R&DandcompanyperformanceDr.MScBertSadowskiTechnischeUniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts
R&D and company performance Dr. MSc Bert Sadowski
Innovative companies arejust related tomakesthesempanies innovative?innovativeentrepreneurs?5-Year5-Year AvgAvg.SaleNet IncomEnterprisRankGrowth(%)Value (sbil)CompanyGrowth (oo)mium1Salesforce.com78.720.739.575.1237.658.9Amazon.com32.092.73Intuitive Surgical36.457.613-443-44Tencent Holdings69.046.575-452.3Apple535.160.748.2303.46Hindustan Unilever10.04.015-547-7Google735.0138.137.144-98NaturaCosmeticos17.013-510.244-543.69BharatHeavyElectricals27.225.019.510Monsanto42.613.444.741-3Source:Forbes,2013Technische UniversiteitTUEindhoveneUniversity of Technology9/12/2013PAGE1EconomicsofInnovation2013
Innovative companies are just related to innovative entrepreneurs? Economics of Innovation 2013 9/12/2013 PAGE 1 Source: Forbes, 2013
AgendaWhatdoweknow!TheDiscussion:TechnologyPush/DemandPullTheCDM Model and the CommunityInnovationSurveyResultsoftheCDMmodelIntroductionintothedataandassignmentTechnischeUniversiteitTUEindhoveneUniversityofTechnology2Eda0iasofInnovation2013
Agenda • What do we know! • The Discussion: Technology Push/Demand Pull • The CDM Model and the Community Innovation Survey • Results of the CDM model • Introduction into the data and assignment 9/12/2013 Economics of Innovation 2013 2
What doweknow&whatdowedo notknowTechnische UniversiteitTUEindhoveneUniversityofTechnology9/12/2013PAGE3EconomicsofInnovation2013
What do we know & what do we do not know Economics of Innovation 2013 9/12/2013 PAGE 3
Key elements ofinnovative firmsNot allfirms areinnovatiye!Companiescanbeinnovativeindifferentwaysbasedon newcombinations!·Companies have differentforms of innovation(e.g.process,productand/ormarketing innovations)Companieshave different sources of innovation(e.g.buyers,suppliers,complementors).Probablytherearesomesectorswheretherearemoreinnovators.....(Generalpurposetechnologies>informationtechnologysectors)Technische UniversiteitTUEindhovenUniversity of TechnologyPAGE4EconomicsofInnovation20139/12/2013
Key elements of innovative firms • Not all firms are innovative! • Companies can be innovative in different ways based on new combinations! • Companies have different forms of innovation (e.g. process, product and/or marketing innovations) • Companies have different sources of innovation (e.g. buyers, suppliers, complementors) • Probably there are some sectors where there are more innovators. (General purpose technologies > information technology sectors) Economics of Innovation 2013 9/12/2013 PAGE 4
Whatisitwhat wedo not know?Isitjustaboutentrepreneurship?Is it about being in the“right sector"?Whatisthepercentageofinnovativefirms?What are thedeterminants of innovative firms?Howdoinnovativefirmslook likein“non-innovative"sectors?What are the right data sourcesto analyze innovativefirms?.What is anappropriatetheoretical frameworkfortheanalysis?TechnischeUniversiteitTUEindhoven-UniversityofTechnologyPAGE5EconomicsofInnovation20139/12/2013
What is it what we do not know? • Is it just about entrepreneurship? • Is it about being in the “right sector”? • What is the percentage of innovative firms? • What are the determinants of innovative firms? • How do innovative firms look like in “noninnovative” sectors? • What are the right data sources to analyze innovative firms? • What is an appropriate theoretical framework for the analysis? Economics of Innovation 2013 9/12/2013 PAGE 5
Using CBS datato analyze innovationTechnische UniversiteitTUEindhoveneUniversity of Technology9/12/2013PAGE6EconomicsofInnovation2013
Using CBS data to analyze innovation Economics of Innovation 2013 9/12/2013 PAGE 6
QuestionsforresearchDifferentformstoexamineinnovativefirms:Interviewswithleadingmanagers(likeSirAlexFerguson)Building up owndatabases based on“paperclippings".Buyingadatabaseoninnovativefirms-Problem: Compatibility of data plus coverage of allsectorsIn1990s:IdeaatNationalStatisticalOfficesinEuropeandrest ofthe world:Let'saskmanagersandentrepreneursabouttheseissuesnationwideand maybeEuropean-wideTechnischeUniversiteitTUEindhovenUniversityofTechnologyPAGE7EconomicsofInnovation20139/12/2013
Questions for research • Different forms to examine innovative firms: • Interviews with leading managers (like Sir Alex Ferguson) • Building up own databases based on “paper clippings” • Buying a database on innovative firms − Problem: Compatibility of data plus coverage of all sectors • In 1990s: Idea at National Statistical Offices in Europe and rest of the world: • Let’s ask managers and entrepreneurs about these issues nationwide and maybe European-wide Economics of Innovation 2013 9/12/2013 PAGE 7
Community Innovation Survey(CiS)aal Bureau voordeStatistiekIn1980s>individualinnovationresearchindifferentEuropeancountriesSinceearly1990s>ComparableResearchonEuropeanLevelonInnovation(CiS-0)Since1996bi-annual>CIS-1(1992),CIS-2(1996),CIS-3(2001),CIS-4(2004),CIS5(2006),CIS-6(2008),CIS-7(2010),CIS-8(2012)Europe-widesurvey>alsoincountrieslikeSouthAfrica,Canada orNewZealandIntheNetherlands:coverscompanieswithmorethan10employees,intotal15.000"establishments"(independentfirmor part of multinational company)TechnischeUniversiteitTUEindhoven一University of Technologyda格iasofInnovation20138
Community Innovation Survey (CIS) • In 1980s > individual innovation research in different European countries • Since early 1990s > Comparable Research on European Level on Innovation (CIS - 0) • Since 1996 bi-annual > • CIS – 1 (1992), CIS -2 (1996), CIS – 3 (2001), CIS – 4 (2004), CIS - 5 (2006), CIS – 6 (2008), CIS – 7 (2010), CIS – 8 (2012) • Europe-wide survey > also in countries like South Africa, Canada or New Zealand • In the Netherlands: covers companies with more than 10 employees, in total 15.000 "establishments" (independent firm or part of multinational company) 9/12/2013 Economics of Innovation 2013 8
MeasuringinnovationsincompaniesSimple in reality morecomplexInnovative inputsInnovativeoutputs(e.g.Patents)(e.g.R&Dexpenditures)Technische UniversiteitTUEindhovenUniversity of Technology9/12/2013PAGE9EconomicsofInnovation2013
Measuring innovations in companies Innovative inputs Economics of Innovation 2013 9/12/2013 PAGE 9 Innovative outputs (e.g. R&D expenditures) (e.g. Patents)