Innovación: Lecciones de MIT y el Mundo

Building Bridges:Universities and the

Peruvian Innovation System

Professor Scott SternMIT Sloan School and NBER

This presentation draws on collaboration between Scott Stern, Michael Porter, Mercedes Delgado, Christian Ketels, Fiona Murray, and work conducted at the MIT E-Center and the Harvard Institute for Strategy and Competitiveness. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of Scott Stern.

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Inca Rope Suspension Bridgewww.rutahsa.com

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A New Agenda for Peruvian Universities

• Building an Innovator Workforce

• Catalyzing Innovation-Based Entrepreneurship

• Convening the Public and Private Sector to Build a Peruvian Innovation Economy

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$0

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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Over the past decade, Peru has experienced exceptional economic performance

– Note: PPP using Geary Khamis calculation methodology. Source: Groningen Growth and Development Centre, Total Economy Database (June 2009)

GDP per Capita(in 1990 PPP US$) CAGR:

+2.07%

CAGR:

+2.07%

CAGR:

+4.81%

CAGR:

+4.81%

CAGR:

0.73%

CAGR:

0.73%

5 Copyright 2010 © Professor Michael E. Porter

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

-0.5% 0.0% 0.5% 1.0% 1.5%

Significant export growth linked to natural resources and endowments

Change in Peru’s world export market share, 1997 to 2009Source: Prof. Michael E. Porter, International Cluster Competitiveness Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. Underlying data drawn from the UN Commodity Trade Statistics Database and the IMF BOP statistics.

Pe

ru’s

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orl

d e

xp

ort

ma

rke

t s

ha

re,

20

09

Change In Peru’s Overall World Export Share: +0.09%

Peru’s Average World Export Share: 0.22%

Exports of US$2 Billion =

Fishing and Fishing Products

AgriculturalProducts

CommunicationsServices

Jewelry and Precious Metals

Metal, Miningand Manufacturing

ApparelFinancialServices

Publishing and Printing

Hospitality and Tourism

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Significant reductions in poverty but still much work remains…

% of Population Under the

Poverty Line

0%

10%

20%

30%

40%

50%

60%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

– Source: Informacion Socio Demografica, from El Instituto Nacional de Estadistica e Informatica (INEI), 2010

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0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

-30% -20% -10% 0% 10% 20% 30% 40%

Source: USPTO, World Bank

Average U.S. patents per million population,

2005 – 2009

CAGR of US-registered patents, 2005 – 2009

Peru has not yet established itself as a global innovator

Saudi Arabia

RussiaPortugal

Turkey

India

Poland China

South Africa Greece

170 patents =

Argentina

Brazil

Croatia

Lithuania

PhilippinesEcuador

Chile

ThailandPeruVenezuela

Mexico

Colombia

Ukraine

Estonia

Costa Rica

Uruguay

Kazakhstan

KenyaEgypt

Latvia

United Arab Emirates

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The Peruvian Innovation Challenge

– Peru has experienced exceptional economic performance over the past decade

– Grounded in a shift towards sound macroeconomic policy, openness to international markets and partners, and the establishment of a higher level of basic security

– Leveraging natural resources and endowments

– But Peru has not yet established the foundations for an innovation-driven economy

– Resource-led or cost-based growth has natural limits.

– Peru must start setting the foundations – today -- for an innovation-driven, knowledge-based economy.

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BUT…

WHAT IS THE ROLE OF PERUVIAN UNIVERSITIES AND OTHER

KNOWLEDGE INSTITUTIONS IN THIS NEXT STAGE OF PERUVIAN ECONOMIC

DEVELOPMENT?

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A New Agenda for Peruvian Universities

• Building an Innovator Workforce

• Catalyzing Innovation-Based Entrepreneurship

• Convening the Public and Private Sector to Build a Peruvian Innovation Economy

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Priority #1:

Building an Innovator Workforce

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Peru lags neighbors in investments and resources towards basic education at the primary, secondary and

tertiary level

– Source: UNCTAD Science, Technology and Innovation Policy Review, 2011

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And Supports a Lower Level of Innovation Effort*

* As far as we can tell from incomplete data!

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But…

Higher Education remains focused on

education training, law, and administration…

Key STEM areas such as computer science, biotechnology, and

nanotechnology register at very low

levels.

Starting at a low level, Peru can make great progress in enhancing research intensity

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Finla

nd

Taiw

an

Icel

and

Japan

New Z

eala

nd

Sweden

Denm

ark

Norway

Unite

d Sta

tes

(200

6)

Korea

Austra

lia

France

(200

6)

Belgiu

m

Canad

a (2

005)

Austri

a

Germ

any

Russi

a

Slove

nia

Luxem

bourg

Switzer

land (2

004)

Irela

nd (2

006)

Spain

Slova

kia

Estoni

a

Unite

d Kin

gdom

Portu

gal

Czech

Rep

ublic

Nether

lands

Hungar

y

Greec

e

Polan

d

Italy

(200

6)

Turkey

China

South

Afri

ca

Peru (e

stim

ate)

Source: National Science Council, R.O.C., Indicators of Science and Technology, Taiwan, 2008; OECD Science, Technology, and Industry Scoreboard 2009. Data 2007 except where noted.

