PowerPoint Presentation - ESCP Europe by zhouwenjuan

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									Creating Regional Wealth
     in the Innovation Economy


 American University – Kogod –
           Nov 2002

Jeff Saperstein and Daniel Rouach
  sapermktg@earthlink.net and drouach@escp-eap.net
    Creating Regional Wealth
      3 Years of Research
• Project teams in Regions : 12 teams
• Bibliography : 150 key articles and 30 books
• Face to face interviews as possible : 85 meetings
  with 115 persons in 15 countries
• Format that enabled us to be consistent yet true
  to local flavor
• Factors selected by region to highlight local
  dynamics yet eliminate redundancy
• Emphasis on perspectives
www.creatingregionalwealth.com



          Our Web
          Site
        Part 1. Presentation
    1. Introduction
     2. Key Topics

                        3 Key Ingredients

4. Israel Wadi Valley
    5. Grenoble &
   Sophia Antipolis
   Part 2. Discussion


Questions &
 Comments
                      Kogod- Escp-Eap
                        Cooperation


        Models
      Perspective
     Best practices
       1. Introduction
ST Microelectronics Challenges
                          Create an Open-Minded
    Be Superiorly          culture. One where
      Innovative        innovation and creativity
     and Creative       are for everyone, not just
                         products, not just R & D



  A proper framework         Create a culture
   so that innovation         which enables
     and creativity     disruptive break through
   are assured, not a      as well as sustained
    question of luck            innovation
            New Business Models
               ST Microelectronics


             Understand how        Understand how
           the world of           the arrival of new
          semiconductors         business models and
         is changing             paradigms threatens
                                us, and learn how
                                we can respond


                           Understand how
   Be strategically and   the arrival of new
  commercially nimble,    business models
 flexible and            and paradigms
responsive
                        opens up new
                        opportunities for us
               .
  Where is the RIGHT place
           to BE ?

Intellectual Capital of Regions
 Clusters Michael Porter*



   “Clusters are a Driving Force
        in increasing exports
          and are Magnets
for attracting Foreign Investment”
     Feb 2000 Economic development Quartely Vol 14 p.15
    Clusters Michael Porter
           Definition
Clusters are concentrations of
highly specialized skills and
knowledge, institutions, rivals,
related businesses, and
sophisticated customers in a
particular nation or region.
     Clusters Michael Porter
            Definition
Proximity in geographic, cultural and
institutional terms allows special access,
special relationships, better information,
powerful incentives, and other advantages
in productivity and productivity growth
that are difficult to tap from a distance.

As a result in a cluster, the whole is
greater than the sum of the parts.
Were is the Right Place to be ?
Silicon Valley or Death Valley ?
 •   Baby Cluster : Atlas valley
 •   Babel Cluster : Sophia Antipolis
 •   Island Cluster : Wadi Valley (Israël)
 •   Magnet Cluster : Silicon Valley
 •   Network Cluster : Bengalore
  2. Creating Regional Wealth
           Key Topics

• Principles and Practices enabling Regions to
  adapt to Innovation Economy

• How can Regions Plug into Innovation
  Economy with their own particular Strengths ?

• How can Foreign Investment be attracted and
  businesses plug into successful regions ?
   Regional Wealth Creation
          Key topics
 High Tech Cluster War :
How to attract Investors?


                              How to Create
                            a Regional Center
                              of Excellence ?
    How to Survive
     as a Cluster ?
    Regions Selected
Gold Medalists and Others

 Silicon Valley
     Ireland
    Munich
                         Sophia Antipolis
  Cambridge                  Taiwan
                              Israël
                              India
           Models
         Perspective
        Best practices
 3. Creating or Destroying Value ?
    Key Ingredients For Success

•#1   Cross Fertilisation
•#2   Coopetition
•#3   Pollinisation
•#4   Innovation
•#5   Incubation
    Creating Regional Value
     Key Ingredients for Success

# 6 . A Champion - Networker
# 7 . “Magic Atmosphere”
# 8 . No NIH “Not Invented Here”
# 9 . Knowledge Transfer
# 10. Diasporas Culture
        Key Ingredients
  # 11. Education Investment
• Priority for Governments
  Major Universities
  Regional Technical Colleges
  Research Institutions
  Technology Parks
 # 12 . Convergence of Societal
          Institutions
• Working Together for a Region to Succeed
  Government at all levels
  NGO’s and educational institutions
  Industry and labor
  Venture Capital and Markets


 Permeable collaboration has huge implications
 for individual career choices
    #13 . Risk and Chutzpah !

