NEW PRODUCT DEVELOPMENT

STATUS IN BASQUE COUNTRY

npd-net Javier Deusto

jun 2.004 javierd.leia@sea.es
PUBLIC BODIES
OPINION
 BASQUE GOVERMENT ACTIONS
• Several general R&D&i programmes.
– SAIOTEK: training focused on new technologies.
– INTEK: dissemination, technology transfer and development.
– ETORTEK: strategic investment.
• Specific programmes.
– Design, manufacture and life cycle analysis.

CONCLUSION: BASQUE GOVERMENT IDEA IS TO EXPEND

MONEY IN NEW PRODUCT AND/OR PROCCESS DEVELOPMENT.
 DESIGN, MANUFACTURE AND LIFE CYCLE ANALYSIS
(Basque programme)

• Ambit: “actions to develop knowledge, technical improvement and

tools that contribute to the design or new product / service
development”. “profit the value analysis technologies, quality,…, new
product launching cycle opportunities,…, with an innovative point of
view”.
• 30% of industrial employment is related with “high design”
sectors.
• Most important technologies: mechanic, automatics, electronic,
industrial informatic, industrial management, materials, environment”.
• Objective: “contribute to the development of technologies and
knowledge that allow to improve processes, components,…, and their
implementation in new product development,…”.
 DESIGN, MANUFACTURE AND LIFE CYCLE ANALYSIS

FINAL OBJECTIVES
• OF1: “develop products, services and new and better
manufacture systems,…”.
• OF4: “help to knowledge and technology transfer inter-
companies, to incorporate new tools that can help to improve
individual capacity”.
STRATEGIC OBJECTIVES
• OE1: Processes innovation.
• OE3: New product and services development.
• OE4: Methodologies and techniques to support design and
manufacture.
 DESIGN, MANUFACTURE AND LIFE CYCLE ANALYSIS

SECTORS
• AUTOMOTIVE, AERONAUTICS, ELECTRONICS AND
COMUNICATIONS, ENVIROMENT, ENERGY, PAPER,
STEEL, CONSTRUCTION,...
AREAS
• NEW PRODUCT AND SERVICE DEVELOPMENT.
• TECHNICS AND METODOLOGIES TO SUPPORT DESIGN
AND MANUFACTURE.
R&D&i EXPENDITURE
AND PATENTS
R&D&I EXPENDITURES IN BASQUE COUNTRY
 R&D&I INDEX IN BASQUE COUNTRY

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
R&D&i expenditure (1.000€). 237.837 238.247 322.928 355.744 381.116 396.252 499.455 594.115 619.049 672.104
Anual increase (%). 1,8 0,2 35,5 10,2 7,1 4 26 19 4,2 8,6
Per cápita (€) 130 126 153 169 181 188 237 282 299 326
P.I.B. (%) 1 0,93 1,16 1,2 1,2 1,14 1,33 1,46 1,44 1,5
 UTILITY MODELS
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Total 264 251 264 245 216 160 242 177 168 155
Rural activities 3 3 4 4 5 2 3 8 5 3
Food and tobacco 6 12 1 1 2 2 2 8 0 2
Personal objetcs 36 52 47 51 34 26 49 37 21 28
Health and safety 14 20 27 19 16 8 20 9 14 12
Mixture 6 7 3 9 5 1 4 4 3 2
Conformation 20 20 16 15 15 15 31 7 12 8
Library and decoration 9 5 6 5 9 1 3 3 0 6
Transports 45 45 36 39 31 36 34 32 36 24
Chemical 2 0 0 0 1 0 0 0 2 1
Metalics 0 0 0 0 0 0 1 1 0 0
Textile and flexible materials 5 2 3 3 9 3 8 1 1 1
Paper 2 0 3 1 1 0 0 1 0 0
Public and buildings 60 32 48 43 39 21 25 32 37 36
Machinery and engines 1 1 2 1 2 1 1 2 3 1
Technology in general 23 12 26 15 20 10 16 5 8 6
Heat 8 16 8 12 9 11 20 11 8 10
Army 3 1 4 2 3 0 0 0 0 0
Optics, photography and music 10 11 15 14 10 8 15 12 9 8
Electricity 11 12 15 11 5 15 10 4 9 7
 PATENTS
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Total 40 106 147 57 74 209 169 193 218 216
Rural activities 3 1 3 0 3 9 10 9 10 5
Food and tobacco 3 5 2 6 1 10 11 10 20 24
Personal objetcs 1 4 9 4 6 13 9 7 14 8
Health and safety 0 6 8 4 1 7 4 6 3 1
Mixture 4 3 5 7 8 31 19 33 37 32
Conformation 1 10 15 1 0 4 5 3 1 2
Library and decoration 3 2 1 9 7 29 25 25 32 31
Transports 6 8 24 3 4 18 8 11 7 6
Chemical 0 5 8 1 2 4 7 5 1 7
Metalics 1 4 0 1 0 8 4 6 3 3
Textile and flexible materials 1 1 1 0 0 2 0 0 1 0
Paper 0 1 1 10 6 16 26 31 29 34
Public and buildings 0 17 17 0 0 0 0 0 0 0
Machinery and engines 0 1 0 0 6 7 5 4 8 4
Technology in general 1 2 6 3 4 5 5 9 13 10
Heat 2 4 6 1 3 8 7 13 7 7
Army 0 5 6 0 0 0 1 2 1 2
Optics, photography and music 3 6 5 4 16 11 11 10 15 20
Electricity 11 16 15 2 7 27 12 9 16 20
COMPANIES INNOVATION
NUMBERS
 INNOVATION IN BASQUE COUNTRY

