4th Intl. Conf. on Technology Policy and Innovation Curitiba, 28-31 August 2000

4th Intl. Conf. on Technology Policy and Innovation

Curitiba, 28-31 August 2000

CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+

Instituto Superior Técnico, Technical University of Lisbon

http://in3.dem.ist.utl.pt

CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+

Instituto Superior Técnico, Technical University of Lisbon

http://in3.dem.ist.utl.pt

Towards a University Agenda on Engineering Policy

and the Management of Technology

Pedro Conceição and Manuel Heitor

Towards a University Agenda on Engineering Policy

and the Management of Technology

Pedro Conceição and Manuel Heitor

Background: trends for the University ?

Conceicão & heitor (1999)

Codified knowledge(“software”)

Tacit knowledge(“wetware”)

• Valorization of human and intellectual capital?

Challenges and … Opportunities...Challenges and … Opportunities...

TRADITIONAL MECHANISMS TO PROMOTE UNIVERSITIES and R&D IN SOCIETY

The model: “american university” as reference

1. Intellectual Property Protection

issues: economic impact negligible

promotes institutional integrity

requires adaptation and flexibility

2. Technology Infrastructures and Science Parks

issues: emphasis local development

have not promoted U-I linkages

TRADITIONAL MECHANISMS TO PROMOTE THE ROLE OF UNIVERSITIES IN SOCIETY

The trend: a process of “institutional convergence”

The result: universities today, despite their long historical I inheritance, are relatively new institutions…

… with a complex set of incentive structures and organizational features (Rosenberg & Nelson, 1996)

The threat: institutional integrityThe analysis: “standard”, linear model has been implicit in m most studiesThe analysis: “standard”, linear model has been implicit in m most studies

New technologies

Existingtechnologies

2000 2010

Edudation / trainingfor last 10 years

2000 2010

Education / training acquired for more than 10 years

2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years

The knowledge gap (Scope: EUROPEAN REGIONS)The knowledge gap

(Scope: EUROPEAN REGIONS)

QUESTION

Which trends for advanced education and research in engineering schools, in a way to contribute for the challenges faced by engineering and technology to enhance innovation?

Which trends for advanced education and research in engineering schools, in a way to contribute for the challenges faced by engineering and technology to enhance innovation?

Our Argument...

The need for institutional renewal, …promoting diversity with institutional integrity, (Conceicão & Heitor, 1999) …making use of partnerships! (Conceicão, Gibson, Heitor & Sirilli, 2000)

The scope:... the globalized “learning society”!The scope:... the globalized “learning society”!Knowledge Institutions Learning Organisations

Intellectual Property Learning Networks

Knowledge Institutions Learning Organisations

Intellectual Property Learning Networks

BUT, understanding research (R&D; R&T; R&L), promoting research for creative teaching, and integrating technology, policy and management!

BUT, understanding research (R&D; R&T; R&L), promoting research for creative teaching, and integrating technology, policy and management!

1. Technological change: accelerating

2. The “new” economy: “the big boom”

3. Social Dynamics: complexity and diversity

4. “Governance”: a new model!

The CONTEXT

OCDE: “FUTURES”, Hannover 2000

EC: “IPTS - Futures Report”, 2000

Technological Change:materials, IPTS(1999)

STEELS

CAST IRON

IRON

COOPER

ALLOYSTEELS

GLASSY METALS

AL-LITHIUM ALLOYS

DUAL PHASE STEELS

MICROALLOYED STEELS

BRONZE

SKIN FIBRE GUMS

RUBBER

LIGHTALLOYS

SUPER ALLOYS

TITANIUMZINCONIUMETC

NEW SUPER ALLOYSDEVELOPMENT SLOWMOSTLY QUALITYCONTROL ANDPROCESSING

CONDUCTINGPOLYMERS

HIGH TEMPERATUREPOLYMERS

HIGH MODULUSPOLYMERSBAKELITE

NYLON

WOOD

PAPER

STONEFLINT

POTTERT

GLASS

CEMENT

REFRACTORIES

PORTLANDCEMENT FUSED

SILICA CERMETS

EPOXIES

POLYESTERS

COMPOSITES

POLYMERS

METALS

CERAMICS

POLYMERS

COMPOSITES

CERAMICS

METALS

ALLOYS

10 000 BC 5000 BC 0 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020GOLD

CERAMIC COMPOSITES

COMPOSITESMETAL-MATRIX

SURFACEENGINEERING

RE

LA

TIV

E I

MP

OR

TA

NC

E

SUPERCONDUCTORSTOUGH ENGINEERING

CERAMICS

KEVLAR

BRICKS (with STRAW)

IVORY

10000 BC5000 BC

0 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020

Technological Change:

telecommunications

Technological Change:

perspectives The Convergence: telecommunications and computers ...

