authorities of the Malopolska Region is to engage citizens, especially scientists,
which is part of the Web of Science database of Thomson Reuters . Whereas critiques can be formulated regarding coverage
In addition to SCIE, the Web of Science also contains the Social science Citation Index (SSCI), the Arts and Humanities Citation index (A&hci),
but it is limited currently to more recent articles compared with Web of Science. However Scopus and WOS complement each other as none of them is all-inclusive (Falagas et al.
Thomson Reuters Web of Knowledge. Baseline indicators for technological specialisations Indicators The most widely used indicators for technological activities make use of patent data.
Falagas, M. E.,E. I. Pitsouni, G. A. Malietzi and G. Pappas (2007), Comparison of Pubmed, Scopus, Web of Science, and Google Scholar:
In Poland and The netherlands, the process involves citizens through web consultations; in Finland, the national level organizes signal sessions in regions to stimulate the identification of specific niches in line with national priorities;
a‘follow the money'website. C) Dashboards that describe the ambition, goals, and activities for every sector, with corresponding indicators and target values.
Professor Ph d. Popa Ion Management Faculty Academy of Economic Studies Bucharest, Romania popaion 2000@yahoo. com Professor Ph d. Dobrin Cosmin Management Faculty
Academy of Economic Studies Bucharest, Romania cdobrin@yahoo. com Abstract Romania, a New Member state of European union, has undertaken a complex process to adapt to new conditions and requirements of European market,
. Nicolescu Ciprian Management Faculty Academy of Economic Studies Bucharest, Romania cnicolescu@yahoo. com Assistant Ph d. S. Ceptureanu Sebastian Management Faculty Academy
of Economic Studies Bucharest, Romania ceptureanu@yahoo. com Assistant Ph d. S. Ceptureanu Eduard Management Faculty Academy of Economic Studies Bucharest
Romania eduard ceptureanu@yahoo. com that innovative efforts within SMES were focused especially on new products (34.87%),new technologies (26.99),
ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 0 MARCH 2013 VOL 4
and inextricably linked to economic ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 1 MARCH 2013 VOL 4
Despite the positive ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 2 MARCH 2013 VOL 4
ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 3 MARCH 2013 VOL 4,
This was supported by Oncioiu et al (2003) who discovered innovation as an important ingredient in this knowledge based society in SMES ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute
and improve some ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 5 MARCH 2013 VOL 4, NO 11 components,
He said that the success of the project depended on management s correctly ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 6 MARCH
with respect to how SMES contemplate their innovation initiatives. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 7 MARCH
He went on to say the perceived benefits may be ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 8 MARCH 2013 VOL
to have a clear strategy ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 7 9 MARCH 2013 VOL 4,
such as formal and informal Rand D, formal and informal (on-the-job) training, acquisition of technological licences, among others. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
whether SMES had the capabilities to ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8 1 MARCH 2013 VOL 4,
They stated that radical innovations were viewed as comparatively rare. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8 2 MARCH 2013 VOL 4,
and the following results were obtained. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8 3 MARCH 2013 VOL 4,
and SMES operations sustainability) and accept H1(=ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8 4 MARCH
organizational and ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8 5 MARCH 2013 VOL 4,
or seek information about the supporting institutions such as SEDCO. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8
Organization Studies 13 (3): 375 402. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3
11 (6): 610-20. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT 2013 Institute of Interdisciplinary Business Research 3 8 8 MARCH
a study of small to medium enterprises (SMES), Measuring Business Excellence, 7 (2): 78-92. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
and Innovation Portal website at www. transport-research. info. ISBN: 978-92-79-25925-8 doi:
The site presents information on fundamental research, applied research and demonstration projects, as well as innovative solutions adopted by individual towns and cities.
In addition, the website provides news and tools for policy makers and transport experts. www. eltis. org to boost the development
A dedicated website has been set up to provide information and guidelines on how to develop and implement such a plan
The website also provides information on events related to SUMPS that are organised with EU support. These events include technical training and awareness raising initiatives,
International Association for Public transport (UITP) Website: www. ebsf. eu Buses to strengthen sustainable urban mobility Innovation in urban mobilit y-polic y making
and visitors with real-time travel information and transport planning services both face-to-face and via the web.
The EU aims to provide a unique internet portal to facilitate multimodal trip-planning in and between major urban centres in Europe.
