Tag ‘Innovation and Growth’
Tue David Bak, director of Innovation and Growth for Region Zealand in Denmark, is back for a final interview with Promoting Enterprise. Today the subject is the future, what does it hold for innovation and enterprise? What can we expect? What are the trends telling us? Read on to find out…
In Denmark specifically, the public sector is embracing innovation, which I see as a positive thing. Overall, user driven innovation is increasing, as consumers and users begin to play larger roles in development, and there is a shift from only research based innovation. The current trend is disruption of society as there is a need for innovation for us to advance.
What measures/steps are you taking to encourage digital innovation in Region Zealand?
In Region Zealand we currently don’t do enough and as such we are not a front runner in the digital space. In Denmark however there have been some steps towards pushing companies to work digitally and make that digital transformation. The Danish Business Authority (which takes care of company registrations and working in the Danish public sector) took the controversial decision to make it mandatory for all companies to digitally invoice if they wanted to work in the public sector. Initially there was a lot of resistance but overall it helped – and is still helping companies – to transition to the digital sphere. As such, Denmark has no physical paper trails for monetary transactions and the public sector is going fully digital. That is truly innovative.
As director for innovation and growth, what do you see as the future of enterprise?
The same situation can be seen across all the EU countries, the public sector is under enormous strain which has and will continue to be a catalyst and driver for innovation. This in turn will result in increased cooperation and further blurring of public and private divisions. This blurring of divisions also relates to how the idea of employment is changing and evolving, which is not to say it is negative, but simply means that new working models are beginning to emerge. I see the future of enterprise as no longer including the ‘employee’ concept, I think this will be phased out. It is not uncommon now and nor will it be in future to have multiple jobs or hybrid employment models, alongside an overall merging of individuals and companies.
What does the future of enterprise look like in Denmark? Do you think it is different to global trends or where the future of enterprise will go globally?
Denmark has always had a strong focus on creating a business environment conducive to startups and entrepreneurs. So far we have been successful, but we also need to change in order to stay competitive and innovative. The new focus now needs to be on helping startups to scale up. So the big question for us now is how do we scale up in Denmark? Perhaps a larger and certainly important question is, how do we scale up in the EU?
If you enjoyed this insightful interview with Tue David Bak, be sure to read his other interviews right here on the Promoting Enterprise Portal.
First interview: Innovation – What is it and how can it be fostered?
Second interview: Startup Culture – Tue David Bak shares his insights and predictions
Promoting Enterprise is proud to welcome back Tue David Bak, director of Innovation and Growth for Region Zealand in Denmark. In his second interview with us, Tue sheds some light on startups, accelerators and incubators in Region Zealand and Denmark, current trends and the regional influences on startup culture.
In Denmark we have actually worked to avoid having too many regional accelerators and incubators, we prefer to have these bodies on a national level so as to keep them open to all Danish and even global companies. Global companies are not excluded from accessing our incubators and accelerators. As long as they have a Danish license and a physical presence in Denmark they can access all the resources. Through this openness we hope to facilitate a link between the Danish and global markets, thus making Denmark just as attractive as the Silicon Valley and other innovation hubs.
What trends are you seeing on the startup scene?
There is an increasing acknowledgement from startups that they do need help. The old idea of two guys in a garage doing everything on their own and not needing any support is starting to be replaced by the realisation that getting a startup to take off is difficult and that there a multitude of resources to draw from and that they are there for a reason. This links to another trend which is an overall change in mindset regarding partnerships. Similar to the collective realisation that they need help, startup founders are specifically beginning to value the need for partnerships with mentors, larger companies etc.
What trends are you seeing in startup culture? For example, does geography play a role?
Absolutely, just looking at the differences between Northern and Southern Europe is an illustration of the role of geography. I have more experience and expertise in Northern Europe, and overall I have seen that there is a strong entrepreneurial culture in Northern Europe, including acceptance of changes of career as a ‘normal’ part of professional life.
Even within countries geography is a big influence, a startup or company located in a rural area will not behave in the same way as an urban counterpart. Rural startups are more traditional working on the idea of being your own boss and are often less aggressive in their approach to scaling up. They are also more in line with the traditional Danish culture which means not standing out or drawing attention to yourself. In contrast urban areas are experiencing an aggressive growth of entrepreneurs.
Tue David Bak will be back next week on Promoting Enterprise for his final interview on the future of innovation and enterprise and what Denmark and the EU need to focus on to stay competitive.
Read his first interview: Innovation – What is it and how can it be fostered?
Today on Promoting Enterprise we are joined by Tue David Bak, director of Innovation and Growth for Region Zealand in Denmark. In the first of a series of interviews, he shares with us his experiences in identifying innovation and creating innovative environments.
Firstly, we must identify how innovation takes place before talking about how it is fostered. Innovation takes place via two processes:
1. Internal innovation within companies and organisations
2. Public or other innovative institutions creating innovation frameworks
In this context, I am going to focus more on the second process, as this is where the region plays a role. In Region Zealand there are different schemes which establish innovation frameworks to encourage innovative behaviour, for which specific funds are set aside. For example, one of the things that we do at the regional level is to reduce the risk for companies that are willing to invest in innovative ideas. Currently the focus is on innovation in the healthcare system. The region has set aside funds so that investors are taking financial fewer risks, and, hence, willing make much investments that are much greater than expected in innovation.
We also run gap financing schemes through universities, which also aim at reducing the level of risk for potential investors. Our role as the region is to bridge the gap between research and commercial finance, which in many cases could stop a potentially innovative body of research from receiving the necessary support to grow and expand. One example is the company Xnovo, which began as a research idea developed at the Technical University of Denmark. Through the support provided with the gap financing scheme it has now developed into a commercial company with its own private employees.
What are the key aspects of an environment that encourages innovation?
There are three main elements required for an innovative environment:
1. Private and public risk capital
You need free money to finance risk taking
2. The ability for public institutions to purchase innovative ideas
Region Zealand has recently changed its internal procurement laws to stimulate innovation by incentivising public institutions to purchase novel ideas and technology.
3. Excellent advising systems
Companies and individuals require guidance when it comes to innovation, therefore it is necessary to have easy to use support systems in place.
In the case of Region Zealand, I believe that we have all of the elements above but simply not enough of each. We can strengthen the advisory and support systems that currently exist. We can increase our in-house purchase of innovative ideas. In the United States the small business administration had special programmes to acquire public contracts, which is something we can learn from and build upon. In Denmark certain requirements for companies, e.g. a three year track record, have been taken away in order to make it easier for new startups which would not fulfil this criterion. Taking away this type of requirement could make certain steps in the process of scaling up and establishment easier, for example access to funds and schemes. Removing barriers is absolutely key, you have to make it easy, to provide incentives and minimise the risk of purchasing innovative ideas.
Stay tuned for more from Tue David Bak on global innovation, where it will lead us, the future of enterprise and trends in startup culture.