Terry Mughan Professor of International Management Ashcroft International Business School

1. A space for all companies 2. A space for ideas 3. A space for relationships 4. A space for all citizens

Not so much a space as a set of boxes 1. Boxes for trade figures, multinational brands and exporters 2. Latterly, boxes for FDI too 3. Market share and competitive lone wolves.

: Flexible, learning companies of all sizes Mobile citizens and knowledge sharing Supra-national and sub-national units of organisation Open innovation

Flexible, learning companies of all sizes Mobile citizens and knowledge sharing Open innovation Supra-national and sub-national units of organisation and collaboration

1. Companies 2. The global citizen 3. National and supranational governance

FDI Multinational Transnational Mini-multi Born Global SME International Public/private/ social Open innovation Exporting International knowledge trading Regional growth policy Student entrepreneurs Migrant entrepreneurs Global MNC Universities

Empirical studies of SME behaviour carried out for EEDA, UKTI and OECD/APEC Work with leading European science parks and MNCs

Key Issues: ► Why does the company go international? ► How do they do it? ► What problems do they encounter? ► Where do they go for help?

How did we do it?  Telephone survey of 1,200 SMEs  Face-to-face interviews with  the strategic leader of 80 SMEs

Who did we talk to: A:The Curious B:The Frustrated C:The Tentative D:The Enthusiastic E:The Successful

Strategy Implications: ► Complexity ► Transferable skills and knowledge ► Sustainability of support ► Relationships and networks

i10 AND THE H.I.G.H.E.R. PROJECT

 To improve international business support services for potential high-growth companies.  Identified from CEIM study  Middle-market as labelled by PWC  Interest in ‘born globals’  Impact of economic change (globalisation, ) on SMEs  To promote knowledge-sharing between HEIs, companies and government support agencies.

HOW WE HAVE HELPED THE COMPANIES STRATEGIC MARKET DECISIONS RELATIONSHIP MANAGEMENT Strategic competence Organisational learning Planning Change management Environment assessment Competitor analysis Human Resources Market entry Cultural issues languageskills Long distance management Conflict resolution Knowledge exchange Partnership management

Exporting is not an end in itself Other activities should accompany and follow on from exporting Innovation and competitiveness in product and process in the firm is the goal.

Source: Robert Salomon, Learning from Exporting, Edward Elgar, 2006 Firms that become exporters in a given year experience more product innovation the following year The more markets you enter, the more you innovate Going directly to markets results in more innovation

 “[..] inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation [..].” Chesbrough, H., W. Vanhaverbeke, and J. West, eds. Open Innovation: Researching a New Paradigm. 2006, Oxford University Press.

 Outside-In-Processes Integrating external knowledge in the innovation process:  --> Using the expertise of suppliers, customers and external partners in order to improve the quality of the innovation process.  Inside-Out-Processes Externalising IP or internal knowledge: PUSH!, Business Angel Forum, Regional hubs, Experts‘ Database...  Capitalise on this IP/knowledge through licensing, joint ventures and spin offs. „ If we can‘t turn all our discoveries into products, why don‘t we license them to third parties or even sell them entirely?“ Gerard Kleisterlee, Philips

 Stakeholders Companies Scientists Government Suppliers of knowledge (consultants, business schools)  Primary target group: Companies  Secondary target group: Other stakeholders Companies Science Government Others Project Primary Target group Secondary Target group Stake holders

ResearchDevelopmentCommercialisation Core Market Focus Company Boundaries Products in-sourced (e.g. Co-branding) IP in-licensing IP out-licensing Technology Spin-outs Ideas & Technologies Docherty, M. (006), Primer on ‘Open Innovation’: Principles and Practice, pdma (Product Development and Management Association) Vision (April 006), pp Chesbrough, H. (003), Open Innovation: The New Imperative for Creating and Profiting From Technology, Boston: Harvard Business School Press. The model of ‘open innovation’

 Innovation policy and governance structures urgently need to anticipate changes and new developments in the national and European innovation system.  New generation of Innovation Governance has to open up for better horizontal and vertical co-operation of the regulatory regime  Policy makers and intermediaries have to prepare the innovation governance system for the paradigm shift to Open Innovation.  Benefit through learning from the experiences of the growing “co-opetition” culture in the private sector.

1. A larger proportion of educated globally minded citizens in all countries 2. A greater number of real born globals, i.e. cross-nationally constructed companies 3. More transnational legislation permitting cross-national company formation 4. Better, accessible skills everywhere to help companies compete and collaborate internationally

 People (employees, interns)  Expertise (consulting services)  Knowledge (tacit, explicit)  Resources (equipment, facilities, incubation)  Public spaces (conferences, networking)  New firms (spin-outs, start-ups)  But risk of ‘mixed mission’ ◦ (academic / commercial, short-term / long-term)?

Education Academic Research Relevant to work (Business value) (Integration of values) Transfer of knowledge into innovations (Value of competitiveness) Academic education (Intellectual value) World class academic research (Value of new knowledge) RELEVANTRELEVANT LINEARLINEAR CYCLICCYCLIC THEMATICTHEMATIC Impacts CREATIONS Industry and Services Academy Government Global Society Region

31 Open Innovation Agency – Possible Structure Open Innovation Agency OI–Network: Business support, Research and Education Institutes Shareholders: RDAs and other Regional Intermediaries Infrastructure, Personnel Membership Fees CompaniesResearch Institutes/ Universities Premium Services Excellence hubs and Cluster Initiatives Services: Brokerage, Assessment, Education and Training, Communication European/Intl. Co-operation

Prof. Terry Mughan Director, The Centre for Innovation in International Business Ashcroft International Business School Anglia Ruskin University East Road, Cambridge, CB1 1PT Tel: Fax: