The University Viewpoint The Firm Viewpoint The Government Viewpoint © Copyright Göran Roos 2012

Execution of high quality Research Provision of high quality education Contribute to improved practice in public, private and 3 rd sector. Contribution to a grounded public debate © Copyright Göran Roos 2012

1.Generating Increase in the stock of useful knowledge 2.Ensuring supply of skilled graduates and researchers 3.Creating new scientific instrumentation and methodologies 4.Development of networks and stimulation of social interaction 5.Enhancement of problem-solving capacity 6.Creation of new firms © Copyright Göran Roos 2012

The ROI in publicly funded research at RTO’s is very high as indicated in several different studies: 300% [NL] 600% [SWE] 2500% [AUT] “very high” [ESP & FIN] Approx 400% [Oxford Economics study 2010] Roos, G. and S. Pike, “The Relationship between University Research and Firm Innovation”, Chapter 3 in Evans, E., Burritt, R. And Guthrie, J. (eds.), Bridging the Gap between Academic Accounting Research and Professional Practice, The Institute of Chartered Accountants in Australia & Centre for Accounting, Governance and Sustainability at University of South Australia, 2011, pp © Copyright Göran Roos 2012 Between 12% and 41% depending on study

Research & development (R&D) input Rank Knowledge & technology output Rank RANKChina3951 Netherlands2472 Malaysia48363 Chile72624 Czech Republic Russian Federation United Kingdom 1785 India55478 Switzerland819 Singapore9310 Sweden7211 Belgium New Zealand Korea (Republic of) United States of America Finland3416 Germany Canada France Brazil Israel11021 Japan61521 Denmark51623 Norway Austria Indonesia South Africa Australia INSEAD data for 2011 © Copyright Göran Roos 2012

Boundary conditions for the Universities Attitudes of the Researchers Type of problems addressed by Universities SME-economy Type of problems owned by the SMEs Attitude of the business people Absorptive capacity © Copyright Göran Roos 2012

Source: AIM IPGC Survey of EPSRC Industrial Collaborators © Copyright Göran Roos 2012

Source: AIM IPGC Survey of EPSRC Industrial Collaborators © Copyright Göran Roos 2012

Most professors of ‘production technology’ have had significant industrial career experience. Indeed, for several German universities, this is the most common career path route for senior engineering research academics. Great importance is also placed on giving production engineering doctoral candidates significant and varied industry problem solving experiences. Consequently, Germany produces very large numbers of manufacturing- related postgraduate engineers with a doctoral experience somewhat analogous to (a longer and typically more varied version of ) the UK EngD. Germany has a diverse collection of research performing organizations addressing manufacturing-related R&D challenges, including: universities, technical universities, universities of applied sciences, intermediate research and technology organizations (e.g. Fraunhofer Institutes), corporate R&D laboratories and research institutes of the Industrial Research Associations (AiF), as well as Federal and State (Lander)-level institutions. © Copyright Göran Roos 2012

Many young people partake in educations that ought not to exist. Students (and their parents) are making their life’s investment [parents push – students pull]. Government is investing heavily in academic education The educated students will take part in creating the future Australia and its destiny. These investments should not be wasted on educations with low quality. The principle should be that if the education is not good enough it should be closed down and the resources redistributed to high quality educations that can then be extended. © Copyright Göran Roos 2012

Research active and research intensive teachers with a high interest in students and their academic success. Teachers with the courage to push students to develop further but also with the courage to fail poorly performing students. This approach is to be supported by university management and administration not opposed. © Copyright Göran Roos 2012

Education is built on research not the other way around Teaching is not a punishment it is a privilege Teaching should be career enhancing not career limiting Industry is a core beneficiary of university effort not solely a source of funding Working with Industry should be career enhancing not career limiting Excellent industry outcomes can co-exist with excellent research outcomes The university has to adapt to the SME whereas the MNE can adapt to the University Increase the people exchange between university and firms © Copyright Göran Roos 2012

Most Australian firms are SME’s and most are tier 3 sub-suppliers © Copyright Göran Roos 2012

Dominate global segments Global market footprint + specialisation = market leadership Stay away from large, price-driven volume markets Compete through superior value not cost Technology Leadership Masters of incremental innovation Very good at innovation Obsessed with leading edge technology Very strong, mostly domestic, research network [internal plus external] Operational effectiveness Sophisticated production networks Careful choice of outsourcing and offshoring [less then you think] Close connection between R&D and Manufacturing Highly flexible work arrangements worldwide Learning organisations and Kaizen masters Top class management capability © Copyright Göran Roos 2012