Researchers /1,000 Employees

16Taiwan Competitiveness 20100408 Copyright © 2010 Professor Michael E. Porter

HOW CAN PERUVIAN UNIVERSITIES ENHANCE THE INNOVATOR

WORKFORCE?

Agenda Items for Peruvian Universities

Establishing a much higher level of commitment to all levels of education

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“Mens et Manus”

Mind and Hand….

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The MIT Inca Bridge Project

hsendorf

Research: John Ochsendorf and colleaguesTeaching: Heather Lechtman, Linn Hobbs and MIT Undergrads!

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Agenda Items for Peruvian Universities

• Establishing a much higher level of commitment to all levels of education.

• Prioritizing investments in areas of science, engineering, and technology education that are complementary to Peruvian clusters and comparative advantage

• Ensuring “Mens et Manus” – higher education must be positioned towards the development of an innovator workforce that meets the needs of an innovation-oriented Peru

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Priority #2:

Catalyzing Innovation-Based Entrepreneurship

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Peru has an important tradition and strength in a number of universities (though more are needed)…

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HOW CAN UNIVERSITIES CATALYZE INNOVATION-BASED

ENTREPRENEURSHIP?

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MIT serves as the fulcrum for the Cambridge biosciences cluster…

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– 7/17/2008

143

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159

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121

149

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0

20

40

60

80

100

120

140

160

Issu

ed U

.S. P

aten

ts

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Fiscal Year

M.I.T. Issued U.S. Patents by Fiscal Year, 1999-2008

MIT Entrepreneurial Impact

JobsPercent of Companies

Median Employees

Median Sales ($Millions)

Estimated Total

EmployeesEstimated Total Sales ($Millions)

More than 10,000 0.3% 15,000 1,523 1,339,361 1,389,0751,000-10,000 1.8% 1,927 308 1,043,932 235,532

Less than 1,000

97.9% 39 <1 900,001 226,671

Total100.0% 155 <1 3,283,294 1,851,278

University alumni impact reflects the growing leverage over time of numbers, and has great potential.°Roberts and Eesley, based on ~25,800 active companies. All data are in “Entrepreneurial Impact: The Role of MIT”

– 26

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Bob Langer has published more than 1100 articles and been granted more than 760

patents…

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Prof Yet-Ming Chiang

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But how does MIT create this environment?

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Agenda Items for Peruvian Universities

• Establishing specific institutions and programs – tailored to the strengths of each univeristy – to enhance the potential for an innovator workforce and commercializing new technologies and business processes

– Classes combining practitioner and faculty focusing on opportunity identification and business plan development

– Business plan competitions that engage across disciplines, faculties and universities

– Removing roadblocks to commercialization (tech transfer, etc)

– Celebrating achievement and giving back through mentoring and the nurturing of the next generation

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Priority #3:

Convening the Public and Private Sector to Lay the Foundations for the

Peruvian Innovation Economy

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The Peru Cluster Environment

La Libertad (El Porvenir, Trujillo)Leather, Footwear

Lima (La Victoria)Apparel

Puno and ArequipaApparel from Alpaca

CuzcoTourism

Cajamarca (Bambamarca)Dairy, Processed Foods

Ancash (Chimbote)Fishing and Fish Products

IcaWine

Lima (Infantas, Los Olivos)Metal Manufacturing, Metal Furniture

PiuraAgricultural Products: Mangoes, Lemons, Brown Sugar Syrup

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Peruvian Clusters and Peruvian Universities

– Peru’s current clusters are based heavily on natural endowments, and have much room for further upgrading

– Even in areas with significant clusters – such as Cajamarca, Arequipa, and Moquegua in mining – there have historically been significant technological bottlenecks

– Though there are some strong universities universities have historically played a limited role in supporting the development of entrepreneurial firms that catalyze local clusters.

– There is a limited tradition of collaboration among actors for regional development

– There is a weak institutional capacity – which could be addressed by leading Peruvian universities -- hampering the development of clusters.

