An Engine for Future European Growth An Engine for Future European Growth Economic and Social Development through Knowledge Intensive Service Enterprises Economic and Social Development through Knowledge Intensive Service Enterprises KIS Partnering Forum – Brussels 19 th February 2009 Professor Alan Barrell

A Preview The World Today Context – The World Today – Whats Changed ? Globalisation, Europe and the Service Imperitive Globalisation, Europe and the Service Imperitive Imagine Lets Imagine Innovations Entrepreneurs A World of Innovations and Entrepreneurs Symbiosis, Synergy, Size, Scale – and Service Delivery Symbiosis, Synergy, Size, Scale – and Service Delivery Models Realities Models and Realities Funding $$$ Funding Innovative Service Companies $$$ A New Age of and A New Age of Creativity and Innovation

Casting an Eye on the Worlds Financial Crisis – Whats changed ?

Who said these words and When I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered

Who said these words and When I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered Thomas Jefferson 1778

And what about these… The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance

And what about these… The budget should be balanced, the Treasury should be replenished, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest our Nation become bankrupt. People must again learn to work, instead of living on public assistance Marcus Cicero 55 BC

Boom started But - think Boom ….not Gloom…. many successful businesses started in recessions…. I started the Cobra Beer Company in a deep Recession – and it proved to be the best time for me….introducing something innovative and exciting changed the way people thought about Indian Food and Beer Lord Karan Bilimoria Founder – Cobra Beer

lots But the eye on the World shows lots of changes….its not just the finances….

The Changing Horizon Environment Issues The death of deference New employment patterns Organisations Globalisation Technology

Changes in Industrial Structure - UK % of Total Employment - UK Government Foresight Report

Changes in Industrial Structure - Europe % of Total Employment

Global Dynamics – Manufacturing has Migrated Two fifths of the Worlds people live in the two fastest growing large economies – China and India Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia Growth in Asia is far ahead of Europe. Dynamic Growth in Manufacturing Base CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions of reserves Labour and Material cost advantages +++++

Lets put CHINA into our picture and context….Some of Chinas Achievements Compound growth of GDP at 9% since 1995, sixth in the world One of top 10 trading nations The most popular FDI destination The largest mobile phone market The second largest PC market The third largest advertising market And we have no time to mention India, Brazil, Korea and others….

The Worlds Factory China alone already produces: 70% of worlds toys 60% of worlds shoes 65% of worlds air-conditioners 65% of worlds microwave ovens Now more cars, laptops, ICs, mobile phones… Realities – labour and materials costs give great competitive advantage. Trends not reversible.

Sources of Competitiveness Creativity Risk Speed Reputation Cost Values Learning Information

Wherever Competition comes from….things can change fast – Todays Peacock can be Tomorrows Feather Duster !

And then there is Technology - Impact of the Continuous Technology Revolution Compared to an average DAY in 2003…. All international phone calls 1971 All airline passengers 1975 All mobile phones 1984 All s 1992 All SMS 1998 Source: Analysys, World Bank and ITU

Converging And Technologies are working together - Three Pervasive and Converging Technology Platforms BIO TECH Pharmaceuticals Diagnostics Research/Info Tools Industrial Genomics Bioinformatics Proteomics INFO TECH Hardware Software Communications NANO TECH Electrical Structural Biomedical Energy & Environment Biosensors Biochips Bioelectronics Microfluidics Nanobiotechnology Drug Delivery Nanodevices Nanosensors Nanoelectronics

Europe and The Service Imperative If Services are to be the economic engine – how can we excel? Exploring Creativity, Imagination, Enterprise and Entrepreneurship From Imagination to Realities – Living Examples Harnessing Technology – Applications Focus The Inspiration of Untapped Human Potential Emerging Sectors to Explore – e.g. Cleanech

Spirit of Enterprise and Innovation Discovery and New Knowledge

And - With this background…. Lets IMAGINE

Einstein on IMAGINATION…. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world Albert Einstein

Who ever heard of Albert-Szent-Gyorgyi ? He, a Nobel Laureate said……… Creativity is no more than looking at the same thing as everyone else and thinking something different.

You look at things and ask - why? but I dream of things that never were and ask - George Bernard Shaw why not? Entrepreneurs So - thinking of Imagination….Whats different about Entrepreneurs ?