• Entrepreneurial risk must be rewarded
  and encouraged for individuals
   Stock options and Open Capital Markets
   Environment that does not penalize
    failure
  # 14.Branding & Distinctive
         Competencies
• Successful Regions have staked
  out important distinctive
  competencies
   Leverage Regional Strengths
   Do not replicate Silicon Valley
    #15.Flexibilty & Regional
            Evolution
• There is an evolution to regional success
  and working up the value chain
  Low-cost manufacturing and service centers
   evolve to high end sophisticated regions
  Regional integration between high end and
   low end is encouraging (Taiwan--China)
  Transnational diasporas are great catalysts for
   regional development
For much of the world, poverty,
ignorance, and societal dysfunction has
led many to despair, anger and fanaticism
as the only way to attain human dignity.
Perhaps the promise of Creating
Regional Wealth in the Innovation
Economy will provide another way for
the benefit of all.
                    4. Wadi Valley

   There are presently in Israel:
        about 1,000 mature technology companies
        2,000 startups
        320 startups in which venture and private
         funds have invested

   Immigration of a highly skilled workforce from the
    former USSR : 55% have more than 13 years of
    education
   Conversion of military technology into commercial
    successes
Number of employees engaged in R&D/10,000 employees



 ISRAEL                                   145
 UNITED STATES

        JAPAN

     GERMANY

       CANADA

  SWITZERLAND

       TAIWAN

UNITED KINGDOM

  SOUTH KOREA

      IRELAND

    SINGAPORE


                 0   50       100       150
                                                      Exports in
          Exports in                                    2001
            1991
                                                         Total
         Total Export:                                Export: $20
            $7.7 bn                                       bn
                                                           Food
                                                                    Machinery
              Food                                         4%
                                      Other                          6%
              7%       Machinery                                           Textiles
Other                   8%            23%
33%                                                                         5%
                           Textiles
                            10%




                         Chemicals
                          20%                                                Chemicals
                                                                               19%
 High-
                                          High-Tech
 Tech
                                              43%
 22%
         Israeli-based VCs and Startups


 From 3 VC funds in 1993 to more than 100
  funds (2002)
 Over $5 billion invested in technology
  companies last 5 years
               Interest from
            Multinational Players
          Multinational presence in Israel
     Through R&D and production facilities :
   Intel, Microsoft (their only R&D center outside
    USA), IBM, Motorola, DEC(COMPAQ), Analog
    Devices, Rockwell, EMC, 3M. ADC Telecom, AOL,
    BAAN, BMC, Broadcom, Cisco, Compaq, Conexant,
    Fujitsu, GE Medical, Intel, Johnson & Johnson, etc.


    Through investment in Israeli companies :
   Daimler-Benz, Siemens, America On-line, US
    Robotics, Applied Material, Sumitomo, Boston
    Scientific, 3 COM, J&J, Terayon, Marconi,
    Motorola, Nortel Networks etc.
    High Tech Clusters France-Israel Cooperation Potential

                 Sector                             Sub-Sector

1     Smart Card & Security            Data / Network security, Contactless
                                       technologies, Reading Terminals
                                        Internet, Data Transmission and Data
2     Software                          Management, Network Security,
                                        Mutimedia, Engineering softwares
                                        Bio-therapeutic drugs, Diagnostic techno-
3     Biotechnology                     logies, Bioinformatics, Bioanotechnologies,
                                        Stem Cells, Proteomics, Pharmacogenomics

                                        Fixed broadband technologies, Multimedia
4     Wireless                          Messaging, Voice Transmission, Intelligent
                                        Antennas
                                        Diagnostic Technologies, Telemedicine,
5     Medical Instrumentation           Surgical Devices, Medical Softwares,
                                        Medical Imaging

      Other possible areas              Opto-electronics, Call Centers, Semi-
                                        conductors, Electronics, Plastics &
      of R&D cooperation                Rubber, Aerospace technologies
SMART CARD AND SECURITY
  Companies interviewed

                 France           Israël




                          Kasys




     Axiome
  Technologies
SMART CARD AND SECURITY
         We have identified the following opportunities
                                                Entreprises France (< 1000 employés)
                                            Ask , Datacard Group, Astria, Atos Origin,
                                            Cyber-Comm, Verifone, Activcard Europe,
                                            Elva, Xiring, Tronic’s Microsystems,
                                            Neurocom, Cyber Networks, Kasys, Rapsodia
                                            Software, Trapinex, BG Ingénierie, Card.Dev,
                                            Rovip Industrie, Sokymat Identification,
                                            Atlantic Zeiser,Logfi, Moneyline, Transworld
            France-Israel                   Payment, Solutions, EDSI, Silicomp, Trusted
        technological niches                Logic, Trusted Logic, Mercury Technologies.
•   Encryption
•   Electronic Signature
•   Authentication
•   Biometrics
                                                 Entreprises Israël (< 1000 employés)
•   Contactless
•   Reading terminals                       •   OTI - On Track Innovations
                                            •   Transway
                                            •   Comsense
                                            •   Ordacard
                                            •   Power paper
                                            •   Electronics Line
                                            •   Samco Corporation
                                            •   Scsquare Ltd,
                                            •   Secure2net, Adamtech, Metaform Ltd
SOFTWARE
  Companies interviewed

