R&D in Slovakia – Discover the Potential Information and Knowledge Society Requires Value Added Investments International Conference Košice Invest 2010 19th October, 2010
Dec 18, 2015
R&D in Slovakia – Discover the Potential
Information and Knowledge Society Requires Value Added Investments
International Conference Košice Invest 2010 19th October, 2010
R&D in Slovakia – Discover the Potential
ContentsContents
Foreign Direct Investment Trends
Foreign Direct Investments in R&D
Slovakia - R&D Country
New Types of Investments
SARIO Promotion Activities
Recommendations
R&D in Slovakia – Discover the Potential
"The most important factor behind location decisions are always people and networks of
people"
Prof. Ricardo Baeza-Yates,
Universitat Pompeu Fabra, Barcelona
IntroductionIntroduction
R&D in Slovakia – Discover the Potential
"R&D in Slovakia – Discover the Potential"
Our SLOGANOur SLOGAN
R&D in Slovakia – Discover the Potential
Foreign Direct Investment Trends Foreign Direct Investment Trends FDI Inflows, Globally and by Groups of Economies, 1980-2009
Source: World Invetsment Report 2010
The changing world - the global financial and economic crisis accelerated the majority of processes in business (e.g. time
reduction in innovation cycles)
Expected global FDI flows:
1.2 trillion USD in 2010
1.3 – 1.5 trillion USD in 2011
1.6 – 2.0 trillion USD in 2012
16%
37%
Decline
In bln.USD
R&D in Slovakia – Discover the Potential
Foreign Direct Investment Trends Foreign Direct Investment Trends Key World Drivers of FDI in R&DKey World Drivers of FDI in R&D
New specific customer demands
Growing global competitiveness
Progress in ICT
Specialization of national strategies
Access to new technologies and talents
More motivating investment incentives
Growth of emerging markets
Search for cost-efficiency
Innovation and R&D networks
Growth of urbanization
Climate Change
New forms of FDI (greentech,
meditech, centres of excellence)
Key world drivers of FDI in R&D
R&D in Slovakia – Discover the Potential
Foreign Direct Investment Trends Foreign Direct Investment Trends R&D Expenditure Global 1000
Source: Department for Business, Innovation & Skills., THE 2009 R&D SCOREBOARD, 2010
R&D in Slovakia – Discover the Potential
Foreign Direct Investment Trends Foreign Direct Investment Trends Top 15 Global Companies by R&D Expenditure per Year 2009
Source: Department for Business, Innovation & Skills., THE 2009 R&D SCOREBOARD, 2010; # - accounts not prepared using IFRS
R&D in Slovakia – Discover the Potential
Foreign Direct Investment Trends Foreign Direct Investment Trends Terms
The same meaning of terms:
"Globalization of corporate R&D"
"Internationalization of R&D"
"FDI in R&D"
"R&D-intensive FDI"
Globalization of corporate R&D is an opportunity not just for the host countries but also for corporate subsidiaries, since the latter are more involved in the corporate group's innovation activities.
What it means?
Corporate subsidiaries are very important element in attracting FDI in R&D
R&D in Slovakia – Discover the Potential
Foreign Direct Investments in R&D Foreign Direct Investments in R&D Motivations
FDI in R&D - evolution or expansion of established subsidiaries
- greenfield investments
FDI in R&D has 2 different motivations:
1. Doing "adaptive R&D" modifies products, processes and technologies according to local needs and supports foreign production facilities, process improvement. (Demand driven FDI in R&D)
2. Getting access to "state-of-the-art knowledge" means that companies invest in foreign countries with an expectation to benefit from excellent, local research and researchers, new technology sources of knowledge and specialized clusters. (Supply driven FDI in R&D)
R&D in Slovakia – Discover the Potential
Foreign Direct Investments in R&D Foreign Direct Investments in R&D Types of Factors Arguments to Attract R&D Investments
Source: Guimón, J.: Government Strategies to Attract R&D-Intensive FDI. OECD Global Forum on International Investment. March 2008.
1. Parent company strategies related factors
Understanding Company Strategies
Seek Linkage between: Companies National Innovation Systems
2. Subsidiaries Capabilities related factors
Possibility of: Expansion
Production Process Improvement
3. Host Country related factors
Availability of: World Class Research Talents Researchers
R&D Infrastructure Universities World Companies
Way for SLOVAKIA
R&D in Slovakia – Discover the Potential
Foreign Direct Investments in R&DForeign Direct Investments in R&DKey Drivers and Forms of FDI in R&DKey Drivers and Forms of FDI in R&D
Source: Here or There? A Survey on the Factors of Multinational R&D Location, 2006, www.nap.edu Jerry Thursby, Emory University and Marie Thursby, Georgia Institute of Technology, 250 respondents from various industries
Emerging countries
Developed countries
Home countries
Drivers
Forms
R&D in Slovakia – Discover the Potential
Foreign Direct Investments in R&D Foreign Direct Investments in R&D R&D Location DriversR&D Location Drivers
The availability of highly educated people (scientists, engineers...)
