How to foster innovation

Gábor Bojár

Graphisoft, FounderAIT-Budapest, Founder EIT Member of the Governing Board

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A few words about Graphisoft

Founded in 1982First 3D on PC1998: IPO, $350M2013: # 1 in BIM ww market

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From constraintsNo access to up-to-date computers (COCOM)No access to capitalNo access to market

But access to talents

Competitive advantages

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No access to up-to-date computers (COCOM)Early start on PC

No access to capitalRelying on customers

No domestic marketEarly globalization

Turning constraints to advantages

Innovations

3D for what?The Virtual Builiding (BIM)

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Innovations

Today

Over 50% of the buildings around the world designed in 3Ddesigned with ArchiCAD

I believe

Innovation is best fostered by fair comptetion

Public money hurts innovation

I believe

Miracles of competition

Hungarian examples

Global market leaders:Prezi,LogMeInUstreamColorfrontGraphisoft

What is common in all these companies?None of them ever applied for public money!

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More Hungarian examples

Cab service in the 80’-iesBanking: SMS on credit card use

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When competition is over Innovation is over

Land line phonesPC operating systems

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Traps of the “free” market

Unfair/illegal use of powerCustomers’ defenseless Information asymmetry

Role of the State

Market regulationSecure fair competition

What the State should not do

To act as a competitorTo support competitorsTo show main directions

Who has shown direction to the market?

or

To foster innovation

Invest in education!Invest in education!!Invest in education!!!

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Thank you for your attention