Proposed Models on Open Innovation in Indonesia - Tatang A. Taufik

PROPOSED MODELS ON OPEN INNOVATION IN INDONESIA

Dr. Tatang A. TaufikDeputy Chairman

Agency for the Assessment and Application of Technology (BPPT) - Indonesia

AIST – BPPT Workshop on “Innovation Ecosystem in Indonesia”Jakarta International EXPO Conference Hall (6F)

Jakarta, Indonesia, December 20, 2013

OUTLINE

INTRODUCTION

GENERAL FRAMEWORK

AN ILLUSTRATIVE SETTING

OUTLINE

INTRODUCTION

GENERAL FRAMEWORK


OPEN INNOVATION

• “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” [Chesbrough, 2003].

• Innovating with partners by sharing risk and sharing reward (innovating in partnership with those outside your company by sharing the risks and rewards of the outcome and process) [http://www.100open.com/2011/03/open-innovation-defined/]

Key : Connecting to the best partners (and the smartest innovators) on the planet . . .

INTERNATIONAL OPEN INNOVATION

• “More“ open innovation ~ neccessity to all of us, not just the wants of advanced countries : – Common vision : one world – better society (quality of life of human

being), inclusive (equitable), and sustainable (living & environment)– Unavoidable trends : globalization, networked economy & knowledge

communities (interconnectedness)

• . . . But needs to be put in the context :– Common/shared understanding & goals– Adapted to economic, socio-cultural & political contexts– Leadership movement– Partnerships ~ mutually beneficial settings– Implementable initiatives with a multiyear roadmap.

SOME OI MODELS

1. Product platforming : extends the platform product's functionality while increasing the overall value of the product for everyone involved.

2. Idea competitions : encourages competitiveness among contributors by rewarding successful submissions

3. Customer immersion : incorporates customer input, while also allowing them to be more closely involved in the design process and product management cycle

4. Collaborative product design and development : incorporates their contributors into the development of the product & ensuring that the correct product is developed as fast as possible, while reducing the overall cost of development

5. Innovation networks : leverages a network of contributors in the design process by offering a reward in the form of an incentives; the network of contributors are used to develop solutions to identified problems within the development process, as opposed to new products.

IMPORTANT ISSUES

• What levels of ‘openess’ that we agree on.• Any international open innovation initiative needs to address

& convince the stakeholders that it can bring practical benefits to solve development or real life problems faced the participating countries/parties.

• What to agree on :– common goals– sustainable initiative model– key performance indicator measurements for the initiative– the starting points

• Start from small, grow as we go …. the roadmap.

OUTLINE

INTRODUCTION

GENERAL FRAMEWORK


OPEN INNOVATION ~ OPEN TO and/or ON WHAT (?)

OPEN INNOVATION

OPEN INNOVATION

Innovation (Product/

Technology) Utilization

Innovation (Product/

Technology) Utilization

System/Policy Platform

System/Policy Platform

Flagship Program related

Platform

Flagship Program related

Platform

Specific Policy Instrument

related Platform

Specific Policy Instrument

related Platform

Accreditation-Certification

& Facility Utilization

Accreditation-Certification

& Facility Utilization

Innovation System Strengthening at :• International level• National Level

Innovation System Strengthening at :• International level• National Level

• Standard• IPR• Mutual Recognition Agreement

(MRA) on particular STI areas

• Standard• IPR• Mutual Recognition Agreement

(MRA) on particular STI areas

• Specific goals• The setting

• Specific goals• The setting

• IPR Grants (waiver & election)• Free IPR licencing

• IPR Grants (waiver & election)• Free IPR licencing

• Common Recognition : Accreditation & Certification

• STI/R&D Human Resource Qualifications

• Prototyping : TRL• MSTQ Facility (Measurement/

Metrology, Standard, Testing, Quality Management)

• STI/R&D Facility

• Common Recognition : Accreditation & Certification

• STI/R&D Human Resource Qualifications

• Prototyping : TRL• MSTQ Facility (Measurement/

Metrology, Standard, Testing, Quality Management)