The QUESTION : scope and scale

PRODUCTS

PRODUCT

•more technologies to produce each product

•more products produced from a given technology

Source: von Tunzelmann (1999))

TECHNOLOGIES

PROCESSES

TECHNOLOGY

PROCESSES

New reactors

Nuclear fusion

New energy biomassPhotovoltaic materials

Fuel cells

Superconductors

Supervision of energy processes

Robotics

Security systems

energy

Batteries

Pacemakers

Artificial Heart

Recombin. DNA

New drugs

Enzymatic Synthesis

Membranes

Biocompatible materials

Instrumental analysis of dna sequences

biotechnologies

Power lasersBio-leaching

Biological ore processing

New alloys

Ceramics and composits

Computer based design of new materials

materials

Photovoltaic applications

Biosensors

Biochips

Semiconductors

Superconductors

Telematics

Automation

Computers

information technologies

energybiotechnologiesmaterialsinformation technologies

Emerging interactions...

Source: BIPE

fromto

The importance of Technology in corporate development

Case study: Innovation in Italy (Evangelista & Sirilli, 1997)

The convergence of sectors is emerging, with the growing importance of technology in corporate development

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

93-95 96-98

Not relevant

Little relevant

Very relevant

The structure of the “new” economy

Agriculture

Indústry

Services

Agriculture

Indústry

Services

Industrial era

Knowledgeera I- Recession

II- Growth

Technology replaces employment

Economy without employment

Demand Deficit

Technology createsnew industries and opportunities

Entrepreneurial economy

Value creation

THE ISSUE …1

The evidence:The evidence:

•“The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966)

•“The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966)

•“The explosion in knowledge creation was concentrated in a few regions, and led to similarly concentrated distribution of income”, World Bank (1999)

•“The explosion in knowledge creation was concentrated in a few regions, and led to similarly concentrated distribution of income”, World Bank (1999)

•The most daunting problem is that of “spiritual inequality”, Fogel (1999)•The most daunting problem is that of “spiritual inequality”, Fogel (1999)

Regional diversity in Western Europe

Fonte: Sixth Periodic Report DG XVI 1998

THE ISSUE …2

A specific issue: EUROPEAN DIVERSITYA specific issue: EUROPEAN DIVERSITY•“With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors…

• …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”,

Henderson & Morgan (1999)

•“With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors…

• …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”,

Henderson & Morgan (1999)

Innovation in EUsource: Community Innovation Survey, OCT-PT

IrelandAustria

Germany

Netherlands

UK

Sweden

Norway

France

Luxembourg

Finland

Belgium

Portugal

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

Share of Innovative Firms in Manufacturing

Sh

are

of

Inn

ova

tive

Fir

ms

in S

ervi

ces

• The need to consider engineering research and teaching in a broader context, leading to innovation:

–Promoting value, by exploiting change

–Understanding institutional development

–Integrating systems of competence building and social cohesion

The ISSUE ...concluding

OUR GOAL: to discuss the emergence of a university agenda on engineering policy and the management of technology

advanced education and research in engineering policy and management of technology...

Which specific driving forces? Which specific driving forces? 1. Productivity

2. The knowledge-based industries

3. Resouces

4. Scale vs intensity

5. Industrial structure

6. Institutional development

7. The regional dimension

8. Sustainable development

9. Social capital for the inclusive development

1. Productivity

2. The knowledge-based industries

3. Resouces

4. Scale vs intensity

5. Industrial structure

6. Institutional development

7. The regional dimension

8. Sustainable development

9. Social capital for the inclusive development

advanced education and research in engineering policy and management of technology...

Which relevant topics? Which relevant topics? 1. Advanced Research Methods for decision support and

policy analisis

2. Management of technology and innovation

3. Organizational design and institutional development

4. Technology policy (environment; industrial; communications)

1. Advanced Research Methods for decision support and policy analisis

2. Management of technology and innovation

3. Organizational design and institutional development

4. Technology policy (environment; industrial; communications)

1. Productivity

D ecom position o f G D P per H our W orked in to E ffects o f W ork ing H ours, Labor Force P artic ipation and G D P P er C ap ita , 1997

G D P p er h o u r E ffec t o f G D P p er p erso n E ffec t o f E ffec t o f labor fo rce E ffec t o f w ork ing age T o ta l e ffec t G D P p er p erso nw o rked as a % w ork ing em p lo yed as a % unem ploy- as a % o f the w ork ing popu la tion as a % of labor fo rce as a %

of the O E C D A verage hours o f the O E C D A verage m ent age popu la tion o f the to ta l popu la tion partic ipa tion o f the O E C D A verage

