Accelerating Innovation

A Confident China Sets Course To Become Innovative

Post excerpted from www.chinaview.cn. Minister of Science and Technology Xu Guanhua (at a press briefing during the National People’s Congress) said that China will become an "innovative country" by 2020 despite arduous tasks ahead. "Our per capita supply of energy, water and land resources is becoming more stringent as we face pressing problems in resources and environment," Xu said.  Only by promoting science and technology can China solve these problems, he noted. According to Xu, Chinese enterprises are under increasing pressure from international competitors in globalization. To change the situation, the budget for science and technology this year will reach 71.6 billion yuan (US$8.9 billion), up 19.2 per cent year-on-year, according to Zhang Shaochun, assistant minister of finance. He said the government will ensure that expenditures on research and development (R&D) grow at a faster pace than fiscal revenues in the next five years. The government will also offer tax incentives to innovative businesses, he said. The new tax policies will allow an enterprise to use 150 per cent of its spending on R&D to offset payable income tax of that year. "In other words, the government will give tax rewards to companies that are actively involved in R&D," said Fang Hanting, a senior researcher with the National Research Centre for Science and Technology Development. Fang said the tax allowance will help reduce the financial risk of research-oriented companies and catalyze the emergence of more innovative firms. Besides, the new policy encourages companies to accelerate depreciation of research-related facilities. Zheng Chaocai, a tax official in Xiamen, Fujian Province, said the policy gives companies more tax preference. He called it a breakthrough in the country's tax policy. Beijing Vimicro Corporation said it is expected to double its sales income with the help of the tax incentives. At the end of last month, the government released a 58-point package of policies to help carry out its medium and long-term science and technology development programme.  One of the highlights is to allow China Development Bank to issue loans with low interests to high-tech companies as an investor, Fang said. The bank has already started 50 such projects by investing 5 billion yuan (US$ 625 million) altogether. During the press briefing on Friday, Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, unveiled China's plans to build many major technological infrastructure projects in the next five years.

The following are the major high-tech projects China is set to undertake during the 2006-2010 period, listed in the draft guidelines of the five-year development blueprint being deliberated by Chinese lawmakers at their ongoing annual session:

    -- Integrated circuits and software: establishing integrated circuit research and development centers, industrializing the technology for 90-nanometer and smaller integrated circuits, and developing basic software, middleware, large key applied software and integrated systems.

    -- New-generation network: building next-general Internet demonstration projects, a nationwide digital TV network and mobile communication demonstration networks with independent property rights.

    -- Advanced computing: making breakthrough in technology for pet flop computer systems, building grid-based advanced computing platforms, and commercializing the production of teraflop computers.

    -- Biomedicine: Building a number of demonstration projects for commercial production of vaccines for major diseases and gene-modified medicines, improving the modern traditional Chinese medicine system, and enhancing the capability for new medicine invention and production.

    -- Civil airplane: developing planes for trunk and feeder lines, general-purpose planes and helicopters, as well as advanced engines.

    -- Satellite application: developing new meteorological, oceanographic, resource and telecommunication satellites, and poison- and pollution-free thrust augmented carrier rockets; building earth observation and navigation positioning satellite systems and facilities and application demonstration projects for civil satellite ground systems.

    -- New materials: building demonstration projects for commercial production of high-performance new materials badly needed in information, biological and aerospace industries.

European Institute of Technology Plans to Rival MIT

Europe is taking a major step towards competing with the US with its plan to establish a rival to the Massachusetts Institute of Technology. Jose Manuel Barroso, the president of the European Commission is spearheading efforts to create a "European Institute of Technology". Such a body would, Barroso stated, "act as a pole of attraction for the very best minds, ideas and companies from around the world. The EIT will be a light and flexible organization. It will teach graduates and doctoral candidates, carry out research and be active in innovation, both in some strategic thematic areas and in the field of science and innovation management’’.

