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Faculty of business management


Innovation policy in Lithuanian
         enterprises
             Final master thesis


        Tomas Pranckevičius

                Vilnius, 2009
Content
• Introduction
• Internationalisation and economic performance
• Theory of innovations
• Innovation policy in Lithuania
• Proposals for innovation policy in Lithuanian
  enterprises
• Conclusions and proposals

T. Pranckevičius   Innovation policy in Lithuanian enterprises   2
Introduction
• Research object: science, technology and innovation policy, policy
  creation, policy promotion.
• Research aim: to describe innovations, to indicate the most
  important factors of innovation in Lithuania, to create policy and
  solutions how to improve innovation in Lithuanian enterprises.
• Research methodology: scientific literature analysis (science
  research articles, monographs, scientific conferences and seminar
  methodology) and documents (programs, strategies, reports)
  analysis, comparison, summation.
• Goals or research questions: how to build better innovation level
  in Lithuania? What kind of unsuccessful factors exist in innovation
  policy implementation?


T. Pranckevičius       Innovation policy in Lithuanian enterprises      3
Internationalisation and economic performance
• Innovation through the CREATION, DIFFUSION and use of
  KNOWLEDGE has become a KEY driver of ECONOMIC
  GROW and provides part of the response to many new societal
  changes.
  The determinants of innovation
  performance have changed in a
  globalising knowledge-based
  economy, partly as a result of
  recent developments in
  INFORMATION AND
  COMMUNICATION
  TECHNOLOGIES (ICTs).
T. Pranckevičius    Innovation policy in Lithuanian enterprises   4
Models of innovation




T. Pranckevičius   Innovation policy in Lithuanian enterprises   4
Sparking innovations in communities
                             Incubator,
                             Mentoring




                 Policy                              Finance, Risk
               Regulations                              Capital




                             Innovative
                             enterprises


                S&T                                    Skills,
              Knowledge,                               Human
                Tech                                  Resources
               Transfer


                             Research &
                             Development




T. Pranckevičius                          Innovation policy in Lithuanian enterprises   6
Innovation networks and knowledge clusters
Classical Information            Post-Modern Innovation
Architecture                     Architecture
Top-Down                         Bottom-Up
Centralized                      Distributed
Closed                           Open
Stable                           Adaptive
Planned                          Emergent
 Command / Control                           Collaboration / Teamwork

                                                       Enterprise –     Wide
                                                       Collaboration
 Command / Control      Councils / Boards




  T. Pranckevičius                  Innovation policy in Lithuanian enterprises   7
Innovation policy in Lithuania
• R&D EXPENDITURES in enterprises 0.55% in 1998 and it is
  still only 0.82% in 2007 of GDP.
• Innovations activities in Lithuanian enterprises for R&D are
  intramural 44.1% and extramural 26.9% (2004-2006).
• Low participation in lifelong learning 4.9% leads to obsolete
  qualifications, actually not suitable for high skill work.
• Lithuanian patents per million populations are 0.37% EPO
  (EU level 9.83%).
• Lithuania by the 2008 European Innovation Scoreboard is in
  the level of catching-up countries. Lithuanian has only around
  1% annual grow in INNOVATION PERFORMANCE.
T. Pranckevičius     Innovation policy in Lithuanian enterprises   8
Co-operation arrangements on innovation activities, 2004–2006
 Percent of enterprises with innovation activity
                                                                      • 43% enterprises collaborate
                                                                        in innovation activities,
                                                                      • 27.7% of all innovations
                                                                        were generated in
                                                                        collaboration with CLIENTS
                                                                        or CUSTOMERS,
                                                                      • 21.2% with OTHER
                                                                        PARTNERS,
                                                                      • 34% with SUPPLIERS,
                                                                      • 18.4% higher EDUCATION
                                                                        institutions,
Lithuanian statistics, 2008                                           • 10.3% RESEARCH
                                                                        institutions.
     T. Pranckevičius         Innovation policy in Lithuanian enterprises                     9
Internet access total by economic activities
                                                                       • 96.1% percent of enterprises
                                                                         with the staff of 10 and more
                                                                         employees used computers,
                                                                         95% percent – the Internet at
                                                                         work
                                                                       • In everyday work,
                                                                         computers were used at least
                                                                         once a week by 31.4%
                                                                         percent, the Internet – by
                                                                         28.8% percent of employees
                                                                         of such enterprises

Lithuanian statistics, 2008
   T. Pranckevičius           Innovation policy in Lithuanian enterprises                       10
Collaborative work space innovation and
societal change
 Technology transformation visualisation and
 virtualisation, possibilities for identification, such tools
 like Living Labs and maybe more opportunities looks
 very widely and perspective in the near future and good
 scenarios for innovative enterprises.