EUROPE RECHERCHE TRANSPORT, France Website: www. access-to-all. eu Reference: FP7-218684 Status: Completed Total cost:
STIFTELSEN SINTEF, Norway Website: www. mediate-project. eu, www. aptie. eu/site Bac kgr ound One in ten people in Europe is over the age of 60,
and according to the United nations, 10%of the population has some type of disability. To make transport accessible and userfriendly for everyone,
Initiated by the Mediate project, the Accessible Public transport in Europe portal (www. aptie. eu/site) has become the one-stop shop for initiatives, case studies,
SINTEF ICT Website: www. smartfreight. infoinnovation in urban mobilit y-polic y making and planning 21 SUCCESS STORY New traffic management framework Concepts
EU FP7 project, Accessible Public transport in Europe, http://www. aptie. eu/site Bypad (2008: EU FP6 project, Bicycle Policy Audit, http://www. bypad. org CITYLOG (2012:
Hughes speaks in this connection of a seamless web 1. Schwarz and Thompson speak of a technology culture.
and make little or no use of external knowledge (Wikipedia, n d.).Innovation has been studied in several forms in the entrepreneurship literature.
wbcsd@earthprint. com Web: http://www. earthprint. com/Graphic design: Michael Martin Text: Ross Stevens, Michael Rulon, Dawn Rittenhouse and Patricia Solaro Copyright World Business Council for Sustainable Development, July 2002 ISBN 2-940240-27
41 22) 839 31 31 Web: www. wbcsd. org Switzerland Supply chains as BIOLOGICAL SYSTEMS
Comments from websites, annual reports, marketing material and observations were added to the field notes. This comprehensive process provided in depth insight into innovation processes.
Exporters are thus significantly more innovative than subcontractors. central tendency bias, acquiescence bias and social desirability bias (www. wikipedia. org, 12-2-2013.
Using them to get from A to B typically on the web can save people time and money
a website is to be set up giving an overview of and links to existing multimodal journey planners.
But help is at hand in the form of a new web-based decision-support toolkit that will make it easier to find relevant and up-to-date ITS-related information.
Information on the research relating to these wide-ranging aspects can be found in a number of publications issued by the European commission (see website:
/2004 Website www. cvisproject. org/download/roadsense. pdf Safety was a major focus of automotive research in the latter half of the 20th century,
/2001 31/05/2004 Website http://www. transport-research. info/web/projects/Otherwise collectively described as Advanced Driver Assistance Systems (ADAS), these typically employ onboard sensors, together with digital maps and other computerised data,
Website http://www. transport-research. info/web/projects/As coordinator Luisa Andreone (CRF Fiat Research Centre) notes,
/end 01/03/2005 29/02/2008 Website http://intro. fehrl. org MISS Monitor Integrated Safety Systems.
/2007 Website http://www. transport-research. info/web/projects/REACT Realizing enhanced safety and efficiency in European road transport.
Website https://www. eurtd. org/quickplace/project-react I N t E L L I G E N t t R A n s P O R T s Y
SANEF (France) Total budget EUR 11.25 million EU funding EUR 7. 89 million Start/end 01/10/2009 30/09/2012 Website
Website www. sartre-project. eu EU (for which a deployment roadmap has been set out under the DG Mobility
Large-scale public demonstrations are advanced already well at project sites in Heathrow Airport (PRT), London, Rome's new exhibition centre (cybercars) and Castellón,
30/04/2011 Website www. citymobil-project. eu Following eventual take-up on a sufficient scale, traffic management systems will for the first time have the ability to communicate with individual vehicles,
However, an early application could be the overnight redistribution of car hire fleets e g. between city centres and airports or peripheral parking sites ready for pick-up by customers the following day.
/2009 Website www. i-travelproject. com Trip advisors Another important direction for ITS research is the promotion of multimodal door-to-door journeys,
/2008 30/11/2010 Website www. access-to-all. eu WISETRIP Wide scale network of e-systems for multimodal journey planning and delivery of trip intelligent personalised data.
01/02/2008 31/07/2010 Website www. wisetrip-eu. org I N t E L L I G E N t t R A n s P O
01/05/2009 30/04/2011 Website www. conduits. eu I N t E L L I G E N t t R A n s P O R
/2010 31/12/2012 Website www. city-log. eu Intelligent freight distribution Optimisation of the movement of freight, both within the EU and in transactions with international trading partners
/end 01/09/2006 30/06/2009 Website http://heavyroute. fehrl. org Damage limitation The high weight of long range trucks poses some threats to the surrounding environment,
/2010 Website www. simbaproject. org Research cooperation with countries beyond the EU itself in ITS,
/2012 Website www. viajeo. eu STADIUM Smart transport applications designed for large events with impacts on urban mobility.
01/05/2009 30/04/2013 Website www. stadium-project. eu/site I N t E L L I G E N t t R A n s P O
Travel guidance, on-line booking and payment facilities will be combined with location-based Web 2. 0 applications to facilitate ride-sharing
data collection and information exchange via mushrooming social networking websites. C H A p T E R 8 Conclusions and the way forward I N t E L L
development of demand-driven, easy-to-use and affordable services for all users, learning from the success of portable navigation systems and Web 2. 0 social networks;
which favours in a limited scope the innovative SMES by public tenders) 26.5) The provision of incentives for spreading new, web-based social innovation solutions (crowdfunding and crowdsourcing).
http://www. eurada. org/site/files/Smart%20regional%20specialisation-E. pdf. download on 6 june 2011 Eurada (2011/b:
10-11 march 2011 in Brussels. Brief Summary of the workshop. http://www. eurada. org/site/files/Snapshot-E. pdf. download on 6 june 2011 Fraunhofer (2012:
. ie To sign up for our email alerts contact us at info@forfas. ie or through the website.
reducing the revenue for websites that rely on ad-based business models. 106 This appears to be one reason the EU lags behind the United states in Internet companies.
or 16 percent to 40 percent of IT budgets. 109 Other examples of costly regulations that limit the effectiveness of IT investment include the new law requiring websites to obtain explicit consent before placing web cookies,
or legal effects. 110 The former policy is both overly ambiguous and burdensome, particularly to smaller websites,
and data collection taxes, directed specifically at large internet companies such as Google and Facebook. 125 Higher taxes on ICT-producing companies may raise the price of ICT goods and services for everyone else.