The quality of universities and R&D infrastructure
Level of university and industry collaboration in R&D
Fiscal and financial incentives to corporate R&D
Cost-efficiency in R&D
Attractiveness of National Innovation System
The presence of lead markets and companies in key technology areas
A clear and enforceable intellectual property rights regime
Quality of pre-investment, investment and after-investment services
Local availability of research and training services
Engagement in world research projects (e.g.: FP7)
Source: Adapted according to Guimón, J.: Policies to benefit from the globalization of corporate R&D: An exploratory study for European Union countries
R&D in Slovakia – Discover the Potential
Foreign Direct Investments in R&D Foreign Direct Investments in R&D Impacts of FDI in R&DImpacts of FDI in R&D
1. National and regional innovation systems are becoming:
more internationalised
more linked to global production networks
more dependant on foreign decision-makers
2. Business R&D is shaping the evolution of goverment´s policies:
emergence of new policy strategies
more proactive role of government
policies ("attractive policies")
closer connection between innovation policies and FDI promotion policies
cities/regional development
Important ROLE:Harmonisation of the national/regional
innovation systems with corporate R&D strategies
Production Networking (1995-2005)
OEMs – Suppliers Nets (2000-2010)
Clusterisation (1995-2010)
Clusters Networking (2010-2015)
R&D Institutions Networks (2015-...)
R&D in Slovakia – Discover the Potential
Foreign Direct Investments in R&D Foreign Direct Investments in R&D Policy Objectives and InstrumentsPolicy Objectives and Instruments
Source: Guimón, J.: Policies to benefit from the globalization of corporate R&D: Anexploratory study for European Union countries
Enhance R&D investment climate
Promote inward FDI in R&D
Absorb benefits from foreign presence
Absorb benefits from outward FDI in R&D
International promotion of national R&D capacities, preinvestment and AC services, integration to global
networks
Improve UNIs and R&D infrastructure; talent development and attracting talents; collaboration with
foreign subs., improving IPR regime
AfterCare services, technology linkage programmes, promote collaboration
Support international expansion of domestic R&D centres and UNIs, set up overseas technology units
Policy Objectives Instruments
R&D in Slovakia – Discover the Potential
Slovakia - R&D Country Slovakia - R&D Country Basic Advantages of SlovakiaBasic Advantages of Slovakia
Natural and technical sciences universities
Availability of scientists and engineers
Domestic R&D infrastruture
Success stories in R&D
High-Tech and Medium High-Tech
R&D Incentives
Competitive R&D costs in EU
Quality of engineers
Presence of clusters
Strategic Geographic location
R&D in Slovakia – Discover the Potential
6,35,9
5,4 5,2 5,1
0
1
2
3
4
5
6
7
Ireland (1) Slovakia (4) CzechRepublic (14)
Hungary (26) Poland (35)
Slovakia - R&D CountrySlovakia - R&D CountryR&D Environment in SlovakiaR&D Environment in Slovakia
6,4
4,4 4,13,4 3,2
0
1
2
3
4
5
6
7
Japan (1) Slovakia (37) Poland (45) Romania (74) Bulgaria (92)
Source: The Global Competitivenes Report 2009-2010, World Economic Forum, 2010
To what extent does foreign direct investment (FDI) bring new technology into your country? (1 = not at all; 7 = FDI is a key source of new technology)
In your country, how sophisticated are production processes? (1 = not at all—labor-intensive methods or previous generations of process technology prevail; 7 = highly—the world’s best and most efficient process technology prevails)
Very good base for FDI in
R&D
Production process sophistication (Rank out
133 countries)
FDI and technology transfer (Rank out 133
countries)
R&D in Slovakia – Discover the Potential
Slovakia - R&D Country Slovakia - R&D Country R&D OrganizationsR&D Organizations
R&D in Slovakia – Discover the Potential
Slovakia - R&D Country Slovakia - R&D Country National R&D CapacitiesNational R&D Capacities
I Building up 45 Centres of Excellence in Slovakia
I Almost 60 research institutes of the SAS
I More than 30 foreign R&D centres in Slovakia
I Wide range of university centres and laboratories
I More than 20 domestic R&D organizations
I Building up 8 regional innovation centres
R&D in Slovakia – Discover the Potential
Slovakia - R&D Country Slovakia - R&D Country Highly Highly PPerspective erspective OOpportunities for pportunities for DDoing oing BBusinessusiness
Automotive Industry & Supplier Sector
ICT& Software Development
Energetics& Renewables
Electrotechnics Electronics
Medical Technologies Welfare & Care
New and Lightweight Materials
R&D
R&D in Slovakia – Discover the Potential
Slovakia - R&D Country Slovakia - R&D Country Success Stories in R&DSuccess Stories in R&D
Johnson Controls Engineering Centre
Trenčín
ON Semiconductor Bratislava
Development Centre
R&D LEONI Autokabel
Slowakia Trenčín
Technology Lab Siemens
Žilina
R&D Center Alcatel-Lucent
Bratislava
Continental Automotive Systems R&D Centre
Zvolen
R&D in Slovakia – Discover the Potential
MARTINJC-Seat Covers
TRNAVAPSA
BRATISLAVA JC
Business Centre
ŽILINAKIA and
JC-JIT
LUČENEC JC-Foam
TRENČÍNJC-Engineering
NÁMESTOVO
JC-Interior
Slovakia - R&D Country Slovakia - R&D Country Established US Foreign Investor in Slovakia: Johnson ControlsEstablished US Foreign Investor in Slovakia: Johnson Controls
LozornoVW and JC-JIT
Source: Johnson Controls Engineering Centre, Trenčín
R&D in Slovakia – Discover the Potential
GERMANY
New Types of Investments New Types of Investments Example from Germany (1)Example from Germany (1)
I Perspective industries of new type of investments
Source: www.gtai.com
R&D in Slovakia – Discover the Potential
Source: www.gtai.com
Germany invests
more than EUR 500 million -
Objective: 1 million electric vehicles on German roads by 2020
I National Electromobility Development Plan for Germany
Can we consider this to be an inspiration for Slovakia?