         FRANCE                                ISRAEL




                            Magic Software Enterprises
                                 Click Software
                  D.I.E.S             Aviv
SOFTWARE
        We have identified the following opportunities
                                             Entreprises France (< 1000 employés)
                                           Ausy, Ares SSII, Fininfor Progiciels et
                                           Systèmes, Titus Interactive, Ilog, Groupe
                                           Sinorg, Prologue Software, BVRP Software,
                                           Mediagerance, Linedate Services, GL Trade,
                                           Cryo Interactive, Kalisto Entertainment,
                                           Algoriel, Consort NT, Médiascience, Esker,
                                           Cohéris Atix, Tracing Server, IGE+XIAO,
            France-Israel                  Pharmagest InterActive, Infovista, Generix,
        technological niches               Dalet, ARI, IT Link, R2i Santé, Itesoft,
• Medium Term                              Conexant, Infogrames, etc.
   –   Internet
   –   Data Management
   –   Multimedia
   –   Network Security                       Entreprises Israël (< 1000 employés)
• Long term
                                           Check Point Software, Magic Software
   – Image Processing
                                           Enterprises, Sapiens International, Retalix,
                                           Crystal Systems Solutions, Contahal,
                                           BackWeb Technologies, ClickSoftware
                                           Technologies, Mind CTI, e-SIM, Testnet
                                           Software Testing, Top Image Systems, Arel
                                           Communications & Software, Multimedia
                                           K.I.D., Marnetics Broadband Technologies,
                                           Emblazes Systems, SEA Multimedia, etc.
BIOTECHNOLOGY
Companies interviewed
           France                         Israël




                              XTL                  Omrix
     IDM

                              Origenix   Biotechnology General

                    Vivalis   D-Pharm              Mind Sense
BIOTECHNOLOGY
        We have identified the following opportunities
                                                Entreprises France (< 1000 employés)
                                           Transgene, Cerep, Synt:em, Genset,
                                           Hybrigenics, Genfit, GenOdyssée, Exonhit,
                                           ValiGen, Flamel Technologies, Biovector
                                           Therapeutics, Nicox, Meristem Therapeutics,
                                           Genoway, Gentech, Vivalis, Proteus Pharma,
                                           Entomed, Neuro-3D, Appligene, Chemunex,
                                           IDM, BIP, Cellectis SA, Cellpep SA, Centre
            France-Israel                  d'Immunologie Pierre Fabre, Génopoïétic,
        technological niches               MERISTEM Therapeutics, etc.
• Medium term
   – Diagnostic technologies
   – Therapeutic Drugs
• Long term
   –   Bioinformatics                           Entreprises Israël (< 1000 employés)
   –   BioNanotechnologies                 •   Bio-Technology General
   –   Stem Cells                          •   Compugen
   –   Génomics, Post-Génomics
                                           •   Healthcare Technologies
   –   Protéomics
                                           •   XTL Biopharmaceuticals
                                           •   Keryx Biopharmaceuticals Inc.
                                           •   Orgenix, Pharmos
                                           •   D-Pharm
                                           •   Omrix
                                           •   Biotechnology General
                                           •   Mind Sense
Biotechnology

In this field, cooperation is vital. Companies have to cooperate
with each other, with research institutions and with
universities. They also have to cooperate with pharma
companies.

The time available for a biotech company to achieve critical
mass is continually shortening and the definition of critical
mass is continually increasing.

Biotech companies need to run faster and jump higher than
ever before.
WIRELESS
 Companies interviewed

         France                              Israël




       Optiway           Shiron Satellites
                         Locationnet
                         Algotech
    WIRELESS
        We have identified the following opportunities
                                               Entreprises France (< 1000 employés)
                                           •   IB Group
                                           •   Genesys
                                           •   Coriolis Telecom
                                           •   Siris
                                           •   Com 1
                                           •   NET2S
            France-Israel
                                           •   Western Telecom Phone Systems &
        technological niches
                                               Network
•   Fixed Broadband Technologies
•   Multimedia Messaging
•   Voice Technologies
•   Intelligent Antennas
                                                Entreprises Israël (< 1000 employés)
                                           •   Siris
                                           •   Mentergy
                                           •   Orckit Communications
                                           •   Walla! Communication
                                           •   Ectel
                                           •   Nexus Telocation Systems
                                           •   MER Telemanagement Solutions
                                           •   Eurocom Communications
                                           •   Alvarion
MEDICAL INSTRUMENTATION
  Companies interviewed


