A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION INNOVATION POLICY:
As observed in other areas and debates (e g. telecoms, competition policy, financial services, etc. it would be possible to establish a centralised/coordinated policy at EU level,
ownership and accountability Putting innovation at the core of the EU policy-making process cannot be only a declaration of intent.
by further developing instruments that allow for aggregation of local initiatives, such as clustering, to really unlock the potential of innovative SMES.
TOWARDS EUROPE 2020 he word âoeinnovationâ lies increasingly at the core of the EU agenda.
Available data are not reassuring. As shown below, in Figure 1, the gap between the EU15 and the United states in terms of expenditure in R&d has been in place since the early 1980s.
Kristian Uppenberg, presentation at the first Task force meeting, 18 september 2009, OECD data. 14 INTRODUCTION. TOWARDS EUROPE 2020 An important issue is the ability of the European Investment Bank (EIB) to reach dynamic and innovative small firms
such as clustering, to unlock the potential of innovative SMES. This constraint reflects a more general situation,
http://ec. europa. eu/enterprise/policies/innovation/files/swd effectiveness. pdf A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION 15 Box 1. Key enabling
2 â¢a business panel on future European innovation policy that provided a set of recommendations from a business perspective on priorities for future EU innovation policy;
reference=IP/10/225&format=HTML 18 INTRODUCTION. TOWARDS EUROPE 2020 Overall, these policy documents point to the need to i) simplify
+1) deal with the programming and monitoring of implementation of the centrally managed programmes directly targeting innovation. â¢There are 386 operational programmes under the ERDF
Section 6 briefly concludes. 27 2. A NEW APPROACH TO INNOVATION POLICY IN THE EU 2. 1 Innovation is a changing concept The data reported in the previous section show that Europe is facing a structural problem
Available data testify to a European â lagâ vis-Ã-vis the United states, Asia and several emerging economies in terms of research, development and innovation (R&d&i.
Available data 6 See European Innovation Scoreboard 2009 at http://ec. europa. eu/enterprise/newsroom/cf/document. cfm?
Also, European companies perform about 30%of R&d outside the EU. Data presented at the Task force meetings are based on evidence of collaboration between EU
as will be discussed below. 9 7 See Open innovation http://www. oecd. org/dataoecd/22/44/41446671. pdf. 8 OECD innovation strategy http://www. oecd. org
/dataoecd/1/42/43381127. pdf 9 See below, Sections 2, 3 and 4. 32 A NEW APPROACH TO INNOVATION POLICY IN THE EU Figure 12.
by further developing instruments that allow for aggregation of local initiatives, such as clustering, to really unlock the potential of innovative SMES. 2. 2. 2 A coordinated,
As observed in other areas and debates (e g. telecoms, competition policy, financial services, etc. it would be possible to establish a centralized/coordinated policy at EU level (see also point above),
and data using common indicators. 2. 2. 3 Taking innovation seriously: improving governance through accountability and coordination Putting innovation at the core of the EU policy-making process cannot only be a declaration of intent.
At the same time, achieving a â new Renaissanceâ for Europe would be impossible if the governance system that backs innovation support schemes is feudal.
at http://www. oecd. org/dataoecd/35/61/2367580. pdf. And see INNODRIVEÂ s activities at http://innodrive. org/38 A NEW APPROACH TO INNOVATION POLICY IN THE EU partners,
http://www. consilium. europa. eu/uedocs/cms data/docs/pressdata/en/intm/111744. pdf. A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION 41 It is disputable
Such data shows that companies with a large share of their business in the US or Japan receive a substantial advantage from their own patent 17 As a matter of fact,
such as scientific papers, conference proceedings, presentations, internet postings, books. There are several elements affecting patent quality,
The Proper Balance Of Competition And Patent Law And Policy, 2003 available at http://www. ftc. gov/os/2003/10/innovationrpt. pdf. Presentations by Bruno van Pottelsberghe
Yet, the internet economy, globalisation and industrial cycles have been producing a growing number of patent applications.
p. 25.24 Data are available in the Communication from the Commission to the European parliament and the Council Enhancing the patent system in Europe, COM (2007) 165 def, p. 7. A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION 47 case of SMES.
together with studies and empirical data provide useful inputs for policy decision regarding a future patent system,
All this should be supported by a sound Patent Information system allowing the applicants and the public to access patent documentation collections and monitor the prosecution of patent applications.
where the issue is about bringing innovation on the market from producers to users, through deployment stages.
and available empirical data on the fact that European universities are good at sciences and technology,
when considering the amount of funding that Europe is pouring into the R&d efforts of research and technology organisations (RTOS) and universities through framework programmes and other funds.
