SMEInnovationandEntrepreneurshipPolicy-WIPO-IP.pptVIP

IP Support Institution for SMEs Kazuyuki Motohashi Professor, Department of Technology Management for Innovation, The University of Tokyo Outline of Lecture Why do we need SME innovation policies? Example of SME innovation policies Role of IP support institutions in Japan Why SME innovation policy? SMEs as a source of new product and services Time of entry Present No competitor SMEs Mostly large firms Half large firms A little large firms Entry of large firms into market SME innovation in a context of developing economies Innovation: a whole process of business creation based on some technological (or non technological) findings Large multinationals + small local firms for high-tech sectors + small local firms for traditional industries : “how to promote competitive local companies?” Strategy How to promote innovation seeds in local companies? How to facilitate technology spillover from multinationals? How to capitalize on local innovation system? How to foster innovation oriented business environment? Objectives of SME innovation policy Universities and Public Research Institutions Government Funding Agency Large firms: typically multinationals Business Environment, Framework Condition etc. Local small firms: subcontracting Local small firms in traditional industry 1 1 2 3 4 * * How to promote innovation seeds in SMEs Japanese version of SBIR (Small Business Innovation Research) Started in 1999 Setting the target amount of RD subsidy to SMEs Inter-ministerial joint approach: 7 ministries in 2005 (ex. MEXT, METI etc.) Other financial incentives Low interest loan to SME’s innovation activities Wider coverage of SME’s loan guarantee program Similar system in the world US: pioneer Korea, Taiwan Philippines: SME loans and loan guarantee Why SME innovation policy? 　 “Valley of Death” (OECD: based on NIST material) Availability of Finance Basic Research Product Development Market The Valley of Death * * Implementation of SBIR Technology