With the great success of some of the world ICT leaders, such as Apple, Google, Intel,
less effective advertising reduces available revenue for websites and can cripple the growth of useful services.
and Gilles Koleda, L'économie Numérique et La Croissance (working paper, Coe-Rexecode, 2011), http://www. persee. fr/web/revues/home
on the World Economic Forum website, accessed May 7, 2014, http://www. weforum. org/issues/global-information-technology. 98.
Protecting Privacy, Transmitting Data, Moving Commerce (European Centre for International Political economy/U s. Chamber of commerce, March 2013), https://www. uschamber. com/sites/default
Talking points, Information Services Group, February 2013, http://www. isg-one. com/web/research-insights/talking-points/archive/1302. asp. 116.
Greg Sterling, France Wants To Tax Facebook, Google‘Personal data Collection,'Marketing Land, January 21, 2013, http://marketingland. com/france-wants-to-tax-facebook-google-personal data-collection-31196;
Jacob Albert, France Wants to Tax Data mining, and It's Not a Bad Idea, Quartz, January 22, 2013,
See for example the sectoral focus on this European commission website: European commission: Enterprise and Industry ICT for Competitiveness & Innovation,(accessed May 16, 2014) http://ec. europa. eu/enterprise/sectors/ict/.
or Uber, or Google, or...Bloombergview, February 12, 2014, http://www. bloombergview. com/articles/2014-02-12/france-loves-tech-but-not-amazon-or-uber-or-google-or.
-152. Miller and Atkinson, Are Robots Taking Our Jobs, or Making Them? 153. Nicholas Oulton, Long term Implications of the ICT Revolution:
Small companies create 85%of new jobs, Enterprise and Industry, European commission website, last modified January 16,
accessed April 4, 2014), www. oecd-ilibrary. org/sites/entrepreneur aag-2013-en/02/02/index. html. 177.
/and Will not Let Norwegian Enterprises use Google Apps, Datatilsynet, January 25, 2012, http://www. datatilsynet. no/English/Publications/cloud-computing/Will not-let-Norwegian-enterprises-of-Google-Apps/.
/184. Merkel Proposes Secure European Web, BBC News, February 15, 2014, http://www. bbc. com/news/world-europe-26210053.185.
For example, Catherine Tucker has found that the EU privacy directive lowered online advertising effectiveness by 65 percent relative to the rest of the world.
Catherine Tucker, Economics of Privacy (MIT Sloan and NBER, November 15, 2012), http://www. ftc. gov/sites/default/files/documents/public events/fifth-annual
European Court Lets Users Erase Records on Web, New york times, May 13, 2014, sec. A. 188. Ibid. 189.
Digital Single Market Digital Agenda for Europe, Enterprise and Industry, European commission website, accessed May 15, 2014, http://ec. europa. eu/digital-agenda/en/our-goals
European commission website, accessed May 15, 2014, http://ec. europa. eu/digital-agenda/en/our-goals/pillar-vii-ict-enabled-benefits-eu-society.
The 2010 Methodology report provides detailed instructions how to calculate this indicator (http://www. proinno-europe. eu/sites/default/files/page/11/12/IUS 2010 METHODOLOGY REPORT. pdf). 88 Innovation Union
‘research articles',‘research reviews',notes'and‘letters')published in the Web of Science database. These co-publications have been allocated to one
http://www. proinno-europe. eu/EIS2008/website/docs/EIS 2008 METHODOLOGY REPORT. pdf) OECD-JRC (2008), Handbook on Constructing Composite Indicators:
i e. number of R&d sites. Hence, the line value function is W=wij, where ij is the link between two countries
Arcs are weighted by the number of sites owned by country i (a) and the number of sites located in country
i (b). The size of nodes is a function of the number of R&d types a country's firms"receive"through R&d centres located abroad (a)
it may be a sign of a success from the creation of international R&d sites in the form of inventions developed with domestic inventors,
we observe that it is highly relevant for both the number of R&d sites and R&d types.
Moreover, the closeness centrality coefficient has a very strong positive effect on the number of R&d sites as well as on the number of R&d types existing per link.
countries with a higher number of linkages with other countries tend to have less intensive relationships in terms of the number of R&d sites
'The Evolution of the World Trade Web.''Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
and visibility on the Web.''Scientometrics, 60:3, 409-20. Kuemmerle, W. 1999.''The Drivers of Foreign Direct Investment into Research and development:
'Topology of the world trade web.''Physical Review, E68: 1, 015101. Shieh, Y.-Y. & Fouladi, R. T. 2003.'
