1. Building the Infrastructure for an Innovative Knowledge Economy –European Experience
Professor Ron Johnston
Australian Centre for Innovation
Faculty of Engineering, University of Sydney
Warren Centre Major Projects Committee
14 March 2007

2. http://www.aciic.org.au/ M
15 years old; non-profit but very commercial M
Mission – to assist organisations to better address the challenges of the future through innovation

3. The European Challenge
“Europe must break out of structures and expectations established in the post-WW2 era which leave it today living a moderately comfortable life on slowly declining capital…unsustainable in the face of rising competition from other parts of the world”
(Aho Report, p.1)

5. AND
“In the context of the Lisbon Strategy and the shift to a knowledge-based economy, Europe needs to ensure an attractive business environment for the development of key technology areas and markets where it should aim at achieving world-leading competitive advantage.” (DG-RTD)

7. The Response Building the NEW Infrastructure
Strategic Intelligence
Demand-side policies to create opportunities for innovation
User-led manufacturing

8. Strategic Intelligence – a capacity to address the future
Through
Databases of foresight and forecasting
Futurewatch/ over-the-horizon scanning
Analyses of emerging technologies
Capacity building
Focussed R&D – FP7 €52 billion
Multiple applications

9. Demand-side policies – the rationale
The primary target should be new and emerging markets for knowledge-intensive goods and services with a high growth potential, which require intensification of R&D efforts and where public authorities can play a critical role on the demand side.” (DG-RTD)

10. Examples Past Future Internet
Key platform technologies underpinning Nokia and Philips products
Aerospace and high-speed trains
Future
E-health
Pharmaceuticals
Energy
Environment
Transport/logistics
Security
Digital content
(Aho Report)

11. Public Procurement Innovation in procurement processes
Procurement from the market of innovative goods/ services
Procurement of ‘prospective’ goods/services
Innovation in identification of procurement needs

12. Characteristics of Lead Markets
High per capita income
Quality and quantity of demand
Good framework conditions for learning and innovation
Pioneering, demanding regulations
Competence in entire value chain
Image
Clear major problems/challenges
(Meyer-Kramer, 2004)

16. Opportunities?
A better strategic intelligence capability will assist in identifying new business opportunities
Demand-side policies will create a landscape for new business ventures
User-centred innovation has application in all industries, and challenges lowest-cost models