A New Agenda for Norwegian Innovation-Driven Entrepreneurship Scott - - PowerPoint PPT Presentation
Building the Oslo Life Sciences Cluster: A New Agenda for Norwegian Innovation-Driven Entrepreneurship Scott Stern MIT and NBER 1 Norway has emerged as among the most prosperous nations in the world GDP PPP Per Capita Source: OECD Statistics
Scott Stern MIT and NBER 1
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60 80 100 120 140 160 180 200 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GDP PPP Per Capita Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
Beyond leveraging abundant natural resources, Norway has established a strong foundational level of competitiveness
3 Measure Rank Social Infrastructure and Political Institutions 4 Macroeconomic Policy 1 Microeconomic Competitiveness 11 National Business Conditions 11 Company Strategy 7
Foundational Competitiveness 4
Based on 2013 HBS ISC Competitiveness Rankings Drawn from MIT-Harvard Observabory of Economic Complexity
Historically, Norwegian prosperity has not been matched by overall leadership in measured innovation
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0,00E+00 5,00E-05 1,00E-04 1,50E-04 2,00E-04 2,50E-04 3,00E-04 3,50E-04 4,00E-04 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
WIPO Patents per Capita Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
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0,00E+00 5,00E-07 1,00E-06 1,50E-06 2,00E-06 2,50E-06 3,00E-06 3,50E-06 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
PCT Patent Applications Per Capita by Applicant Country of Residence Class: Technologies Specific to Climate Change Mitigation Source: OECD Statistics
Canada Denmark Finland Germany Netherlands Norway Sweden United Kingdom United States Russia
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2 4 6 8 10 12 14 2004 2005 2006 2007 2008 2009 2010 2011 2012
New Business Density
Source: World Bank Entrepreneurship Statistics
Australia Denmark Finland France Germany Netherlands Norway Sweden United Kingdom
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“Life sciences increase our understanding
have an even greater potential. They represent a platform for new industry in Norway and transition to a greener economy with new jobs, products and services for the benefit of society, particularly in the health sector,” Ole Petter Ottersen Rector, University of Oslo
emerging innovation-driven economy
leverage latent strengths and areas of potential comparative advantage
strength, Oslo can chart a new path for economic development
integrate researchers, knowledge, students, new infrastructure, and convene the entire range of the Oslo ecosystem
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Economic Strategy for Norway
Mens et Manus:
the work is based on a systematic framework and nearly 20 years of empirical research
develop & run ecosystem programs => Interplay between thinking & doing
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MIT REAP Framework
System Stakeholder Strategy
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E-Cap I-Cap
Economic Impact Social Progress
Cluster Based Comparative Advantage
IDE Ecosystem Potential
Foundational Institutions
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15 E-Capacity Ability to start and build new to the world businesses from inception to maturity.
Strong I-Cap: Universities, Central R&D, Network of researchers, Medical Centers Strong E-Cap: Entrepreneurs, Mentors, Founding Teams Investors at all stages
I-Capacity Ability to develop new to the world innovations from inception through to the market.
Japan Israel Finland Korea, Rep. Switzerland Sweden Germany Canada Singapore Iceland Netherlands Denmark Australia Austria United Kingdom France Luxembourg Belgium Hong Kong SAR Ireland New Zealand Italy Slovenia Spain Hungary Malaysia Malta Czech Republic Lithuania Croatia Bulgaria Greece
50 100 150 200 250 300 2 4 6 8 10 12 14 16 18 20 Patent per million people '08 New Firm Registration/1,000 working people '08
Patent Rate (I-Capacity) vs. Business Formation Rate (E-Capacity)
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Innovative Capacity and Entrepreneurial Capacity Reflect Distinct Investments, Policy and Norms
I-Capacity
PERFORMANCE PEOPLE FUNDING INFRASTRUCTURE POLICY CULTURE & COMMUNITY DEMAND
Entrepreneurship output (new firms & growth) Pool of entrepreneurs Quality of entrepreneurial education Accessibility of entrepreneurial capital (government, private, equity, debt, grants) Physical infrastructure (space, transportation) Availability of key services (internet, training) Clear rules on new business creation Clear rules on business operations and growth Culture of entrepreneurialism and failure Societal support, ties and recognition Government, corporate and consumer demand for new products and services Innovation output (patents and papers) Pool of innovators Education in tech and ommercialization Funding for research Government programs Physical infrastructure Example: hi speed internet Clear rules around patents Clear support for STEM education Celebration of invention and innovation
Nature of established companies in region
E-Capacity
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Assessing Norwegian Innovative Capacity
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0,00E+00 5,00E-05 1,00E-04 1,50E-04 2,00E-04 2,50E-04 3,00E-04 3,50E-04 4,00E-04 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
WIPO Patents per Capita Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
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0,5 1 1,5 2 2,5 3 3,5 4 4,5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
R&D Expenditures as Percent of GDP Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
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0,00% 0,10% 0,20% 0,30% 0,40% 0,50% 0,60% 0,70% 0,80% 0,90% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Reseachers (FTE) per capita Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
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15 20 25 30 35 40 45 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Percentage R&D Expenditures Financed by Government Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
But a relatively low fraction of research has historically been conducted by the university sector
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0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Higher Education R&D Expenditures as Percent of GDP Source: OECD Statistics
Denmark Finland Germany Netherlands Norway Sweden United Kingdom
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E-Cap I-Cap
Linkages
