2. M.Sc. in “Engineering Policy and Management of Tehnology” CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+ Instituto Superior Técnico, Technical University of Lisbon http://in3.dem.ist.utl.pt Innovation, Engineering and the Management of Technology: building a university agenda Pedro Conceição and Manuel Heitor

3. Background: trends for the University ? Conceicão & heitor (1999) Codified knowledge (“software”) Tacit knowledge (“wetware”) Valorization of human and intellectual capital? Challenges and … Opportunities...

4. TRADITIONAL MECHANISMS TO PROMOTE UNIVERSITIES and R&D IN SOCIETY The model: “american university” as reference 1.Intellectual Property Protection issues:economic impact negligible promotes institutional integrity requires adaptation and flexibility 2.Technology Infrastructures and Science Parks issues:emphasis local development have not promoted U-I linkages

5. TRADITIONAL MECHANISMS TO PROMOTE THE ROLE OF UNIVERSITIES IN SOCIETY The trend: a process of “institutional convergence” The result: universities today, despite their long historical I inheritance, are relatively new institutions… … with a complex set of incentive structures and organizational features (Rosenberg & Nelson, 1996) The threat: institutional integrity The analysis: “standard”, linear model has been implicit in m most studies

6. New technologies Existing technologies 20002010 Education / training for last 10 years 20002010 Education / training acquired for more than 10 years 2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years The knowledge gap (Scope: EUROPEAN REGIONS)

7. QUESTION Which trends for science, technology and innovation policy, in a way to contribute for the challenges faced by engineering and technology to enhance innovation?

8. Our Argument... The need for institutional renewal, … promoting diversity with institutional integrity, (Conceicão & Heitor, 1999) …making use of partnerships! (Conceicão, Gibson, Heitor & Sirilli, 2000) The scope:... the globalized “learning society”! Knowledge Institutions Learning Organisations Intellectual Property Learning Networks BUT, understanding research (R&D; R&T; R&L), promoting research for creative teaching, and integrating technology, policy and management!

9. 1. The CONTEXT: a CONCEPTUAL FRAMEWORK 2.FACTS and RESULTS 3. HYPOTHESIS STRATEGIES, POLCIES and RECOMENDATIONS Reference Terms e Scenários Strategies and Policies...http://in3.dem.ist.utl.pt/et2000/ CONTENTS

10. 1. The “new” economy: “the big boom” 2.Technological change: accelerating 3.Social Dynamics: complexity and diversity 4. “Governance”: a new model! The CONTEXT OCDE: “FUTURES”, Hannover 2000 EC: “IPTS - Futures Report”, 2000

11. The structure of the “new” economy Agriculture Indústry Services Agriculture Indústry Services Industrial era Knowledge era I- Recession II- Growth Technology replaces employment Economy without employment Demand Deficit Technology creates new industries and opportunities Entrepreneurial economy Value creation

12. The importance of Technology in corporate development Case study: Innovation in Italy (Evangelista & Sirilli, 1997) The convergence of sectors is emerging, with the growing importance of technology in corporate development

13. 1. The “new” economy: “the big boom” 2.Technological change: accelerating 3.Social Dynamics: complexity and diversity 4. “Governance”: a new model! The CONTEXT OCDE: “FUTURES”, Hannover 2000 EC: “IPTS - Futures Report”, 2000

14. Technological Change: materials, IPTS(1999) STEELS CAST IRON IRON COOPER ALLOY STEELS GLASSY METALS AL-LITHIUM ALLOYS DUAL PHASE STEELS MICROALLOYED STEELS BRONZE SKIN FIBRE GUMS RUBBER LIGHT ALLOYS SUPER ALLOYS TITANIUM ZINCONIUM ETC NEW SUPER ALLOYS DEVELOPMENT SLOW MOSTLY QUALITY CONTROL AND PROCESSING CONDUCTING POLYMERS HIGH TEMPERATURE POLYMERS HIGH MODULUS POLYMERS BAKELITE NYLON WOOD PAPER STONE FLINT POTTERT GLASS CEMENT REFRACTORIES PORTLAND CEMENT FUSED SILICA CERMETS EPOXIES POLYESTERS COMPOSITES POLYMERS METALS CERAMICS POLYMERS COMPOSITES CERAMICS METALS ALLOYS 10 000 BC5000 BC010001500 1800 19001940 1960 19801990200020102020 GOLD CERAMIC COMPOSITES COMPOSITES METAL-MATRIX SURFACE ENGINEERING RELATIVE IMPORTANCE SUPERCONDUCTORS TOUGH ENGINEERING CERAMICS KEVLAR BRICKS (with STRAW) IVORY 10000 BC 5000 BC 010001500180019001940196019801990200020102020

