Meeting the needs of Research and Innovation of the Private Sector

Meeting the Needs of Research and
Innovation of the Private Sector:
The Malta Chamber’s Perspective
by Malta Chamber President
David G. Curmi
Friday, 7th February 2014
Global Innovation
Where does Malta stand?
What are the needs of the Private Sector?
1. Global Innovation
Innovation in Textbooks
Innovation: Government’s many roles in fostering
Tax Policies
Legal Policies
Fiscal Policies
Country Analysis: Comparative analysis of polices in 15
different countries.
Innovation in Entrepreneurship
Innovation in Entrepreneurship
What do we do next ? To paraphrase Oscar Wilde, we need
to believe in the impossible. (Satya Nadella, newly appointed
CEO at Microsoft. FT 5 February 2014)
46 years old.
3rd CEO at Microsoft in its
39 year history.
Selected from over 100
including Ford’s CEO and
Oracle’s President.
Base Salary $1.2m total
package $18m.
Innovation is a mindset
Innovation is a Mindset
Case Study 1- Hyundai
1975: Pony
“…like a Honda Civic built in a back alley by an inebriated
Canada’s Globe and Mail
Source: Financial Times, January 2014
Innovation is a Mindset
Case Study1 - Hyundai
• 5th largest global car manufacturer
• Switch from growth to profitability
• Focus on R&D
• Focus on brand development
“It doesn’t rattle. BMW can’t do this. We can’t do this.”
CEO VolksWagen
Source: Financial Times, January 2014
Innovation is a Mindset
Case study 2 – HollySys
& electrical
Control and safety systems
Culture driven by R&D
Profits over growth
Winning contracts outside of China
Chosen as sole supplier of control
systems to Hong Kong and
Singapore underground and rail
Source: HollySys website, September 2013
The importance of Innovation
€ per capita
Total domestic R&D expenditure
Emerging markets have yet to embrace R&D…
Source: Goldman Sachs International, November 2013. Data as at 2010 or latest available
The importance of Innovation
In ‘000s
Number of patents by area of residence
...however, China is playing catch up
Source: World Bank, November 2013
Some Global Stories
The number of Chinese students currently enrolled in U.S.
colleges and universities = Population of the Maltese Islands.
ASEAN – (association of 10 Southeast Asian Nations) 620 million
people, $2.2 trillion GDP, the most important 21 Century global
growth engine.
57.4% of patents registered by Microsoft named immigrants as
inventors of the patent.
China has recognized the importance of patents and is now
registering more patents then the U.S.
4% of the world’s entrepreneurs create 40% of its wealth.
The playing field in terms of cost is levelling out fast –
investment will ultimately go to countries that innovate.
2. Where does Malta stand?
Where does Malta stand? (1)
According to the latest Innovation Union Scoreboard 2013,
Malta remains a moderate innovator with a below-average
Malta holds one of the lowest number of tertiary science and
technology (STEM) graduates in Europe, with an average of
Growth rates were seen in relation to:
 new doctorate graduates (+16.9%);
 community trademarks (+16.6%);
 SME’s introduction of innovative products and processes
Where does Malta stand? (2)
In relation to financing and support, we are still lagging behind
other member states due to the non-existence of equity
In 2012 Malta’s expenditure on R&D is 0.84% of GDP (EU 2020
target 0.67% but this will be increased to 2%).
Very little progress is seen with regard to the entrepreneurship
and intellectual assets indicators, such as:
In-house innovation;
Collaborative projects between innovative SMEs;
Registration of community designs;
Patent Cooperation Treaty (PCT) patent applications.
Where does Malta stand? (3)
The Malta Chamber RTDI Committee
 successfully evaluated the local
 formulated a strategic document
which points out what urgently
needs to be done.
The Committee is composed of
representatives of the sectors of:
legal consultancy.
Where does Malta stand? (4)
An extensive document entitled ‘Meeting the RTDI Needs of
Industry’ was drafted by the Chamber’s RTDI Committee.
This is segmented into the following eight sections:
Innovation Management Techniques;
Research and Development Processes;
Education Preparedness;
Links between Academia and Business;
Innovation Value Chain and Infrastructure;
Access to Finance;
Technology Transfer and Licensing;
Intellectual Property Rights.
3. What are the private Sector’s
What are the needs of the
private sector? (1)
A country and politicians that think Global.
A renewed focus on research and innovation.
Restore trust and confidence in business – restoring trust is
critical to growing economies.
More support for start-ups.
Accelerate the development of high impact entrepreneurs and
Source global talent.
Encourage talent mobility.
What are the needs of the
private sector? (2)
The Malta Chamber calls for the importance that in the new
programming period all EU member states allocate a higher share
of their structural funds to:
The issue of industry-academia linkage has been debated for a
long time.
The Malta Chamber suggests University researchers are given
the required flexibility for direct postings in local enterprises.
The Malta Chamber believes in promoting partnerships between
industry, academia and foreign institutions.
What are the needs of the
private sector? (3)
Education and skills are key enablers for innovation to flourish
in enterprises.
Investment in R&D is to be coupled with a long-term strategy
preparing our future generations with the required skills.
The Malta Chamber believes that there needs to be an
integrated approach and converging instruments to transform
innovative ideas into marketable solutions:
- Introduce programmes that promote seed funding for research-based
- Focus on the need for funding programmes to sustain R&D under the
new EU programming period 2014-2020.
- Highlight the need for appropriate funding programmes under the
MCST National R&I Programme.
What are the needs of the
private sector? (4)
The Malta Chamber looks forward to the introduction of the
Horizon 2020 package in Malta.
This is the EU’s biggest ever research and innovation
We are satisfied that the Commission has taken a new approach
and has introduced the brand-new SME funding instrument.
Intellectual Property Rights are what gives investors and creators
not only the protection they deserve, but also the main tool
with which to capitalise on their creations.
We propose to join the existing efforts by the Industrial
Property Directorate to raise awareness of intellectual property
rights at a local level.
“The people who are crazy enough to think
they can change the world are the
ones who do.”
Apple “Think Different” Commercial 1997
Thank you