(1 ) (2 ) (3 )= (1 )+ (2 ) (4 ) (5 ) (6 ) (7 )= (4 )+ (5 )+ (6 ) (8 )= (3 )+ (7 )

A us tra lia 96 0 96 -1 2 0 1 97A ustria 102 -4 98 3 -2 1 2 100B e lg ium 128 -5 123 -3 -19 -1 -22 101C anada 97 2 98 -2 2 2 2 100D enm ark 92 0 92 1 9 1 11 103F in land 93 0 94 -7 2 0 -5 88F rance 123 -9 113 -6 -9 -2 -17 97G erm any 105 -5 100 -3 -4 2 -4 96G reece 75 -4 71 -2 -11 1 -12 58Ire land 108 5 113 -4 -12 -3 -18 95Ita ly 106 -11 96 -5 -1 2 -5 91Japan 82 10 92 4 6 4 14 106T he N etherlands 121 -26 95 2 -4 2 0 96N ew Z ea land 69 8 77 1 3 -1 2 79N orw ay 126 -17 109 4 12 -4 12 122P ortuga l 56 2 58 0 1 1 2 60S pa in 84 13 97 -14 -13 2 -26 71S w eden 93 -3 89 -3 6 -4 -1 88S w itze rland 94 0 94 3 12 1 17 111T urkey 36 2 38 0 -8 -1 -9 29U nited K ingdom 100 -9 91 0 3 -2 0 92U nited S ta tes 120 -1 118 3 9 -2 10 128E U -14 103 -5 98 -4 -4 0 -8 90 S o urce: A rk and M cG uckin (1 9 9 9 ).

2. Knowledge-based industries

UK*

Belgium

Portugal**

Greece*

Sweden***

NL*

AustriaJapan

Norway

Canada

Denmark

Spain***

Denmark

Mexico

ItalyUS

France

Korea

Germany

0

2

4

6

8

10

12

14

0 10 20 30 40 50 60

Share in Business Sector Value Added of Knowledge Based Industries (share year 1996 except: *1995;**1993; ***1994)

Av

era

ge

An

nu

al R

ea

l Va

lue

Ad

de

d G

row

th o

f K

no

wle

dg

e B

as

ed

Ind

us

trie

s (

19

85

-sh

are

ye

ar)

OECD(2000)OECD(2000)

Share in business sector value added in knowledge business industries (share year 1996)Share in business sector value added in knowledge business industries (share year 1996)Av

era

ge

an

nu

al

rea

l v

alu

e a

dd

ed

gro

wth

of

kn

ow

led

ge

ba

se

d

ind

us

trie

s (

19

85

sh

are

ye

ar)

A

ve

rag

e a

nn

ua

l re

al

va

lue

ad

de

d g

row

th o

f k

no

wle

dg

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as

ed

in

du

str

ies

(1

98

5 s

ha

re y

ea

r)

3. RESOURCES

Expenditure by Manufacturing Firms on Innovation

Ireland

GermanyAustria

NetherlandsUK

Sweden

NorwayFrance

Finland

BelgiumPortugal

0%

20%

40%

60%

80%

0 0,02 0,04 0,06 0,08

Expenditure in Innovation (Share of Turnover)

Sh

are

of

Inn

ova

tive

Fir

ms

0

0,025

0,05

0,075

0,1

0 0,125 0,25 0,375 0,5

Pub

lic

R&

D E

xpen

ditu

res

per

capi

ta

Private R&D Expenditures per capita

Canada

DenmarkFinland

France

Germany

Ireland

Japan

Netherlands

Norway

PortugalSpain

Sweden

UK

US

Belgium

Canada

Czech Rep

Denmark Finland

France

Germany

Hungary

Ireland

Japan

Korea

Mexico

Netherlands

New Zealand

Norway

Poland

Portugal

SpainSweden

Turkey

UK

US

Perspectives for “change”:Perspectives for “change”:Public vs private R&D expendituresPublic vs private R&D expenditures

P97

P95

P81

ESIR

SE

JP

USA

FR

D

UK

4. Scale vs Intensity

R&D Expenditure (OECD)

Sweden

Finland Japan

France

Germanythe Netherlands

Denmark

UK

US

Belgium

Austria

Ireland

Italy

SpainPortugal

Greece

0

0,005

0,01

0,015

0,02

0,025

0,03

0,035

0,04

100 1000 10000 100000 1000000

Scale- Total Expenditure in R&D ($PPP; logarithmic scale)