15. Technological Change: telecommunications

16. Technological Change: perspectives The Convergence: telecommunications and computers... The QUESTION : scope and scale PRODUCTS PRODUCT more technologies to produce each product more products produced from a given technology Source: von Tunzelmann (1999)) TECHNOLOGIES PROCESSES TECHNOLOGY PROCESSES

17. New reactors Nuclear fusion New energy biomassPhotovoltaic materials Fuel cells Superconductors Supervision of energy processes Robotics Security systems energy Batteries Pacemakers Artificial Heart Recombin. DNA New drugs Enzymatic Synthesis Membranes Biocompatible materials Instrumental analysis of dna sequences biotechnologies Power lasersBio-leaching Biological ore processing New alloys Ceramics and composits Computer based design of new materials materials Photovoltaic applications Biosensors Biochips Semiconductors Superconductors Telematics Automation Computers information technologies energybiotechnologiesmaterialsinformation technologies Technological Change: Emerging interactions... from to

18. Technological Change: impact...1 1. Knowledge Diffusion 2. Knowledge Creation corporate competitiveness depends on innovation capacity globalization has increased market demand on nre products, processes and services Increasing interdisciplinarity and complexity of the knowledge base Significant contribution of technology for scientific development QUESTION: inovation/ adoption of new technologies? QUESTION: Which, and how to develop the scientific base? 3. Knowledge Transfer the need to promote systems of education and training diversified QUESTION: Which education and training systems?

19. Entrepreneurial capacity : NTBF Socio-economic inequality: –The need to promote local systems of knowledge creation and diffusion Technological Change: impact...2 A strategic vision: developing technology platforms enphasizing clusters (the corporate value chain) ca de vlor....to promote SOCIAL CAPITAL in a technology context Knowledge Diffusion…

20. PROCESSES:complex and diversified INVESTMENT:education; R&D; learning-by-doing AGENTS:state, firms, universities, schools What we know… Creation and distribution of knowledge Economic growth and development Technological innovation and development

21. What we know… “The Chain Link Model” Chain Linked Model of Innovation Potential Markets Invention/ analytical design Detailed design & Test Re-design & Production Distribution & market Knowledge Research Kline & Rosenberg Technology platforms BUS “Communities of practice”

22. 1. The CONTEXT: a CONCEPTUAL FRAMEWORK 2.FACTS and RESULTS 3. HYPOTHESIS STRATEGIES, POLCIES and RECOMENDATIONS Reference Terms e Scenários Strategies and Policies...http://in3.dem.ist.utl.pt/et2000/ CONTENTS

23. Innovation in EU source: Community Innovation Survey, OCT-PT

24. Facts and Results 1.Productivity 2.The knowledge-based industries 3.Resouces 4.Scale vs intensity 5.Industrial structure 6.Institutional development 7.The regional dimension 8.Sustainable development 9.Social capital for the inclusive development

25. 1. Productivity

26. 2. Knowledge-based industries OECD(2000) Share in business sector value added in knowledge business industries (share year 1996) Average annual real value added growth of knowledge based industries (1985 share year)

27. 3. RESOURCES Expenditure by Manufacturing Firms on Innovation

28. Perspectives for “change”: Public vs private R&D expenditures P97 P95 P81 ES IR SE JP USA FR D UK

29. Caso de estudo: EUA (1953-1998) Privado Público Perspectives for change: Investments in R&D Evolução do investimentos público e empresarial em I&D (1981-1995) USA PT 95-98 81-95 PT 95-98 Caso de estudo: Portugal (1982-1998) público: aumento significativo privado: aumento incremental a partir de 95 ‘crescemos na diagonal’

