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Deloitte Innovation Summit 2018 Deloitte Innovation Summit 2018 Innovation and Italian Excellences – Officine Food, Boating, Manufacturing Innovazione Brochure / report title goes here | Section title goes here Innovation as growth engine for the country’s economic development: where to start and how to create value? The value of our national Assets is impressive and the potential of investing in innovation is so high that our Entrepreneurial Ecosystem has the opportunity to move as soon as possible, as long as a structured, practical and creative approach will be adopted. 02 Deloitte Innovation Summit 2018 | Innovation and Italian Excellences – Food, Boating, Manufacturing Innovation is confirmed to be a complex phenomenon as well as an absolute priority, as it leads to new perspectives for the economic and social growth of a 1country Given the changes that have been affecting We are not always capable of our social and economic environments, understanding the utility of new innovation is becoming such a complex technological advancements. Nouriel phenomenon that it often leaves behind Roubini has recently expressed his doubts many uncertainties we do not fully about the contribution of blockchain understand. technologies, defining them as the fraud of our century3. Furthermore, there For instance, we are not sure of where we are doubts about the validity of genetic are going: according to a recent study by manipulation, especially when it is about Dell, “Emerging technologies’ impact on humans4. society & work in 2030”, 50% of business Lately, during the “Data Protection and decision makers declares not to know Privacy Commissioners” conference in how their sector will evolve in the next 3 Brussels, Tim Cook has stated that the years and about 45% of them declared diffusion of personal data has become a to be worried of lagging behind with the weapon against the population. progress. However, we are all aware of the relevant We have continuous uncertainties about changes that innovation has generated in the information we receive and we read: the last decade. the phenomenon of fake news has become viral and it is estimated that one out of Innovation led to new solutions that two Italians has already fallen into the trap make the world smaller and smaller. In of fake news. Furthermore, fake news1 China, the I-Plane is being developed: can spread up to 6 times faster than “real this is a hypersonic plane that will allow news”2. In Germany, the Ministry of Justice passengers to move from Beijing to New has dedicated 50 employees to monitoring York in about 2 hours. In the United Arab and sanctioning the phenomenon of fake Emirates, another speed-related record news. will be achieved thanks to the Hyperloop technology. This is a train running in low- pressure pipes that will connect Dubai and Abu Dhabi in 12 minutes, travelling at about 1200 km/h. 1 Doxa – “Fake news un italiano su due ci casca”, 8th February 2018 2 MIT – “False news spreads faster than the truth” 3 Forbes – “Economist Nouriel Roubini Says 'Blockchain Is Useless, All ICOs Are Scams'”, 31st August 2018 4 The Economist – The safety of CRISPR-Cas9 gene editing is being debated, 19th July 2018 03 Deloitte Innovation Summit 2018 | Innovation and Italian Excellences – Food, Boating, Manufacturing Innovation is a topic of absolute priority Planetary Valorization of Human Intelligence Solutions for sharing knowledge / human skills to integrate technology / Artificial Intelligence A smaller world A smarter society An healthier life • Hyperloop will connect Dubai and Abu • Artificial moonin Chengdu will provide • Nano-bots teams injected in the human Dhabi in 12 min (1200 km/h) light at night by 2020 body to apply drugs locally • I-Plane will allow to move from Bejing to • Home deliveries with autonomous • "Cultured" hamburgers in vitro, instead New York in 2 hours vehicles in Arizona of in intensive farms Our society is becoming “smarter and These all are changes that have the smarter”. The Chengdu Aerospace potential of improving the economic and Research Institute, in China, designed an social conditions of a country, by offering artificial moon that will provide the streets new perspectives of progress. with light at night and that is able to cover an area of about 5.000 squared kilometers. In this context, Deloitte continues its research on innovation in order Future technological perspectives let us to understand which of its dynamics think about a healthier life. Nano-bots5 are useful for the development of the teams will be directly injected in the human country. In this edition of the Innovation body to apply drugs locally. Moreover, Summit, Deloitte aims at investigating how the development of technologies to innovation can create value for the growth ensure quality on Food is now affordable of the country by enhancing the available for everyone: the price of an in vitro Assets: Italian innovations and Excellence hamburger, that was $320,000 in 2013, has (Food, Nautical and Manufacturing). decreased by 99%6. Finally, innovation seems to offer us an overall enhancement of Human Intelligence through mechanisms that allow us to share our knowledge and our capabilities and to integrate them with technology and with the emerging Artificial Intelligence. 