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Mr. Ian Cooper Deputy Director, UK Water Research Centre CEO, British Hydromechanics Research Group Advisor,World Bank Technology Projects Philippines,

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Presentation on theme: "Mr. Ian Cooper Deputy Director, UK Water Research Centre CEO, British Hydromechanics Research Group Advisor,World Bank Technology Projects Philippines,"— Presentation transcript:

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2 Mr. Ian Cooper Deputy Director, UK Water Research Centre CEO, British Hydromechanics Research Group Advisor,World Bank Technology Projects Philippines, Chile, Mexico, Pakistan, India, Turkey Director, Operations; UK Royal Society

3 R&D Institute Restructuring Innovation & Competitiveness Practitioners Workshop April 2004 Ian Cooper Ian Cooper Deputy Director UK Water Research Centre Deputy Director UK Water Research Centre CEO British Hydromechanics Research Group CEO British Hydromechanics Research Group Advisor to World Bank Technology Projects in; Advisor to World Bank Technology Projects in; Philippines, Chile, Mexico, Pakistan, India, Turkey, Mexico Director Operations The Royal Society

4 R&D Institute Restructuring Why is it important? Why is it important? International experience International experience What we are trying to achieve What we are trying to achieve What have we got to get right What have we got to get right Key steps in the transformation process Key steps in the transformation process Results Results Key lessons Key lessons

5 Why is it important? The role of science engineering & technology (set) in a modern economy The role of science engineering & technology (set) in a modern economy Scarce resources to be best used Scarce resources to be best used Industry worldwide funding higher proportion of total spend on R&D Industry worldwide funding higher proportion of total spend on R&D Governments worldwide funding lower proportion of total spend on R&D Governments worldwide funding lower proportion of total spend on R&D But only as a part of a total package But only as a part of a total package

6 Some statistics (OECD) Industrial funding as % of total R&D spend: OECD average 20% increase in 5yrs, USA 33% in 5yrs Industrial funding as % of total R&D spend: OECD average 20% increase in 5yrs, USA 33% in 5yrs Government funding as % of total R&D spend: OECD average 16% reduction in 5 yrs, USA 23% in 5 yrs Government funding as % of total R&D spend: OECD average 16% reduction in 5 yrs, USA 23% in 5 yrs Gross domestic expenditure on R&D (GERD) as % of GDP 2000: EU 1.89%, USA 2.72%, Turkey 0.64% Gross domestic expenditure on R&D (GERD) as % of GDP 2000: EU 1.89%, USA 2.72%, Turkey 0.64% Number of researchers 2000: EU 971k, USA 1.26m, Turkey 23k Number of researchers 2000: EU 971k, USA 1.26m, Turkey 23k % of GERD financed by industry: %, % % of GERD financed by industry: %, % % of GERD financed by Government: %, % % of GERD financed by Government: %, %

7 Where has this been done? UK – RAs, DERA, NPL, AEA etc UK – RAs, DERA, NPL, AEA etc Other European countries: FhG, TNO etc Other European countries: FhG, TNO etc Mexico: SEP CONACYT Mexico: SEP CONACYT Philippines: ITDI, MIRDC Philippines: ITDI, MIRDC Chile: CONACYT Chile: CONACYT China China India: CSIR India: CSIR South Africa: CSIR South Africa: CSIR Australia: CSIRO Australia: CSIRO Turkey: MRC Turkey: MRC

8 What are we trying to achieve? Make the best use of scarce resources (people and facilities) to promote economic growth Make the best use of scarce resources (people and facilities) to promote economic growth Ensure the relevance of research institutes in a modern economy Ensure the relevance of research institutes in a modern economy Provide scientific and technological support to local industry to assist in improving their competitive position Provide scientific and technological support to local industry to assist in improving their competitive position Sustain and improve the scientific and technological quality of research Sustain and improve the scientific and technological quality of research Maintain high quality curiosity driven research Maintain high quality curiosity driven research

9 Typical problems prior to restructuring Largely Government funded – focus on maintaining or increasing this source of funding Largely Government funded – focus on maintaining or increasing this source of funding Generally a haven for the Countrys best technical talent Generally a haven for the Countrys best technical talent Not market orientated – expensive toy for the scientific establishment Not market orientated – expensive toy for the scientific establishment Many small projects aimed at reinventing the wheel Many small projects aimed at reinventing the wheel Emphasis on R&D and not many other services Emphasis on R&D and not many other services Antagonistic relationship with industry Antagonistic relationship with industry Financially and commercially illiterate Financially and commercially illiterate

