open innovation in emerging markets
TRANSCRIPT
Rasha Y. TantawyOct. 2011
Why
Competitive Advantage?
Growth?
Profit?
Where is Egypt?
The TDP
Academy of Science & Technology
IDSC Cabinet Information and Decision Support Center
The Egyptian Incubator Association
Secretary of State For Scientific Research
Supreme Council for Research Centers
Mubarek Science City
The EDP incubator program
Euro Med Free trade Zone
Industrial Modernization Program
Smart Village
EU Association Agreement
Academy Innovation Program
Tale Incubator
Structure f Egypt’s Innovation Policy Measures
The Global Competitiveness Report 2010-201112th pillar: Innovation Egypt’s Rank
Capacity for innovation 109/139 Quality of scientific research institutions.............................. 110/139 Company spending on R&D.................................................... 74/139 University-industry collaboration in R&D............................... 120/139Govt procurement of advanced tech products ...................... 86/139 Availability of scientists and engineers ................................... 25/139 Utility patents per million population*..................................... 84/139
The Global Competitiveness Report 2010-2011
Egypt’s Stage of Development
1Factor Driven
transition2
Efficiency Driven
Transition3
Innovation Driven
EGYPT
Innovation and sophistication factors ............................68/139 ........3.5/7
Road blocks to Innovation in Egypt?
Finance!
hire university graduates
organizing awareness workshops
upgrade their manufacturing and
management processes
Providing financial support
build R&Dcapabilities
Solution?
• Increase finance for R&D?
• Share Costs?
A New Model …?
• Increases opportunities for innovation(Angello Morelli 2009)
• () enables more effective use of resources and capacities, better matching of capabilities with market needs and benchmarking to improve efficiency.(Hanna Bahemia & Briau Squire 2008)
• Shortenes development time (Danish Ministry of Science 2007)
• Diversifies risks and share uncertainties.(Keupp & Gassmann)
Open Innovation
Open Innovation Online• Chaordix – Business innovation – Engaging crowds through the web to
solve your business problem• Kluster – Brainstorming / feedback – Harness the power of your own
hand-picked crowd to brainstorm ideas• Namethis – Brand names – A 48 hour competition site to find a
suitable brand name for your venture• Innocentive – Problem solving – Brings together seekers who have a
problem together with solvers from around the world who may be able to help
• Rent A Coder – Software development – International marketplace to locate software coders
• Global Ideas Bank – Social innovation – A site which collects social inventions that can change the world, which are rated by online voters.
Open Innovation?
• Open innovation means that the company needs to open up its solid boundaries to let valuable knowledge flow in from the outside in order to create opportunities for cooperative innovation processes with partners, customers and / or suppliers. It also includes the exploitation of ideas and IP in order to bring them to market faster than competitors can.(Gassmann & Enkel 2004)
Changing the Landscape of Innovation
Why SMEs?
• SME’s tend to have a greater need “ to look for partners with different but complimentary capabilities”(Tidd, Bessant & Pavit 2005) because they don’t have the access to resources that corporates do.
Factors Affecting OI at firm level
ECOSYSTEM
Industrial environment
Partner type
Network
Communities
Industry
Product type
Maturity
Science based
Hi tech
Competitive intensity
Tech, turbulence
Transaction ratesmacro
environment
Economy
Culture
ecosystem
Internal
Firm characteristic
size
age
Culture
Experience with technology
Foreign ownership
Location
Product variety
R&D
Management
Inter organizational
man. techniques
Knowledge management
Absorptive
Dispersive
Degree of patent protection
Firm
Conceptual Framework
Likelihood of Open Innovation adoption by SMEs
Firm Characteristics
Firm Management
Firm Industrial Environment
H5, H6, H7
H1,H2
H3,H4
The Survey
3000
435OI = f(absorptive capacity + size + location +foreign ownership + public financial support + R&D costs + cooperative partners)
The Results
SizeLocation
Absorptive Capacity
R&DFinancial
SupportCooperative
PartnersForeign
Ownership
The Conclusion