Europes Entrepreneurial Imperitive – Josef Schumpeter Entrepreneurs blow gales of creative destruction. Role of the entrepreneur in transforming economies by developing: New products New methods of production New ways of organizing Untapped raw materials Enhanced competitive performance Europe New Ways to Deliver Services Just what Europe Needs to build that future Growth Engine – but add New Ways to Deliver Services

Timing can be everything…. Is the time right?.... There is nothing more powerful than an Idea whose time has come…… Jules Verne

This strange looking team started in a recession….but got their timing right

And in 30 years, became a powerful engine of Growth, Change and Service Innovation Microsoft Corporation, 1978

Charles Darwin – Natural Selection Adaptability and Survival Darwins Bicentenary this year

Natural Selection, Adaptation, Symbiosis Synergy and Service Delivery

NHS Innovations East Ltd Supporting vital Health Innovations NHS Innovations East Ltd is one of a national network of Innovation Hubs Funded by the Department of Health, the Department of Trade and Regional Agencies Provides Intellectual Property Services to NHS Organisations and Professionals in the East of England For the benefit of patients and the improvement of Healthcare Contributes to NHS revenue generation by Licensing Technology and Services Has Proof of Concept Fund for investment in Innovations Can help to spin-out and form new Companies from NHS

Also known as NHS Innovations East Ltd One of 11 Health Enterprise Hubs in UK (9 in England) A Not for Profit Service Company 15 Professionals helping Health Care Professionals Exploit Innovations 70% of Innovations are Service Delivery 30% Technology based Founded 4 years ago – more than 600 Service Delivery Innovations identified and 250 supported in development Annual Innovations Competition attracts more than 100 entries – many Service Delivery Innovations

Completing the Jigsaw – putting technology to work Technology Customer need Innovative service company

Completing the Jigsaw – Service Delivery Innovation Technology Customer need Innovative service company

Proximity of Learning, Research and Practical Application The Innovation Campus R&DEducation Applications Where open innovation and new service companies can thrive

Technology and Service Companies and Synergy – Open Innovation and the Innovation Campus HEALTH KNOWLEDGE CREATION INFORMATION and COMMUNICATIONS TECHNOLOGY Basic Research Sound & vision Bio-pharmaceuticals Computing Publishing Medical services Bio-informatics Medical devices and scientific instruments University/ Research Institutes Inkjet printing Wireless Telecoms Networking Technology ConsultingMedical research Education

Entrepreneurial Overlap – Joined Up Thinking and Actions – Coherence and Common Purpose in Communities EDUCATION & RESEARCH including Universities INDUSTRY & BUSINESS GOVERNMENT National & Local

Funding Innovative Service Companies – Show me the Money $$$$! Maturity Risk Our Money Family and Friends and Fools Business Angels Early Stage VC Expansion Capital B A N K F I N A N C E ?? Seed Funds Pre-IPO

How do we get to the money ? Where is the $$$$ trail ? Connecting and Information Points and Principles Networks and Networking – importance Business Schools and Entrepreneurship Centres Region wide and cross border Other Entrepreneurs / Support and Mentoring Structures Online Channels – numerous eg…. Network Nodes – Individual referrals Cross Border contacts Attitudes and Culture France and its Wealth Tax….Thank you M. Sarkosy !

Show me the MONEY! – So maybe we can we find investors hanging out here?....

The Early Stage Business Balance – what do investors look for? In ANY innovative company ? And they like to see experienced Chairman and Directors - Mentors for Innovative Service Companies Inspired Leadership Enthusiasm Bullshit Courage OptimismVision Creativity Management Research & Analysis Caution Process Financial Control Market Knowledge

New Age A New Age of Creativity and Innovation – New Engines for Growth…. Knowledge Intensive Service Businesses – Catalysing the New European Economy Knowledge Intensive Service Businesses – Catalysing the New European Economy Seeking New Pathways to exploit potential for Knowledge and Wisdom Sharing – through Open Innovation Seeking New Pathways to exploit potential for Knowledge and Wisdom Sharing – through Open Innovation Harnessing Technology to Sustain and Renew Harnessing Technology to Sustain and Renew Seeking Competitive Advantage through Imaginative New Business Formation Seeking Competitive Advantage through Imaginative New Business Formation

In of Excellence ! In Pursuit of Excellence ! Excellence can be achieved, if we: Care more than others think is wise, Risk more than others think is safe, Dream more than others think is practical, Expect more than others think is possible. Deborah Johnson-Ross Maybe Entrepreneurs think this way?....Innovative Service Companies need to if they are to Excel….

Thank you for your attention…. More on my website – –