Due to complexities in the value chain of innovation and in core technologies CRTS are characterised by large amounts of enabling know-how not necessarily codified and not necessarily patented.
A Law and Economics Primer, available at http://www. earthinstitute. columbia. edu/cgsd/documents/lewisreichman. pdf (last visit April 18,
Fi gu re 1 3. A ba te m en t c os ts p er te ch no lo gy So ur ce:
Alstom, Exxonmobil, General electric, Microsoft, Philips, Siemens and Vestas. The proposal for the creation of technology centers is provided in a concept paper titled Climate Change Technology Centers,
/stampa/SME%20access%20report%202009-08-21. pdf. 41 Ibid. at 12. The same study quotes earlier surveys such as the one conducted by the German Occupational safety and Health committee,
the involvement of SMES as users in the standardisation process appears essential to guaranteeing that developed standards are easy to use for SMES afterwards. â¢Global market access and international standards.
A vision for 2020, Report of the Expert Panel for the Review of the European Standardisation System, exp384, February 2010, available online at:
http://ec. europa. eu/enterprise/policies/european-standards/files/express/exp 384 express report final distrib en. pdf. The Expert Panel for the Review of the European Standardisation System (EXPRESS) comprised 30 individual
Box 3. The LTE patent pool A good example of a complex patent pool is the LTE (Long-term evolution) pool
which is on the way to becoming Next Generation Standard for mobile broadband communications â 45 mobile operators worldwide have announced already that they will adopt it.
LTE has been standardised by 3gpp, and more than 350 companies have participated in the working groups. LTE IPR declarations on the ETSI database are 1, 860 as of January 11th, 2010.
The following graph exemplifies the number of IPR declarations on the LTE project. Figure 16.
Number of IPR declarations in the LTE consortium, as of January 2010 Source: Sisvel, presentation at the 4th meeting of the CEPS Task force, 14 january 2010.
A NEW APPROACH TO INNOVATION POLICY IN THE EUROPEAN UNION 75 One important issue for the LTE patent pooling is setting the appropriate Royalty Rate.
Different methods for doing this are the following: â¢Some players*stated that the maximum royalty acceptable from the market is a single digit%(e g. â¤10%.
using the LTE case as an example. Figure 17. LTE royalty level â different scenarios No patent pool 2 patent pools and outside patent owners 76 STANDARDS AND STANDARDISATION POLICY IN EUROPE 1 patent
pool and outside patent owners Ideal Scenario Source: Sisvel, presentation at the 4th meeting of the CEPS Task force, 14 january 2010.5.2 European standardisation In terms of standardisation policy,
and an important feature for building up IPR databases at SSOS o Ex-Ante Disclosure of FRAND licensing Promise is important for necessary privilege under Art. 101 (3) EC Treaty as every
you may use my patented technology for free. â Highly effective for users of standard. However, some IP holders will avoid the SSO like the plague,
Common in open source IP environments. No financial compensation for technology providers. F) RAND âoeonce the standard is set,
Unilateral, ex-ante (F) RAND âoei will license my essential patents at (F) RAND terms, no worse than $10/unit plus exclusive grantback for 5 years. â For users
For users of standards very effective but for technology providers a heavy burden. Joint ex ante negotiations Actual negotiation of licensing terms at the outset of the process.