T. Pranckevičius     Innovation policy in Lithuanian enterprises   11
Basic Technologies of Living Lab architecture
   • Living labs can be used as an instrument and core for the
     collaboration in national and regional innovations systems, between
     enterprises, science and research institutes, clusters, public-private
     partnership.
IT Enable Strategy,
Collaboration...
Councils/Boards/Working
Groups... Employee
(Social/Visual)... Networks
Innovation / Process / Speed /
Scale... Productivity
Sustainable Differentiation...
Time to Market
Enterprises / Technology...
Architecture
   T. Pranckevičius              Innovation policy in Lithuanian enterprises   12
Global Lithuanian conception
 Building human-like world's knowledge base in Lithuanian language and
 provide knowledge based search semantics systems and services with virtual
 space economy or Knowledge Based – Geospatial Information System (KB-
 GIS).
 Levels: 1) NATIONAL, 2) NORDIC-BALTIC REGION 3) INTERNATIONAL.
 To be a part of GLOBAL MIND?




T. Pranckevičius        Innovation policy in Lithuanian enterprises    13
Conclusions and proposals (I)
• Higher education sector with science and technology
  research are the key driver of innovation performance.
• Promote economic cooperation and entrepreneurship,
  regional cluster cooperation and innovation
  opportunities in the region with special focus on
  creative and innovative industries.
• Science, technology and innovation development
  commission is not so active today. Innovation
  coordination institution strongly is recommended to
  establish.
T. Pranckevičius   Innovation policy in Lithuanian enterprises   14
Conclusions and proposals (II)
• Enterprises and science in collaboration have a lack of
  innovation strategies, there is no national innovation strategy.
• Enterprises have not enough access to public activities in
  public and scientific institution funding programs and it not
  promotes entrepreneurship collaborative network with partners.
• There is a lack of measurements about innovation activities
  through ICTs. Analysis of networking and partnerships for
  innovation, application of networks, partnership for innovation
  activities, and productivity of interaction within networks is
  rather limited and needs to be developed.



 T. Pranckevičius     Innovation policy in Lithuanian enterprises   15
Conclusions and proposals (III)
• Stimulate collaboration, innovation culture and creative
  entrepreneurship: 1) eliminate all not necessary bureaucracy, 2)
  promote foreign investments, 3) ensure credits, 4) manage
  fiscal deficit, 5) stimulate economic activity and 6) promote all
  state institutions and involve in innovation processes.
• To set up better relationship and to let increase working
  efficiency in change and increased way of using ICTs: to
  enhance innovation by empowering users, workers, science and
  industry in collaborative and organizational way.


T. Pranckevičius      Innovation policy in Lithuanian enterprises   16
Thank you!
                   Questions and remarks!




T. Pranckevičius      Innovation policy in Lithuanian enterprises   17

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Innovation Policy In Lithuanian Enterprises2009

