Title: The 40th EIRMA Annual Conference Berlin, 1719 May 2006 THE NEXT DECADE: EUROPES FUTURE IN A WORLD OF
1The 40th EIRMA Annual Conference Berlin, 17-19
May 2006THE NEXT DECADE EUROPES FUTURE IN A
WORLD OF GLOBAL RD
- 1966-2006
- The changing context for industrial RD
- Klaus-Heinrich Standke
- Former Secretary-General of EIRMA
- former Director for Science and Technology,
United Nations, New York - former Assistant Director-General, UNESCO, Paris
2The 40th EIRMA Annual Conference Berlin, 17-19
May 2006THE NEXT DECADE EUROPES FUTURE IN A
WORLD OF GLOBAL RD
- 1966-2006 The changing context for industrial
RD - EIRMAs origins Key Players - Locations
Members - The political climate for EIRMAs creation and
beyond - How to measure gaps in technology and how to
measure international competitiveness? - Competitors and Partners Comparison of the RD
potentials - Challenges and responses
- - by international agencies e.g. OECD and EU
- - by national governments
- - by industry
- 6. Summary and Conclusions
3Château de Ménars Founding of EIRMA in May 1966
4EIRMA 40th Anniversary Conference, Berlin May 2006
5The Founding fathersH.B.G.Casimir Alexander
King
6- I believe that if European industry is to hold
its own it will be absolutely essential not to
have too much compartimentalisation between
countries, between firms, between laboratories... - If EIRMA could make a small contribution to
these better relations, that would already be an
extremely important achievement. - H.B.G. Casimir in his opening speech in Ménars
Mai 1966
7- Once a project (such as EIRMA) is being
launched we do not try to retain it within OECD
but try to push it out it becomes an independant
organisation between the bodies concerned and,
hence, completely free from international
bureaucracy.... - Alexander King
- 15th National Conference on Administration of
Research - San Juan, 10.10.1961
8EIRMA Office, Paris, 36 and 38 Cours Albert
Ier1966-1993
9 EIRMA Office 200646, Rue Lauriston, Paris
10Development of Membership 1966 - 2005
11EIRMA Presidents 1966-2007
- 2005-2007 Walter Steinlin, Swisscom
- 2003-2005 Prof Hans de Wit, TNO
- 2001-2003 Dr Lars-Göran Rosengren, Volvo
- 1999-2001 Dr Guy Haemers, Bekaert
- 1997-1999 Pierre Castillon, Elf Aquitaine
- 1995-1997 Prof Serge Barabaschi, Finmeccanica
- 1993-1995 Dr Jens Rostrup-Nielsen, Hador Topsoe
- 1991-1993 Dr Erich Spitz, Thomson
- 1989-1991 Raimo Junnila, Neste
- 1987-1989 Dr Jörg Heller, Ciba-Geigy
- 1985-1987 J.P. Causse, Saint-Gobain
- 1983-1985 Dr Harry Beckers, Shell
- 1981-1983 Dr Bernhard Schmidt, Dornier
- 1979-1981 Dr Denis Oliver, Pilkington
- 1977-1979 Dr Umberto Colombo, Montedison
- 1975-1977 Dr Jürg Rutschmann, Sandoz
- 1973-1975 Bernard Delapalme, Elf Aquitaine
- 1970-1973 Dr William J Arrol, Joseph Lucas Ltd
12The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Special EIRMA policy features in the beginning
of the association - Membership
- Only for industrial manufacturing firms
- No government-owned companies and no public
untilities - No consulting companies
- No US or other non-European subsidiaries
13The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- The political climate for EIRMAs creation and
beyond - A chronology
- In 1948 creation of the OEEC (Organisation for
European Economic Co-operation) in Paris - In 1965 the OECD organised the European/North
American Conference on Research Management. The
meeting was chaired by Professor H.B.G. Casimir
of Philips. A specific proposal was made to set
up a research management association in Europe - In 1966 at the Château de Ménars EIRMA was
formally launched unter the auspices of the OECD
and with technical assistance of I.R.I. - In 1967 EIRMA has devoted in Lund its first
annual conference to the theme Gaps in
Technology between Western Europe and the US
14The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- In 1968 the Third Ministerial meeting on Science
of the OECD after having considered the causes
for the European/US Gaps in Technology have
called for the creation of a European Capability
for Technological Innovation - In 1973 the EEC launched the European Scientific
Area - In 1974 the EEC Council established the necessity
for the Community to have ist own schience and
technology policy - In 1983 the first Framework Programme
(1984-1987) was launched, not with new funds, but
representing the sum of all separate EEC research
budgets - In 1985 following an initiative of President
Mitterand creation of EUREKA (European Research
Coordination Agency)
15The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- In 1991 EU President Delors called in a White
Book for Economic Growth, Competitiveness and
Employment that 3 of the EUs GDP should be
devoted to RD - In 2000 Lisbon Summit of EU Heads of State and
Governments declared the target, to develop the
EU by the year 2000 to the most competitive and
dynamic science based Economic Area of the
world(Lisbon Strategy) - In 2002 Barcelona Summit of the EU declared that
the present 1,95 share of RD of the GDP should
be increased by the years 2010 to 3,0 - In 2003 The EU presented an Action Plan
Investing in Research. The Commission admitted
that in the best of cases by 2010 2,5 of the
GDP could be devoted to RD - In 2005 A new concept Making Lisbon work was
elaborated which deleted the target of most
competitive region of the world. After the
EU-enlargement the average EU-25 RD percentage
was lowered to 1,9
16The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- How to measure gaps in technology and how to
measure international competitiveness? - Gapology
- Productivity Gap
- Technology Gap
- Innovation Gap
- Management Gap
17- At the EIRMA meeting in Lund in 1967 Dr. Ivan L.