The objective of the study is to document the existence of innovation gaps between the EU and its main competitors in specific ICT sub-sectors namely web services,
US companies have been the most innovative in web services. Meanwhile, Asia is much stronger than both the USA
Case studies of Apple, Google and Robotdalen emphasize the importance of prior government intervention to form clusters, from
11 2. US-EU Innovation Performance in Web Services, Display Technologies and Robotics...13 2. 1 Web services...
15 Apple key lessons...16 Google key lessons...18 Amazon key lessons...19 Skype key lessons...
20 XING-key lessons...21 2. 2 Display technologies...21 Cambridge Display Technologies (CDT) key lessons...
Case studies Web Services, Display Technologies and Robotics...57 A1. 1 Web Services...57 Apple Corporation...
57 Amazon...60 Google...62 Skype...66 XING AG...71 6 A1. 2 Display technologies...
74 Cambridge Display Technology (CDT...74 Plastic Logic...77 Novaled AG...80 E Ink Corporation...
105 7 Executive Summary Innovation in US and EU companies was analysed in three ICT subsectors (web services, display technologies,
US companies have been the most innovative in web services. Meanwhile, Asia is much stronger than both the USA
with web services estimated at about €70 billion, flat panel displays worth about €75 billion and robotics valued at about €19 billion.
A key lesson from analysis of the three subsectors, particularly web applications, is the critical importance of higher education
Case studies of Apple, Google and Robotdalen emphasize the importance of prior government intervention to form clusters, from
and to some extent Google, has shown, innovation cannot be centred only on technological areas but must also be applied in product and service design.
From the US experience we know that Stanford university has had a tremendous impact on the emergence of high-tech companies in Silicon valley, starting with Hewlett packard all the way to Google.
Using a case study approach in three ICT sub-sectors (web services robotics and display technologies) the study examined the following questions:
and because the USA has clear advantage in one (web), the EU in another (robotics) and Asia has the advantage in the third (displays).
XING in web services; Novaled, E Ink, CDT and Plastic Logic in displays; and in robotics, Shadow Robot, R. U. Robots;
Chapter 3 ends with the policy suggestions that emerge from our analysis. 13 2. US-EU Innovation Performance in Web Services,
Web services, Display technologies, Robotics. Annual global revenues for the three sub-sectors show their relative significance,
with web services estimated at about $92 billion (about €70 billion), 3 flat panel displays worth about $99 billion (about €75 billion) 4 and robotics valued at about $25 billion
Clearly US companies have acquired a dominant position in web services, quickly building on innovative breakthroughs in software, design and new business models (e g.
Google, Apple and Amazon. Even so, there are well known examples of European innovation in this sub-sector, e g.
jostling for the lead in the early stage innovation in novel screen technologies (for 3 SCF Associates Ltd estimate based on the nine top web service providers'revenues in 2010
See the web services value chain in Appendix 3 for the verticalization strategy used by Apple, Google, etc.
In web services, however, the USA does lead, owing to combinations of successful first mover advantages, network effects and increasing returns.
and eventually acquired by leading USA web services players, first ebay and now Microsoft. In the following sections we analyse in more detail the development of companies in the three sub-sectors,
and we discuss the lessons that can be learnt from the case studies. 2. 1 Web services For this sub-sector,
Google being a good example. It is a sub-sector where the USA dominates with the largest players all being first movers Google in search, Facebook in social media, Apple in music content with itunes, ebay with online auctions and Amazon in online retail.
The cases studies analysed in this sub-sector show that the success stories are based on a combination of two elements.
but overall the finance needed for a web services business will typically be millions or tens of millions of dollars,
The tangible deliverable is web software during the early stages. Most capital demands are restricted to web server farms (see the web services value chain in Appendix 2) and even these can be hosted by third party data centres who offer website services for start-ups.
Second, in the web services sub-sector, a successful venture will reach break even and commercial viability relatively quickly, usually less than five years.
Or put another way, if a web services start-up is not profitable within five years the founders
and investors will probably have moved on. Payroll expenses are kept typically 16 low as stock options can be used
These three attributes make web-based start-ups attractive to VCS and so this sub-sector is characterized by the overriding presence of such investors.
Silicon valley for Google, Apple and Facebook, Seattle for Microsoft and Amazon. These US clusters have drawn on government local investments for R&d
and leading on to the West Coast around Stanford and UCLA. In contrast, the EU initiatives in web services that are successful tend to occupy specialized niches in the market.
Skype, for instance, is an example of a successful European web start-up that achieved global pre-eminence
In future web service markets, there may be new application areas (and accompanying business models) with global appeal in which the EU can develop major players.
and growth as a hardware manufacturer but also because of its later reinvention and move into web services.
and so moving to integrate web services into that experience was a natural course and part of its emphasis on design for ease of use.
The chosen structure of the itunes website has always been to exploit its ease of use
Thus the web service, at its inception, was coupled to the software (Apple's ios) and its hardware, the ipod originally,
because Apple had noted the enormous difficulty of using MP3 players, particularly with web services and PCS, at the time.