According to the plan the European Institute of Technology (EIT) will concentrate on combining the three sides of the knowledge triangle: education, research and innovation. The EIT’s structure would be based on two levels: a Governing Board with a small supporting administration (which will be the EIT’s central core); and a set of Knowledge Communities, distributed all over Europe, carrying out the activities in strategic trans-disciplinary areas. The EIT is expected to receive funding from a variety of sources including the EU, the member states and the business community. The EIT will set out to attract the best and most talented students, researchers and staff worldwide. These will work side by side with leading businesses in the development and exploitation of cutting-edge knowledge and research, thereby enhancing research and innovation management skills generally. The assumption is that the integration of teams from universities, research centers and companies will give it an edge over traditionally organized universities or networks. Furthermore, the new EIT model will act as a catalyst for reform by inspiring change in existing institutions. Proponents believe the EIT will attract private finance with new opportunities for the commercialization of research and a closer two-way exchange.

The Commission's own advisory group on research policy, the European research advisory board (EURAB), said that plans to create a US-style high-tech institute are too ambitious. The group has warned the Commission that a "world-class research institute cannot be created top down" and that "a successful EIT can only grow out of existing research communities, supported by incentives for research and innovation."  Science and Research Commissioner Janez Potočnik has said he supports the idea of building a network of existing universities rather than creating a new institution. The founder of Microsoft, Bill Gates, supports the creation of an EIT. The French prime minister, Dominique de Villepin, wants the EIT to be based near Paris might go ahead with building its own EIT irrespective of any EU decision.

Egils Milbergs, president, Center for Accelerating Innovation, said that the “European Institute of Technology (EIT) is another example of aggressive branding and positioning in the global innovation race. Europe may be struggling to achieve its ambitious Lisbon Agenda goals but one has to be impressed with the boldness of the EIT initiative and desire to form a new model for research and innovation collaboration.”

Resource Links

EU official documents

·         Pre-Lex: Implementing the renewed partnership for growth and jobs - Developing a knowledge flagship: the European Institute of Technology [FR] [DE]

·         Commission press release: European Institute of Technology: the Commission proposes a new flagship for excellence (22 February 2006) [FR] [DE]

·         Commission press release: Frequently Asked Questions: Why does the EU need a European Institute of Technology? (22 February 2006)

·         Commission: European Institute of Technology Consultation [FR] [DE]

·         Commission: Commission’s mid-term review of the Lisbon Process (February 2005)

Parliament

·         MEP Jorgo Chatzimarkakis: A new spirit for Europe - the European Institute of Technology (EIT) in Strasbourg (June 2005)

EU Actors positions

·         Eurochambres: Position on European Institute of Technology (December 2005)

·         UK Clinical Research collaboration: Position on European Institute of Technology (12 November 2005)

·         The Coimbra Group universities: Answer to the public consultation on a European Institute of Technology (December 2005)

·         European University Association (EUA): EUA Statement on the Public Consultation on the Idea of Establishing a European Institute of Technology (EIT) (17 November 2005)

·         League of European Research Universities (LERU): Competitiveness, Research and the Idea of a European Institute of Technology (15 November 2005)

·         European research advisory board (EURAB): EURAB recommendation on the proposed European Institute of Technology (EIT) (April 2005) [Annex]

Press articles

·         The Scientist: EU plans institute to rival MIT

·         International Herald Tribune: EU pushes plans for institute to halt 'brain drain' (22 Feb 2006)

·         Guardian Unlimited: European institute 'to rival MIT'

·         Financial Times: Gates said to back Barroso’s EIT vision

·         Guardian Unlimited: Research engine

·         Financial Times: Making Europe a home fit for the next Einstein (22 Feb 2006)

·         Scenta: Doubts over EU technology institute

·         Welcomeurope: Stakeholders debate pros, cons, mission and structure of a European Institute of Technology

·         Reuters: L'UE bientôt dotée d'un Institut technologique européen

·         Libération: Un plan Marshall pour l'université

·         Die Welt: Europa plant ein Institut für Technologie

·         Der Standard: Kritik auch an geplanter EU-Eliteuni

Other links

Europa (EU homepage)
European parliament
Council of the European Union
European commission
European court of justice
EU committee of the regions
European Economic and Social Committee

President Bush Presents National Medals of Science and Technology

President George W. Bush and the U.S. Commerce Sec. Carlos Gutierrez, far-right, pose with the recipients of National Medal of Technology, Monday, Feb. 13, at the White House. From left to right are Padmasree Warrior of Motorola, Nicholas M. Donofrio of IBM, Henry L. Nordhoff of Gen-Probe Inc., Roger L. Easton of RoBarCo, Ralph H. Baer of Manchester, N.H., Chrissie England and George Lucas of Industrial Light and Magic, and Mark. C. Pigott of PACCAR Inc. Recipients of the National Medals of Science (not shown) were Dr. Dennis P. Sullivan, Dr. Phillip A. Sharp, Dr. Robert N. Clayton, Dr. Stephen J. Lippard, Dr. Kenneth J. Arrow, Dr. Norman E. Borlaug, Dr. Edwin N. Lightfoot and Dr. Thomas E. Starzl.