European Research Area ETSI European Telecommunications Standards Institute ICT Information and Communication Technologies IP5 The five major intellectual property offices:
KET Key Enabling Technology KIC Knowledge and Innovation Community LDC Less Developed Country LTE Long-term evolution standard MNC Multinational Corporation NPL Non-Patent
/primapagina/stampa/SME%20access%20report%20200 9-08-21. pdf). European commission (2005), Communication âoemore Research and Innovation â Investing for Growth and Employment:
research organisations, C (2008) 1329,4 October. 84 GLOSSARY OF ACRONYMS Expert Panel for the Review of the European Standardisation System (EXPRESS)( 2010), Standardisation for a competitive and innovative Europe:
a vision for 2020, Report of the Expert Panel for the Review of the European Standardisation System, exp384, February (http://ec. europa. eu/enterprise/policies/european-standards/files/express
/exp 384 express report final distrib en. pdf). Friedman, D d.,W. M. Landes and R. A. Posner (1991), âoesome Economics of Trade secret Lawâ, Journal of Economic Perspectives, Vol. 5
A Law and Economics Primer,(http://www. earthinstitute. columbia. edu/cgsd/documents/lewisrei chman. pdf). Ordover, J. A. 1991), âoea Patent system for Both
Organization for Economic Cooperation and Development (OECD), Innovation Strategy (http://www. oecd. org/dataoecd/1/42/43381127. pdf). Organization for Economic Cooperation and Development
(OECD), Open innovation (http://www. oecd. org/dataoecd/22/44/41446671. pdf). Organization for Economic Cooperation and Development (OECD), Oslo Manual, âoeguidelines for collecting
and interpreting innovation dataâ (http://www. oecd. org/dataoecd/35/61/2367580. pdf). Polk Wagner, R. 2009), Understanding Patent Quality Mechanism, Public law and Legal Theory, University of Pennsylvania Law school, Research Paper No. 09-22, subsequently published as 157 U. Penn.
& Interoperability Microsoft 86 LIST OF TASK FORCE PARTICIPANTS, SPEAKERS AND INVITED GUESTS Mr. Peter Drã ll Head of Unit DG ENTR European commission Peter.
Relations Manager Legal & Corporate Affairs EMEA Microsoft Belgium tofeehan@microsoft. com Mr. Antonio Hilario Garcia del Riego Head of Corporate Affairs
Hagehã lsmann Innovation Manager Europe Microsoft andrehag@microsoft. com Mr. Jacques Hayward Special Advisor Veolia Environment jacques. hayward@veolia. com
business strategy, development, ICT strategy development, networking, information system, innovation Classification JEL: M15 1. Introduction The accentuated requirements for effectiveness
the need for communication and for information technologies and software support that communication. Information and communication technologies (ICT) have made possible new business models and even new business structures.
in many cases, Customer Relationship Management (CRM) Enterprise resource planning (ERP) and Business intelligence (BI. Other problems arise
The core business is not always stable. Sometimes customer requirements change and suppliers, too, must change their business.
A dynamic business environment requires changes in core competencies. Core competence is one aspect of companies'business vision.
This vision usually moves as customer requirements and the business environment moves. It depends on the business as to how far ahead the vision states are targeted.
and the specialists have defined ICT as the hardware, software application programs, telecommunication networks and technical expertise that support information processing and communications activities at all levels of a company (Marchand et al. 2001).
ICT has had a big impact on product development. Products today are more and more intelligent and it is not a new idea to provide extended products,
New emerging technologies like smart materials, micro-mechanical sensors and wireless and faster data transfer solutions etc. have presented new opportunities to develop product features, especially those intangible features
and PDM (Product Data Management) can be used to manage product-related information. The main point is that ICT should fully support the business processes
Ward and Griffiths (1996) have presented the relationships between business, information system and information technology strategies. Figure 2. The relationship between business IS and IT Strategies (source:
Companies chosen business models are dependent on their core business. Companies, furthermore, have individual structures, locations, types of organization and so on.
for example Business intelligence solutions to manage business data and information from marketing and customers. Markets are providing a huge number of different solutions to different needs,
Companies should clarify their data administration vision: which kind of solutions best fits the company and
Chan, Y.,Huff, S.,Barclay, D.,Copeland, D.-Business Strategic Orientation, Information systems Strategic Orientation and Strategic Alignment.
Information systems Research, 1997,8 (2): 125-150.3. Child, J. & Faulkner, D.-Strategies for Cooperation. Managing Alliances, Networks, and Joint ventures.