Bennet, Jr., the Deputy Director of the Office of
Science and Technology in the White House,
Washington D.C., described the psychogical nature
of the gap debate as follows - In essence, the gap to Americans seems to be a
European reaction to an inability to achieve the
desired degree of economic, military and
technological independence from the US....
18The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Direct Indicators for gaps in innovation
capabilities - Ressources in scientific and technical manpower
- RD performance as of GDP (RD intensity)
- Patents and Licenses
- World Market shares in RD intensive products
- Citation index
- Nobel prices
- Brain drain
19The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Overall indicators to measure economic
performance and its impact on international
competitiveness - Economic growth
- Exchange rates
- Rate of unemployment
20The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Competitors and Partners
- Comparison of the RD potentials
- The ability to create, distribute and exploit
knowledge has become a major source of
competitive advantage.... - OECD
21The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
22RD Expenditure EU-15, USA, Japanin mill.
23Gross Domestic Expenditure on RD (GERD) of GDP
24Gross Domestic Expenditure on RD (GERD) of GDP
25The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Challenges and responses
- - The Challenge is clear Overcome the
disparities - - But what are Europes responses?
26The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- EU Framework Programmes for Research
- RP 1 1984-1987 3,8 bill.. 0,95
bill.p.a. - 2 1988-1991 5,4 1,35
- 3 1991-1994 6,6 1,65
- 4 1995-1998 13,1
3,27 - 5 1999-2002 15,0 3,75
- 6 2003-2006 19,2
4,80 - 7 2007-2013 54,2
7,74 -
27The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Challenges and responses
-
- - How have the European governments
- responded to the challenge?
28The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Most EU member states have adopted national
targets to raise RD investment in line with the
Barcelona objective (3 or 1 for the new member
states). New Strategies (F,D) - The EU Commission reports an insufficient overall
rate of increase in direct public funding of RD
in the EU-25 to reach the Barcelona objective of
1 of GDP by 2010. - EU member states are increasingly supporting
private investment in RD through indirect
measures in the form of fiscal incentives.
29- Challenges and responses
- When looking 40 years back, what has EIRMA
contributed to reduce the technology gap ? - What are the tangible achievements?
- Building up and disseminating a common stock of
knowledge on the management of industrial RD. - Providing a forum to exchange common experiences
not only within Europe but also with related
organisations in the US, Japan, Korea and others
30- In facilitating cooperative research activities
with universities and government research
institutions - In addition, EIRMA has helped to minimize the
competitiveness gap - - by identfying factors needed to improve the
economic environment for relating
technology to economic growth - - providing interactions with organisations
such as OECD, EU, EUREKA, BIAC and others - Reinhard Schulz, no doubt, will tomorrow deal in
more depth with an assessment of EIRMAs
contribution
31The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
The changing role of industry towards RD
ManagementSome trends in EIRMA and I.R.I.
- Chuck Larson, Executive Director and President of
I.R.I.(1975-2001) - There is a move to emphasize the process of
innovation within companies, some companies have
therefore renamed their Corporate RD labs as
corporate innovation centers. - Competitive intelligence has been increasingly
made an informal part of the corporate strategy.
32The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Internal RD is being combined with external RD
by connecting with outside resources, including
competitors, to develop new products and
processes. Numerous services, including human
resources, are now outsourced - Some firms have outsourced all of their RD to
other firms or universities.
33The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- High-quality RD can now be done all around the
world, resulting in a proliferation of new RD
labs in many countries. RD are continuing to be
established in countries where the RD base is
strong and the company has operations. - RD in many companies has a increasingly a voice
in corporate business strategy - RD cycle times have steadily decreased.
