SIMPLY CLEVER Creativity and Innovation from a Business Perspective RADEK ŠPICAR EXTERNAL AFFAIRS DIRECTOR ŠKODA AUTO, a.s. PRAGUE 01/07/2009 SIMPLY CLEVER 2009 - YEAR OF CREATIVITY AND INNOVATION Good choice Future competitiveness • Made in… vs. Invented in… • New rising stars (Research investment growth in China: 25% annualy) Demographics • Aging of population • Currently 4 people in productive age for one pensioner in the EU, in 50 years it will be just 2 people Financial crisis and economic recession • Need to be creative and innovative • Innovation as „sine qua non“ for future winners 2 SIMPLY CLEVER OBSTACLES EDUCATION Character and quality of secondary education No sympathy for natural sciences No entrepreneurial skills No soft skills Traditional teaching approaches based on direct instruction or lecturing are no longer adequate Character and quality of tertiary education Low popularity of technical subjects Too much specialization- degree dictatorship Lack of practitioners, too theoretical Existing isolation of universities from companies is no longer sustainable 3 SIMPLY CLEVER OBSTACLES LOW DIVERSITY The most creative teams = mixed teams (Men & women, old & young, domestic & foreign) Need for foreign experts with new ideas in business • Global production and local custumization • Back seat of Škoda Octavia/Laura in India Fortress Europe: European environment is not supporting diversity sufficiently • United States benefit from brain drain - 40 % of students on US universities come from abroad. In Europe it is only 2,6% - ¾ of post-graduate European students in USA plan to stay there vs. • Some EU member states: Restrictions on free movement of labour force in 21st century! 4 SIMPLY CLEVER CASE STUDY: ŠKODA AUTO BASIC FACTS: Biggest private company in the Czech Republic Plants in Czech Republic, Ukraine, Russia, Kazakhstan, India, China Over 29.000 employees worldwide Over 100 markets Education, Production, Marketing, Sales… R&D: approx. 1700 employees annual costs 230 mio EUR design awards winner Skoda Joyster: National Design Award Winner 2007 5 SIMPLY CLEVER CASE STUDY: ŠKODA AUTO GROWTH LIMITS (pre-crisis period): Not enough low skilled workers Not enough highly skilled workers Need for new ideas in competitive environment SOLUTION: GO IT ALONE Škoda Auto Apprentice School (920 apprentices) Škoda Auto University (700 students) EXAMPLE TO FOLLOW? Not possible for all companies… It is not our core business… Not sufficient even for us… Škoda Auto educational campus Na Karmeli 6 SIMPLY CLEVER CASE STUDY: ŠKODA AUTO ŠKODA AUTO & UNIVERSITIES Co-operation with other universities: 5 biggest technical universities from the whole country and several regional universities • Positive role of structural funds Most creative project: ŠkodaAuto & Academy of Arts, Architecture and Design in Prague • Strange bedfellows: Industrial company and Arts school - Beginning: Clash of civilizations - Co-operation in technological/design centre - Now very successful: win-win situation 7 SIMPLY CLEVER CASE STUDY: ŠKODA AUTO Business Wish List for 2009: Continuously stress the importance of creativity and innovation To promote education systems that would support creativity Not to establish more institutions, but create a legislative and regulatory framework supporting co-operation among schools and enterprises To remove all existing obstacles on our way to Europe without barriers 8 SIMPLY CLEVER THANK YOU FOR YOUR ATTENTION Radek Špicar radek.spicar@skoda-auto.cz