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HOW CAN UNIVERSITIES HELP NURTURE PERUVIAN CLUSTERS AND

THEIR ROLE IN THE PERUVIAN INNOVATION SYSTEM

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The Australian Wine ClusterLocations

Western Australia

South Australia

New South Wales

Victoria

Queensland

Northern Territory

TasmaniaNote: Colored areas indicate wine growing regionsSource: Australian Wine & Brandy Corporation

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 37

The Australian Wine ClusterRecently founded Institutions for Collaboration

Wine Industry National Education and Training Council

Wine Industry National Education and Training Council

Established in 1995

Focus: Coordination, integration, and standard maintenance for vocational training and education

Funding: Government; other cluster organizations

Established in 1995

Focus: Coordination, integration, and standard maintenance for vocational training and education

Funding: Government; other cluster organizations

Cooperative Centre for ViticultureCooperative Centre for Viticulture

Established in 1991

Focus: Coordination of research and education policy in viticulture

Funding: other cluster organizations

Established in 1991

Focus: Coordination of research and education policy in viticulture

Funding: other cluster organizations

Australian Wine Export CouncilAustralian Wine Export Council

Established in 1992

Focus: Wine export promotion through international offices in London and San Francisco

Funding: Government; cluster organizations

Established in 1992

Focus: Wine export promotion through international offices in London and San Francisco

Funding: Government; cluster organizations

Winemakers’ Federation of AustraliaWinemakers’ Federation of Australia

Established in 1990

Focus: Public policy representation of companies in the wine cluster

Funding: Member companies

Established in 1990

Focus: Public policy representation of companies in the wine cluster

Funding: Member companies

Grape and Wine R&D CorporationGrape and Wine R&D Corporation

Established in 1991 as statutory body

Focus: Funding of research and development activities

Funding: Government; statutory levy

Established in 1991 as statutory body

Focus: Funding of research and development activities

Funding: Government; statutory levy

Wine Industry Information ServiceWine Industry Information Service

Established in 1998

Focus: Information collection, organization, and dissemination

Funding: Cluster organizations

Established in 1998

Focus: Information collection, organization, and dissemination

Funding: Cluster organizations

Source: Michael E. Porter and Örjan Sölvell, The Australian Wine Cluster – Supplement, Harvard Business School Case Study, 2002

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The Emergence of the Australian Wine Industry is Rooted in the Evolution of Australian Competitive Advantage

Abundant Productive

Land

WineProduce

Logistics / Trade

Information Technology

1980 1990 2002 +

Bioscience Research Centers

Mining and Natural

Resources

Gold

Medical Devices

Biotech / Pharmaceuticals

Education andKnowledge Creation

Travel and TourismIron / Aluminum Bauxite

Beef

Grains

Ag Research Centers

Wool

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 39

$0

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$900

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1995 1996 1997 1998 1999 2000

0%

1%

2%

3%

4%

5%

6%

7%

8%

Value

Market Share

The Australian Wine ClusterTrade Performance

Source: UN Trade Statistics

Australian Wine Exports in million US Dollars

Australian Wine World Export Market Share

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Over the 1990s, growth in Australian exports was driven by improvement in Australia’s wine cluster

0%

5%

10%

15%

20%

25%

30%

35%

-8% -6% -4% -2% 0% 2% 4%

Materials/Metals

Food/Beverages*

Textiles/Apparel

Note: Wine export growth accounts for >45% of the increase in the export share of food/beveragesSource: UN Trade Statistics

Transportation Equipment

Health Care

Oil/Chemicals

Multiple Business

Share of Australian Exports, 2000

Change in Share of Australian Exports, 1995-2000

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And has continued to grow…

Source: UN Trade Statistics

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CITEvid – Enhancing the Pisco Industry

Source: Juana Koromoto, GRADE

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Facilitating a rapid rise in production and exports….

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What are Cluster Initiatives?

• Upgrading of company operations and strategies across a group of companies

• Strengthening of networks to enhance spill-overs and other economic benefits of clusters

• Upgrading of cluster-specific business environment conditions

Cluster initiatives are collaborative activities by a group of companies, public sector entities, and other related institutions with the objective to improve the competitiveness of a

group of interlinked economic activities in a specific geographic region

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What is Different about Cluster-Based Economic Policy?

– Cluster vs.Narrow

Industries

– RegionalPerspective

– Build on Regional Strengths

– Demand-drivenPolicy

Priorities

– Public-PrivateCollaboration

Focus on upgrading

productivity

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Agenda Items for Peruvian Universities

Peruvian universities are the natural home for the institutions of collaboration that are are at the heart of a cluster-led economic strategy

While Peruvian universities have only recently become engaged with joint colalborations with Peruvian companies (and multinationals), the Peruvian university system should strive to serve as the hub for activities that are focused on upgrading productivity and enhancing the environment for innovation and entrepreneurship.

Peru has an enormous cultural legacy and vast natural and human resources....but these must be mobilized for action and Peruvian universities must be at the vanguard of this effort

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A New Agenda for Peruvian Universities

Building an Innovator Workforce

Catalyzing Innovation-Based Entrepreneurship

Convening the Public and Private Sector to Build a Peruvian Innovation Economy

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 48

How Can We Build Bridges to a Peru Innovation Nation?