Apple thus moved into web services coupled to its Macintosh range, creating proprietary protocols for access
and download from its web content server. The key lesson here is to create verticalization using web services as one component (see Appendix 2 on value chains.
Apple was the first to do it followers are Google with Android and the various Android-based apps stores (with a Google smart phone or tablet possibly soon),
and Amazon with the Kindle e-reader and its accompanying tied book format. Influencing the whole value chain with a basic innovation
Google key lessons Google's success depended on two extraordinary, self-confident and highly talented people unwilling to follow the crowd.
Google's founders benefited from a very supportive and nurturing environment with mentors who were able to protect them
Public funding of basic research had a part to play in the Google success 19 story,
it is hard to identify any way in which Google directly benefitted from government support.
The lessons from Google are difficult to translate into policy support for innovation. It seems like a unique set of circumstances.
as Stanford did towards Google's founders. Amazon key lessons The more advantageous business environment in the USA was a key factor for Amazon's successful start up and growth in its first few years.
Websites would also have had to be language specific for the ordering process. The EU's highly variable tax and business conditions across the 27 Member States contrasts with the largely uniform situation in the USA.
which brought high-level personnel for technical positions, for building and then running web services in vast data centres with fast transaction processing, large customer databases and data mining for refined data analysis,
Strong network effects are important in web services for both viral marketing for retail but also networks of business angels,
(i e. national state municipality/regional) as some Member States in Europe or Asia would attempt to bring together. 21 XING-key lessons Xing is an example of a relative European success in Web services,
XING might seem to be a more risky venture than much larger web service players, such as Linkedin and Facebook.
So if there is to be government support for new ventures in the web services sub-sector (with support for clusters, tax-breaks,
These niches may hold the best chances to thrive against heavy competition from the USA and elsewhere in mainstream web services.
The safe harbour rules for the exemption of US web service providers from EU data protection laws, under
are a source of unequal opportunity between US and EU web applications. This is an important issue
The time frame for commercialization of web services is typically short only a few years; for complex technologies and where the market has yet to develop,
be it setting up a web farm and then scaling it up to millions of users,
In this section we mostly discuss the role of venture capital in funding web applications in the USA
as our case studies of Google, Skype and XING show especially for US VCS, characterized by rapid payback with low entry costs
Thus web services such as Facebook, ebay, Twitter, etc have been favoured strongly by the VC community. Yet, the US VC industry has been investing in diverse sectors,
and not only ICT or web applications and in large companies as well; Lerner (2010), 16 (Table 3. 2) reports that...
One reason why web applications companies have been founded and grown in the USA is because VC funds have been more readily available in the USA,
and far more recently in web services, e g. for Google. Here the protection of IPR through patents has allowed Apple to defend its position against newcomers attempting to enter some of its markets (e g. smart phones and tablets.
The competitive advantage from holding patents is behind Google's purchase of portfolios of patents from IBM, twice in 2011 and also the $12 billion acquisition of Motorola Mobility.
as seen in the robotics cases and in web services. Moreover they have increasing returns with volume across a whole sector
Note that the whole web services 40 subsector came into being and is still based on open source software for the World wide web, the internet communications and management protocols and the majority of web server operating systems (Forge, 2004).
There are also many examples of how open innovation principles are applied in the ICT industries, such as consumer electronics (Christensen et al, 2005.
Mach 3. 0. Note that where there are grey areas in the uses of IPR for web services
and their related devices (as in the web service provider verticalization model-see Appendix on business models) then major disputes are increasingly common between the dominant players,
This is the case in the Oracle plea against Google in April/May 2012 over the use of the Java language to write APIS for the Android operating system. 21 Patent pools may be used where a standard complex technology is being assembled
Willow Garage, supported by Google, has made open operating 42 systems for robots available, which are used widely in the academic and triple-helix style innovation communities driven by academia. 22 In contrast to patent pools,
and Google's Android. We may expect this importance will be amplified over the coming decades as all three figure in tomorrow's ICT world of mobile devices,
Mr Almunia, to Google on abuse of its significant market power, in search related practices (Alex Barker, 2012, Google told to change
such as operating systems, web servers, databases and office systems. Note that the role of the European commission in stimulating research development and innovation, RDI,
as in the case of Google or CDT. Sometimes, entrepreneurs were the driving force harnessing the skills of technicians (e g.
Google's founders benefited from a very supportive, nurturing environment, with mentors who were able to protect them
Case studies of Apple, Google and Robotdalen emphasize the importance of government intervention to form clusters from
The case studies of Google Apple, E Ink, irobot and Amazon emphasize that moving on to a new company is normal,
As already highlighted, in web applications there is little evidence of direct government intervention having an effect.
A key lesson from the experiences of all the subsectors, particularly web applications, is the critical importance of higher education and of local networks in the formation of clusters.
At Stanford, Google's founders benefited from a very supportive, nurturing environment, with mentors who were able to protect them
Case studies of Apple, Google and Robotdalen emphasize the importance of government intervention to form clusters from
as our case studies of Google, Skype and XING show having relatively low entry costs and low capital intensity.
