Digital Innovation in Vietnam: is it possible?

Digital Innovation in Vietnam
Is it possible?
John von Neumann Institute, Vietnam National University Ho Chi Minh City
OFFYTalk July 19, 2013
Vu Duong
John von Neumann Institute – Vietnam National University HCM

“I have had a dream...”
“A dream that one day Vietnam will become a world-class leader in
Technologies,
and that our children would be able to access to knowledge from
anywhere in the world, not only to acquire them, but also to build them,
anywhere in the world, not only to acquire them, but also to build them,
to construct the knowledge, and to
make breakthrough innovations not only to make changes to society, but
also to promote catalytic disruptions.”
(inspired from Sir Martin Luther King’s speech 1963)

What made me thought so?

M. Truong Trong Thi and
the world’s first personal computer

Trung Dung and the Webcrawler
OnDisplay acquisition by Vignette Corp. In 2000

Mr. Lu in Australia with his carbon-body bicycles..

Well, I even did some quite relevant inventions,
eg. Airborne Separation Assistance Systems

Reality at work is sometimes cruel.
Reality at work is sometimes cruel.
Can you translate “Innovation” into Vietnamese?

Innovation in Vietnam?
Sustainability doesn’t seem to be the major concern

Copying what everyone else is doing and being “inventive” on price and
brands..

The fault is ignorance? Or superficiality?

So... What’s Happening?
Patents (1995-2010): 9047 among which 1326 by foreigners, 294 Vietnamese

Global Innovation Index (WIPO & INSEAD): Vietnam ranks 76th/141 (2012),
51st/125 (2011), and 71st/125 (2010)
Within ASEAN & Ociania, Vietnam ranks 12th 17
Among lower middle income countries, we are 7th/36.

“Some of Vietnam’s greatest weaknesses are its institutions and its ease of
protecting investors. Underdeveloped human capital and research, especially in
tertiary education, are problematic.”
(VNHelp, 2013)

SWOT
(Vietnam Innovation Profile, World Bank July 2013)
• Political stability provides foundation for future foreign investments
• Continued economic growth
• Diminishing poverty levels
• Diminishing poverty levels
• Strong agricultural sector
• Strong export trade in rice and coffee
• Access and proximity to large indigenous & global markets
• Abundant labor force

SWOT
• Poor overall economic infrastructure
• Poor innovation infrastructure
• Weak policy focus on research and innovation
• Weak policy focus on research and innovation
• Weak higher education system
• Low levels of research & development, especially in private sector
• Low productivity levels
• Limited access to finance for innovation and starts-up
• Absence of links between foreign and domestic firms
• Underdeveloped capacities of R&D statistics and indicators and of
strategic intelligence

SWOT
• Young population and sizable diaspora
• Stronger focus on an improved higher education sector
• Increased FDI and an expanding MNE base
• Increased FDI and an expanding MNE base
• Expanding IT sector
• Improving innovation infrastructure and policy emphasis
• Good innovation potential given stage of development
• Opportunity to exploit its Technology Transfer Fund

SWOT
• Global financial situation
• Lack of administrative and legal reforms
• Failure to tackle banking system reform and level of corruption
• Failure to tackle banking system reform and level of corruption
• Entrenched public research system
• Strong regional competitors (e.g., ASEAN Economic Community 2015)
• High trade and tariff barriers for imports
• Increasing brain drain

So... Are we Hopeless?
So... Are we Hopeless?

Innovation?
Innovation?
= invention + commercialization/societal adaption
A crucial key for sustainable growth in knowledge-based economy
Is the generator of dynamics in the ecosystem

Ecosystem as Energy Dynamics
(Deborah Jackson, NSF 2011)
(Deborah Jackson, NSF 2011)
Energy – the fundamental entity of nature that is transferred between parts of a system
in the production of physical change within the system (Quizzlet LLC, 2012)
Dynamics - the forces or properties that stimulate growth, development, or change
within a system or process (Oxford Dictionaries, 2012)

Entrepreneurship
Isn’t it the vital force driving innovation?
Isn’t it the vital force driving innovation?
But again, can you translate “Entrepreneurship” into Vietnamese?

Innovation Ecosystems
as Economics Dynamics to Enable Technology Dev & Inno
24

Traditional Innovation &
Entrepreneurship Continuum
25

Fostering the Change
Innovation Centers as Platform Nurturing Ecosystems
26

Innovation Ecosystem Framework
29

Building an Innovation Ecosystem at VNUHCM?
Building an Innovation Ecosystem at VNUHCM?

Ecosystem to Foster Innovation and
Entrepreneurship at VNU-HCM
University
•Innovation
Capitalist
•Champion
•Talents
Venture Capital
•Innovation
Supporters
•Innovation Grants
Innovation
Environment
Industry
•Innovation
Demanders
•Strategic
Partnership with U.
Government
•Innovation Catalists
•SO Corp
•Research Grants
32

“Innovation Capitalist”
(Nambisan & Sawhney, HBR 2007 vol. 3)
• Basic Idea:
• Companies sometimes need to source innovative product
ideas from outside
• So, they turn to “Innomediaries” (Innovation
Intermediaries) to separate the wheat from the chaffIntermediaries) to separate the wheat from the chaff
• Leads are Innovation Capitalists, which are firms or
organizations with particular expertises
Research & Post-Graduate Educational Institutions (of major
Research Universities) shall become Innovation Capitalists to
transform Universities into Innovation Universities with Research
as major activities. Doing “Innovative Research.”
33

Pioneering Ecosystem for Change
at VNU-HCM
InnovationInnovation
IndustryPeople
LabLab
ResearchResearchEducationEducation
IndustryPeople

Example
• Innovation Environment of Ecosystem
• John von Neumann Institute
• Open Innovation Lab
• THP Innovation & Business Acceleration Center• THP Innovation & Business Acceleration Center
Processes:
• Partnerships with Industries (THP Group, DatViet VAC,
Pose)
• Partnerships with Worldwide Institutions (Eurecom
Institute, ParisTech, Poli Turino, UIUC, etc…)
• Affiliate Program to attract Talents from abroad
• Incorporation of Innovation & Entrepreneur courses in the
major curriculum
• …
35

The route is still long and rough.
Acceleration is possible with serious fundings.
Acceleration is possible with serious fundings.
MoST and WB programs ramp up but yet for “tomorrow.”
Hope, hope, and pray!

Innovation is more than key for industrial competition
but catalytic for social changes
but catalytic for social changes
“With catalytic innovations, social change is the primary object. It can exceed
the statu quo to offer new solutions to social problems identified unsatisfactory.”
Christensen et al. (2006) “Disruptive Innovation for Social Change.” Harvard Business Review 2006(12) pp 94-101.

What would be the needed dynamics in
the innovation ecosystem in Vietnam?
Is that leadership-for-change?
Is that leadership-for-change?
Creating the momentum at the beginning to turn the wheel of chicken-and-egg,
and sustaining the growth when the system functions.

39
Leadership Triangle
Knowledge & Vision

Developing leadership capability in you,
giving your life a real value, real sense of life…
giving your life a real value, real sense of life…

You have the power to change the world
You have the power to change the world
The country needs you!

Thank you for your attention
Thank you for your attention

Digital Innovation in Vietnam: is it possible?

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