Inte

nsi

ty-

Sh

are

of

GD

P s

pen

t o

n R

&D

55. THE INDUSTRIAL STRUCTURE. THE INDUSTRIAL STRUCTURE

0

5

10

15

20

25

30

35

1983 1987 1991 1995

YEARFood, beverages & tobaccoTextiles, apparel & leatherWood products & furniturePaper, paper products & printingChemical productsNon-metallic mineral productsBasic metal industriesFabricated metal products

Other manufacturing, nec

EU-13

0

5

10

15

20

25

30

35

40

1983 1987 1991 1995YEAR

Portugal

5. Industrial structure: Dynamics

0,06

0,07

0,08

0,09

0,1

0,11

0,12

0,13

0,14

0,15

0,16

0,17

0,18

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992

Australia

Austria

Belgium

Canada

Denmark

Finland

France

Germany

Greece

Italy

Japan

Korea

Mexico

Netherlands

New Zealand

Norway

Portugal

Spain

Sweden

UK

USA

6. Institutional DevelopmentMarket Regulation and Employment Protection

Nicoletti, Scarpetta & Boylaud; OECD (2000)

7. The regional dimension:technology and innovation gap

7. The regional dimension:technology and innovation gap

1. Input: HUMAN AND MATERIAL RESOURCES

2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES

3. determining factors :• international cooperation

• sme`s: support services

networks

• FDI: integration in local economies

• transports, communications, energy infrastructures

1. Input: HUMAN AND MATERIAL RESOURCES

2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES

3. determining factors :• international cooperation

• sme`s: support services

networks

• FDI: integration in local economies

• transports, communications, energy infrastructures

… BUT, ALSO, INSTITUTIONAL FACTORS… BUT, ALSO, INSTITUTIONAL FACTORS

7. The regional dimension:technology and innovation gap …cont.

Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action

Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action

This requires a shift in development studies:

• from state-led or market-driven processes, regardless time, space or milieu

• to institutional perspective, looking at the quality of institutional networks

This requires a shift in development studies:

• from state-led or market-driven processes, regardless time, space or milieu

• to institutional perspective, looking at the quality of institutional networks

7. The regional dimension:technology and innovation gap …cont.

INSTITUTIONAL NETWORKS to mediate:

•mediate information exchange

• knowledge creation

•capacity for collective action

•potential for interactive learning

•efficacy of voice mechanisms

Henderson & Morgan (1999)

INSTITUTIONAL NETWORKS to mediate:

•mediate information exchange

• knowledge creation

•capacity for collective action

•potential for interactive learning

•efficacy of voice mechanisms

Henderson & Morgan (1999)

9. Social capital for inclusive development

0 10 20 30 40 50 60 70

Turkey

Mexico

Portugal

France

Italy

Germany

Belgium

Austr ia

Spain

Korea

Ireland

Japan

Iceland

Switzerland

UK

US

Netherlands

Australia

Canada

Denmark

Sweden

Finland

Norway

A Measure of Trust

0 10 20 30 40 50 60 70

Turkey

Mexico

Portugal

France

Italy

Germany

Belgium

Austr ia

Spain

Korea

Ireland

Japan

Iceland

Switzerland

UK

US

Netherlands

Australia

Canada

Denmark

Sweden

Finland

Norway

A Measure of Trust

OECD(2000)OECD(2000)

POLICY ISSUES

• THE CONTEXT:

increase importance of knowledge for development

• THE CHALLENGE:

how to promote the learning society?

Towards an Agenda for innovation and technology policy:

1. the framework: interactive nature of innovation

2. balancing innovation and diffusion

3. wetware/software interaction

4. the inclusive development

5. the institutional development

… debate

…challenges and opportunities for a University Agenda on:

Engineering Policy

and the Management of Technology !

…challenges and opportunities for a University Agenda on:

Engineering Policy

and the Management of Technology !

• PROCESSES: complex and diversified

• INVESTMENT: education; R&D; learning-by-doing

• AGENTS: state, firms, universities, schools

KNOWLEDGE AND INNOVATION

Creation and distribution

of knowledge

Economic growth and

development

Technological innovation

and development

Perspectives for “change”Perspectives for “change”

Building the conceptual framework

•The notion of localised technological change:

•The science base:

• a joint process of production, learning and communication

• a fully endogenous, with strong interdependence between specialisation and diversification

• important, but limited role of demand

• based on mix of generic and tacit knowledge

” …the aim of policy should be to create a broad and productive science base, closely linked to higher education…”, Pavitt (1998)

•…Systems of Innovation and Competence Building!•…Systems of Innovation and Competence Building!