Thus web services such as Facebook, Google, ebay, Twitter, etc are favoured strongly by the VC community.
2008/09, British Business Angels Association, URN 10/994, http://www. bbaa. org. uk/sites/default/files/media/files/bbaa annual market report 2008-2009
Case studies Web Services, Display Technologies and Robotics A1. 1 Web Services Apple Corporation Apple computer was founded in April 1976 in a garage in Los Altos near Cupertino
Today such innovative design is the key competitive edge in the consumer electronics sub-sector and web services.
Apple has changed radically, turning away from pure hardware and software for computing to combining bundles of web services.
More specifically, its itunes web service, for downloadable music tracks with a clever low pricing policy,
and its associated Apple Store web service for application(‘apps')purchases and download has revised the mobile cellular industry.
The plunge into Web-based services was been designed carefully to complement the simultaneous move into pure consumer products
Its websites for interactive and download services are aimed at a higher-end mass market. The net result is verticalization:
and services that in tandem lock in the end-user (see the web value chain in Appendix 2). It provides Apple control of every stage of the‘user experience'.
Its own websites form the direct distribution mechanism, bypassing content aggregators, content retailers and in the case of content for the iphone, the mobile operators.
and virtually has leadership in new business models for the web platform and for its hardware and software products.
8 easy steps to beat Microsoft (and Google), presentation, 2010. Isaacson, W.,(2011) Steve jobs, Simon & Schuster, NY, USA.
Mike Nelson, ex IBM VP for internet technology, ex Visiting professor of web and internet impacts and innovation, now with CSC as internet specialist, WASHINGTON DC.
60 Amazon Amazon was formed in the first days of the Web, in 1995 in a warehouse in Seattle on the North West coast of the USA.
in books only, using the first‘Mosaic'web browser and its descendents such as Netscape. Its founder, Jeff Bezos, who came from a NY hedge fund background,
financing and massive success. In 1994 Jeff Bezos realized that he could create a retail website that would not have the limitations physical businesses encounter:
company reports) Amazon has had one of the fastest growths in the Internet's history even against ebay and Google.
Since 2007 it has had a successful and logical expansion into e-books with its own into e-readers (the Kindle family) combined with an e-library for charged-for titles for download as in the verticalized business mode for the web services
It then expanded overseas in the first five years via acquisition of web-based bookstores in the UK
Simon Forge SCF Associates Ltd All rights reserved 201211amazon has had one of the fastest growth rates in the history of the WEB-based industriesrevenues at 5 years from foundingus$ 0. 4 BNUS$
secondly that the web could boost customer care through phone and web call centres (although now this is considered a highly challengeable assertion);
and thirdly that web services enable high margin, lowest prices-again quite challengeable. Amazon's major advantage was its original innovation,
selling books over the internet. In getting there first, it grabbed the key position of first-mover.
In 1999 it tried to set up it own auction website, directly in competition with ebay.
For its next attack on other web services, it is hiring social media directors and launching into social media and games with software development.
, http://yahoo. brand. edgar-online. com/Displayfiling. aspx? dcn=0001193125-11-016253; http://uk. finance. yahoo. com/q/pr?
s=AMZN; Faber Novell: http://www. slideshare. net/fabernovel/amazoncom-the-hidden-empire Google Google Inc. is an American multinational public corporation,
headquartered in Mountain view, CA. It provides internet search and advertising services, as well as a plethora of online tools and platforms including:
Gmail, Maps and Youtube. Most of its Web-based products are funded free by Google's highly integrated online advertising platforms Adwords
and Adsense. 63 Google was founded in Menlo Park, CA in 1998 by Larry page and Sergey Brin while they were Phd candidates in computer science at Stanford university.
In 2006, the company moved to its current headquarters in Mountain view, California. The company's mission statement from the outset was"to organize the world's information
and make it universally accessible and useful"."35 The company has a well-known unofficial slogan"Don't be evil".
"36 Google's growth since its launch has been phenomenal, with annual revenue growing to almost $30 billion in a little over 10 years. 96%of revenue comes from advertising,
Larry page's Phd research focused on analysing the relationships between websites, an approach akin to citation analysis,
whereby a website's relevance was determined by the number of pages, and the importance of those pages, that linked back to the original site.
Page and Brin's new search engine was called initially Backrub, because the system checked backlinks to estimate the importance of a site,
but was renamed Pagerank and then Google. In 2001, Google was granted a patent describing its Pagerank mechanism.
The patent was assigned officially to Stanford university with Lawrence Page as the inventor. Initially Google was very much an intellectual, scientific, Utopian endeavour.