President Bush Announces Competitiveness and Innnovation Initiative

As expected President Bush in his State of the Union address announced the American Competitiveness Initiative (ACI). The American Competitiveness Initiative commits $5.9 billion in FY 2007, and more than $136 billion over 10 years, to increase investments in research and development (R&D), strengthen education, and encourage entrepreneurship and innovation. The White House has released a fact sheet on the initiative. Download state_of_unionamerican_competitiveness_initiative.pdf 

President Bush made remarks in Nashville regarding the ACI--excerpt below

"But the thing that's going to keep the country most competitive is making sure our workforce has got the skills to compete. This is a dynamic world. Whether the people want to recognize it or not, we're in a competitive world. Some will say it's so competitive, let's withdraw and protect ourselves. That's not my attitude. My attitude is if it's competitive, let's get in a position where we can out-compete the rest of the world. And the most important place is going to be to make sure our kids have got the skills to fill the jobs of the 21st century. If our kids don't have those skills, those jobs will go somewhere else.

And so this is the initiative that I praised Lamar (Alexander) about -- it's called the America Competitiveness Initiative. It basically says that we're going to focus on research, both in public and private sector, to make sure that the technologies and skill base of our science and engineering community leads the world. It also recognizes that we've got to make sure our children have got math and science skills. By the way, that starts with making sure children can read. One of Laura's most important initiatives and inherent in the No Child Left Behind Act is the absolute demand by our government that schools teach every single child how to read by 4th grade -- or 3rd grade -- and remain at grade level throughout their entire public school career. 

One of the ways to make sure that our children have got math and science skills that will give them the basics on which to compete -- and, by the way, when you test our scores relative to other children, we're doing just fine in elementary school, and we start slipping off in middle school, and we're not doing worth a darn in high school. And so one way to reverse that trend is to make sure our high school teachers have got the necessary skills to teach kids the skill sets to be able to compete. And so we believe that we can help train 70,000 high school teachers to lead advanced placement courses in math and science.

Advanced placement works. AP is a vital program. If you study your AP results here in Tennessee schools, you'll see it makes a lot of sense. We want AP programs to be available to children from all walks of life so that they have the skills necessary to compete. We got a plan to get 30,000 math and science professionals to teach in our classrooms. And we want to make sure, just like we do on No Child Left Behind, that we focus on math, as well, and we find math deficiencies early, we provide money to correct them. See, if you diagnose and don't correct, you're doing a child a disservice. If you don't diagnose, you're doing a child a disservice. The best thing to do is what we're doing, is diagnose and solve problems early before they're too late. And that's what we're going to do in this very exciting initiative.

A couple of other things I want to talk about. What I just told you is how to stay competitive. See, we have a choice. We can withdraw and say, okay, you all go do your thing and we'll just protect ourselves inside America; or we can compete. And I just laid out an agenda for America to lead. I believe that the way you enhance prosperity for the American people is you shape your own destiny. And America has been a leader, and will continue to be a leader in the world economy. "

Industry ecosystems predicted

The innovation ecosystem concept is catching with more folks. Note the following post from the Bumble Bee blog www.bioteams.com ......one of the Ten Trends to watch in 2006, according to the McKinsey Quarterly (Jan 2006), will be the emergence of new global structures with 'a barbell-like structure, with a few giants on top, a narrow middle, and a flourish of smaller, fast-moving players on the bottom. Similarly, corporate borders are becoming blurrier as interlinked "ecosystems" of suppliers, producers, and customers emerge'. This is resonates with what we have seen emerging over the last few years under the tag Virtual Enterprise Networks. For a quick summary of all ten trends.

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