Inside the Innovation Economy

The Lisbon Agenda in times of financial crisis

Interfacing Innovation ConferenceBrussels, April 19-22, 2009

Start: A story about ideas,

creativity and innovation.

Assignment:Build a robot,

able to get from Point A to Point B in a public park.

?(sensors, GPS, cameras,

wheels,…)

Solution:

Source: Tweenbots, comKacie Kinzer (2009)

Source: Tweenbots, comKacie Kinzer (2009)

Unexpected results• „Over the course of the following months,

throughout numerous missions, the Tweenbots were successful in rolling from their start point to their far-away destination assisted only by strangers.“

• „Every time the robot got caught under a park bench...or became trapped in a pothole, some passerby would always rescue it and send it toward its goal.“

• „Never once was a Tweenbot lost or damaged.“

• Source: Tweenbots.com

Innovation in the EU:Effects of the financial crisis?

Outlook to future?

“The world’s most dynamic knowledge-based

economy by 2010”20202020

Introduction

• Christopher Allen, EU Commission

• Juan Cajiao, AISEC

• Magnus Madfors, Ericsson

• Roland Strauss, Strauss Partners

• Philippe Vanrie, European BIC Network

• John Vassallo, Microsoft

• Mirko Lorenz, Deutsche Welle (Moderator)

EcosystemEcosystem

Lisbon Agenda: Situation & Perpectives?Lisbon Agenda: Situation & Perpectives?

EU INNOVATIONEU INNOVATION

SectorsSectors FundingFunding

RegionsRegions ClustersClusters SMEs/GazellesSMEs/Gazelles

EducationEducation ResearchResearch EntrepreneursEntrepreneurs

Innovation CommunicationInnovation Communication

Building

Building blocksblocks

Lisbon Agenda

• 2000: Lisbon Agenda introduced

• 2005: Partly revised

• 2007: Some positive indicators

• 2009: Financial crisis hits markets

• 2020: Perspective for EU innovation?

Lisbon Agenda: Effects of financial crisis?Lisbon Agenda: Effects of financial crisis?

• Education: What is the curriculum?Models that work?

• Research: More transfer, but how?More Collaboration? EU Patents?

Motivations?

• Entrepreneurs: Why take the risk?Motivation? Perception by society?

EducationEducation ResearchResearch EntrepreneursEntrepreneurs

Source: Photocase.de

• Innovative RegionsPerspectives? Needed actions?

• Clusters/Innovation CentersSurvival rates, growth, new concepts?

• SMEs/GazellesWould Google be possible in Europe?

RegionsRegions ClustersClusters SMEs/GazellesSMEs/Gazelles

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• Future Innovation Ecosystem in EuropeBuilding on EU strength, sustainable, social

• SectorsKey areas: Energy, Services, ICT, Food, Health, Auto & Aero

• FundingSources? risk acceptance? “fail fast” models?

EcosystemEcosystem SectorsSectors FundingFunding

Source: Richard Sarson, http://www.richardsarson.com/sketch/sketch01.jpg

• Innovation CommunicationEU & Innovation: Drowning in papersLack of a “sticky” story what EU innovation isHow could we get a better overview?

Innovation CommunicationInnovation Communication

Source: FFFound

Q&AInnovation in the EU:

What could be THE model?

Thank you.

Fact: How are we doing?European Innovation Scoreboard 2008

Source: http://www.proinno-europe.eu/EIS2008/website/docs/EIS_2008_Final_report.pdf

Fact: Job creation by few

‣Just 9.8% of the world's entrepreneurs expect to create almost 75% of the job generated by new business ventures.

‣High-expectation entrepreneurs who want to employ at least 20 people within five years.

‣Source: GEM, 2005, global study

Fact: Idea economy is riskyLess than 1% of ideas in companies are successful.

Fact: Investments risky, tooMore than 80% of money invested by venture capitalists goes into the adolescent phase of a company‘s live cycle.

In this periods accelerated growth, the financials of both the eventual winners and losers look strikingly similiar.

Source: Bob Zider, How Venture Capital works

Fact: Innovation Activity

Fact: VC returns

Source: Price Waterhouse Coopers/3i, September 2003

Public markets returns vs. VC investmentSource: DG EFA 2007,http ://trueeconomics.blogspot.com/2008/12/latest-government-economic-plan-is.html

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Facts: Funding

Source: EVCA Private Equity Activity Survey 2007 Europe

Facts: Private Equity funds

Source: EVCA Private Equity Activity Survey 2007 Europe

Facts: Funding by country

Source: EVCA Private Equity Activity Survey 2007 Europe