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Economics of innovation centers
Conditions for designing social infrastructure
Centre for strategic research “North-West”, Sanatov Dmitry
Workshop “Skolkovo public spaces and innovation process”
Moscow School of Management SKOLKOVO, May 18-20, 2012
1
        The strategic goal of the creation of the
        innovation centers – to develop high-tech
        activity in the country
Main questions: (1) what will be a source of knowledge and technology competences,
(2) where is consumption market?


                            Unpacking and development                       Strong university
                            of own / national intellectual
                            assets                                          Knowledge-making (science institutes)
                            MODEL 1
                                                                            Recruitment of the companies-customers
The search for              But if you have library of science knowledge…
knowledge source and        …and possibility of new knowledge
                            reproduction
competencies, which
can become the driver
of growth
                            Recruitment of the                              Recruitment of talents
                            external intellectual
                            capital                                         Recruitment of start-up’s
                            MODEL 2
                                                                            Recruitment of completed innovation businesses
                            But if you have great scale of your market




                                                                                                                             2
…enter into number of leading Knowledge Economy Regions?


    Axis f competitiveness




                   Source : Vacature – M.Hinoul
                                                  LRD, Vlerick Business School




                                                                                 3
…or to become the centre of market?


    Markets of R&D




                                      World Bank




                     World Bank
                                                   4
Unique knowledge… or… Specialized development


       European centers                                                                               China
   - to develop unique knowledge                                                    - Investments to infrastructure


                                                                         Specialization on technology transfer, but in geographical
                                                Specialization on        aspect
                                                technology               E-Town in Beijing: plan - 1 thousand square km, with a total
                                                transfer: from the       area of Beijing in 16 km
                                                source of                Bio-pharmaceutical park
                                                knowledge to the
                                                consumer of
                                                products




                        Пример IMEC (Бельгия)



                                                Emphasis on
                                                unique
                                                technologies                                                        http://www.bdainvest.com




                                                                      The largest in Northern China
                                                                        exchange of patents with a
                                                                             focus on research and
                                                                     development in the oil and gas
                                                                           industry (Daqing, China)
                                                                                                                                      5
            Пример Holst Centre (Нидерланды)
2
       Morphologically similar strategy lead to
       different types of solutions


                     Singapore


                                 ре
                                   кр
                                     ут
                                     ин
                                        г


  Fundamental science              Pre-incbation                   Incubation     Acceleration               Scaling

   university &                communities                business-incubation   accelerator            Industrial parks
science institutes




                                                                                              Saclay
           Philip Yo (Singapore): “We have no time and money
          for the study of neutrino. We are not in a position to
                engage in fundamental science” (Expert RA)



                                                                                                                          6
Priorities in different models of innovation centers




                     Primary tools                            Secondary tools
                      • Special education programs            • Completing finish parts of
     MODEL 1            (agglomerating of universities, new     commercialization chain (industrial
     Innocentre –       school, etc.)                           infrastructure but under condition of
     source of new    • Strong links with fundamental           robotics and “smartization”, network
     ideas and          science                                 construction)
     knoweledges      • Professional communities
                      • Public spaces
                      • Urban identity


     MODEL 2          • Infrastructure development            • Completing of commercialization
     Innocentre –     • Standards of urban environment ,        chain (up to generation of new
     entrance to        housing policy and strong               ideas)
     market             architectural concept                 • Public spaces
                      • Catching talents and ideas
                        throughout the world




                                                                                                        7
Model 1
Example 1.1. Space for spin-offs




                                   Innovation centre as a way of
                                   commercialization of excessive
                                   competences (Philips and
                                   Eindhoven High Tech Campus)

                                   •Strong business model

                                   •Social services only formatted and
                                   only in STRIP (plus stadium outside
                                   campus)

                                   •Spin-offs – priority
                                   •Start-ups – only for ecosystem




                                                                         8
Model 1
Example 1.2. Living lab




 Specialized public
 spaces as a new
 management tool in
 innovation policy




                          3”I”: instruments, interiors,
                          interactions (Oasis, Finland)
                                                          9
But the generation of knowledge also could be copied…



                                                            Карта инновационных зон Китая
 Agenda – how to replicate of knowledge generation
 process (main risk for Model 1)