34The 40th EIRMA Annual Conference Berlin, 17-19
May 2006The changing context for industrial RD
- Government labs have become a key technology
resource for many firms. - Environmental awareness has become standard
operating procedure in RD. - Financial analysts have come to understand and
appreciate the value of long-range, strategic
investment in RD. - The pressure on RD leaders to do more with less
has steadily increased. - There is still no one best RD organizational
structure
35- Summary and conclusions
- 1. The technology gap as defined 40 years ago
not only persists but it seems even to be
widening. The RD investment in Europe is lagging
behind and growing too slowly. - The US is spending per capita 978 on RD,
Japan 893 and the EU-15 only 532 -
36- (Ctd.) Unlike the situation at EIRMAs creation,
the challengers for Europe are not anymore the US
and later Japan but fast increasingly
China, India and other Asian countries. - The EU is predicting that China might have
caught up with Europe already by the year 2010
Whereas the EU-15 had in 2000-2003 an annual
growth of RD intensity close to stagnation,
(0,7), China had an increase of 9,4 and has
quadrupled its RTD effort since 2000. China ranks
presently with an RTD budget of 72 bill.US-
after the US and Japan on position Nr.3 in the
world and has bypassed Germany (54 bill.US-).
India is with 24 bill.US- close to France (25,1
bill.US-)
37- 2. In spite of strong efforts by some individual
EU countries to increase their RD
expenditure expressed in of the GDP, Europe is
far from becoming a homogenous European Research
Area - The RD intensity within the EU-25 ranges
from 4,27 in Sweden to 0,4 in Latvia
38- 3. Looking at the European manpower the EU-15
has just over one million qualified scientists
and engineers (QSEs), (US 1,2 mill.), but
despite this relatively large supply of
graduates, the pool of researchers is
considerably smaller than in the US or in Japan. - Researchers per 1000 labour force (full-time
equivalent) - EU-25 5,4 US 9 Japan 10,1
- Apparently ScT careers in the EU lack
attractiveness. - Source EU
39- 4. The Brain Drain from Europe to the US,
complained already in forty years ago, is
continuing - The EU reports that 58 of the European
Recipients of US Science and Engineering
Doctorates have firm plans to stay in the US. - As reasons are being given that more than
higher wages better opportunities (access to
high-level infrastructures and networks) seem to
count. - Source EU
40- 5. In the worlds HighTech markets, the EU-15 is
catching up globally, but is still lagging behind
its main competitors - US sales in 2000 287 bill. US-,
-
- EU-15 164 bill.US-
41- 6.The internationalisation of industrial RD is
continuing. Europe remains with 74 of all US RD
investments abroad by far the preferred partner
of the US industry (and vice-versa) although this
percentage is slowly being reduced in favour of
Japan, China and others. - Germany, for example, reports that 21 of
its industrial RD is performed by German
subsidiaries abroad (mostly in the US) and that
25 of the RD in Germany is performed through
subsidiaries of foreign companies - Sources EU and Stifterverband
42- 7. The competitiveness of the European industry
is conditioned by the sectoral composition of its
industry.The EU largest RD investment is in
Automobiles and Parts (23,8), - The non-EU largest share is in IT hardware
(22,9) - 8. As demonstrated, Europe still has a
- competitiveness gap.
- All EIRMA can do is continuing to minimize
- the gap and to make the voice of Europes
Research Industry heard on this vital issue.
43- 9. What are Europes answers to these challenges?
- The Lisbon strategy and the Barcelona targets
- The (modest) strengtening of the 7th Framework
Programme (ca. 4 of the EU-25 RTD effort) - A continuous appeal to member states to enhance
their national ScT policies - A mechanism (open method of coordination) to
harmonise the 25 different national ScT policy
concepts which stand for ca. 96 of the EUs RTD
efforts
44- 9. In spite of the increasing internationalisation
of research the integration of the new EU member
states in Central and Eastern Europe into the
concept of a European Research Area is very
unsatisfactory. This situation is also reflected
in EIRMAs membership. - The talents of the 70 million new EU citizens
(plus 30 if Romania and Bulgaria will join) are
not tapped. - The RTD budget of the present 8 new CEE member
states is with only 3,3 bill. in the order of
magnititude of the RTD expenditure of the city of
Berlin (3,3 mill. Population) - On the other hand, as a result of the increasing
dislocation of manufacturing industries to
Eastern Europe, countries such as Hungary, the
Czech and the Slowak Republic have without
their own RTD base a higher than average share
on the EU-25 high-tech exports
45- 10. The widespread EU fatigue
- coupled with some re-nationalisation
- tendencies is fatal for the urgently needed
efforts to enhance Europes competitiveness
within a rapidly changing global setting. - EIRMAs answer to this challenge will be given
in this afternoons Discussion Group - ITs ALL ABOUT PEOPLE
- MOTIVATION, CREATIVITY, SKILLS