TECHNOLOGICAL INNOVATION

BIGGEST % SMALLEST %
CHEMICAL (50%) CONSTRUCTION (9%)
FINANCIAL INTERMEDIARY (44%) PUBLIC SERVICES (12%)
SME´S MACHINERY, TRANSPORT MATERIAL (43%) SHOPS AND RESORTS (13%)
PLASTICS (43%) PROPERTIES, COMPANIES CONSULTING (16%)
TRANSPORT (17%)
TELECOMMUNICATIONS (94%) PROPERTIES, COMPANIES CONSULTING (25%)
CHEMICAL (83%) SHOPS AND RESORTS (26%)
BIG METALICS (83%) CONSTRUCTION (27%)
OTHERS (83%) PUBLIC SERVICES (31%)
MACHINERY, TRANSPORT MATERIAL (78%)
 INNOVATION IN BASQUE COUNTRY

NON TECHNOLOGICAL INNOVATION

BIGGEST % SMALLEST %
FINANCIAL INTERMEDIARY (67%) CONSTRUCTION (31%)
CHEMICAL (62%) PETROL AND RELATED (33%)
MACHINERY, TRANSPORT MATERIAL (57%) NON METALIC MINERAL PRODUCTS (38%)
SME´S PLASTICS (55%) PUBLIC SERVICES (39%)
OTHERS (53%)
METALICS (53%)
TELECOMMUNICATIONS (90%) CONSTRUCTION (53%)
MACHINERY, TRANSPORT MATERIAL (84%) PROPERTIES, COMPANIES CONSULTING (59%)
BIG WATER AND ENERGY (83%) OTHERS (62%)
FINANCIAL INTERMEDIARY (82%) PUBLIC SERVICES (61%)
PETROL AND RELATED (65%)
 INNOVATION IN BASQUE COUNTRY
INNOVATION %
SECTOR PROCESS PRODUCT BOTH
FINANCIAL INTERMEDIARY 77 74 51
RECYCLING 81 63 44
TELECOMMUNICATIONS 68 77 45
CHEMICAL 63 82 45
WATER AND ENERGY 66 57 23
METALIC MANUFACTURES 65 59 24
SHOP AND RESORTS 67 57 24
OTHERS 68 72 40
FOOD, DRINKS AND TOBACCO 75 66 42
LEATHER, TEXTIL AND SHOES 75 55 30
NON METALIC MINERAL PRODUCTS 76 65 41
CONSTRUCTION 62 51 13
TRANSPORTS 77 53 30
PLASTICS 62 69 31
PETROL AND RELATED 87 37 24
PROPERTIES, COMPANIES CONSULTING 80 55 35
MACHINERY, TRANSPORT MATERIAL 61 73 34
WOOD, PAPER 64 81 45
PUBLIC SERVICES 77 55 32
 CONCLUSIONS
• Numbers conclude that Basque innovative culture is small, but it can be a
wrong idea, because sometimes they don´t register innovations.
• Most innovative sectors are: chemical, plastics, machinery and transport
materials and financial intermediary.
• Less innovative sectors are: construction and public services.
• 50% of big companies innovate. 19% of SME´s innovate.
• Most important non technological innovations are related with organisational
structure changes.
• Some of the most usual innovations are: design changes, advanced
management tools and marketing innovations.
• Main innovative sectors are: shops & resorts, construction, properties and
companies consulting, machinery & transport material, metallic, food &
drinks & tobacco and transport.
• Big companies culture is different from SME´s in number of innovative
companies and in thekind of the innovations.
MANAGEMENT TOOLS
AND TECHNICS IN
BASQUE COUNTRY
 MANAGEMENT TOOLS AND TECHNICS %
NONE 3,3
VALUE ANALYSIS FOR STOCKHOLDERS 12,6
COMPETENCES MANAGEMENT 20,6
KNOWLEDGE MANAGEMENT 21,5
MANAGEMENT TOOLS AND EXTERNAL COMMUNICATIONS PLAN
HORIZONTAL MANAGEMENT
22
26,6
TECHNICS CLIENTS FIDELITY
VALUE CHAIN ANALISYS
29
35,5
CLUE COMPETENCES 36
COST STATEMENT BASED ON ACTIVITIES 36,4
