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Tapping the Worlds Innovation Hot Spots

John Kao Harvard Business Review


Theres a whole new world of innovation opportunities opening up for a company.. If you know where to look. There are dozens of countries offering sponsor programs to appeal innovative enterprises to their home territories.

Singapore offers tax relief, employee training, and R&D grants to life sciences firms that locate there. India provides talent management for some of the worlds most sophisticated technology development work. Finland is becoming a global center for innovative design.

To take advantage of , identify which countries offerings best fit your companys innovation strategy. Be prepared to mix and match. Example, Nile Therapeutics, a biopharmaceutical rm, uses intellectual property from Italy and conducts clinical tests in Eastern Europe.

Driving Forces of Global Innovation

1) Innovation as a currency of global competition pursuing the global dream; An international style of business heavily inuenced by values of openness, exploration, and risk taking. 2) Global war for talent talented young innovators can be attracted anywhere through incentives and opportunities

3) Innovation as a national agenda nations increasingly embrace innovation as a national priority 4) Power of networks global networks are becoming increasingly intertwined.

Model 1 The Focused Factory

What is a focused factory Clear strategic intent Infrastructure Talent Examples: Denmark Singapore Biopolis-a 2-million squarefoot biomedical research center.(for stem research) Fusionopolis-U.S. National Institutes of Health

Singapore donated 2.6% to 3% of
GDP to life sciences by 2010, despite the economic downturn.

Key Players: GlaxoSmithKline (GSK)Centre for Research in Cognitive and Neurodegenerative Disorders Novartis- Institute for Tropical Diseases

Model 2 Brute Force

What is Brute Force Large source of low-cost labor Innovation opportunities Huge quantity of ideas Examples: China India

China, currently the worlds center of outsourced manufacturing, will be the next hub of brute force innovation.
Key Players: Microsoft

Model 3 Hollyworld
What is a Hollyworld Forming a global creative class As more smart entrepreneurs gather in one place, the more attractive that place becomes to other like-minded people. (Silicon Valley effect) Developing an inviting innovation destination

Examples: India Indian Institutes of Technology grads merged with Indian US Tech school grads Supports and benefits from outsourcing Singapore Funding lifescience grad students.

Model 4 LargeScale Ecosystems

What is a Large-Scale ecosystem End to end innovation systems Stewardship , funding bodies, Research Institutions etc. Self-contained environments Alliance-management skills needed

Example: Finland Focus on education, science, & technology (Aalto university) -Finland enjoys a well-run innovation system beneting from strong governmental stewardship.

Systems Integration Mix & Match Approach

Silicon Valley, an area with a rich mix of skills, ethnicities, and re-sources, as well as abundant educational , institutional, and even familial connections , could serve as a model for a U.S approach.

Mix & Match: Choose from among the following models and/or blend country and corporate strategies

To be ready for innovation world

Understand emerging models of innovation Join together different strengths within and outside the firms walls Cultivate relationship building skills and union management in order to become a trusted members of the local community