1. Using Innovation Audit for Fostering Innovation within the Region – Strategy in Lower Saxony Stefan Austermann 12. October 2006

2. Slide 2Austermann, Open Days Brusseles 12.10.2006 Structure Host organisation and European experience Innovation Audit – the tool we use Implementing this tool into company support structure in Lower Saxony

3. Slide 3Austermann, Open Days Brusseles 12.10.2006 NBank: Lower Saxony Company Support Organisation New since 2004 Covering whole Lower Saxony Most of Lower Saxony support products gained Bank structure for financing reasons Regional networks

4. Slide 4Austermann, Open Days Brusseles 12.10.2006 Overview: NBank Products Company Support CoachingESFGrantsLoans Niedersachsen-Kredit Niedersachsen- Kleinkredit Niedersachsen- Innovationskredit GA gewerblich GA Infrastruktur Touristische Entwicklung Innovationsprogramm Patentverwertung Personaltransfer Messeprogramme Meister BaFöG Gründungscoaching KfW-Gründercoaching Beteiligungscoaching Strategiecoaching Finanzierungscoaching Nachfolgecoaching Förderung von Qualifizierung Förderung von Arbeitsplätzen

5. Slide 5Austermann, Open Days Brusseles 12.10.2006 Network for Innovation Support in Lower Saxony Innovation Financing Ministry for Economy Innovationszentrum NBank: Policy Consulting Evaluation of RTD Grants Innovationsnetzwerk Network of Innovation Support Organisations

6. Slide 6Austermann, Open Days Brusseles 12.10.2006 Internationalisation Support at NBank Department Internationalisierung EIC and IRC located here Easy Signposting, information gathering Combination with funding for internationalisation measures

7. Slide 7Austermann, Open Days Brusseles 12.10.2006 EIC Hannover Staff 3,5 FTE, Company support and Information in general Special working fields: European funding, Framework Programme ETI EcTIST

8. Slide 8Austermann, Open Days Brusseles 12.10.2006 IRC Lower Saxony/Saxony-Anhalt Staff 3,5 FTE Co-operation service through the IRC-Network Innovation Support through non-financial assists Development of Innovation Audit tool Implementing that tool within the region

9. Slide 9Austermann, Open Days Brusseles 12.10.2006 What is Innovation?.... More than just the sucessful application of research findings........... Result of complex interactions between persons, organisations and their environment...

10. Slide 10Austermann, Open Days Brusseles 12.10.2006 What is Innovation? Companies are heart of the innovation process InventionAdaption Value innovation Process innovation

11. Slide 11Austermann, Open Days Brusseles 12.10.2006 Is Innovation Measurable? Are we able to identify the SME readiness for innovation? Can we identify the best practices? Can we trace common sets of practices and SME success? Yes, there is a proven correlation between competitiveness and the ability to innovate!

12. Slide 12Austermann, Open Days Brusseles 12.10.2006 The experts from the IRC Network… Best practicesSME outcomes Shortening time to marketShortening time to market Increased number of novel productsIncreased number of novel products Lower schedule varianceLower schedule variance Reduced integration effortReduced integration effort Increased supplier supportIncreased supplier support Higher user satisfactionHigher user satisfaction Reduction of development expensesReduction of development expenses etc.etc. Guideline AGuideline A Guideline BGuideline B Guideline CGuideline C Guideline DGuideline D Guideline EGuideline E Guideline FGuideline F etc.etc. relationships ? ?

13. Slide 13Austermann, Open Days Brusseles 12.10.2006 IRC Innovation Audit A best practice reference tool that: identifies priorities for which practices to undertake first supports incremental improvement actions helps guidance for improving common issues quantifies the association with specific practices delivers case studies helping to coach activities

14. Slide 14Austermann, Open Days Brusseles 12.10.2006 T he innovative ability of a company is influenced by seven process fields Innovation Audit – A Frame T he innovative ability of a company is influenced by seven process fields The IRC Innovation Audit has been developed to identify and evaluate a companys ability to innovate. demographics Supporting environment for innovation IS innovation sources OM organisation and management SP support BM benchmarking processes IP innovation preparation IP innovation preparation TR technology range PD product development

15. Slide 15Austermann, Open Days Brusseles 12.10.2006 IRC Innovation Audit – maturity model To Prove - 5 Quality features respectively capability levels characterise the execution of processes relevant for innovation To Optimise – measures are suggested Based on the principle of process optimisation Company visit, intensive and structured discussion Detailed report including a graphical evaluation (ar. 20 pages) Final discussion of the results, To-Do List

16. Slide 16Austermann, Open Days Brusseles 12.10.2006 IRC Innovation Audit The maturity model perform manage document measure improve...processes nirvana 5 capability levels estimate 35 processes which are relevant for innovation inside an organisation

17. Slide 17Austermann, Open Days Brusseles 12.10.2006 Maturity and the ability to innovate – the costs The costs increases progressively within the quality improvement of the process perform manage document measure improve Costs Costs 5 quality features 5 quality features

18. Slide 18Austermann, Open Days Brusseles 12.10.2006 Operation mode of the tool and examples

19. Slide 19Austermann, Open Days Brusseles 12.10.2006 Operation mode of the tool and examples

20. Slide 20Austermann, Open Days Brusseles 12.10.2006 Operation mode of the tool and examples Impact and quality of process implementation determine the level of innovation ability

21. Slide 21Austermann, Open Days Brusseles 12.10.2006 Regional Impact – Added value for the Companies Marketing towards companies fosters interest in the topic innovation Use of the tool by companies strengthens their competitiveness Through regional offer off such service, more companies within the region will be more competitive Service for mature companies Service for old sectors

22. Slide 22Austermann, Open Days Brusseles 12.10.2006 Regional Impact – Regional Strategy Selling this service as non-monetary but added value Using regional Network for Marketing Combining this Service to offers from regional partners Combined actions lead to intensive use within the region Combining Innovation Audit with innovation funding Combining Innovation Audit with consultancy funding Funding is more effective in terms of economic Impact

23. Slide 23Austermann, Open Days Brusseles 12.10.2006 Regional Impact – Example WachstumsImpuls Regional partner from Hannover region Hannover Impuls Aim to work with existing older companies Helping them in their further development Having positive feed-back within the region

24. Slide 24Austermann, Open Days Brusseles 12.10.2006 Regional Impact – Example WachstumsImpuls The Project: A competition for the best innovation development project Companies propose projects Best ideas are selected Companies win a 1-year-consultancy by external partners for realising the Projects At the beginning they have an Innovation Audit which shows, how the strategy has to be created After one year the company with best results will be awarded. 33 proposers, 13 Winners audited and now working with the consultants

25. Slide 25Austermann, Open Days Brusseles 12.10.2006 Conclusions Regional public financing institutes look for non-monetary services Innovation Audit brings direct added value to the companies Such service can be combined to other (Financing) Instruments Audit can be a part within an integrated part of regional innovation development project or strategy.

26. Slide 26Austermann, Open Days Brusseles 12.10.2006 Thank you very much Stefan Austermann NBank, IRC Lower Saxony/Saxony-Anhalt Phone +49 511 30031 360 E-mail: stefan.austermann@nbank.de