Dr Kastytis Gečas Lithuanian Innovation Centre... innovation does not wait Linking research and business: balancing the supply and the demand for innovation

R&D-based innovation vs. innovation diffusion Source: European Innovation Scoreboard’ 2003 V

KNOWLEDGEIDEAS EDUCATION RESEARCH SCIENCE (INVESTMENTS) NEW PRODUCTS OR SERVICES (PROFIT) IF SCIENCE IS THE TRANSFORMATION OF MONEY INTO KNOWLEDGE, INNOVATION IS THE TRANSFORMATION OF KNOWLEDGE INTO MONEY EUREKA

What connects science and business. 1 BUSINESS (companies) SCIENCE (universities, research institutes) SupplyDemand PRODUCTIVE KNOWLEDGE QUALIFIED SPECIALISTS AREAS FOR (APPLIED AND INDUSTRIAL) RESEARCH

Innovation cooperation partners Source: Innovation activity development, Dept of Statistics, Lithuania, 2006.

What is needed. 1 To balance the knowledge supply against the demand To balance the knowledge supply against the demand Academia side: Academia side: – “Capitalise” knowledge – IP, promote industrial exploitation – Substantial changes in linking science and industry Business side – larger added value (intellectual assets) Business side – larger added value (intellectual assets) – Increase absorptive capacity – Develop corporate capacities in intramural Research and Development State role: State role: – Identify “priority” areas (?=business needs) – Promote and support research-business cooperation

What connects science and business. 2 R&D (INDUSTRIAL RESEARCH, TECHNOLOGY DEVELOPMENT) SCIENCE(universities, research institutes) BUSINESS (companies)

LT Source: Innobarometer’2007 RTD activity in business, % of asked companies

Business expenditure for innovation Source: Innovation activity development, Dept of Statistics, Lithuania, 2006.

Source: Innobarometer’2007 R&D expenditure

What is needed. 2 Legalise industrial research Legalise industrial research Academia side Academia side – Legalise industrial research as the “follow-up” of applied research, also for scientific merits Business side Business side – industrial R&D as “regular” activity Both sides – joint projects (cooperative actions) Both sides – joint projects (cooperative actions) State role State role Promote and support R&D partnerships/cooperation Promote and support R&D partnerships/cooperation Support R&D in academia in favour of business needs Support R&D in academia in favour of business needs Support R&D in business (Structural Fund support: Fae Support R&D in business (Structural Fund support: Fae

Nordic triple-helix model – the formula to use? Creative links between the state, the private sector, and universities Creative links between the state, the private sector, and universities Focus on innovative firms and the sustenance and support by state and academia Focus on innovative firms and the sustenance and support by state and academia It’s not the triangle, it’s not just the area of shared interests, it’s not static, it’s not... It’s not the triangle, it’s not just the area of shared interests, it’s not static, it’s not... All parties are active, adaptive and evolutionary (=propeller for evolutionary economics?) All parties are active, adaptive and evolutionary (=propeller for evolutionary economics?)

Universities and knowledge dissemination Increase of supply for innovation – (direct) commercialisation of research : Technology transfer – Exploitation of IPR Technology transfer – Exploitation of IPR Contractual R&D Contractual R&D Joint R&D and TT activity Joint R&D and TT activity Increase of demand for innovation – consultancy and awareness raising: Inovation capacity building Inovation capacity building – Innovation management training Research – technology watch, foresight-type studies Research – technology watch, foresight-type studies Consultancy/advisory-type activities Consultancy/advisory-type activities Partnership in clusters/networks, …... Partnership in clusters/networks, …...

R&D-based innovation vs. innovation diffusion Source: European Innovation Scoreboard’ 2003 V

Dr Kastytis Gečas, Director, Lithuanian Innovation Centre, …innovation does not wait