Without doubt both Page and Brin were outstanding computer scientists but, beyond that, their most notable characteristic was their overwhelming self-belief as Barry Diller put it,
they were wildly self-possessed. 37 While Page and Brin knew they had a unique search engine,
Yahoo and Excite for $1m they turned it down. Google's success seems contradictory, the curious result of its founders'unstinting belief in pursuing
what they thought was right rather than the pursuit of commercial success. Initially there was no business plan
this was 35 http://www. google. com/about/corporate/company/36 http://investor. google. com/corporate/code-of-conduct. html 37 CEO, Interactivecorp.
their approach meant they did not follow the route of companies like Yahoo and Excite that sought to be portals for a variety of content.
Google wanted to get users off their site to where they wanted to go as soon as possible.
Better search was of less interest to Yahoo and Excite because they wanted users to stay on their site for
as long as possible so they could sell banner advertising. Page and Brin were opposed to advertising because they had a purist view of the world. 38 And unlike AOL,
Google did not have revenue from subscribers. The commercialization breakthrough for Google came when it found a way to monetize search.
Adwords gave it a way of auctioning advertising slots on the search page, favouring firms offering the highest bid price and high benefits to users.
Google has continued to innovate or acquire a wide range of software products. It offers online productivity software,
and social networking tools, including Orkut and, more recently, Google Buzz and Google+.+Other applications include its web browser Google chrome, the Picasa photo organization and editing software,
and the Google talk instant messaging application. Google leads the development of the Android mobile operating system,
as well as the new Google chrome OS. In August 2011, it acquired Motorola mobility for $11. 5 billion.
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.
This has led to some notable successes, e g. Gmail, Google news, Adsense and Orkut. But the policy of letting a thousand flowers bloom has also been difficult to manage,
and also has led to some mediocre products that have relied on the marketing power of the Google brand. 40 38 According to Ram Shiram (see Auletta,
p. 53). 39 Unleashing Google norms, running the rapid innovation engine, http://nbry. wordpress. com/2011/07/26/unleashing-google-norms-running-the-rapid-innovation-engine/40 http://smartstorming-blog. com/googles-8020-formula-it-can-work-for-you/;
/http://blogs. reuters. com/mediafile/2011/10/20/sergey%E2%80%99s-secret-google-projects -and-the-challenge-of-1000-blooming-flowers/65 Capital investment Google received about $1miilion in angel investment around the time it incorporated in September 1998, from Andy Bechtolsheim (cofounder of Sun microsystems) Ram Shiram
(ex Netscape), David Cheriton (Stanford computer science Professor), and Jeff Bezos41 (Amazon). In June 1999, a $25 million round of funding was announced,
with major investors including the venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital.
Google's initial public offering (IPO) took place five years later in August 2004. At that time Larry page, Sergey Brin,
and Eric Schmidt42 agreed to work together at Google for twenty years, until the year 2024.43 The sale of $1. 67 billion in shares gave Google a market capitalization of more than $23 billion.
The vast majority of the 271 million shares remained under the control of Google. Many of the Google's original employees became instant paper millionaires.
IPR was of great concern to Page and Brin and Backrub was kept under a cloak of secrecy.
Page was a huge admirer of Tesla and he was well aware that Tesla had shared carelessly his inventions with others.
Consequently the algorithms behind Pagerank were guarded zealously. However, as Phd research students, they were expected to present their work
and so a paper was prepared eventually and delivered in January 1998.44 Location: The company's location was determined very much by the location of Stanford university.
In its very early days, Google operated out of the living room of the graduate housing apartment Brin shared in Escondido Village.
The Google computers and server were stored in Page's graduate residence. Stanford university seem to have extended considerable tolerance to Page and Brin, turning a blind eye to them acquiring computing resources.
According to Battelle, At one point, the Backrub crawler consumed nearly half of Stanford's entire network bandwidth,
Schmidt served as Google's CEO; he is now Executive Chairman. Prior to joining Google,
he was the chairman and CEO of Novell and chief technology officer at Sun microsystems. 43 http://money. cnn. com/2008/01/18/news/companies/google. fortune/index. htm
44 Page, Lawrence and Brin, Sergey and Motwani, Rajeev and Winograd, Terry (1999) The Pagerank Citation Ranking:
Bringing Order to the Web. Technical Report. Stanford Infolab. 45 John Batelle, The birth of Google, Wired, August 2005, http://www. wired. com/wired/archive/13.08/battelle. html 66 Human capital:
In Larry page and Sergey Brin, there was an unusual combination of intellectual excellence and extreme self-possession.
Google benefitted enormously from the pool of talented computer scientists and other Silicon valley engineers because of the dot com crash and failure of other firms.
Google was able to take its pick from the best of the talented people around.
The VCS who invested in Google thought that Page and Brin needed proper and experienced business leadership;
but really didn't want a business executive to run Google they thought of them as bureaucrats rather than engineers and entrepreneurs.
How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture, New york:
Skype was acquired by ebay in September 2005 for $3. 1 billion, but relations between the founders and ebay soured as growth targets were missed.
A 70%stake was acquired by an investment group led by Silver lake (including the original founders) in November 2009,
using the same underlying transport technology that a Web browser uses. Zennström and Friis identified the opportunity
This undoubtedly led to ebay becoming disenchanted with Skype's performance and the seeming failure of synergies to emerge with ebay and its other big acquisition, online payment system, Paypal.