30. 4. Scale vs Intensity R&D Expenditure (OECD)

31. 5. THE INDUSTRIAL STRUCTURE Food, beverages & tobacco Textiles, apparel & leather Wood products & furniture Paper, paper products & printing Chemical products Non-metallic mineral products Basic metal industries Fabricated metal products Other manufacturing, nec EU-13 YEAR Portugal

32. 5. Industrial structure: Dynamics

33. 6. Institutional Development Market Regulation and Employment Protection Nicoletti, Scarpetta & Boylaud; OECD (2000)

34. 7. The regional dimension: technology and innovation gap 1. Input: HUMAN AND MATERIAL RESOURCES 2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES 3. determining factors : international cooperation sme`s: support services networks FDI: integration in local economies transports, communications, energy infrastructures … BUT, ALSO, INSTITUTIONAL FACTORS

35. Regional diversity in Western Europe Source: Sixth Periodic Report DG XVI, 1998

36. “Master Equation” Environmental Impacte = (Population)*(GDP/Capita)*(Environmental Impacte /GDP) Increased eco- efficiency Promoting engineering and technolgy for innovation! 8. The sustainable development innovation and the environment

37. DMI, Direct Material Input per capita (1988-1995) Source : EEA, 2000, Environmental Signals for 2000 8. The sustainable development innovation and the environment Economic growth in Portugal is associated with the highest european growth rate of materials consuption!

38. 9. Social capital for inclusive development OECD(2000)

39. 1. The CONTEXT: a CONCEPTUAL FRAMEWORK 2.FACTS and RESULTS 3. HYPOTHESIS STRATEGIES, POLCIES and RECOMENDATIONS Reference Terms e Scenários Strategies and Policies...http://in3.dem.ist.utl.pt/et2000/ CONTENTS

40. Perspectives for “change” The notion of localised technological change: The science base: a joint process of production, learning and communication a fully endogenous, with strong interdependence between specialisation and diversification important, but limited role of demand based on mix of generic and tacit knowledge ” …the aim of policy should be to create a broad and productive science base, closely linked to higher education…”, Pavitt (1998) … Systems of Innovation and Competence Building!

41. THE ISSUE …1 The evidence: “The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966) “The explosion in knowledge creation was concentrated in a few regions, and led to similarly concentrated distribution of income”, World Bank (1999) The most daunting problem is that of “spiritual inequality”, Fogel (1999)

42. Regional diversity in Western Europe Source: Sixth Periodic Report DG XVI, 1998

43. A fragmented regional innovation system: an institutionally blocked regional economy Regional Government Business Services SMEs Chamber of Commerce SMEs Large firms SMEs Universities Technology Centers Sectoral Associations SMEs Large firms SMEs Technology Consultants SMEs Large firms SMEs Regional economy

44. A learning region : An efficient regional innovation system Regional government Business services & tech. con- sultants SMEs Business intermediaries: Cham. of Comm.; Local Agencies BICs SMEs Large firms; Tech. Centers; Sect. Associa- tions SMEs Cluster Science base: Universities; Public R&D; Laboratories Technology Centers Sectoral Associations SMEs Large firms SMEs Valorisation of R&D and Tech. Transfer Office SMEs Global economy SMEs Open gate: International technology transfer networks Open gate: International value chains Open gate: International business consultants & specialized business services Open gate: International R&D/academic excellence networks SMEs Regional economy

45. Regional Innovation Strategies Landabaso et al. (1999) – Internal coherence of the regional innovation system by connecting its different key elements: R&TDI supply with well identified Demand and business needs, from SMEs in particular. –Increase the amount and, more importantly the quality of innovation public spending through innovation projects (bigger and better spending in this field through regional policy). – Rationalise the regional innovation support system by raising awareness, eliminating duplications, filling gaps and promoting synergies. Successful stories: The Regional Technology Plans Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle- Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).