5 Nature – Ultra-extensible ribbon-like magnetic microswarm, 21st August 2018 6 Fortune – Silicon Valley and the Search for Meatless Meat, 19th December 2017 04 2 MIT – “False news spreads faster than the truth” Deloitte Innovation Summit 2018 | Innovation and Italian Excellences – Food, Boating, Manufacturing Innovation is fundamental for countries’ growth. For Italy, it can represent an opportunity weighting more than two times the GDP forecasted growth for the 2next 4 years As we know from OECD researches, by Potential Innovation observing the economic trends of some growth Added value countries for the last 20 years, it is possible +8,5% +6,8% to identify a clear relationship between (+149€Mld) (+119€Mld) growth and innovation: the countries that invested more massively on research and development are the ones that registered the highest growth rates. Innovation +4,2% (+73€Mld) Still according to OECD, 50% of a country’s +2x growth GDP growth rate is caused by innovation. up to Applying this to Italy and considering the forecasted 3,4% GDP growth rate for the +4,3% country for the next 4 years7, that means +0,9% €30 billion. (+16€Mld) +3,4% +1,7% (+60€Mld) However, if we would manage to align (+30€Mld) our results to the ones obtained by the countries with the highest innovation rate (e.g. US, China, Israel, New Zealand, South 30 €Mld Korea...), the contribution we could obtain from innovation would be much higher. In Potential Italy Innovation the next 4 years, it might lead Italy to obtain GDP growth Growth 2018-22 Added value up to a double annual growth rate than the one forecasted today. Value calculated on Italy GDP 2017, source FMI 7 Data analysis on International Monetary Fund, 9th October 2018 05 Deloitte Innovation Summit 2018 | Innovation and Italian Excellences – Food, Boating, Manufacturing The analysis of the most virtuous countries for innovation shows that the value generated by innovation is based on three key elements: Assets, industrial Policies and the Entrepreneurial Ecosystem The Assets of a country (natural The study of the countries that can be Moreover, South Korea is the second 3resources, human capital, traditions) are considered champions for innovation largest country in the world in terms of a key for its innovative development. (USA, China...) at a global level shows research and development expenditure Their value can be enhanced to the point a full exploitation of the formula, with over GDP. Samsung Electronics alone of boosting the country's competitive particular focus on Industrial Measures has invested more than $13 billion advantage. and to the Entrepreneurial Ecosystem. (about 16% of the total private R&D). This happens even more if tailored Indeed, these two components allow On the other hand, the countries industrial/institutional interventions countries such as Israel and South with the best natural resources aimed at adding value to the Assets are Korea to position themselves among the have registered important Industrial adopted (i.e. public investments, norms innovation champions, even if the value Measures initiatives, for example: and regulations, incentives…). of their Assets is not comparable to the • The United States are the first country one of countries like the United States in the world in terms of value of The value of these natural resources, and China. public expenditure on R&D, whose together with valid industrial policies, In the recent years, Israel has been amount was 143 billion dollars in 2017. can create a potentially exponential implementing a policy of investments on This value is 3 times higher than the virtuous mechanism of growth if it is innovation and technology that, in 2017, investment expenditures of 40 years inserted in an ecosystem of private has allowed the country to collect more ago than 420 million dollars to finance start- actors ready to believe in Innovation • China has largely reached the targets ups focused on artificial intelligence (this (private capitals, enterprises, culture of that had been set for the five-year value has grown more than 750% in the innovation). government plan '11-'15. Nowadays, last year). it aims at moving from being a "world In other words, the value generated by factory" country to being "global innovation can be described as: technology leader" Public investments Regulations In conclusion, with Incentives .. Private capitals respect to the Culture Innovation Innovation formula, it is Natural resources Companies Tradition clear that our country Human capital has something special in its Assets and that it is in a position of natural advantage over other Ecosytem of private actors V(Innovation)= (Asset*industrial Policies) countries.
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