  • 1. Faculty of business management Innovation policy in Lithuanian enterprises Final master thesis Tomas Pranckevičius Vilnius, 2009
  • 2. Content • Introduction • Internationalisation and economic performance • Theory of innovations • Innovation policy in Lithuania • Proposals for innovation policy in Lithuanian enterprises • Conclusions and proposals T. Pranckevičius Innovation policy in Lithuanian enterprises 2
  • 3. Introduction • Research object: science, technology and innovation policy, policy creation, policy promotion. • Research aim: to describe innovations, to indicate the most important factors of innovation in Lithuania, to create policy and solutions how to improve innovation in Lithuanian enterprises. • Research methodology: scientific literature analysis (science research articles, monographs, scientific conferences and seminar methodology) and documents (programs, strategies, reports) analysis, comparison, summation. • Goals or research questions: how to build better innovation level in Lithuania? What kind of unsuccessful factors exist in innovation policy implementation? T. Pranckevičius Innovation policy in Lithuanian enterprises 3
  • 4. Internationalisation and economic performance • Innovation through the CREATION, DIFFUSION and use of KNOWLEDGE has become a KEY driver of ECONOMIC GROW and provides part of the response to many new societal changes. The determinants of innovation performance have changed in a globalising knowledge-based economy, partly as a result of recent developments in INFORMATION AND COMMUNICATION TECHNOLOGIES (ICTs). T. Pranckevičius Innovation policy in Lithuanian enterprises 4
  • 5. Models of innovation T. Pranckevičius Innovation policy in Lithuanian enterprises 4
  • 6. Sparking innovations in communities Incubator, Mentoring Policy Finance, Risk Regulations Capital Innovative enterprises S&T Skills, Knowledge, Human Tech Resources Transfer Research & Development T. Pranckevičius Innovation policy in Lithuanian enterprises 6
  • 7. Innovation networks and knowledge clusters Classical Information Post-Modern Innovation Architecture Architecture Top-Down Bottom-Up Centralized Distributed Closed Open Stable Adaptive Planned Emergent Command / Control Collaboration / Teamwork Enterprise – Wide Collaboration Command / Control Councils / Boards T. Pranckevičius Innovation policy in Lithuanian enterprises 7
  • 8. Innovation policy in Lithuania • R&D EXPENDITURES in enterprises 0.55% in 1998 and it is still only 0.82% in 2007 of GDP. • Innovations activities in Lithuanian enterprises for R&D are intramural 44.1% and extramural 26.9% (2004-2006). • Low participation in lifelong learning 4.9% leads to obsolete qualifications, actually not suitable for high skill work. • Lithuanian patents per million populations are 0.37% EPO (EU level 9.83%). • Lithuania by the 2008 European Innovation Scoreboard is in the level of catching-up countries. Lithuanian has only around 1% annual grow in INNOVATION PERFORMANCE. T. Pranckevičius Innovation policy in Lithuanian enterprises 8
  • 9. Co-operation arrangements on innovation activities, 2004–2006 Percent of enterprises with innovation activity • 43% enterprises collaborate in innovation activities, • 27.7% of all innovations were generated in collaboration with CLIENTS or CUSTOMERS, • 21.2% with OTHER PARTNERS, • 34% with SUPPLIERS, • 18.4% higher EDUCATION institutions, Lithuanian statistics, 2008 • 10.3% RESEARCH institutions. T. Pranckevičius Innovation policy in Lithuanian enterprises 9
  • 10. Internet access total by economic activities • 96.1% percent of enterprises with the staff of 10 and more employees used computers, 95% percent – the Internet at work • In everyday work, computers were used at least once a week by 31.4% percent, the Internet – by 28.8% percent of employees of such enterprises Lithuanian statistics, 2008 T. Pranckevičius Innovation policy in Lithuanian enterprises 10
  • 11. Collaborative work space innovation and societal change Technology transformation visualisation and virtualisation, possibilities for identification, such tools like Living Labs and maybe more opportunities looks very widely and perspective in the near future and good scenarios for innovative enterprises. T. Pranckevičius Innovation policy in Lithuanian enterprises 11
  • 12. Basic Technologies of Living Lab architecture • Living labs can be used as an instrument and core for the collaboration in national and regional innovations systems, between enterprises, science and research institutes, clusters, public-private partnership. IT Enable Strategy, Collaboration... Councils/Boards/Working Groups... Employee (Social/Visual)... Networks Innovation / Process / Speed / Scale... Productivity Sustainable Differentiation... Time to Market Enterprises / Technology... Architecture T. Pranckevičius Innovation policy in Lithuanian enterprises 12
  • 13. Global Lithuanian conception Building human-like world's knowledge base in Lithuanian language and provide knowledge based search semantics systems and services with virtual space economy or Knowledge Based – Geospatial Information System (KB- GIS). Levels: 1) NATIONAL, 2) NORDIC-BALTIC REGION 3) INTERNATIONAL. To be a part of GLOBAL MIND? T. Pranckevičius Innovation policy in Lithuanian enterprises 13
  • 14. Conclusions and proposals (I) • Higher education sector with science and technology research are the key driver of innovation performance. • Promote economic cooperation and entrepreneurship, regional cluster cooperation and innovation opportunities in the region with special focus on creative and innovative industries. • Science, technology and innovation development commission is not so active today. Innovation coordination institution strongly is recommended to establish. T. Pranckevičius Innovation policy in Lithuanian enterprises 14
  • 15. Conclusions and proposals (II) • Enterprises and science in collaboration have a lack of innovation strategies, there is no national innovation strategy. • Enterprises have not enough access to public activities in public and scientific institution funding programs and it not promotes entrepreneurship collaborative network with partners. • There is a lack of measurements about innovation activities through ICTs. Analysis of networking and partnerships for innovation, application of networks, partnership for innovation activities, and productivity of interaction within networks is rather limited and needs to be developed. T. Pranckevičius Innovation policy in Lithuanian enterprises 15
  • 16. Conclusions and proposals (III) • Stimulate collaboration, innovation culture and creative entrepreneurship: 1) eliminate all not necessary bureaucracy, 2) promote foreign investments, 3) ensure credits, 4) manage fiscal deficit, 5) stimulate economic activity and 6) promote all state institutions and involve in innovation processes. • To set up better relationship and to let increase working efficiency in change and increased way of using ICTs: to enhance innovation by empowering users, workers, science and industry in collaborative and organizational way. T. Pranckevičius Innovation policy in Lithuanian enterprises 16
  • 17. Thank you! Questions and remarks! T. Pranckevičius Innovation policy in Lithuanian enterprises 17