Stewardship/Custodian: Long-term survival and intergenerational transfer as key objective Profit is an inevitable consequence of serving customers better than anyone else Focus on long-term sustainability with key stakeholders: customers; employees; suppliers and community at large Companies as communities: high degree of mutual trust and loyalty leading to an implicit life-long contract contributing to a high performance work place culture Leadership through example: Domain knowledge Passion for the business Flat hierarchies and informal channels of communication Bottom-up management style High degree of cross compartmental cooperation © Copyright Göran Roos 2012

ExperiencedEntrepreneurial Leadership with Ambitious Goals ExperiencedEntrepreneurial Leadership with Ambitious Goals DepthDepth DecentralisationDecentralisation Knowledgeable, Loyal Low turn-over Employees Knowledgeable, Loyal Low turn-over Employees FocusFocus IntegratedInnovationIntegratedInnovation GlobalisationGlobalisation Specific Closeness to the customer Specific Closeness to the customer High Performance High Quality Product-Service-SystemOffering High Performance High Quality Product-Service-SystemOffering Risk reducing and Innovation driving partnerships with research and expertise centres Risk reducing and Innovation driving partnerships with research and expertise centres Roos, G. and Burton, K., “Integrated Innovation driven by emerging technologies”, Adelaide Thinker in Residence 2011 Innovation Process: Underpinning Subject Matter Report, February 1 st 2012, Department of the Premier and Cabinet, Adelaide, Australia © Copyright Göran Roos 2012

Edquist, H., 2011, Intangible investment and the Swedish manufacturing and service sector paradox – what can Europe learn?, Research Institute of Industrial Economics, Stockholm, Sweden © Copyright Göran Roos 2012

Extracted from slide No. 17 in Green, R., 2011, Future of manufacturing – management, innovation and productivity, Presentation, Australian Chambers Business Congress Gold Coast Convention Centre, June © Copyright Göran Roos 2012

My responsibility as an employer is to make you the employee more employable during your tenure with me My responsibility as an employee is to make you the employer more successful during my tenure with you We both want more firms that are more successful We differ on how to distribute the economic profit and social good that results from a successful firm © Copyright Göran Roos 2012

Larsen, P. B., Ahlqvist, T. and Friðriksson, K., 2009, Applying Technology Convergence for Innovation in Nordic regions, Nordic Innovation Centre, Oslo, Norway Eslake, S., 2011, Productivity: The Lost Decade, Paper presented to the annual policy conference of the Reserve Bank of Australia, HC Coombs Conference Centre, Kirribilli, Sydney, 15th August Australia 12% Australia have a typical low cost environment approach of copying whilst Sweden have a typical high cost environment approach of innovating © Copyright Göran Roos 2012 Resulting in 30% successfully providing new to the world or new to the industry offerings

Innovation& Effectiveness Focus Imitation& Efficiency Focus Innovation& Effectiveness Focus Imitation& Efficiency Focus © Copyright Göran Roos 2012

Changing the boundary conditions of Universities and thereby Changing the attitude of researchers towards firms Increase the educational level of firm owners/managers Mutual education of the other entity's world Sort out contractual [IP] issues © Copyright Göran Roos 2012

Maximising Societal Value Tax revenue that can be used to procure other good e.g. Health care Employment Sustainable locations Etc More Firms and Firms that do better is desirable Universities deliver intrinsic [new knowledge], extrinsic [high ranking] and instrumental [spin-offs] value – the balance matters The ideological viewpoint matters [e.g. Economic paradigm matter [neo- classical vs. evolutionary] Is government driven by The ideological viewpoint [e.g. Australia] The Firm Interest [e.g. European Manufacturing Belt] The University Interest [e.g. Australia up until now] © Copyright Göran Roos 2012

Merger of Technology, Design and Business Universities to improve integrated innovation in response to industry request [Finland] Clear Integrated Industry, Innovation and Research Policy [Germany] High level of trust between firms and universities [Switzerland, Sweden] Balanced portfolio of public policies Institutional Framework fostering long-term thinking and cooperation [Germany] © Copyright Göran Roos 2012