 Карта LivingLab в мире




                                                                      ?                     China Torch Program



                                         openlivinglab.eu




                                                                                                         10
Model 2




  TYPE 1                                    TYPE 2                                      TYPE 3
  Incubation                                Acceleration                                Scaling
  Incubation and spin-off process.          Acceleration and engineering.               Industrial orientation and adaptive
  Main element – incubator.                 Main element – special business real        R&D.
  Function – support for small              estate, including labs, clean rooms, etc.   Main element – industrial park (or
  innovation business.                      Function – accumulation and                 modular consortium).
  Key condition – permanent links with      commercialization ready technologies.       Function – realize ideas, product
  source of knowledge (science              Key condition - infrastructure              manufacturing (innovations mainly in
  institutes, R&D centers, labs, etc).      readiness, legislative support and          processing).
  Priority location – center of big city.   restrictions.                               Key condition - enabling infrastructure
  Example: Harbin innovation zone (part     Priority location: suburban territory.      and tax conditions.
  of Harbin economic zone) , which          Example: Daqing economic zone with          Priority location: outside city, 1-2hours
  includes 3 b-incubators.                  specialization in oil technologies.         connection to centre of big city.
                                                                                        Example: E-Town in Beijing.




                                                                                                                              11
3
           Engineering of social policy depends on
           economic model

Only basic set of social services is standard.

                              MODEL 1                                                                 MODEL 2
                                                               Basic social services
 Tendency to lean on the infrastructure of the existing system of          Tendency to autonomous social systems.
 nearest settlement.
 Only a few services are autonomous (kindergarten, regular sport,
 public nutrition, stomatology)

                                                                  Housing policy
 It is not a priority question. Need only for supporting activity during   Forwarding specific of housing policy (investments to houses before
 night and week-end time.                                                  new residents)

                                                       Public spaces and event policy
 High openness and high availability of public spaces.                     High role of demonstrative decisions
 Controlled activity on the basis of public spaces (clubs on interests,    The high efficiency of one-time meetings
 communities of practice, VNO, CNO, and integrated commands).              Orientation on the magnitude of the events
 Discussion culture and special infrastructure.                            Managed research process
 Conditions that stimulate random innovations (serendipity).




                                                                                                                                             12
Social policy principles




  • Principles for communication (professional societies, open innovation, etc.)

  • Principles that ensure effectiveness of specialists work (kindergartens and schools for
    children, the availability of sports and other services)

  • Principles that ensure social stability (crosscultural communications, security, etc)

  • Principles that provide orientation on innovation (promotion of innovative activities and
    innovative labour market organization, the promotion of innovative solutions in design,
    construction and operation of social facilities, etc.)

  • Principles that ensure SKOLKOVO interactions with the surrounding territories




                                                                                            13
…transfer of technologies and talents must be accompanied by
import of urban environment and models of communication



  Итальянский квартал в Тяньцзинь

                                                                              3 main social policy directions in Tjanjin,
                                                                              which are oriented to attract innovators form
                                                                              other countries:

                                                                              3.Affordable housing
                                                                              4.Familiar conditions of life
                                                                              5.Special events (forums, briefings
                                                                              companies, discussions)




                                    http://www.panoramio.com/photo/26023502




                                                                                                                              14

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Economics of innovation centers

