2009

AMSTERDAM
BEIJING
CAMBRIDGE
CHICAGO The Winning Combination of Cluster Development,
DELHI
DUBAI
Open Innovation and Innovation Policy
FRANKFURT
HONG KONG
JOHANNESBURG
Symposium on Global Open Innovation Networks
LONDON
LOS ANGELES OECD Headquarters, Paris, January 23, 2009
MADRID
MANILA
MOSCOW
MUMBAI
MUNICH
NEW YORK
PARIS
SAN FRANCISCO
SÃO PAULO
SEOUL
SHANGHAI
Copyright © 2009 by Monitor Company Group, L.P.
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No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means —
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This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
ZURICH
COMPANY CONFIDENTIAL
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Model of Competitiveness by Michael Porter, founder of the Monitor Group

Government
Competition

Input Factors Customers

Cluster
Institutions

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Monitor Experience on Cluster Development and Innovation Policy

New Jersey Massachusetts New York UK Netherlands Germany Portugal Scotland Slovakia
1993, 2004,
2002–2003 1991–Present 1995 2000-2003 2004-2006 1994, 2003 1992–1993 1996–1997
2006
S. Carolina California Georgia Poland Denmark Russia Italy Greece France
2003–Present 1993-1994, 2007–Present 2003 2003–2006 1995–1999, 2004-2006 1993 1999
2002–2003 2004-Present
Columbus Spain Switzerland Norway Finland
2004–2006 1990–1993; 2007–2008 1999 2008-Present
2006-Present

China
2004-Present

India
Canada 2006-2007
1990–1991, Bermuda
2000 Japan
1996–1999
2006
U.S.
1999–2002, El Salvador
1997–1999 Philippines
2006-Present
Saudi Arabia 2005–Present
Brazil
Venezuela 2006-Present
2000-2003 Singapore
1996–1997 Morocco
2006-Present UAE 2001–2003
2004-Present
Colombia Ecuador 1993-1995,
1993–1997 1995 2005-Present Brunei
Libya
2003
2005-Present Israel
Bolivia Peru 2000
Vietnam Cambodia South Korea
1994–95 1994–1997 South Africa 2007-Present 1994-1996 1998, 2000
1994-Present Lebanon
2000–2002
KEY: Recent Projects
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We Accept a Wide Definition of Open Innovation

Broad
Outside

Open Innovation
Inside Cluster

Inside Company
Narrow

Experts Partners Everyone

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Open Innovation and Clusters Share Key Success Factors

 Conquer ―Not Invented Here‖  Scout for new opportunities

A B
 Seek for best solution source  Actively seek for partners

 Promote open communication Open Mindset Proactiveness  Dedicate team resources

 Encourage creative conflict  Encourage sharing of R&D

Key
E Success C
Tolerance of Factors Flexibility
Failure

D
 Enhance efficiency in buying
 Encourage risk taking
Cooperative- and selling technologies
 Learn from failures
ness  Accept new business models

 Encourage internal and external collaboration

 Involve more partners earlier

Source: Monitor Analysis adapted from ―Open Innovation‖ by Henry Chesbrough

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Example Switzerland – How Innovation Policy can Set the Stage

Selected observations from MNC in Switzerland Conclusions for Swiss Innovation Policy

 Excellent quality of life  Further improve standards

 Location good to cover European market  Extend infrastructure to central Europe

 Excellence in some universities  Strengthen critical mass initiatives

 Trusted relationships with local partners  Facilitate cluster programs

 Favorable tax policy  Extension to broader investor policy

 Stable frameworks (economic/political/IPR)  Promote frame conditions outside Switzerland

 Flexible labor regulations  Extend regulations to active migration policy

 Research and public funding policy  Increase transparency in funding priorities

 “Swiss factor” is valued in many countries  Global communication strategy for ―Swiss factor‖

Note: MNC = Multi National Companies

Source: Adapted from Monitor OECD Study on Globalization and Open Innovation in Switzerland 2008
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Example BioValley: Benefit from Open Innovation within a Cluster

 Tri-national non-profit initiatives in life science

– 300 life sciences companies
– Four universities
– 30 private and public research institutes
– Many biotech start-up companies
 Funded by public authorities and membership
contributions, e.g., Novartis Venture Fund

 140 new companies established in the BioValley

in the last 10 years
 Continuous exchange of business, academic and
political members
 Cluster as platform for outside relationships, e.g.
via conferences

Quelle: OECD-study on Globalization and Open Innovation, Best-practice Interview with Novartis; Cluster Information; Monitor Analyse
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Example Southern Denmark: Combine Different Stakeholders„ Interests

Mechatronic New Cluster Investment Innovation

Applications Technologies Development Group Policy

Growth Platform Business Service

Transport
Tourism
NewCo Education
Framework for
Regional
Council for Initiatives
Growth Structures
Competitiveness

Company
Knowledge Mechatronic Investments in
Areas Cluster SME Initiatives

Joint Area Region

Source: Monitor Project Work – sanitized

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Example: Open new Perspectives by Comparing Clusters Worldwide

North America Average or

Specific Countries (3),
States (87) or Regions (355)

British
Columbia
Boston Region
Texas
Asian Average or Select Sample output:
Countries (6) or Regions (154) Benchmarked Economic
Mexico D.F. Cluster Maps
10%

Life Sciences
Germany Samara
8%

Bavaria vs.
Lianoning = 6%
Chemical
Products
Distribution
Services

4%Leather
Province Products Plastics
Transportation and
Logistics
Apparel
2%

Entertainment
Construction Materials
0%
-50% -25% 0% 25% 50%

= 0–24,999 = 50,000–99,999 = 100,00+

European Average or Select

Countries (24) or Regions (180)
United
Kingdom

Piedmont
Source: Monitor Cluster Mapping Database Region
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In Summary, a Winning Combination

Cluster Development Open Innovation

Competitiveness
Prosperity
Employment

Innovation Policy

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