Management of Technological Innovation

1.How is the development of MTI (Management of Technology Innova;on) in your

respect countries (Government, Educa;on, Finance and Banking, Health and
Business)
2.In the perspec;ve of increasing mutually beneficial technological coopera;on
between Indonesia and your home country, what technology is possible? Explain
concisely.
 Development of MTI in France :
Pavitt and Porter have argued that technology has become
one of the principal determinants of competition.
In 2021, France was ranked 11th in the Global Innovation
Index - an annual ranking of the innovative capacities and
strengths of most of the world’s economies.

• Government = the French government focused on developing technology innovation generally

speaking since after World War 2. We could say that the successive governments since the beginning
of the 20th century have tried to keep up with general technological innovations, through various
national policies - but the actual form of the French system was specifically created after 1945.

• 1945-75 was a very prosperous economical period called ‘Les 30 Glorieuses’ (The Thirty Glorious
Years) that put the country at the top of the richest countries in the world.

• France still oscillates a lot between wanting to have a very free-market and wanting to keep
interventionist policies (Welfare State).

• It’s important to note that until the 90s, the State still had a very predominant role in the national
innovation system in France (described as a very interventionist policy) but in the last decades,
changes had been made regarding that matter. And all those changes can also be explained with the
current transition between centralization and decentralization in the country since the 90s. ex:
there’s more space for regional and local actors (smaller entities) and also for European institutions and
policies.
 Educa;on in France

• There’s a huge focus on education in France, as the Minister

of National Education what receives the highest amount
from the global annual governmental budget each year
(there’s also huge parts of the budget allowed to the
Defense - the national guard depends on it - and the
Research, then anything related to the national debt and
taxes).

• Also, public education is still very cheap which allows more

people to do higher studies and ensure that not only
children from rich families have access to a good education
and can eventually pursue the academic path or the
research path.
 How everything is related in the French
national innovation system : the Education
system, the R&D and the companies
 The CNRS (National Center
for Scientific Research)
• Created in 1939 but revamped after the Second World War

• In the 70s, the first interdisciplinary programs started.

• It’s ranked 3rd in the world and 1st in Europe

• Manages 10 institutes : biological sciences, sciences of the

universe (like oceanography or volcanology), ecology and
environment, social and human sciences, chemistry, nuclear
physic, physics, engineering sciences, mathematic sciences,
information sciences.

• Has the best scientific and academical publications (from its

publishing house called CNRS Editions)
 The CNRS
As in 2021, it has a budget of 4 billions of euros.

His 3 main roles are :

- financing various laboratories (more than 1100) : those can be from

universities, working in collaboration with foundations or companies (it’s a
very mixed approach)

- employment and gestion of researchers : it means the CNRS can also

have an overlook on most research projects or terminating a contract if a
researcher is considered to not be doing enough but it indeed very rarely
happens

- financing research projects (even from researchers they’re not

employing per se)
 Finance and Banking in France :

• Home to some of Europe’s largest banks + 2nd largest European stock market

• The first national French bank was created in 1800 by Napoléon Bonaparte and
could create actual money (Banque de France).

• Other well-known banks appeared in the 19th century from rich families like the
Rothschilds. Those families also invested in cities buildings, railways constructions
and other collective initiatives.

• Around 1860, the main French banks that still exist to this day were created (Crédit
Lyonnais, Société Générale, CIC) and allowed people to spare money.

• At the end of the 19th century, banks specialized for each kind of career field
appeared : for teachers, for farmers, for people working in the healthcare field, etc.

• After the stock market crash in 1929, you could differentiate 2 kinds of banks :
public banks (the State owned it) and mutualist banks (each client owns one little
part of the capital of the bank).
• Paris stock market (Bourse de Paris) opened in 1808, then got
modernized in the 80s then merged with other European stock
markets to form Euronext in 2000.

• In the 70s and 80s, banks start to use computers and help with the
diffusion of credit cards.

• In the 90s, the State sells some parts of the banks ownership to
private companies. It’s also the globalization of the banking system.

• Finance Innovation was founded in 2007 by the French Public

Authorities as a unique cluster in the French financial sector. It helps
start-ups to develop and find financial resources.

• Let’s note tho that the five biggest French banks are currently under
investigation for suspicions of frauds.
 Health and Business =

• What’s very good in the French system is the national free healthcare
(started in 1945) : people can go to the doctor and to the hospital for
very cheap - even in the case of heavy surgeries. It’s slowly changing
tho because the current government.

• Now there’s more than 3000 hospitals in France (public and private).

• France is ranked 7th on the field of biomedical research - specialists are

saying that the country is declining slowly on that matter tho.

• The French government just launched in 2022 the Health Innovation

Agency : to improve identification of the future health technology
and anticipate the impact of innovation in France.
• The notion of business in France may be different from other countries for
certain reasons like the fact that people have mandatory payed holidays,
there’s a minimum wage that is quite nice (if you don’t live in big cities)
and also, when you’ve worked for a certain amount of time and you got
fired, a State-owned agency will give you money for at least a year.

• There’s also 1 person out of 5 working for the State in France.

• Still, there’s now more than one million of start-ups in France - which is
something the President Macron wanted to implement during his
Presidency.

• The richest man in the world right now is Bernard Arnault, owner of LVMH
(Louis Vuitton-Moët Hennessy).

• There’s almost 4 millions of companies in France, but most of them

are small businesses (less than 10 employees).
• Television in France = first television channels were
government channels, started in 1935. The first news was
launched in 1949 and there was only one channel, in black and
white (colors arrived in the 60s). The first private channel
appeared in 1984 (it’s called Canal+, it still exists) then more
were created. People got TVs in their home around the 70s.
Nowadays, you can have access to more than 200 French
television channels, depending on the package you’ve
subscribed to.

• Launch of satellites = first French satellite was launched in

1965 and it helped tremendously with expanding the national
telecom services.

• Nuclear power = it started in the 50s and it’s still to this day the
largest source of electricity in France (produces 70% of it).
• Generally speaking, the current French government (under the
Presidency of Emmanuel Macron) is trying to implement less
regulations to give more freedom to companies and people with ideas
for startups and things like this - but in the meantime it’s also harming
a lot of social rights (like education and hospitals being cheap,
workers that aren’t payed anymore when they miss work because of
how sick they are).

• There’s currently a lot of strikes in France (since January 2023) about

all those changes as people think it’s unfair and it’s only favoring the
richest people in France.

• What’s important to understand about anything that happens in

France is also that all our regulations are tied to what’s decided
by the European Union at a larger scale : the French law is forced to
adapt to the European regulations - and if it doesn’t, the country will
have to pay fines.
 2 - Beneficial technological cooperation between
Indonesia and France ?

• First, there’s still a lot of issues with everything Internet related in

France - even in the best universities in the country, usually the Wifi
doesn’t work well - and there’s entire areas in the country that don’t
have a good Internet network. Also, a lot of people from the older
generations don’t know how to use computers very well, which is a
challenge for the daily life.

• Technology like apps on the phone to facilitate the daily life (Gojek in
France for exemple).

• Also, something good to consider could be about ecological

questions : solar energy, waste treatment, anything linked to climate
change, things like this.