History and development The basis for the start-up of Skype was the coming together of the entrepreneurial skills of Zennström
and the ebay threatening to completely destabilize the company. Following the departure of Zennström and Friis,
Meanwhile ebay was preparing to float Skype via an IPO but Zennström and Friis were done not.
and Friis joining the Skype investor group with 14%ownership. ebay then sold 70%of Skype to the investor Group led by Silver lake. 47 http://www. prnewswire. co. uk/cgi/news/release?
and ebay got most of its money back in recouping $2. 55 billion. In essence Microsoft paid about $1000 per subscriber
which some have questioned as being excessive. 49 It is being seen as a defensive move by Microsoft to avoid Skype falling into the hands of Google,
Both Google and Facebook were reported to have been in talks to buy Skype. 50 The battle over the coming years for the VOIP market will be between Skype in the hands of Microsoft and Google talk, Apple Facetime and Facebook Chat.
http://www. pwc. lu/en lu/lu/doing-business-in-luxembourg/docs/pwc-luxloc. pdf 53 http://www. investinluxembourg. lu/ict/sites/ict
The social network that wasn't. The Big Money, 1 september 2009, http://web. archive. org/web/20100727140400/http://www. thebigmoney. com/articles/money-trail/2009/09/01
The web service is favoured by its membership for two main reasons-to do business and to promote careers.
It has enabled XING to evolve from a business networking platform into the web interface for a widening range of services, for business professionals around the world,
or elsewhere in the EU in some MS. German social networking sites face strict local privacy laws, meaning they must undergo a long process of verification with all users positively opting-in before they can be signed up.
The sites are prohibited also from sharing certain user data with advertisers. But US companies are exempt from these rules under safe harbour agreements between the US and the European union.
Google (especially Youtube) and other US web service providers may force them to align with EU standards of privacy in the future as legal processes develop.
Compared say to other websites, 73 or to other services industries (utilities, mobile operators, this appears to be comparatively high).
compared to those European national pure social networking sites in competition with Facebook. For example, the Studivz group of three websites were collectively the German market leader with 13. 8m users,
with Facebook growing rapidly (over 11. 5m in the first half of 2010) to overtake
In Spain, Facebook overtook social networking national leader, Tuenti, in 2010, gaining 10. 5m users compared with the Spanish site's 6. 8m-Facebook's users tripled in a year.
Xing website, www. xing. com Economist (2009) A spat among professional networks-Class war-Does local beat global in the professional-networking business?
Fabernovell (2007) XING Best practice social network websites. Interview with founder, download. 74 MARKOFF, J (2007) Move over Silicon valley,
CDT website: http://www. cdtltd. co. uk/Tim Minshall, Stuart Seldon, David Probert, Commercializing a disruptive technology based upon University IP through Open Innovation:
Novaled website and its archives: www. novaled. com USA National Science Foundation,(2010) World Technology Evaluation Center, Inc.,WTEC Pane, Report on European Research and development In Hybrid Flexible
Jimena Almendares, 2010, E-Ink, MIT Technology Review, January/February 2010, http://www. technologyreview. com/business/24245/E Ink website
http://ca. finance. yahoo. com/blogs/insight/kodak-lesson-ending-didn-t-happen-191731960. html Paul Semenza Kodak Exits OLED Business After 30 Years;
) Later, the company adopted Google-like practices with employees encouraged to use"free time"to work on their own ideas to develop prototypes.
Company website: http://www. shadowrobot. com/The cool hand of technology, http://www. forbes. com/2009/08/14/shadow-robot-hand-entrepreneurs-technology-robotics. html
KUKA's website notes that close links between development and manufacturing are a decisive factor for reducing the development times of new products.
KUKA Robotics website, www. KUKA-Robotics. com Rainer Bischoff, 2009, KUKA from research to products, 12 mar 2009, 40th International Symposium on Robotics, KUKA presentation.
R. U. Robots website, www. rurobots. co. uk Robotdalen The Robotdalen innovation programme was set up in 2003.
Robotdalen website, www. robotdalen. se Ulf Westerberg, 2009 The Public sector-one of three collaborating parties, A study of experiences from the VINNVÄXT programme, VINNOVA, Case No:
what business model is likely to be most successful for instance the trend to verticalization in the web services sector from device to operating system to service as a lock in mechanism in a web market. 106 1 The Web Services value chain:
web farms requires the largest capital investment Simon Forge SCF Associates Ltd All rights reserved 2012 1 Deploy,
Integrate, and run on webfarm R&d & IPR (Option) download Apps store R&d, Test, Release Basic web system design and operations setup Integration into commercial web environmentmarketing
Sales & After sales Generic Web Services Value Chain for a large operation (Google, Apple, Amazon,
and display Other major business processes eg logistics systems for item delivery for e-commerce Webfarm Build & Test Distribution Sales & Marketing R&d Manufacture Web Applications
10.2791/13458 Abstract The objective of the study is to document the existence of innovation gaps between the EU and its main competitors in specific ICT sub-sectors namely web services,
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