Forum Report
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Hitachi Science and Technology Forum in France
17-18 October
1998
Juan-les-Pins
France
Part 1
Introduction : The
Ecological Renaissance by Dr. Takeda
Debate
Part 2
Innovation and the role
of enterprises: large enterprises, SME/SMI in Japan by Mr.
Katase
Debate
Part 3
Innovation and the role
of enterprises: large enterprises, SME/SMI in France by Dr.
Kahn
Debate
Part 4
Potential Follow-up of
the meeting
Number of participants : 45
Hivips participants : 24
Hivips'
partners : 8
Guests : 2 (Dr. G. Kahn (INRIA), Mr H. Katase
(MITI))
Moderators : 2 (Pr. Sabonnadiere (INPG), Pr Souillard
(INSA))
Hitachi people : 9
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Part 1
Introduction : The Ecological
Renaissance by Dr. Takeda, Senior Executive Managing Director,
Hitachi, Ltd. |
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I. Concept
- Today, the problems and challenges we share as a society are more
complex and more global than ever before. R&D efforts certainly
reflect that situation. Teams of researchers and engineers are more
diverse. They represent many nationalities and many specialties.
- In the 20th century, science and technology have given the world's
population an unprecedented boost. As a result, energy consumption has
grown at a high speed.
- At the same time, the world's population is exploding. It will
eventually lead to a very critical point (accelerated shortage in raw
materials, energy resourcesc) if no action is undertaken.
- The 20th century has been a "Progress with confusion" period. In the
21st century, we need to part from this image and regain a world with
rational balance.
- That's why an Ecological Renaissance is needed.
- Global communication network is a huge means to promote it.
II. Related Business
- Market needs are greatly diversified and the pace of change in the
market keeps speeding up. In this business environment, companies must
find the market's needs quickly or create new markets. Speed is the most
important factor.
- At the same time, current market's requirements have been shifting
from 'one product' to 'one system', from 'convenience' to a 'total
solution' which co-exist with nature. Large companies and SMEs need to
work together.
- Efforts should be made to promote the venture company approach
inside organizations.
- Key technologies can set future de facto standards that will lead to
a 'total solution'. Total solution is a first step toward the Ecological
Renaissance.
Debate
(Moderator : Dr.J.C Sabonnadiere, Vice President, Institut
National Polytechnique de Grenoble (INPG))
Question : "Is the Ecological Renaissance compatible with economic
goals ?"
- At first sight, this question has a negative answer
- The Ecological Renaissance is directly linked to the Social
responsibility of companies
- Some existing products fit both to environmental concern and
profitability. (a Japanese car-maker has designed a car that can work
with electricity as well as gasoline)
- Questions on French authorities' attitude in not having enforced all
the European Directives on environment. This can be explained by the
fact that French authorities are culturally more industry-focused rather
than environment-focused.
- Governments have a key-role to play by creating regulations and
enforcing them. However, regulations should be market-oriented and
reasonable enough, in order to take companies objectives into account.
- Environment-friendly measures are most of the time very costly.
- Developing countries need to focus mainly on catching-up with
developed countries' economic performances. From such perspective,
environmental regulations may be loosened for them to a reasonable
extent.
- Education: in order to teach people how to respect the environment,
information and communication technologies (like Internet) should be
used more efficiently.
- Information and Communication technologies will never replace
completely inter-individual communication.
- Using Internet naturally leads to growing issues in terms of
property rights (patents; copyright) and classify releasable information
is therefore necessary
- Not limiting the usage of key technologies through patents. It is
more important to share them and make a coalition in order to set future
de facto standards.
- The capability to understand other cultures and to create a good
human network have become strategic competitive advantages
- We live in a shrinking world as a consequence of transportation and
telecommunications' huge progress
- Society needs to change the value of living. Improve the quality of
life is one of the first priorities.
The essence of this new quality of life should be (by Dr. Takeda):
- Sharing and exchanging intellectual property and cultural heritage
using all available information infrastructures.