46. What type of Social Capital ? Source: Conceicão, Gibson, Heitor & Sirilli (2000)

47. THE ISSUE …2 A specific issue: EUROPEAN DIVERSITY “ With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors… …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”, Henderson & Morgan (1999)

48. The regional dimension: technology and innovation gap …cont. Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action This requires a shift in development studies: from state-led or market-driven processes, regardless time, space or milieu to institutional perspective, looking at the quality of institutional networks

49. The regional dimension: technology and innovation gap …cont. INSTITUTIONAL NETWORKS to mediate: mediate information exchange knowledge creation capacity for collective action potential for interactive learning efficacy of voice mechanisms Henderson & Morgan (1999)

50. CONTENTS SERVICES E-TAILERS “THE INTERNET” ALTERNATIVE MEDIA E-CHANNELS ACCESS PROVIDERS INTERNET SERVICES Software Solutions Enabling Technologies CONSUMER BUSINESS Develop software solutions Designed to enhance the Internet experience for both Consumers and business Create hardware/software solutions which enable the efficient operation of the internet Building Social capital in technology contexts: a case study – the internet industry

51. Business/Customer Support On-line Products and Services Traditional Corporations Content Services THE GLOBE.COM THE MOTLEY FOOL BROADCAST.COM MPATH MONSTER.COM NETCENTIVES Alternative Media ESPN CNN Wall St. Journal YAHOO MSN EARTHWEB VERTICALNET BABY CENTER DELL BARNES & NOBLE CHARLES SCHWAB CITIBANK MACY’S E- CHANNELS AMAZON.C OM E*TRADE BEYOND.C OM EBAY BUY.COM E-tailers Access Providers EARTHLINK MINDSPRING AOL EXCITE @HOME VERIO COMPUSERVE NETCOM Service Providers AT&T WorldNet Ameritech DOUBLECLICK USWEB/CKS IXL MEDIA TRIX RAZORFISH ABOVENET Software solutions NetObjects Real Networks Egain Netscape Marimba Inktomi Sitara Networks Resonate Networks Associates WebOrder Vignette Ariba IBM Cisco IOS Hewlett-Packard Sun Cisco Lucent/Ascend Nortel/Bay Networks Nexabit Netopia Broadcom Verifone Enabling Technologies Technological Innovation a case study: internet business model Source: joint Venture – Sillicon Valley Network, 1999

52. Building Social capital in technology contexts: a case study - internet clustering It is unlikely that technological clusters aimed at supporting service integration will emerge, unless incentives exist to integrate elements in the value chain... Hawkins (1997) Continuous evolution to a “new” value chain The need to extend the analysis to the context : -communities of users -Regional/local context Internet business models: creative destruction, as usual !! (McKnigth et al, 2000)

53. TALENT Management Engineering Programming Marketing Universities Talent Research Networks SUPPORT SERVICES High-Tech Lawyers/ Accountants Incubators Industry Associations INVESTORS Venture and Angel Financing Network to Customers, Business, Partners And Talent PILLAR COMPANIES Capital Management Talent Technical Resources Business Partners ENTREPRENEURIAL CULTURE IDEAS INTERNET COMPANIES Building CONTEXT: the importance of LOCATION in a virtual medium

54. The need to consider engineering research and teaching in a broader context, leading to innovation: –Promoting value, by exploiting change –Understanding institutional development –Integrating systems of competence building and social cohesion The ISSUE... concluding OUR GOAL: to discuss the emergence of a university agenda on engineering policy and the management of technology

55. POLICY ISSUES THE CONTEXT: increase importance of knowledge for development THE CHALLENGE: how to promote the learning society? Towards an Agenda for innovation and technology policy: 1. the framework: interactive nature of innovation 2. balancing innovation and diffusion 3. wetware/software interaction 4. the inclusive development 5. the institutional development

56. advanced education and research in engineering policy and management of technology... Which relevant topics? 1.Advanced Research Methods for decision support and policy analisis 2.Management of technology and innovation 3.Organizational design and institutional development 4.Technology policy (environment; industrial; communications)

57. … debate … challenges and opportunities for a University Agenda on: Engineering Policy and the Management of Technology !