10 What characterises a successful RI? Identify their markets and potential clients Identify their markets and potential clients Are service orientated and have various ways, formal and informal of interacting with current and potential clients Are service orientated and have various ways, formal and informal of interacting with current and potential clients Ensure quality of people and services match best international standards Ensure quality of people and services match best international standards Build feedback mechanisms with clients and technical community Build feedback mechanisms with clients and technical community Have client confidentiality and IPR policies Have client confidentiality and IPR policies Innovative approaches to building new capabilities & learn from others Innovative approaches to building new capabilities & learn from others Renews its science and technology Renews its science and technology Adopts best international practice for business processes Adopts best international practice for business processes Financially and commercially aware Financially and commercially aware

11 Government has an important role Motivate the restructuring process Motivate the restructuring process Ensure structures avoid bureaucracy Ensure structures avoid bureaucracy RIs need flexibility and autonomy (but with accountability) RIs need flexibility and autonomy (but with accountability) Stimulate demand (especially for SMEs) Stimulate demand (especially for SMEs) Provide relevant legal structures ( including IPR) Provide relevant legal structures ( including IPR) Provide policy framework Provide policy framework Provide support for strategic blue skies R&D Provide support for strategic blue skies R&D

12 What have we got to get right? Reform is not partial – needs a clear vision Reform is not partial – needs a clear vision Essential that there is strong leadership and a competent core team Essential that there is strong leadership and a competent core team The reform works to meet demand The reform works to meet demand Well thought out business plan Well thought out business plan Key business processes reformed: marketing, commercial, financial (MIS), project management, IPR exploitation Key business processes reformed: marketing, commercial, financial (MIS), project management, IPR exploitation Key reforms undertaken: governance, quality systems, overhead reduction, training, HR policies, infrastructure renewal, legal Key reforms undertaken: governance, quality systems, overhead reduction, training, HR policies, infrastructure renewal, legal

13 8 steps in restructuring Establish a sense of urgency Establish a sense of urgency Form a powerful coalition Form a powerful coalition Create a clear vision and objectives Create a clear vision and objectives Communicate this vision Communicate this vision Empower others to act on the vision Empower others to act on the vision Plan for and create short term wins Plan for and create short term wins Consolidate improvements and produce still more change Consolidate improvements and produce still more change Institutionalise the new approaches Institutionalise the new approaches

14 The results CSIR India – Prof Mashelkar – Economist article 3 April 2004 Innovative India CSIR India – Prof Mashelkar – Economist article 3 April 2004 Innovative India CSIR South Africa: 4x increase in turnover/head in 7 years, 6x increase in number of patents filed over 4 years, 250% growth in contract research income in 6 years. CSIR South Africa: 4x increase in turnover/head in 7 years, 6x increase in number of patents filed over 4 years, 250% growth in contract research income in 6 years. Many other examples Many other examples

15 The results Turkey MRC Self sufficiency ratio increased from 13% 1999 to 49% 2003 and 65% 2004 (target) Self sufficiency ratio increased from 13% 1999 to 49% 2003 and 65% 2004 (target) Contract income increased from 2002 to 2003 by $5.7m Contract income increased from 2002 to 2003 by $5.7m Private sector income increased 200% Private sector income increased 200% Number of industrial services 1999–1800, Number of industrial services 1999–1800, Contract income/staff 1999-$4543, 2003-$17500 Contract income/staff 1999-$4543, 2003-$17500 Central admin costs reduced by $800k Central admin costs reduced by $800k Research staff 52% of all staff 2000 will be 66% 2004 Research staff 52% of all staff 2000 will be 66% 2004 Support staff 45% of all staff 2000 will be 33% 2004 Support staff 45% of all staff 2000 will be 33% 2004 Scientific output increased: 317 publications 2001, Scientific output increased: 317 publications 2001, Set up technology park Set up technology park

16 Key Lessons - MRC Strong leadership a key to success – clear vision Strong leadership a key to success – clear vision Time spent in business planning is not wasted –scenarios Time spent in business planning is not wasted –scenarios Improve staff communication/involvement Improve staff communication/involvement Tackle the difficult operational, process, legal and HR issues early not late – if not they delay the transformation Tackle the difficult operational, process, legal and HR issues early not late – if not they delay the transformation Need a robust, simple to use and effective MIS early in the process Need a robust, simple to use and effective MIS early in the process A strong PIU and change manager to coordinate the many parallel activities taking place A strong PIU and change manager to coordinate the many parallel activities taking place Learn from others – it has been done Learn from others – it has been done It is difficult and will take time It is difficult and will take time

17 Remember It must be considered that there is nothing more difficult to carry out nor more doubtful of success, nor more dangerous to handle than to initiate a new order of things. For the reformer has enemies in all those who profit by the old order and only lukewarm defenders in all those who would profit by the new order Machiavelli

18 But also remember: the reward for success is very significant – for the Institute, for the researchers, for local industry and for the national economy

19 Mr. Ian Cooper Deputy Director, UK Water Research Centre CEO, British Hydromechanics Research Group Advisor,World Bank Technology Projects Philippines, Chile, Mexico, Pakistan, India, Turkey Director, Operations; UK Royal Society


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