A Framework for Strategic Information technology Management. Center for Information systems Research, Working Paper No. 190, Massachusetts institute of technology, Cambridge, 2000.5.
Henderson, J.,Venkatraman, N.-Strategic Alignment: Leveraging information technology for transforming organizations. IBM Systems Journal, 193,32 (1), 4-16.6.
Kaplan, R.,Norton, D.-The Strategy-Focused Organization: How balanced Scorecard Companies Thrive in the New Business Environment.
Harvard Business school Press, 2000.7. Marchand, D.,Kettinger, W.,Rollins, J.-Information orientation-The link to Business Performance.
I.-Measuring the link between Business and Information technology Objectives. MIS Quarterly, Mar.:55-82.1996.12. Ward, J.,Griffiths, P.-Strategic Planning for Information systems, 2 nd.
Ed. Chicester: Wiley, 1996
 W s. Maney & Son Ltd. 2010. Journal of Management & Marketing in Healthcare. VOL. 3 NO. 2. PP 163â 175.
Varda Shalev is a practicing family physician and the Director of the Medical Informatics Department, Maccabi Healthcare Services.
Dalia Idar heads the Clinical Computerisation Department in the Division of Health Information technology at Maccabi Healthcare Services, Israel.
Introduction E-health and healthcare information technology (health IT) have become a key preoccupation of healthcare systems worldwide.
â The value of healthcare information technology has never been more important. Identified as a key component of healthcare transformation to reduce costs
Barriers and success factors in health information technology: A practitionerâ s perspective Rachelle Kaye, Ehud Kokia, Varda Shalev, Dalia Idar and David Chinitz Abstract Healthcare information technology is a key factor in improving quality
and reducing cost in healthcare, and yet, the successful implementation of health IT varies greatly among healthcare systems.
health information technology, e-health, critical success factors, critical enablers, leadership, physician collaboration investment remains difficult.
increasing evidence on the value of information technology, adoption of healthcare information technology proceeds at a snailâ s pace. â 2 â Governments across the world are in various stages of planning initiatives
However, there were insufficient data on the cost-effectiveness of these systems and it was not possible to determine the extent to which the demonstrated benefits were generalisable.
It evaluated ten individual e-health sites in different European countries including Germany, Sweden, Romania, France, Czech republic, Belgium,
such as telemedicine and internet-based chronic disease management. However, there has been very little dialogue internationally about what works and
in order to share best practice. 8 Barriers and success factors in health information technology  W s. Maney & Son Ltd. 2010.
and to create data exchange networks is more straightforward. Another structural barrier is the lack of standardisation and certification for EHR and health IT systems
resulting in the lack of system and data interoperability. A contributing factor to the delayed standard adoption is the lack of incentive for data exchange between and among providers as well Kaye, Kokia, Shalev, Idar and Chinitz 166 Â W s. Maney & Son
Ltd. 2010. Journal of Management & Marketing in Healthcare. VOL. 3 NO. 2. PP 163â 175.
Regulations relating to healthcare data privacy and confidentiality are also often barriers to health IT as they tend to restrict the sharing of patient data among providers.
Cultural barriers The cultural barriers are perhaps the most significant. From the perspective of the doctor
clinicians acting as consultants to system developers who are qualified really not due to their lack of training in biomedical informatics;
the lack of a professional workforce in medical informatics capable of leading the implementation; and the lack of a strategic organisational process to develop the commitment of all of the stakeholders.
Barriers and success factors in health information technology  W s. Maney & Son Ltd. 2010. Journal of Management & Marketing in Healthcare.
high professional quality of healthcare, shorter waiting time, a high level of user satisfaction, better information about service and quality, efficient use of resources and freedom of choice. 13
better care based on better documentation and better management of resources based on better data. Over time, these goals were expanded
Miller and Sim identified seven major doctor-related barriers: high initial financial costs and uncertain financial benefits, high initial physician time costs, difficulties with technology, difficult complementary changes and inadequate support, lack of adequate
electronic data exchange between the EHR and other clinical data systems, lack of incentives and physician attitudes. 15 On the other hand, in summarising the critical success factors Kaye, Kokia, Shalev, Idar and Chinitz
Most of the services are provided by independent contracted providers, at the core of which are 4,
Maccabi embarked upon the development of its health management information system in 1984. In 1986, the Maccabi Independent Physicians Barriers and success factors in health information technology  W s. Maney & Son Ltd. 2010.
