SOFOFA KeyNote Public v3 .pptx

Driving Innova+on in a Global Economy Stephen Ciesinski Vice President & General Manager, SRI Interna+onal August 14, 2014 © 2014 SRI International
SRI Interna:onal – History of Con:nuous Innova:on People use mul*ple SRI innova*ons every day Computer mouse 1st ARPA-­‐Net message HDTV Electronic banking Low cost solar-­‐grade silicon © 2014 SRI International
Natural language pla<orm Address reading Cancer drugs Color film reproduc:on SRI -­‐ Who We Are A world-­‐leading independent R&D organiza*on •  Founded by Stanford in 1946 –  Located in heart of Silicon Valley –  Not-­‐for-­‐profit corpora+on –  Independent in 1970 SRI headquarters, Menlo Park, CA •  2,100 staff members –  43% with advanced degrees –  More than 20 loca+ons worldwide •  Consolidated 2013 revenue ~$550M •  Expanding Interna+onally Sarnoff, Princeton, NJ SRI Harrisonburg, Virginia
© 2014 SRI International
SRI State College, Pennsylvania
SRI Tokyo, Japan
SRI Washington, D.C.
SRI St. Petersburg, Florida
SRI’s Five Disciplines of Innova:on Important Customers & Markets High Value Crea:on Top 10 Business Book of the Year! Innova:on Champions Innova:on Teams Organiza:onal Alignment Disciplines are mul+plica+ve © 2014 SRI International
Market Success Need for Applied Research Universi:es Corpora:ons Budget pressure
Fundamental Science © 2014 SRI International
Basic Research Profit Demands
Applied Research Product Development Produc:on The Applied Research Gap – SRI’s Unique Role Who fills this gap? Innova+on happens “here” SRI Universi:es Fundamental Science © 2014 SRI International
Basic Research Applied Research © 2012 SRI Interna+onal Corpora:ons Product Development Produc:on SRI’s Defini:on of Innova:on Ensure everyone is working toward same goal Innova:on: The crea+on and delivery of new customer value in the marketplace with a sustainable business model © 2014 SRI International
Breakthrough Innova:on Leads to Job Crea:on •  Net jobs gained from startups (1977-­‐2005): +85 million •  Net jobs gained from exis+ng firms: -­‐30 million New USA Jobs by Source (1977-­‐2005) 6,000,000 4,000,000 2,000,000 -­‐ (2,000,000) 1977 1981 1985 1989 1993 1997 2001 2005 (4,000,000) (6,000,000) Net Jobs Gain from Startups Net Jobs Gain from Exis+ng firms Source: Business Dynamics Sta+s+cs, Tim Kane © 2014 SRI International
Growing Markets 7 billion people now moving to 9 billion people in 2050 © 2014 SRI International
How we Interact with our World is Changing © 2014 SRI International
Product Lifecycles are Gecng Shorter Mul:ple Reasons: Decline •  Worldwide compe++on •  Faster logis+cs •  Elevated expecta+ons •  Outsourcing – everywhere! Time © 2014 SRI International
Maturity •  Faster development cycles Growth Introduc+on Development Sales Volume •  Faster informa+on flow Example: Logis:cs is a Growing Challenge •  E-­‐commerce will double in next 5 years •  Rise of same day delivery requires new distribu+on methods B2C ecommerce Sales (US$ Trillion) $2.36 $2.05 $1.77 $1.51 $1.06 $1.25 2012 2013 2014 Source: eMarketer Research
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2015 2016 2017 Example: Educa:on is Being Revolu:onized Price as percent of Price in 1984 800%
College tuition
600%
Medical care
400%
Gasoline
All consumer items
200%
100%
0%
1984
1990
1996
2002
2008
2014
Source: Bureau of Labor Sta+s+cs © 2014 SRI International
Unlimited Opportuni:es Food technology Advanced logis+cs © 2014 SRI International
Intelligent services Digital educa+on Addi+ve manufacturing Social media Global Innova:on Economy Driven by both markets and technology World of abundance -­‐ unlimited opportuni*es Rapid, exponen*al change Intense, global compe**on © 2014 SRI International