Investments into electromobility infrastructure
development
New Types of Investments New Types of Investments Example from Germany (2)Example from Germany (2)
R&D in Slovakia – Discover the Potential
New Types of Investments New Types of Investments IDA Ireland ExampleIDA Ireland Example
Source: IDA Ireland Strategy – Horizon 2020
Focus on Greentech & Services Innovation
Industrial sectors: Life sciences (Pharma&biotech, medical devices)
ICT
Financial services – global services
High-end manufacturing
Diversified industries and engineering
R&D and Innovation (centres of excellence, testing labs)
Cleantech
R&D in Slovakia – Discover the Potential
Investing in Low-Carbon Economy
3 Key Low-Carbon Business Areas and Industries
Alternative/Renewable electricity generation
Low-carbon technology manufacturing (wind turbines,
solar panels, biofuels)
Recycling
TNCs are key actors in contributing to the establishment of climate-friendly economies
Low-carbon foreign investments – can be defined as transfer of technologies, practices or products by TNCs to host countries, through equity (FDI) an non-equity TNC participation, generating significantly lower GHG emissions than would otherwise be the case. (WIR 2010)
Source: World Investment Report 2010GHG – green house gas emissions, TNC – Transnational Corporation
New Types of Investments New Types of Investments Low-Carbon Economy (1)Low-Carbon Economy (1)
R&D in Slovakia – Discover the Potential
Source: World Investment Report 2010GHG – green house gas emissions
2 types of Low-carbon Foreign Investments
Introduction of low-carbon processes reducing GHG emissions related to
how products are made (upgrade of existing TNC operations as
well as new investments)
Creation of low-carbon products and services lowering GHG
emissions in how they are used
(e-cars, "power saving" electronics and light bulbs, RES equipment, integrated transport systems)
The main sectors (areas of emissions): power and industry (inc. manufacturing as well as oil and gas) transport, building and waste management agriculture and forestry
Governments should to identify opportunities for such investment in their countries and formulate strategies to promote it.
New Types of Investments New Types of Investments Low-Carbon Economy (2)Low-Carbon Economy (2)
R&D in Slovakia – Discover the Potential
SARIO Promotion Activities SARIO Promotion Activities Creation of InfomaterialsCreation of Infomaterials
Publication of Informative Promotion Materials
SARIO = Associated partner in cluster´s projects
Communication & Networking with UNIs & other R&D institutions
Increasing of awareness about R&D (conferences, seminars...)
Investment Seminars Abroad
R&D in Slovakia – Discover the Potential
SARIO Promotion Activities SARIO Promotion Activities Cooperation with Renowned Domestic OrganizationsCooperation with Renowned Domestic Organizations
PANASONIC CENTER, TOKYO (R&D Investment Seminar in Japan-2009)
SARIO-TUKE
Projects:AUTOCLUSTERS
AutoNet
R&D in Slovakia – Discover the Potential
RecommendationsRecommendations
Improving the FDI attracticion and promotion policy
Preparing tailored FDI Project Proposals
More visible to the investment community (marketing campaigns, missions, etc.)
Marketing of Slovak R&D infrastructure (UNIs, SAS,...)
Focus on Slovak talent development programmes, "special talent university learning classrooms"
Focus on Suppliers Development Programmes – Aftercare services
SARIO Advisory Board consisting of established investors – close collaboration
Prepare strategy for building electromobility infrastructure
Prepare strategy for attracting FDI in green tech R&D and cleaner production
Project Networking (SARIO as a partner in EU projects)
Updating of National Innovation System
R&D in Slovakia – Discover the Potential
R&D in Slovakia – Discover the PotentialR&D in Slovakia – Discover the Potential
"Our TREASURE is in our highly educated PEOPLE!"
"...Discover the Potential"
R&D in Slovakia – Discover the Potential
Thank you for your attentionThank you for your attention
Ing. Vladimír Švač, PhD.
Address: SARIOMartinčekova 17 821 01 BratislavaSlovakia
Tel.: +421 2 58 260 343 Email: [email protected]