Journal of Management & Marketing in Healthcare. VOL. 3 NO. 2. PP 163â 175. JUNE 2010 169 organisation agreed to be a full partner in the implementation of a computerised medical record in all physician clinics.
fully integrated health information and communication system with a comprehensive database that includes more than 18 years of data on almost 2 million members.
and with continuous clinical data exchange taking place in real time. This system with all of its components, was developed over a period of 20 years,
at a time (1989â 94) when computer and communication technology was sophisticated much less than today. Many of the same barriers mentioned above were encountered by Maccabi as it made key decisions in the process of developing its system.
In Maccabi, the Director of Organisation and Information systems was designated as the person responsible for developing and implementing the Maccabi health IT system.
setting stringent standards that all IT vendors had to meet to assure compatibility for purposes of connectivity to enable clinical data exchange,
negotiating significant group discounts on the purchase of hardware, providing interest-free loans for purchasing Kaye, Kokia, Shalev, Idar and Chinitz 170 Â W s. Maney & Son
JUNE 2010 hardware with convenient repayment conditions and providing the software at no charge to the physician. â¢A collaborative process:
The strategy for achieving the goals of the project was comprised of the following components and steps:
to oversee the adaptation of the core medical record and to provide ongoing feedback during implementation. 2. A minimum data set was agreed upon,
with the gradual addition of new fields and tools over time. 3. It was agreed at a very early stage what the doctor would see first
when he opened the EHR â a summary page with the most relevant patient data. 4. In the case of each additional field or tool,
particularly when the EHRS had the capacity to store data with high fidelity, to make those data readily accessible,
and to help translate them into context-specific information that can empower providers in their workâ. 17
â the insertion of the magnetic membership card into the physicianâ s computer automatically populated the screen with the patientâ s demographic information,
Barriers and success factors in health information technology  W s. Maney & Son Ltd. 2010. Journal of Management & Marketing in Healthcare.
JUNE 2010 171 â the insertion of the membership card generated an online connection to the Maccabi database for verification of the patientâ s eligibility to receive services,
â the initial screen presented the doctor with a summary of the medical information on the patient,
electronic referrals for diagnostic tests ensure that the results are transmitted automatically back to the doctorâ s computer, etc. â¢Physician support:
and implementing an EHR-based health information system identified ten critical success factors. Five critical success factors fall under the heading of â innovative leadershipâ:
and investment in the communication infrastructure for clinical data exchange is a must for a system that will be sustainable over time, in terms of benefit to doctors, patients and the healthcare system.
This means sensitivity to the realities of doctorsâ clinics and their clinical workflows. This means not expecting doctors to make decisions they Barriers and success factors in health information technology  W s. Maney & Son Ltd. 2010.
JUNE 2010 173 are equipped not to make about both hardware and software. This means providing massive training and support to help doctors learn to use the new technology
This means hotlines, backup systems and help when the doctor needs it and not when it is convenient for technical staff to provide it. â
we needed doctors who had a knack for computers to help the IT people build â doctor-friendlyâ systems.
we have a growing cadre of doctors who have made medical informatics their profession. These professionals are an important bridge between the practising physician who is equipped not to explain to the technician what he really needs;
An Empirical Study of Catalonia â Summary of the Final Research Report, Catalan Internet Project, UOC and Generalitat de Catalunya, Barcelona. 2. Middleton, B. 2006
) â Evaluating the value of healthcare information technology: Finding the diamond in the rough, and tumbleâ, AMIA Annu Symp Proc.,
Considerations for decision supportâ, Studies in Health Technology and Informatics, Vol. 100, pp. 28â 34.4.
