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Financing the Knowledge Society
Seed and Venture Capital Financing,the roles of the public and the private sector
Claes de Neergaard
CEO Industrifonden
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The commercialisation of R&D the driving forces
The technology transfer challenge how does
Sweden tackle it?
The regional dimension of venture capital financing
Can EU policy to improve technology transfers2007-2013 benefit from the Swedish experience?
T H E M E S
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The commercialisation of R&D the driving forces
The technology transfer challenge how does
Sweden tackle it?
The regional dimension of venture capital financing
Can EU policy to improve technology transfers2007-2013 benefit from the Swedish experience?
T H E M E S
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What do we get out of R&D investments?
Financial Times Nov 8, 2005
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0 1 2 3 4 5
Businesssector Universities& colleges Governmentorganisations
R&D expenditures in relation to GDP 2003
Per cent of GDP
Source: OECD 2005
New ZealandIreland (2001)
NorwayUnited Kingdom
Netherlands (2001)CanadaFrance
BelgiumDenmark (2001)
GermanyUnited States
KoreaJapan
FinlandSweden
Israel
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Commercialisation of R&D
EU vs. the US Stronger output from US research clusters
Stronger tax incentives in the US
Stronger incentives for US universities
The US capital market is more powerful
US military spending boosts research
US one homogenous market.EU still too fragmented
EU doesnot catch up!
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The road map from idea to invoice
Technology transfer
Basic Applied
R&D
Market
Collaboration industry
research organizations
Licensing
Creation of a
new company
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Good ideas can end up in
Knowledge Market
Jan Edling
The Valley
ofDeath
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The commercialisation of R&D the driving forces
The technology transfer challenge how does
Sweden tackle it?
The regional dimension of venture capital financing
Can EU policy to improve technology transfers2007-2013 benefit from the Swedish experience?
T H E M E S
8/8/2019 tueaft_neergaard
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Enhancement ofTechnology Transfer
some Swedish measures Increase government funding for R&D
Focus on cutting edge research in centres of excellence
Public/private partnership program in sixindustry branches
Improve the effectiveness of both Tech Transfer Officesin universities and Joint Research Institutes
Innovationsbron a dedicated financing vehicle for the
commercialisation of research Maintain a strong Industrifonden
A welcoming approach to venture capital
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BasicR&D Applied
R&DPre-seed
SeedStart-
up
Financing in different stages
Expansion
Commercial financingPre-commercial financing
Private sector
Public sector
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Conclusions from a joint US-EU report
The venture markets in US and EU invest too littlein early stage start-ups
Constitutes a market failure
Public sector measures are justified to plug this gap Public measures should
work with markets and not crowd out privateinvestment
support funds with the necessary track recordand economies of scale
Source: Department of Commerce and EU Commission, 2005
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Venture capital investments in EU-152004
SeedEUR 148 m
Total investments EUR 12,000 million
Start-upEUR 2,200 million
ExpansionEUR 7,900 m
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Market
Criteria for an effective innovation system
IdeaIncreases flow of high quality business ideas
Provides rigorous screening
Involves business angels
Brings in marketperspective early
Based on centresof excellence
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South
WestEast
Stockholm
Uppsala
Ume
Lule
Seed capital
Three focus areas
Seven
regionalcompanies
Infrastructure -Incubators
Academia Business co-op.
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Invests in high-tech companies in ICT,Life Science and Industrial and EnergyVentures
Direct investments in about 100 companiesCo-owner in 11 regional VC-companiesand Innovationsbron
Independent trust set up by the Swedishgovernment in 1979
Total equity: SEK 3.2 billionInvested capital: SEK 1.6 billion
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Regional venturecapital companies
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Venture capital investments
een U p
ain
Denm
ar
Hun
arrtual
rance
Nr
aur
pe
Net
erlan
sinla
n
Bel
ium
erman tal
ercent f D
VCA
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The commercialisation of R&D the driving forces
The technology transfer challenge how does
Sweden tackle it?
The regional dimension of venture capital financing
Can EU policy to improve technology transfers2007-2013 benefit from the Swedish experience?
T H E M E S
8/8/2019 tueaft_neergaard
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The regional dimension of venture capital
Private sector venture funds usually covers Swedenor the Nordic countries from one or several capitals
There is room for smaller regional venture funds for
early stage investments in proximity to companies Co-investment funds copied on the model developed in
Scotland are helpful additions
Proximity to companies is an advantage but company
selection can be too much influenced by regional/localpreferences
Regional investment funds should not be seen as a toolof regional policy but of innovation policy
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The commercialisation of R&D the driving forces
The technology transfer challenge how does
Sweden tackle it?
The regional dimension of venture capital financing
Can EU policy to improve technology transfers2007-2013 benefit from the Swedish experience?
T H E M E S
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Can EU policy to improve technologytransfers benefit from the Swedishexperience ?
Can EU policy to improve technologytransfers benefit from the Swedishexperience ?
Measures to stimulate commercialisation of research mustget a high priority
Create two European incubator support programs;one for Life Science and one forTechnology
Focus on national and European R&D centres of excellence
Positive attitude to mixing financing from the Commission,European Investment Bank, European Investment Fund
and national sources Do not go too far in defining European interest. Good
research benefits all EU-countries
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