- Destroying communication barriers by developing automatic
translation.
- Improve human living conditions by developing preventive and
diagnostic technologies for intractable diseases.
- Overcoming natural disasters by developing forecasting and
prevention technology.
- Maintaining the dignity of life by developing human's ability to
express themselves.
- Speech
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Part 2
"Innovation and the role of
enterprises, large enterprises, SME/SMI in Japan" by Mr. Hirofumi
Katase, Executive Director, Japan Machinery Center for Trade and
Investment (J.M.C.T.I), Brussels Office. |
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A case study of OHTA Region (Tokyo - Kawasaki)
I. History of Ohta region
Industry development started around 1900. There was a concentration of
metal working industry and machine tool industry mainly to support
military industry. After the Second World War, there was a development of
automobile industry, heavy electric industry, consumer electronic industry
in adjoining area. It led to further concentration (more than 9000 SME's)
and diversification. In the 1980's mass-production facility was hollowed
out in adjoining area; however, a lot of large companies kept R&D or
products development facility in adjoining regions to profit by existing
networks.
II. Micro Look at the region
Through regional concentration, there are several related phenomena:
specialization of each company, diversification, flexible network among
SME's serving multi-contractor, joint R&D within network, regional
universities and regional public labs support, design and products
development capabilities, various models, small-quantity, speeding
manufacturing capabilities
III. Cooperation and supporting activity of large companies' R&D
activities
Within the R&D field, SMEs can support large companies by
manufacturing pilot product or supplying high-precision R&D
equipment.
IV. Policy implication
Official authorities could enhance more SME's concentration as an
infrastructure of R&D, use SME's network to encounter hollowing out
problem, and promote the role of universities as partners.
Debate
(Moderator : Dr. J.C Sabonnadiere)
- Regional concentration is a cradle of SMEs' innovation.
- The existence of regional concentration can be explained for
historical (craft industry's districts) and geographical reasons
(valleys)
- The relationship between large companies and SMEs has traditionally
been exclusive and horizontal. Generally, in this traditional scheme, a
SME is producing goods to provide one large company (exclusiveness),
which remains its main customer. Besides, interactions between SMEs in
the same geographical area are limited (horizontal framework).
- Nowadays, vertical relationship between SMEs has been promoted. This
trend leads to more flexibility, and creates a network favorable to
innovation. Moreover, SMEs have become multi-contractors. A good example
is the "Plastic Valley" in France (in Jura mountains).
- However, regional concentration is not a necessity any more.
Actually, communication technologies enable to communicate closely (for
design, for productionc) without the need of physical proximity.
- In R&D, face-to-face contact is nevertheless still very
important
- Japanese official authorities have invested to improve SMEs'
network: 1) directly in joint-projects 2) in communication technologies
(hardware)
- The relationship between large companies and SMEs can be compared
with the one of Human body 's members. In both cases, it is based on
interaction and interdependence.
- Japan's economic recession will eventually generate a change of
social relationship.
- Vertical concentration is quite vulnerable to economic stagnation.
However, horizontal SME's network concentration may replace such
vertical model with more stable regional economy.
Part 3
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Innovation and the role of
enterprises, large enterprises, SME/SMI in France by Dr Gilles.Kahn,
Vice President for Science, Institut National de Recherche en
Informatique et en Automatique (INRIA)
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I. An atmosphere of cooperation between research and industry
- Pursuing basic research
- Understanding the technological evolution
- Looking constantly for opportunities to apply one's know-how
- Talking to industry from the inception of the project
- Understanding each other's motivations
- Be flexible as to what can be transferred to industry
II. INRIA - Transfert / I-Source
Creating and supporting new high-tech companies with a high growth
potential in the area of information and communication technologies (INRIA
is at the origin of 25 companies since 1984, half a dozen are currently at
the formation stage)
Partners : investors and Inria-Transfert are committed to provide 70
MF. Maximal Fund size is 100 MF.