Luxembourg Office for Official Publications of the European community. http://www. ehealth-impact. eu/download/documents/ehealthimpactsept2006. pdf (accessed April 1, 2009). 7. â Health Information technology
www. openclinical. org/hitglobal. html 8. Mcconnell, H. 2004) â International efforts in implementing national health information infrastructure and electronic health recordsâ, World
Shortliffe, E. 2005) â Strategic action in health information technology: Why the obvious has taken so longâ, Health Affairs, Vol. 24, No. 5, pp. 1222â 1233.10.
Hersh, W. 2004) â Health care information technology: Progress and barriersâ, Journal of the American Medical Association, Vol. 292, No. 18, pp. 2273â 2274.11.
I. 2007) â Adoption of information technology in primary care physician offices in Alberta and Denmarkâ, Healthcare Quarterly, Vol. 10, No. 3, pp. 95â 102.13.
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Miller, R. H. and Sim, I. 2004) â Physiciansâ use of electronic medical records: Barriers and solutionsâ, Health Affairs, Vol. 23, No. 2, pp. 116â 126.16.2005) â ehealth IMPACT â Study on Economic Impact of ehealth:
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No. 06-E006. http://www. ahrq. gov/downloads/pub/evidence/pdf/hitsyscosts/hitsys. pdf (accessed April 30, 2009.
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I. and Perez-Torres, F. 2009) â Comparing the application of health information technology in primary care in Denmark and Andalucã a, Spainâ, International Journal of Medical Informatics,
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Barriers and success factors in health information technology  W s. Maney & Son Ltd. 2010. Journal of Management & Marketing in Healthcare.
Fax:++49 (0) 40 42878-2867 www. tu-harburg. de/tim www. global-innovation. net Barriers to Innovation in SMES:
+49 â (0) 40 â 428 78 â 3776, Fax:++49 â (0) 40 â 428 78 â 2867 rajnish. tiwari@tuhh. de, stephan. buse@tuhh. de ABSTRACT Technological advancements
23 6-Implications and Research Outlook...23 7-Summary...25 LIST OF ANNEXES References BARRIERS TO INNOVATION IN SMES:
Challenges associated with the chances of global innovation are discussed in Chapter 5. Chapter 6 entails general implications and research outlook.
Recent calculations by the authors of this paper, based on Germanyâ s official âoestatistics portalâ data, show that the high percentage of SMES amongst all enterprises continues to remain high.
2 These data exemplarily demonstrate the key-role which SMES play in Germanyâ s economy.
The rest was rejected because of containing incomplete and/or contradictory data. Figure 3 shows the representation of the industry sectors in the sample.
confirm, or extend the data base with experts from the selected industries like firm representatives, representatives of industry associations and cluster managers.
BITKOM, Germanyâ s industry association for Information technology (IT), reports a shortage of 40,000 IT professionals (BITKOM, 2007a.
Google Inc. cited troubles in obtaining work visas for its prospective employees as a reason to set up its âoefirst engineering research and development centreâ outside the US in Bangalore in India (The Hindu,
whereby the data is transmitted electronically from one centre to next. Such a step could be of crucial importance for time-critical projects,
According to a Mckinsey study, a software developer costs 60 USD an hour in USA. A software developer with similar skill costs only one-tenth of this amount in India (MGI, 2003.
The starting salary of a software developer working for the German software firm SAP in India was reported at 8, 000 euros per annum in 2004,
while the salary for a similarly qualified person at the headquarters in Germany was reported 5-times higher at 40,000 euros (MÃ ller, 2004).
furthermore, is validated itself also by the fact that over 6 million new mobile phone subscribers are added per month in India (TRAI,
) Many firms, including as reputed names as Google and Infosys, are complaining of a shortage of suitable candidates.
For instance, Hirschfeld (2005) reports several incidences of intercultural nuisances in Indo-German software development work.
and Research Outlook As the discussion above has demonstrated, global innovation activities, especially, the internationalization of R&d, may lead to a mitigation of the effects of innovation barriers faced by SMES in their home country.
o To protect their individual core competences o To share the intellectual property generated by such a joint venture,
âoemanaging Innovation, â in Asia Pacific Tech Monitor,(22:3), pp. 30-33. DBR (2005: India Rising:
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Deckblatt working paper 50. pdf Workingpaper 50 text. pdf
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