• STI/R&D Facility

STI/R&D Partnerships :•Specific STI/R&D collaborative projects• Join R&D Management• HR exchange/mobility

STI/R&D Partnerships :•Specific STI/R&D collaborative projects• Join R&D Management• HR exchange/mobility

General Innovation Openness Architecture

Other Partnershp

Schemes

Other Partnershp

Schemes

THE IMPORTANCE AND GOALSOF INTERNATIONAL OPEN INNOVATION - GENERIC

Strengthen synergetic STI partnerships (BPPT-AIST, Indonesia-Japan) :1. to support STI contributions on more progressive &

better economy advancement, inclusive, and sustainable development;

2. to increase STI-based industries (innovative businesses) in national as well as international markets; and

3. to enhance STI contributions on the common vision of one world – better international society (quality of life of human being), inclusive (equitable), and sustainable (living & environment) development.

THE IMPORTANCE AND GOALSOF INTERNATIONAL OPEN INNOVATION - SPECIFIC

To strengthen synergetic STI partnerships (BPPT-AIST, Indonesia-Japan) : by establishing International Open Innovation Network Hubs on Renewable Energy in order 1. to support STI solutions on common platforms in

renewable energy;2. to increase renewable energy industries (innovative

businesses) in Indonesia, Japan and international markets; and

3. to enhance collaborative STI contributions by providing affordable renewable energy technology options in supporting – better international society, equitable, and sustainable development around the world.

Notes

PRIORITIES 1. Biomass / Biofuel 2. Geothermal

• Indonesia potentials on renewable energy

• BPPT competence & priority programs

Hubs Roles/Functions Notes

1. ISTP International & National Hub• Integrated national STI facilities• Adequate STI HRs• Main location of BPPT’s renewable

energy R&D activities

International stakeholders :• BORC (in Thailand)• AISTNational stakeholders , e.g., :• MEMR• MRT• BPPT• LIPI• ITB• MAKSI• GAPKI

THE SETTING

Hubs Roles/Functions Notes

2. Pelalawan Technopole

Regional Hub for Biomass/Biofuel Tech Transfer & initial regional project location• Abundant biomass resources• Chalenging energy needs• Rapid regional growth• Proactive local government• Supporting local stakeholders

Regional stakeholders :• Pelalawan Regency• Riau Prov. Gov. & local

govs.• PPKS (Medan)• Local universities,

industries & associations

THE SETTING (2)

BORC

PelalawanTechnopole

ISTP

AIST

A REGIONAL INNOVATION NETWORK : PELALAWAN TECHNOPOLEPELALAWAN REGENCY – THE PROVINCE OF RIAU

Research & Dev’t

Industries

Services & CommercialsHousingMain Gate

University

Sport Center

Offices

Area of 3,754 ha.

“New” smart & green city

Sekolah Tinggi Teknologi Pelalawan (STTP)

STANDARD & IPR RELATED ASPECTS/ISSUES

Type Notes

STANDARD Open standard technology 1. Key technologies (e.g., energy conversion; energy storage; energy efficiency; possible hybrid technology)

2. End –products (quality; environmental aspects) – Mutually recognized national & international standards

Technology/Industrial Schemes

Model Options

IPR Licensing(Proprietary IPs)

1. Medium & Large scales2. Fuel cell based

Fee-based licensing

Small scale Free fee-based licensing (royalty fee is waived) for small enterprises/industries

INNOVATION UTILIZATIONS

ACCREDITATION-CERTIFICATION & FACILITY UTILIZATION

Issues Needs Notes

Accreditation & Certification Systems

Common Recognition Establish an agreeement setting

STI/R&D Human Resource Qualifications • Professional grading system

• HRD development

HR Exchange • HR mobility agreement

Technology prototyping status

How to assess the Technology Readiness Level (TRL)

TRL assessment/ measurement methods

STI/R&D Facility, including MSTQ Facility (Measurement/Metrology, Standard, Testing, Quality Management)