What Can We Learn From Silicon Valley Any Region of the World can also Achieve Success San Francisco •  Target Big Markets •  Develop and Encourage Talent •  Build Funding Sources •  Provide Mentors and Coaches •  Regulatory framework •  Grow Major R&D Universi+es •  Ins+ll Entrepreneurial culture •  Large companies and clusters •  Meritocracy = achievement (not $) © 2014 SRI International
Sand Hill
Road
Stanford
University
San Jose Always Ready for the Next Big Thing Working on Electronics Semiconductors Microprocessors PCs Networking Internet Social Networking 2014 1939 1939 1947 1968 1976 1984 1995 2004 Other major industries grown in Silicon Valley: Semiconductor equipment, voicemail, sooware tools, applica+on sooware, medical equipment and devices, clean tech, gaming, mobile and more © 2014 SRI International
Recrea:ng Silicon Valley Exactly? BeGer to take Key Elements and Apply to your Unique Environment US STATES COUNTRIES Silicon Bayou (Louisiana) Billy-­‐can Valley (Australia) Silicon Beach (Santa Barbara) Silicon Forest (Australia) Silicon Forest (Oregon) Silicon Ditch (England) Silicon Glacier (Montana) Silicon Fen (England) Silicon Hollow (Tennessee) Silicon Spires (England) Silicon Mesa (New Mexico) Silicon Glen (Scotland) Silicon River (Missouri) Silicon Isle (Ireland) Silicon Swamp (Florida) Silicon Plateau (India) Silicon Sandbar (Cape Cod) Silicon Polder (Netherlands) Silicorn Valley (Iowa) Silicon Wadi (Israel) © 2014 SRI International
Chile is at a Cri:cal Juncture •  20 years of amazing growth •  Remains dependent on resource extrac+on •  “Innova+on is the main trigger of long term economic growth” Sources: WEF, The Economist, Brookings Institute
© 2014 SRI International
Chile -­‐ At a “Crossroads” Transi*oning from an ‘efficiency-­‐driven’ to an ‘innova*on driven’ economy Chile
Singapore
Other Transition Economies
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Source: World Economic Forum Chile is Taking The Right Path •  Established and improving ins+tu+ons •  Management talent •  Entrepreneurial philosophy •  Increasing interest in R&D •  Developed infrastructure •  High quality of living •  Strong government support for innova+on © 2014 SRI International
CORFO and SRI’s Go to Market Compe::on •  Iden+fy promising Chilean inven+ons & entrepreneurs •  Create self-­‐sustaining innova+on ecosystem •  Build rela+onships between Silicon Valley and Chile •  Assist entrepreneurs taking their products to market © 2014 SRI International
What Does the Innova:on Economy Require? Success = comprehensive ac*on plan aimed at CREATING VALUE ! Government Ventures & SMEs New Innova9on Economy Established Industries Educa:on © 2014 SRI International
23 Now is the Time for Chile -­‐ SEIZE THE MOMENT •  Compe++on is s+ff and increasing •  But with hard work and strong leadership, Chile can leverage strengths to become the innova+on hub of La+n America © 2014 SRI International
24 Robert S. Pearlstein
Executive Director,
International Business Development
SRI International
Email: [email protected]
Headquarters: Silicon Valley 333 Ravenswood Avenue Menlo Park, CA 94025-­‐3493 650.859.2000 Washington, D.C. Nathan Young
Business Development Representative
SRI International – Chile
Email: [email protected]
1100 Wilson Blvd., Suite 2800 Arlington, VA 22209-­‐3915 703.524.2053 Princeton, New Jersey 201 Washington Road Princeton, NJ 08540 609.734.2553 Addi*onal U.S. and interna*onal loca*ons www.sri.com © 2014 SRI International