Regional Innovation Skills

Cases of innovative regional SMEs collaborating with a regional University (Deakin, Geelong)

Theme: Future ready dependant on building capability of organisations, people and place – how can we achieve this at across the macro and micro levels

Established in 1975. History of industry collaboration and engagement such as GM (Holden) and Ford Australia . The 2003-2007 period saw the culmination of activities lead to establishment of Geelong Technology Precinct (GTP) In 2008 Australia's Innovative Regions Centre was opened, at Deakin University's Geelong Technology Precinct (GTP). Deakin University's Geelong Campus at Waurn Ponds. The $20 million Innovative Regions Centre will offer direct support to small and medium-sized businesses in Geelong and other targeted regions.

Regional Innovation Skills

1. Development of innovation skills.

2. Showcase outcomes of funding partnerships.

3. Create a culture of innovation and knowledge.

4. Increase ‘proximity’ between your local industry base and HEIs.

• How do we foster collaboration between SMEs and a regional university?

Innovation?

• Invention: an individual personalised process – where relations form based on expertise and skills for the purpose of translating ideas into concepts and models (Nonaka, 1991).

• Networks: build understanding & trust among individuals and groups on networks across the organisation/s.

• Diffusion: involves boundary-spanners negotiating the exchange of‘ know-how’ between the designers and users of such ‘knowledge solutions’.

Innovation?

• Acceptance: different industry and professional bodies assist the diffusion of new technologies (creates legitimacy) for adoption. – Appropriation (assimilation) of new technologies,

involve a ‘community’ approach to embed the technology within the organisation (Newell et al; 2002).

• Implement: when practices can be transformed and new interpretations and physical manifestations can emerge.

Innovation Process

Development of skills via innovation

1. Innovation skills are broad organisation capabilities when compared to R&D activities.

2. Innovation includes a vast number of non-R&D activities

3. R&D in Australia is the traditional domain of CSIRO, Universities and CRCs

Development of skills via innovation

4. In comparison there is little R&D investment in private sector outside traditional mining & agricultural industries.

5. Patents as a measure of knowledge creation dominated by CSIRO and commercial arms of top 8 universities particularly Melbourne, Monash and U of Q.

Showcase outcomes of funding partnerships

ARC Industrial Transformation Research grants have led to http://www.arc.gov.au/industrial-transformation-research-program

• Technology exchanges from university to SMEs

achieved by acquired licencing rights.

• This allows for commercialisation of technology by industry in partnership with the original creator.

• Example: Deakin University and HeiQ Australia

Create a culture of innovation and

knowledge

• Sharing of new knowledge created to solve

business and industry problems.

• Industrial DU&I workshops.

• Increase regional technological capabilities.

• Celebrate regional innovators.

• Develop and engage in regional innovation process.

Increase proximity between your local industry

and learning institutions

• Physical proximity to a regional university is important.

• In absence of physical proximity regional innovation skills can be acquired from social, cognitive, institutional and organisation proximity.

• This could include regional business and industry networks with regional knowledge mentors.

• Successful examples around ARC Transformation Grants that link with business innovation strategies

Case Studies

• Draggin Jeans

• HeiQ Australia

• Carbon REV

• Quickstep

• Regional industry skilling program ‘Skilling the Bay’

• http://www.thegordon.edu.au/stb/initiatives

• https://www.youtube.com/watch?v=KRsWtA97w1E

‘Skilling the Bay’

Firm’s Absorptive Capacities

AC Case 1 2 3 4 TOTALs

AC 1 Acquire 70 138 44 102 354

AC 2 Assimilate 31 40 13 28 112

AC 3 Transform 40 116 11 50 217

AC 4 Exploit 78 121 21 62 282

Total 219 415 89 242 965

Regional Strategies

• Development of skills via innovation

• Immediate-short term opportunities / strategies (1-3)

– ‘Technology audit’ - Auditor Internal

– ‘Fund Savvy’ - R&D tax concessions; Federal Government grants

– ‘Global Explorers’ - ‘sensing’, ‘seizing’ and ‘transforming’

Regional Strategies

• ‘Innovation and R&D Strategy’

• Medium 3-5 yrs – Focus on strategies for product innovation

– R&D investment

• Longer >5 yrs – Established global networks

– Move towards an export focus

– Linked to global supply chains; often as an intermediate

Take-Aways’

• No silver bullet.

• Relies on individuals, organisations and supporting innovation system.

• Access to a university experts essential.

• Reliant on successful government funding – with equivalent industry matching.

• Innovation is a search and discovery process across local and global affiliations and networks.