Shared Facility Utilization • Partnership forms• Mechanisms

OTHER STI/R&D PARTNERSHIP INITIATIVE ISSUES

Issues Needs Notes

Starting points Where & how to start STI/R&D collaborative projects within IOIN framework

• Consensus on the initial projects

Join R&D Management How to manage collaborative/ join R&D projects

• Organization• Resources provision &

resource sharing• Partnership management

schemeKnowledge assets • Knowledge/information

access• Publication • Knowledge Management

• IP policy • IP ownerships• IP Management• Business models

OUTLINE

INTRODUCTION

GENERAL FRAMEWORK


FRAMEWORK OF COLLABORATIVE ACTIVITIES BPPT - PARTNERS

National level activities

Regional level activities

Particular regions

Innovation System Initiatives

Integrated International Open Innovation Network Initiative

Integrated International Open Innovation Network Initiative

Specific IOINI

Specific IOINI

INTERNATIONAL OPEN INNOVATION INITIATIVE : NATIONAL HUB


Regional level activities Examples:

• Pelalawan Technopole


Indonesia S&T Park :Open Innovation Hub in Renewable Energy

(Biomass & Geothermal)

Regional/ Local IOINI

Examples: • University-

based Technoparks

• Related R&D activities

INTERNATIONAL OPEN INNOVATION INITIATIVE : REGIONAL HUB


Regional level activities

Region-to-region, partnerships

Local Universties;Incl. animal

husbandry project

Pelalawan, Riau

Innovation Center (Local Business

Incubators)


Indonesia S&T Park : International Open Innovation Network Hub in Renewable Energy (Biomass & Geothermal)

Pelalawan Technopole :International Open Innovation Network Hub in Biomass

(Palm Oil based Industries & Biomass)

MAKSI (Indonesia Palm

Oil Society)

Palm Oil Research Center

in Medan

Regional PO Industries

Other Palm Oil Research Centers

Local/regional projects; incl.

renewabe energy

Examples: • University-

based Technoparks

• Related R&D activities

Smart & Green Citiy (Region)

INTERNATIONAL OPEN INNOVATION NETWORK

Strengthening synergetic partnershipsas the power of “WE”

for clean energy,better society,

and sustainable development

Dr. Tatang A. TaufikDeputy Chairman

Agency for the Assessment and Application of Technology Badan Pengkajian dan Penerapan Teknologi (BPPT)

Gedung II BPPT, Lt 13Jl. MH. Thamrin 8, Jakarta 10340 - INDONESIA

Phone (+6221)-316 9441 / 9442Facs. (+6221)-319 24127

E-mail: [email protected]

... in harmony we progress ...

Arigatou gozaimasu

Thank You

Gerakan Membangun Sistem Inovasi, Daya Saing dan Kohesi Sosial di seluruh Wilayah Nusantara

(National movement to develop innovation system, competitiveness, and social cohesion

through out the Country)

COUNTRY BACKGROUND• Heterogeneous country in many respects• South East Asia, Equator, average 27ºC, 90% humidity• Archipelago (stretched 5,200 km East to West, 67% sea)• 1,904,569 square km landmass (13,466 islands ~ 400 inhabited, main islands : Java,

Sumatera, Kalimantan, Sulawesi, Papua, Maluku, Nusa Tenggara)• ± 108,000 km coastline• ± 257,516,167 people (est. 2012, 4th most populated country, ~ 60% in Java)• ± 300 ethnic groups (major ethnics : Javanese, Sundanese, Melayu, Bugis, Balinese)• 16th largest economy.• Decentralization ~ 542 Autonomos regions :

• 34 provinces (led by Governors)• 98 cities (mayors)• 410 regencies (regents)• All governmental services/functions are co-governed/co-administered (by

central & regional governments), including STI, exept : 1. foreign affairs; 2. religion; 3. justice; 4. security; 5. defence; 6. national monetary & fiscal.

