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Why is Oslo not Innovative? A Review of the Constraints & Challenges PD Phil Cooke, Director, Centre for Advanced Studies, Cardiff University; Development.

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Presentation on theme: "Why is Oslo not Innovative? A Review of the Constraints & Challenges PD Phil Cooke, Director, Centre for Advanced Studies, Cardiff University; Development."— Presentation transcript:

1 Why is Oslo not Innovative? A Review of the Constraints & Challenges PD Phil Cooke, Director, Centre for Advanced Studies, Cardiff University; Development Studies, Aalborg University; & Management School, University of Florence

2 Competitiveness Sources: WEF Global Competitiveness Report, and IMD World Competitiveness Yearbook 2011

3 European Innovation Performance Source: Innovation Union Scoreboard (IUS) 2010 (SII Summary Innovation Index)

4 European Union Innovation Scoreboard Source: The 2007 Summary Innovation Index (SII)

5 EU Interpretation of Innovation Groupings Estonia, Australia, Norway, Czech Republic, Slovenia, Italy, Cyprus and Spain are the moderate innovators with SII scores below that of the EU27. Sweden, Switzerland, Finland, Israel, Denmark, Japan, Germany, the UK and the US are the innovation leaders, with SII scores well above that of the EU27 and most other countries. Sweden has the highest SII of all countries, but its leading position is mostly based on strong inputs. Luxembourg, Iceland, Ireland, Austria, the Netherlands, France, Belgium and Canada are the innovation followers,

6 Technology Intensity in Total Value Added by Source Source: OECD

7 Technology Intensity This means that countries are ranked according to total business technology intensity Table shows that the share of own R&D activity of business enterprises is about one-half of the total business R&D content in countries with a relatively high level of GDP per capita It is below this share in countries with lower level of income.

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9 Norway’s GDP to Innovation is a low Ratio The ration of GDP level to innovation performance is moderate For unclear reasons high GDP is not translated into high innovation This can have three sources: – Low investment of high GDP by business in innovation – Low government investment in innovation – Low production of innovation by other institutions e.g. universities

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11 On investigation of the input-output ratio of Norwegian effort seems to give poor returns All countries spend more on inputs than they get back in innovation outputs, However, Norway gets a bit less than half the investment in innovation returns Other countries, nearer the top of the performance range e.g. Switzerland and Germany, get more innovation input for output

12 Selected European Knowledge Economy Disparities

13 Interpreting Knowledge Economy Indicators Knowledge –intensive business services plus high tech manufacturing Oslo and Norway’s other main cities have very high KIBS ratios All cities and regions have much smaller HTM than KIBS KIBS are not occupations but sectoral employment, (e.g. banking, administration, management, consultants) Many such posts are routine rather than ‘innovative’

14 Oslo’s Innovation Advantages and Challenges Karlsson 2001, Isaksen, 2003 and Aslesen 2007 found Oslo to be competitive, export-minded and innovative in software engineering In software, Oslo was more export and innovation- minded than Stavanger or Trondheim Characteristic of Oslo software were some university Internet start-ups, venture capital and consultancies selling services to larger Oslo firms Oslo had no greater intensity in R&D investment than some medium cities on turnover from exports and percentage of turnover invested in innovation

15 Oslo’s Challenge Could it be that Oslo’s innovators occupy ‘bloody red water’ of high competition for low margins? We know Oslo suffers from high overhead costs, so can enjoy only limited innovation margins except in very high value-added activity Notice the ‘smiling curve’ of added value in the following slide

16 The ‘smiling curve’ of added value in ICT Global Innovation Networks (GINs)

17 Territorial Innovation Systems In ICT GIN Chipset Design & Advanced GIN Logistics How did the ‘smiling curve’ happen?

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19 Västra Götaland region’s ‘Iconic Projects’ resilience to ‘eco’ and ‘healthcare’ shocks Renewable Fuels Forest Plastics Auto Safety Medtech Green- shipping Petroleum & Health Recycling Environment Sustainable City Tunnel Infrastructure Visioning Recycling Green Logistics Green Procurement Goteborg BIO ICT Healthcare Smart Textiles Pharma Medtech Health Imaging Digital Signals Processing Biodiagnostics GU/CH Research

20 Complex Systems: What’s Going On? Regional Innovation Systems are helping firms find innovative partners outside their sector Innovative firms are seeking ‘relatedness’ from ‘strange attractors’ Policy ‘emergence’ from below up to the global (Gothenburg model of Lisbon Agenda) Innovation by Cross-pollination Inkjet printer now used in Clothing, Ceramics, and Shoes clusters/industries

21 Discussion & Conclusions Norway is wealthy in narrowly specialised fields These are related, too, but are big and independent, oil, offshore engineering, shipping, energy Innovation comes from ‘recombination of knowledge’ (Schumpeter) Innovator city-regions are ‘thinking laterally’ not only ‘vertically’


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