Terry Mughan
Professor of International Management
Ashcroft International Business School
1.
3.
A space for all companies
2. A space for ideas
A space for relationships
4. A space for all citizens
Not so much a space as a set of
boxes
Boxes for trade figures,
multinational brands and
exporters
2. Latterly, boxes for FDI too
Market share and competitive
lone wolves.
1.
3.
•Flexible,
:
learning companies of all
sizes
•Mobile citizens and knowledge
sharing
•Supra-national and sub-national
units of organisation
•Open innovation
• Flexible, learning companies of all sizes
• Mobile citizens and knowledge sharing
• Supra-national and sub-national units of
organisation and collaboration
• Open innovation
Companies
2. The global citizen
National and supranational
governance
1.
3.
International knowledge trading
Universities
Global
Multinational
Transnational
Open innovation Migrant
entrepreneurs
International
Exporting
Regional
growth policy
Public/private/
Mini-multi
social
Born Global MNC
SME
Student entrepreneurs
FDI
•Empirical
studies of SME behaviour
carried out for EEDA, UKTI and
OECD/APEC
•Work
with leading European science
parks and MNCs
Key Issues:
► Why
►
►
►
does the company go international?
How do they do it?
What problems do they encounter?
Where do they go for help?
How did we do it?
Telephone survey of 1,200 SMEs
 Face-to-face interviews with
 the strategic leader of 80 SMEs

Who did we talk to:
A:
B:
C:
D:
E:
The
The
The
The
The
Curious
Frustrated
Tentative
Enthusiastic
Successful
Strategy Implications:
► Complexity
►
Transferable skills and knowledge
► Sustainability of support
► Relationships and networks
i10 AND
THE H.I.G.H.E.R.
PROJECT
 To improve international business support services for
potential high-growth companies.
 Identified from CEIM study
 Middle-market as labelled by PWC
 Interest in ‘born globals’
 Impact of economic change (globalisation, ) on SMEs
 To
promote knowledge-sharing between
companies and government support agencies.
HEIs,
Strategic competence
Organisational learning
Planning
Change management
STRATEGIC
RELATIONSHIP MANAGEMENT
MARKET DECISIONS
Environment
assessment
Market entry
Human
Resources
Competitor
analysis
Cultural issues
language
skills
Long distance
management
Conflict resolution
Knowledge
exchange
Partnership
management
Exporting is not an end in itself
• Other activities should accompany
and follow on from exporting
• Innovation and competitiveness in
product and process in the firm is
the goal.
•
• Firms that become exporters in a given year
experience more product innovation the following
year
• The more markets you enter, the more you
innovate
• Going directly to markets results in more
innovation
Source:
Robert Salomon, Learning from Exporting, Edward
Elgar, 2006
 “[..]
inflows and outflows of knowledge
to accelerate internal innovation, and
expand the markets for external use of
innovation [..].”
Chesbrough, H., W. Vanhaverbeke, and J. West, eds. Open Innovation: Researching a
New Paradigm. 2006, Oxford University Press.
„If we can‘t turn all our discoveries into
products, why don‘t we license them to
third parties or even sell them entirely?“
Gerard Kleisterlee, Philips



Outside-In-Processes
Integrating external knowledge in the
innovation process:
--> Using the expertise of suppliers,
customers and external partners in
order to improve the quality of the
innovation process.
Inside-Out-Processes
Externalising IP or internal knowledge:
PUSH!, Business Angel Forum, Regional
hubs, Experts‘ Database...
 Capitalise on this IP/knowledge
through licensing, joint ventures and
spin offs.

•
•
•
•

•

•
Stakeholders
Companies
Scientists
Government
Suppliers of
knowledge
(consultants,
business schools)
Primary target
group:
Project
Secondary
Target group
Government
Science
Companies
Secondary
target group:
Other
stakeholders
Primary
Target group
Companies
Others
The model of ‘open innovation’
Research
Development
IP in-licensing
Company
Boundaries
Commercialisation
Products in-sourced
(e.g. Co-branding)
Core Market Focus
IP out-licensing
Technology
Spin-outs
Ideas &
Technologies
Docherty, M. (006), Primer on ‘Open Innovation’: Principles and Practice, pdma (Product Development and Management Association) Vision (April 006), pp.13-17.
Chesbrough, H. (003), Open Innovation: The New Imperative for Creating and Profiting From Technology, Boston: Harvard Business School Press.



Innovation policy and governance structures urgently need
to anticipate changes and new developments in the
national and European innovation system.
New generation of Innovation Governance has to open up
for better horizontal and vertical co-operation of the
regulatory regime
Policy makers and intermediaries have to prepare the
innovation governance system for the paradigm shift to
Open Innovation.
 Benefit through learning from the experiences of the
growing “co-opetition” culture in the private sector.
A larger proportion of educated globally
minded citizens in all countries
2. A greater number of real born globals, i.e.
cross-nationally constructed companies
3. More transnational legislation permitting
cross-national company formation
4. Better, accessible skills everywhere to help
companies compete and collaborate
internationally
1.

People (employees, interns)
Expertise (consulting services)
Knowledge (tacit, explicit)
Resources (equipment, facilities, incubation)
Public spaces (conferences, networking)
New firms (spin-outs, start-ups)

But risk of ‘mixed mission’





◦ (academic / commercial, short-term / long-term)?
Research
World class
academic
research
(Value of new knowledge)
Transfer of
knowledge
into
innovations
(Value of competitiveness)
CREATIONS
Academic
C
Y
C
L
I
C
Global
Society
Impacts
Region
Academic
education
Relevant to
work
(Intellectual value)
(Business value)
(Integration of values)
Education
•Industry and Services
•Academy
•Government
T
H
E
M
A
T
I
C
L
I
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E
A
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L
E
V
A
N
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Open Innovation Agency – Possible Structure
Companies
Research
Institutes/
Universities
Excellence
hubs and
Cluster
Initiatives
Services: Brokerage, Assessment, Education and Training,
Communication
Open Innovation Agency
Membership Fees
Premium Services
OI–Network:
Business support,
Research and
Education Institutes
31
Infrastructure,
Personnel
Shareholders:
RDAs and other
Regional
Intermediaries
European/Intl.
Co-operation
Prof. Terry Mughan
Director,
The Centre for Innovation in International Business
Ashcroft International Business School
Anglia Ruskin University
East Road, Cambridge, CB1 1PT
Tel:
0044 1223-196248
Fax:
0044 1223-698825
Email:
terry.mughan@anglia.ac.uk