TRENDS : STI INTERNATIONALIZATIONSome Current Implementation, Public Discourse & “New” Initiatives

1. More advanced countries & International Organizatios, e.g. : – Reverse Innovation (e.g., Japan)– Brain Circulation / STI HR Mobility

2. Some regional economy integration, e.g. :– APEC– AFTA

3. New Industrilized Countries (NICs) ~ Emerging Economies, e.g. :

– TNCs; – Open/joint international infrastructural projects– STI-based product exports– Reverse brain-drain (e.g., STI Diaspora)

4. International Open Innovation Initiatives.

INTERNATIONALIZATION : STI (R&D) – BUSINESSESWhy Do Businesses Locate R&D Facilites Elsewhere?

1. R&D is an integral part of Business Strategy2. The consequences of Open Innovation3. Access to Human Capital4. Localized Knowledge and Access to Markets5. Cost reduction6. Regulation and public attitude7. Intellectual property and the protection and movement

of knowledge.

Source : Bharawadj and Kapoor, 2008 (www.nistads.res.in/indiasnt2008/t4industry/t4ind5.htm)

http://www.nistads.res.in/indiasnt2008/t4industry/t4ind5.htm

35 km from Jakarta, 460 hectares, 30 Labs, 3000 S&T people

Geosystem Tech. Labs Energy Tech. LabsAgro & Biotech Labs Innovation Center & Tech. Business Bldg.

Material & Process Technology Labs

Defense Tech. LabsIndustrial Engineering Technology Labs

ICT Labs

INDONESIA SCIENCE & TECHNOLOGY PARK

496

101

1210

847

257

Number of Employees [by Educational Degree]

High School

Diploma

Undergraduate

Master

Doctorate

As of April 2013, total number of BPPT’s employees: 2.911[81% Scientists & Engineers, 19% Administrative]

HUMAN RESOURCES

Vision & Missionsof the National & Regional Sustainable Development

INNOVATION POLICY FRAMEWORKAND STRATEGIC INITIATIVES

Flagship Programs

InnovationPolicy Framework

Strategic Initiatives RIS

IndustrialCluster

InnovationNetwork

Techno-preneurship

General conditions

Institution, S&T support, Absorptive cap

Interaction, knowlegde-based services

Innovation Culture

Focus & Coherences

Adaptability to global changes

ThematicPilars

MAIN AGENDA AND STRATEGIC INITIATIVESTO STRENGTHEN THE INNOVATION SYSTEM

1. Develop conducive general framework/conditions for inovation and business.

2. Strengthen knowledge institutions and S&T supports, and enhance absorptive capacity of industry (esp. SMEs).

3. Develop synergetic collaboration for innovation and its diffusion, and increase knowledge-/technology-based services.

4. Foster innovation culture.5. Develop and strengthen integrated efforts of

innovation system and industrial cluster development (at the national and regional levels).

6. Develop and adapt strategic responses to global changes and challanges.

Innovation Policy Framework : The Hexagon 1. Strengthening Regional Innovation System

(RIS) : as a vehicle to strengthen pillars for fostering creativity-innovation at regional levels (as an intgeral part of the National Innovation System).

2. Industrial Cluster Development : as a vehicle to develop the best potencies and to enhance industrial competitiveness.

3. Innovation Network Development : as a vehicle to develop linkages and partnerships among actors, and dynamizing the flow of knowledge, innovation, diffusion, and learning.

4. Technopreneurship Development : as a vehicle to modernize business/economy & society, and to develop innovation culture.

5. Strengthening Thematic Pilars : as a vehicle to improve the thematic and contextual elements of the innovation system.

45

16 2

3

Strategic Initiatives:

EXAMPLES OF INTEROPERABILITY ISSUES :OPEN STANDARD (?)

• “Standard” : – Technologies; Products; and/or related

Rules/Regulatory aspects are chosen based on a consensus by a “formal” (and joint) committee of various stakeholders, and the standard is implemented upon the consensus; and/or

– Interchangeable Document/data or data format.

• “Royalty” : Based on certain fee (e.g., reasonable and non-discriminatory patent licensing : ITU-T) OR royalty-free basis (e.g., European Interoperability Framework for Pan-European eGovernment Services).