           France          Israël




   Laboratoire Aguettant
                    5. Grenoble

•A high-tech hub: Digital, IT, micro&nanotechnologies
•Mission: No 1 in Europe for micro&nanotechnologies
•Influence by local environment and tradition
•Entrepreneurial spirit: spin-offs, self-sufficiency


                 Sophia Antipolis
•Telecom Valley brand
•« California in Europe »
•R&D, inter-disciplinarity, cross-fertilization
                        Grenoble

Local       History of hydroelectric power & atomic energy
Culture         Isolated environment but market exists
                 A pioneering and self-sufficient spirit.

Informal       4 renowned universities including the INPG
network     “Communication exchange” between universities,
                    research laboratories & industry


Spin-off      20 year history of spin-offs, entrepreneurship
creation      Centre d’ Energie Atomique (CEA): key player
                          Local hero: Louis NEEL


Future     Technology Transfer between research and industry
Strategy    “Micro & Nano-Technology House”: FF 790 million
            Aim: no. 1 in Europe for Micro & Nano Technology
       Challenges and problems for Grenoble
       “to stay competitive and to attract multinationals”


•Regional
Infrastructure factors: no TGV from Lyon, isolation.
Competition: Lyon & Sophia-Antipolis are in the same
region.

•National
Brittany, Lorraine, Paris and Sophia-Antipolis are
national competitors for high-tech development.

•International
Grenoble is not a major European city. In competition
with Munich, Dublin, Barcelona and Stockholm.
            Role of Government in Grenoble

                              Regional and             Intellectual
       National
                           local governments              capital
     Government


   1900+             1950s             1970s                  2000+

Hydro-electric    Research and     Microelectronics        Micro & Nano
power             atomic energy    and high-tech           technology




                   CEA   Science   Decentral-         Spin-offs Incubators
                         parks     ization 1982
                    Government



         Leti   INRIA
 CEA                                       INPG
                                       9 engineering
       State-funded                       schools
       research labs

                « Informal Network »

 ZIRST                                                    4 Universities
Spin-offs                                              2 business schools
 20 yrs

                         Industry:
                         dynamic
                         companies



                         Regional
                       organisations
                        AEPI, CCIG
                                Grenoble
                          « spin-off slopes »

            Pioneering
               spirit
                          Inspiration
                                          Intellectual
                                             capital


creativity                                               ideas




                         entrepreurship
 Informal
 business                                       Technological
 network                                          know-how
Sophia Antipolis
                              History: painters & writers



 Lifestyle                    International Infrastructure
                R&D           and Population
Inspiration   Innovation      BUT high unemployment
                              stronghold of the FN
                              Sophia as ISLAND



      International tourism
      for 2 centuries
      Rich Region
         Co-opetition and Networking
International village character: all key people know each other
Big companies:                                   THE BRAND
      Common need & competition
           CO-OPETITION
     10 years

   Network of high tech companies,
   research bodies educational
   establishments and other interested          Critical Mass
   parties
               Attracting & leveraging skills
                     recruitment, partnership with education
               Promoting the brand & location
                     co-opetition with traditional local industry
                     and local government: M-tourism
            The Main Challenges
Skills
  • Marketing, business, IT and engineering
  • Cross disciplinary
Infrastructure
  • Growth in step with Sophia Antipolis expansion
Government
  • appreciation and support of high-tech
Co-opetition
  • ever closer co-opetition between all the parties on these
  issues
                       CONFIDENCE
         SUCCESS                              SUCCESS
                       EXPERIENCE
I
       CROSS
    FERTILIZATION

         ?
             Entrepreneurial spirit

INRIA: since 1983 in Sophia Antipolis
   •No entrepreneurial spirit at the time
   •« Learn through experience and a network »
   •Failure: researchers can return to their posts



Motivation
   •«for the benefit of the French nation »
   •To defend the interests of France against those of
   competing countries such as US
   •Not so much personal wealth creation
Cross Fertilization              Education & Research
                                 UNSA, ISIA, INRIA,
                                 ENSBA, CNRS, Institut
                                 Eurocom
          RESEARCH




                      PARTNERS
EDUCATION                          CAMPUS S.T.I.C.
                                         SAN
         COMPANIES
                                    Associations
                            PERSAN, Telecom Valley,
                             database forum, Club
                              des dirigeants, Club
                                     HiTech
Part 2 :Q & A

 Write to: drouach@escp-eap.net

								
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