1. ‘Innovation without invention’ SMEs and Research & Innovation AWT, Advisory Council for Science & Technology Policy, The Netherlands

2. Focus presentation...on SMEs and Research & Innovation But there is much more going on …. -Investments in Knowledge: KIQ -business – university collaboration is a long time interest in NL –LTI’s: Leading Technology Institutes –Consortia forming, additional funding –Intermediary institutes, co-financing –‘Valorisation’ of knowledge as task

3. SMEs and knowledge utilisation Advice AWT to minister of Economic Affairs (on request) Focus advisory report: on SMEs that ‘innovate without invention’  broad middle category of SMEs that innovate by using and applying existing knowledge  Largely overlooked in policies…  …but with considerable innovation potential

4. Categories of SMEs

5. Features of the innovation practice of ‘appliers’ Pragmatic, goal oriented, moving fast Market driven, spotting chances Using existing knowledge  smart combinations to find solutions  dependent on external knowledge partners  direct use of knowledge: knowledge transfer = using knowledge In short: practice driven (DUI) instead of knowledge driven innovation (STI)

6. Points for improvement Low ‘absorption capacity’ due to low level of education Shortcomings in knowledge diffusion –structural facilities (instead of incidental) –intranspararency of initiatives Accessibility of PROs –Not so much universities, but higher vocational colleges, TNO etc.

7. Strengthening the innovation practice of SMEs More policy attention for ‘appliers’ Suiting their practice of ‘innovation without invention’ Facilitating and enhancing innovation capacities (not stimulating specific innovations) Building on existing policies, but sharpened for ‘appliers’

8. Recommendations 1.Increase level of knowledge in companies (absorption capacity) 2.Solid infrastructure for knowledge diffusion 3.Support obtaining advice for innovation (Up scaling ‘knowledge vouchers’) 4.Improve accessibility and alignment with higher vocational colleges and TNO 5.Involve ‘appliers’ in government calls for tenders