IDE Framework Atop a strong foundation of competitiveness and social progress, Norway still needs to achieve a first- tier position in innovative capacity
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Assessing Norwegian Entrepreneurial Capacity E-Capacity
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2 4 6 8 10 12 14 2004 2005 2006 2007 2008 2009 2010 2011 2012
New Business Density
Source: World Bank Entrepreneurship Statistics
Australia Denmark Finland France Germany Netherlands Norway Sweden United Kingdom
27 Economy Ease of Doing Business Rank Singapore 1 New Zealand 2 Hong Kong SAR, China 3 Denmark 4 Korea, Rep. 5
Norway 6
United States 7 United Kingdom 8 Finland 9 Australia 10 Economy Starting a Business Rank New Zealand 1 Canada 2 Macedonia, FYR 3 Armenia 4 Georgia 5 Singapore 6 Australia 7 Hong Kong SAR, China 8 … …
Norway 22
Drawn from World Bank Doing Business Indicators
Oslo seems to be at the cusp of embracing the start-up energy that has emerged across many IDE ecosystems…
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E-Cap I-Cap
Linkages
IDE Framework Atop a strong foundation of competitiveness and social progress, Norway has yet to achieve a first-tier position in innovative capacity A favorable business environment for established firms still has too many
growth start-ups
The third pillar of the IDE Ecosystem is the role of clusters that enhance opportunities for innovation and entrepreneurship and define the entrepreneurial comparative advantage of regions
E-Cap I-Cap
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A cluster is a regional concentration of related industries connected through various types of linkages and spillovers and supporting institutions
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Motion Pictures – LA Semiconductors - Taiwan Fashion & Textiles - Milan
industry in a region will be increasing in the strength of the regional cluster within which that industry operates
– Across related industries Within a Cluster, – Across Related Clusters – Across the Same Cluster in Neighboring Regions
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Note: Average Region-Industry Annualized Employment Growth over 1990-2005. Region (EA) and Industry (4-digit SIC). N=55083. Cluster specialization variable is measured by Location Quotient. High means above the median of the variables.
INDUSTRY SPECIALIZATION Low High CLUSTER SPECIALIZATION Strength of Regional Clusters (presence of related industries) Low +13% 0% High +20% +1%
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the early 1990s to the mid-2000s
1990-2005 as a function of the initial Industry Specialization and Cluster Specialization (outside the industry) in a region, and a set of region and industry fixed effects
– Industries that are part of a strong cluster environment register
Level, Growth, and Surivability of Start-ups Level and Impact of Innovation
Source: Delgado/Porter/Stern, Clusters and Entrepreneurship, Journal of Economic Geography, 2010
CLUSTER ENVIRONMENT Within a Cluster Related Clusters Neighboring Clusters
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Norway boasts extraordinary cluster strength, supported by engaged cluster organizations
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Importantly, Norwegian science and innovation leadership is closely connected to cluster strength
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0,00E+00 1,00E-06 2,00E-06 3,00E-06 4,00E-06 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
PCT Patent Applications Per Capita by Applicant Country of Residence Class: Technologies Specific to Climate Change Mitigation Source: OECD Statistics
Canada Denmark Finland Germany Netherlands Norway
Scientific Articles on "Fuel Technology" Articles per million citizens
Norway 37.66
Denmark 33.26 Finland 17.37 Netherlands 11.88 United Kingdom 11.29 United States 9.87 Germany 6.94 Russia 6.34
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E-Cap I-Cap
Linkages
IDE Framework Atop a strong foundation of competitiveness and social progress, Norway has yet to achieve a first-tier position in innovative capacity A favorable business environment for established firms still has too many
growth start-ups A strong and engaged cluster environment reinforces Norwegian foundational competitiveness, allowing Norway to escape the “resource curse” and achieve a high and stable level of prosperity
Economic Strategy for Norway
Regional Value Proposition
What is the distinctive competitive position of a geographic area given its location, legacy, existing and potential strengths? Develop Unique Strengths What do we do that is different or that provides sustainable competitiveness in international markets? Achieve and Maintain Parity with Peers What weaknesses must be addressed to remove key constraints and achieve parity with peer locations?
Policy Improvement
each policy area
matter
progress in all areas simultaneously
sector concerns
A Regional Economic Strategy is Not Just “Good Policy”
Regional Economic Strategy
unique position, based on its particular circumstances
stakeholders
through innovation and entrepreneurship
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E-Cap I-Cap
Linkages
IDE Framework Atop a strong foundation of competitiveness and social progress, Norway has yet to achieve a first-tier position in innovative capacity A favorable business environment for established firms still has too many
growth start-ups A strong and engaged cluster environment reinforces Norwegian foundational competitiveness, allowing Norway to escape the “resource curse” and achieve a high and stable level of prosperity
The Oslo Life Science Value Proposition
What is the distinctive value of the Norwegian a geographic area given its location, legacy, existing and potential strengths? Develop Unique Strengths Establishing unique linkages and competencies in areas such as marine technology, environment, energy, and
life sciences innovation Achieve and Maintain Parity with Peers Investing in traditional biosciences and drug development targets. Establishing a leading biocluster by the standard of traditional metrics
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to Nurture and Build Innovative and Entrepreneurial Capacity
and initiatives focusing on SMEs versus IBEs
Innovation with Areas of Unique Norwgian Strength (Ocean, Energy)
Distinct Oslo Life Sciences Cluster
latent comparative advantage and areas that leverage prior strengths
The Oslo Life Sciences Cluster will succeed by engaging all IDE Stakeholders
cluster leadership as the basis for a true knowledge-based economy is a long process.
Choosing the Future of the Oslo Life Sciences Cluster: What is the Must-Win Battle?
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