Using Innovation Audit for Fostering Innovation within the Region – Strategy in Lower Saxony Stefan Austermann 12. October 2006

Using Innovation Audit for Fostering Innovation within the Region – Strategy in Lower Saxony

Stefan Austermann 12. October 2006

Slide 2 Austermann, Open Days Brusseles 12.10.2006

Structure

Host organisation and European experience

Innovation Audit – the tool we use

Implementing this tool into company support structure in Lower Saxony


NBank: Lower Saxony Company Support Organisation

New since 2004 Covering whole Lower Saxony Most of Lower Saxony support

products gained Bank structure for financing

reasons Regional networks


Overview: NBank Products

Company Support

Coaching ESFGrantsLoans

Niedersachsen-Kredit

Niedersachsen-Kleinkredit

Niedersachsen-Innovationskredit

GA gewerblich

GA Infrastruktur

TouristischeEntwicklung

Innovationsprogramm

Patentverwertung

Personaltransfer

Messeprogramme

Meister BaFöG

Gründungscoaching

KfW-Gründercoaching

Beteiligungscoaching

Strategiecoaching

Finanzierungscoaching

Nachfolgecoaching

Förderung von Qualifizierung

Förderung von Arbeitsplätzen


Network for Innovation Support in Lower Saxony

Innovation Financing

Ministry for Economy

Innovationszentrum

NBank:

Policy Consulting Evaluation of RTD

Grants

Innovationsnetzwerk

Network of Innovation Support Organisations


Internationalisation Support at NBank

Department “Internationalisierung” EIC and IRC located here Easy Signposting, information gathering Combination with funding for internationalisation

measures


EIC Hannover

Staff 3,5 FTE, Company support and Information in

general Special working fields: European funding,

Framework Programme ETI „EcTIST“


IRC Lower Saxony/Saxony-Anhalt

Staff 3,5 FTE

Co-operation service through the IRC-Network

Innovation Support through non-financial assists

Development of Innovation Audit tool

Implementing that tool within the region

•


What is Innovation?

.... More than just the sucessful application of research findings...

........ Result of complex interactions between persons, organisations and their environment...


What is Innovation?

Companies are heart of the

innovation process

Invention Adaption

Value innovationProcess innovation


Is Innovation Measurable?

Are we able to identify the SME readiness for innovation?

Can we identify the best practices?

Can we trace common sets of practices and SME success?

Yes, there is a proven correlation between competitiveness and the ability to innovate!


The experts from the IRC Network…

Best practices SME outcomes

• Shortening time to marketShortening time to market

• Increased number of novel productsIncreased number of novel products

• Lower schedule varianceLower schedule variance

• Reduced integration effortReduced integration effort

• Increased supplier supportIncreased supplier support

• Higher user satisfactionHigher user satisfaction

• Reduction of development Reduction of development expensesexpenses

• etc.etc.

• Guideline AGuideline A

• Guideline BGuideline B

• Guideline CGuideline C

• Guideline DGuideline D

• Guideline E Guideline E

• Guideline FGuideline F

• etc.etc.

relationships

??


IRC Innovation Audit

A best practice reference tool that:

identifies priorities for which practices to undertake first supports incremental improvement actions helps guidance for improving common issues quantifies the association with specific practices delivers case studies helping to coach activities


Innovation Audit – A FrameTThe innovative ability of a company is influenced by seven process fieldshe innovative ability of a company is influenced by seven process fields

The IRC Innovation Audit has been developed to identify and evaluate a company‘s ability The IRC Innovation Audit has been developed to identify and evaluate a company‘s ability to innovate.to innovate.

dem

ogra

phic

sde

mog

raph

ics

Supporting environment for innovation

ISinnovation sources

ISinnovation sources

OMorganisation and

management

OMorganisation and

management

SPsupport

SPsupport

BMbenchmarking

BMbenchmarking

processes

IP

innovation preparation

IP

innovation preparation

TRtechnology range

TRtechnology range

PDproduct

development

PDproduct

development


IRC Innovation Audit – maturity model

To Prove - 5 Quality features respectively capability levels characterise

the execution of processes relevant for innovation

To Optimise – measures are suggested

Based on the principle of process optimisation

Company visit, intensive and structured discussion

Detailed report including a graphical evaluation (ar. 20 pages)

Final discussion of the results, To-Do List


IRC Innovation Audit

The maturity modelThe maturity model

performperform

managemanage

documentdocument

measuremeasure

improveimprove

...processes...processes

nirvana

5 capability levels estimate 35 processes which are relevant for innovation inside an organisation


Maturity and the ability to innovate – the costs

The costs increases The costs increases progressively within the progressively within the quality improvement of the quality improvement of the processprocess

performperform

managemanage

documedocumentnt

measuremeasure

improveimprove

Co

sts

Co

sts

5 quality features5 quality features


Operation mode of the tool and examples





Impact and quality of process’ Impact and quality of process’

implementation determine the level implementation determine the level

of innovation abilityof innovation ability


Regional Impact – Added value for the Companies

Marketing towards companies fosters interest in the topic innovation

Use of the tool by companies strengthens their competitiveness Through regional offer off such service, more companies within

the region will be more competitive Service for mature companies Service for “old” sectors


Regional Impact – Regional Strategy

“Selling” this service as non-monetary but added value Using regional Network for Marketing Combining this Service to offers from regional partners Combined actions lead to intensive use within the region Combining Innovation Audit with innovation funding Combining Innovation Audit with consultancy funding Funding is more effective in terms of economic Impact


Regional Impact – Example “WachstumsImpuls”

Regional partner from Hannover region Hannover Impuls Aim to work with existing older companies Helping them in their further development Having positive feed-back within the region


Regional Impact – Example “WachstumsImpuls”

The Project: A competition for the best innovation development project

Companies propose projects Best ideas are selected Companies “win” a 1-year-consultancy by external partners for

realising the Projects At the beginning they have an Innovation Audit which shows, how

the strategy has to be created After one year the company with best results will be awarded. 33 proposers, 13 Winners audited and now working with the

consultants


Conclusions

Regional public financing institutes look for non-monetary services

Innovation Audit brings direct added value to the companies Such service can be combined to other (Financing) Instruments Audit can be a part within an integrated part of regional

innovation development project or strategy.


Thank you very much

Stefan Austermann

NBank, IRC Lower Saxony/Saxony-Anhalt

Phone +49 511 30031 360

E-mail: [email protected]

Documents

Using Innovation Audit for Fostering Innovation within the Region – Strategy in Lower Saxony Stefan Austermann 12. October 2006