  • 1. Economics of innovation centers Conditions for designing social infrastructure Centre for strategic research “North-West”, Sanatov Dmitry Workshop “Skolkovo public spaces and innovation process” Moscow School of Management SKOLKOVO, May 18-20, 2012
  • 2. 1 The strategic goal of the creation of the innovation centers – to develop high-tech activity in the country Main questions: (1) what will be a source of knowledge and technology competences, (2) where is consumption market? Unpacking and development Strong university of own / national intellectual assets Knowledge-making (science institutes) MODEL 1 Recruitment of the companies-customers The search for But if you have library of science knowledge… knowledge source and …and possibility of new knowledge reproduction competencies, which can become the driver of growth Recruitment of the Recruitment of talents external intellectual capital Recruitment of start-up’s MODEL 2 Recruitment of completed innovation businesses But if you have great scale of your market 2
  • 3. …enter into number of leading Knowledge Economy Regions? Axis f competitiveness Source : Vacature – M.Hinoul LRD, Vlerick Business School 3
  • 4. …or to become the centre of market? Markets of R&D World Bank World Bank 4
  • 5. Unique knowledge… or… Specialized development European centers China - to develop unique knowledge - Investments to infrastructure Specialization on technology transfer, but in geographical Specialization on aspect technology E-Town in Beijing: plan - 1 thousand square km, with a total transfer: from the area of Beijing in 16 km source of Bio-pharmaceutical park knowledge to the consumer of products Пример IMEC (Бельгия) Emphasis on unique technologies http://www.bdainvest.com The largest in Northern China exchange of patents with a focus on research and development in the oil and gas industry (Daqing, China) 5 Пример Holst Centre (Нидерланды)
  • 6. 2 Morphologically similar strategy lead to different types of solutions Singapore ре кр ут ин г Fundamental science Pre-incbation Incubation Acceleration Scaling university & communities business-incubation accelerator Industrial parks science institutes Saclay Philip Yo (Singapore): “We have no time and money for the study of neutrino. We are not in a position to engage in fundamental science” (Expert RA) 6
  • 7. Priorities in different models of innovation centers Primary tools Secondary tools • Special education programs • Completing finish parts of MODEL 1 (agglomerating of universities, new commercialization chain (industrial Innocentre – school, etc.) infrastructure but under condition of source of new • Strong links with fundamental robotics and “smartization”, network ideas and science construction) knoweledges • Professional communities • Public spaces • Urban identity MODEL 2 • Infrastructure development • Completing of commercialization Innocentre – • Standards of urban environment , chain (up to generation of new entrance to housing policy and strong ideas) market architectural concept • Public spaces • Catching talents and ideas throughout the world 7
  • 8. Model 1 Example 1.1. Space for spin-offs Innovation centre as a way of commercialization of excessive competences (Philips and Eindhoven High Tech Campus) •Strong business model •Social services only formatted and only in STRIP (plus stadium outside campus) •Spin-offs – priority •Start-ups – only for ecosystem 8
  • 9. Model 1 Example 1.2. Living lab Specialized public spaces as a new management tool in innovation policy 3”I”: instruments, interiors, interactions (Oasis, Finland) 9
  • 10. But the generation of knowledge also could be copied… Карта инновационных зон Китая Agenda – how to replicate of knowledge generation process (main risk for Model 1) Карта LivingLab в мире ? China Torch Program openlivinglab.eu 10
  • 11. Model 2 TYPE 1 TYPE 2 TYPE 3 Incubation Acceleration Scaling Incubation and spin-off process. Acceleration and engineering. Industrial orientation and adaptive Main element – incubator. Main element – special business real R&D. Function – support for small estate, including labs, clean rooms, etc. Main element – industrial park (or innovation business. Function – accumulation and modular consortium). Key condition – permanent links with commercialization ready technologies. Function – realize ideas, product source of knowledge (science Key condition - infrastructure manufacturing (innovations mainly in institutes, R&D centers, labs, etc). readiness, legislative support and processing). Priority location – center of big city. restrictions. Key condition - enabling infrastructure Example: Harbin innovation zone (part Priority location: suburban territory. and tax conditions. of Harbin economic zone) , which Example: Daqing economic zone with Priority location: outside city, 1-2hours includes 3 b-incubators. specialization in oil technologies. connection to centre of big city. Example: E-Town in Beijing. 11
  • 12. 3 Engineering of social policy depends on economic model Only basic set of social services is standard. MODEL 1 MODEL 2 Basic social services Tendency to lean on the infrastructure of the existing system of Tendency to autonomous social systems. nearest settlement. Only a few services are autonomous (kindergarten, regular sport, public nutrition, stomatology) Housing policy It is not a priority question. Need only for supporting activity during Forwarding specific of housing policy (investments to houses before night and week-end time. new residents) Public spaces and event policy High openness and high availability of public spaces. High role of demonstrative decisions Controlled activity on the basis of public spaces (clubs on interests, The high efficiency of one-time meetings communities of practice, VNO, CNO, and integrated commands). Orientation on the magnitude of the events Discussion culture and special infrastructure. Managed research process Conditions that stimulate random innovations (serendipity). 12
  • 13. Social policy principles • Principles for communication (professional societies, open innovation, etc.) • Principles that ensure effectiveness of specialists work (kindergartens and schools for children, the availability of sports and other services) • Principles that ensure social stability (crosscultural communications, security, etc) • Principles that provide orientation on innovation (promotion of innovative activities and innovative labour market organization, the promotion of innovative solutions in design, construction and operation of social facilities, etc.) • Principles that ensure SKOLKOVO interactions with the surrounding territories 13
  • 14. …transfer of technologies and talents must be accompanied by import of urban environment and models of communication Итальянский квартал в Тяньцзинь 3 main social policy directions in Tjanjin, which are oriented to attract innovators form other countries: 3.Affordable housing 4.Familiar conditions of life 5.Special events (forums, briefings companies, discussions) http://www.panoramio.com/photo/26023502 14