Stockholders : not all partners are
stockholders of the fund management company. Inria-Transfert is a majority
stockholder.
Advisory Committee : it includes representatives of major
partners and technical experts.
III. Context
The information and communication technology sector
- Huge actors are present (Microsoft, Intel, IBM, Hitachi, ATT, FT,
Worldcome)
- here is a continuously bubbling arrival of start-up companies
(success for 3Com, Cisco, Ilogc)
- Technical evolutions are in very close contact to research
(verifying circuits, cryptography, software validation, network
protocolsc).
- In such a mobile context, creating new innovating companies, with
high growth potential, is often the 'best' answer.
- Some of the largest companies are European. They also have a need
for a favorable environment to start-up companies
- Most information and communication technology start-up are created
in the US (mainly in California).
- The Silicon Valley phenomenon is based on: high-profile research
centers, adventurous venture capitalists and entrepreneurial spirit
- Economic environment is favorable: there are reactive stock markets
(Nasdaq, Nyse), and a system for having creators and employees as
investors (stock-options) on a wide basis
- The Silicon Valley area is a prime creator of qualified jobs and has
top-level political support (from Clinton, Gore)
Venture capital in France
- There are few actors, fairly small teams (ex : CDC Innovation : 5
people, 2 for information and communication technologies)
- Critical resource is competence and experience, not availability of
capital. Also demand must be sufficient to pay for the venture
capitalist's time. As a result, there is very little help to start new
companies.
Debate
(Moderator : Dr J.C. Sabonnadiere)
- Today in France, official authorities encourage Science and
Technology Institutes to create start-ups (big change in behavior)
- However, a huge gap exists between a good idea and a valuable
product. In fact, a good idea is not necessary worth launching on a
market.
- The creation of a start-up requires a multi-specialty team (Design,
Marketing, Accountingc), in order to have a comprehensive approach of
the business.
- In France, there is a shortage in 'entrepreneurs' but specific
training sessions have been created. The general context is becoming
more favorable: official authorities are making starting funds more
available
- In France, it is not allowed to be simultaneously stockholder of a
starting company and member of a public research institute (conflicts of
interests are avoided)
- In Japan, we can notice the starting role of business angels
(generally wealthy and experienced businessmen), who invest into
start-ups. In that case, they can benefit from a tax exemption. Japanese
government has also changed its law to adapt to the stock-option scheme.
Generally, both France and Japan are promoting environment for venture
companies to play an important role in industry.
- Along the technological boost, there are more and more patents
worldwide. Furthermore, patents are very costly not only to establish
but also to protect.
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Part 4
Potential
Follow-up of the meeting by Pr. A. Souillard, International
Relations Officer (Industrial Internship Abroad, relations with
Japan), Institut National des Scieces Appliquees (INSA) of Rouen
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I. Objectives
- to support this program as a starting point of a future pan-European
action plan, in order to be progressively recognized as a European
corporate citizen.
- to create a growing network
- to compare problems and solutions
- to develop personal contacts
II. Format
- Creation of a web-site as a platform, in order to know one another
more effectively and to keep and develop the network.
- Presentation of Hitachi (activities in Europe)
- Broad area of topics (not just R&D)
- Higher involvement from participants through workshops, or through
preparatory meetings (material and subjects to be prepared in advance
both by HIVIPS and Hitachi people)
- Short oral self-introduction of participants, photographic pictures
in directories, 3 or 4 lines of self-expression
- Presence of more Hitachi people (including colleagues in Japan) and
interactions between HIVIPS and Hitachi people.
III. Side-activities
- Agenda on Japan: culture, economic situation
- Participation of partners on a voluntary basis, including sessions,
lunches
IV. Location
Proposals: Berlin, Strasbourg, Orleans, Brussels.
V. 'Keep in touch'
By encouraging some voluntary meetings outside
Hitachi's ones.
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