DISCHARGE BASED REMUNERATION 36,4
STRATEGIC ALLIANCES AND COOPERATION 36,4
BENCHMARKING 36,4
MORE USED TOOLS LESS USED
EFQM 37,9
ISO 9000 VALUE ANALISYS FOR STOCKHODERS INTERNATIONALIZATION PLAN 37,9
HEALTH AND SAFETY PLAN COMPETENCES MANAGEMENT PORTFOLIO 38,8
TRAINING PLANING KNOWLEDGE MANAGEMENT MARKETING PLAN 39,7
STRATEGIC PLAN EXTERNAL COMMUNICATIONS PLAN FINANCIAL PLANIFICATION 41,1
SECTOR ANALISYS HORIZONTAL MANAGEMENT INTERNAL SATISFACTION 41,6
HUMAN RESOURCES PLANIFICATION 41,6
CLIENTS SATISFACTION CLIENTS FIDELITY
PROCESS REENGINEERING AND TIME REDUCING 45,3
ISO 14000 45,8
INTEGRAL COMMAND CONTROL 47,2
MARKET STUDIES 47,2
CONTINOUS IMPROVING 48,1
5S 50,9
CASH MANAGEMENT 53,3
MISSION AND VISION DEFINITION 53,7
CLIENTS SATISFACTION 56,5
SECTOR ANALISYS 59,8
STRATEGIC PLAN 63,1
TRAINING PLANING 68,7
HEALTH AND SAFETY PLAN 72
ISO 9000 89,3
 GENERAL SATISFACTION %
VALUE ANALISYS FOR STOCKHOLDER 3,3
COMPETENCES MANAGEMENT 3,35
KNOWLEDGWMANAGEMENT 3,38
DISCHARGE BASED REMUNERATION 3,45
MANAGEMENT TOOLS AND TECHNICS
INTERNAL SATISFACTION 3,48
TRAINING PLANNING 3,49
INTERNATIONALITATION PLAN 3,51
HUMAN RESOURCES PLANING 3,54
1-BAD; 5-VERY HAPPY SECTOR ANALISYS 3,55
MARKETING PLANING 3,55
BENCHMARKING 3,55
CLUE COMPETENCES 3,6
EFQM 3,62
SECTOR ANALISYS 3,66
PORTFOLIO 3,66
CLIENTS FIDELITY 3,67
VALUE CHAIN ANALISYS 3,68
HEALTH AND SAFETY PLANING 3,69
MISSION AND VISON DEFINITION 3,71
COST STATEMENT BASED ON ACTIVITIES 3,71
5S 3,73
ISO 14000 3,73
FINANCIAL PLANING 3,75
HORIZONTAL MANAGEMENT 3,84
PROCESS REENGINEERING 3,88
STRATEGIC PLAN 3,88
CASH MANAGEMENT 3,9
CONTINUOUS IMPROVEMENT 3,91
INTEGRAL COMMAND CONTROL 3,94
ISO 9000 3,94
 TIC USE WITH TOOLS
MISSION AND VISION DEFINITION 1,34
5S 1,4
STRATEGIC ALLIANCE AND COOPERATION 1,42
CLUE COMPETENCES 1,55
INTERNATIONALITATION PLANING 1,57
SECTOR ANALISYS 1,59
EXTERNAL COMMUNICATION PLAN 1,67
MANAGEMENT TOOLS AND TECHNICS CLIENTS FIDELITY 1,7
DISCHARGE BASED REMUNERATION 1,74
BENCHMARKING 1,74
TRAINING PLANNING 1,76
1-MIN.; 5-MAX STRATEGIC PLAN 1,76
EFQM 1,77
INTERNAL SATISFACTION 1,8
HEALTH AND SAFETY PLANING 1,82
MARKETING PLAN 1,82
CLIENTS SATISFACTION 1,85
PORTFOLIO 1,85
VALUE ANALISYS FOR STOCKHOLDERS 1,88
HUMAN RESOURCES PLANING 1,88
MARKET ANALISYS 1,88
HORIZONTAL MANAGEMENT 1,88
VALUE CHAIN ANALISYS 1,88
COMPETENCES BASED MANAGEMENT 1,91
CONTINUOUS IMPROVEMENT 1,94
ISO 14000 2
KNOWLEDGE MANAGEMENT 2,05
PROCESS REENGINEERING 2,08
ISO 9000 2,25
INTEGRAL COMMAND CONTROL 2,25
FINANCIAL PLANING 2,49
COST STATEMENT BASED ON ACTIVITIES 2,53
CASH MANAGEMENT 2,58
 MANAGEMENT TOOLS EVOLUTION IN LAST 4 YEARS

INCREASING DECREASING
SECTOR ANALISYS (+25,5) CLIENTS FIDELITY (-8,6)
VALUE CHAIN ANALISYS (+20,3) BENCHMARKING (-7,8)
CASH MANAGEMENT (+18,9) COSTS STATEMENTS BASED ON ACTIVITIES (-6,9)
ISO 9000 (+18,3) EXTERNAL COMMUNICATIONS PLAN (-4,2)
MISSION AND VISION DEFINITION (+17,5)
CONTINUOUS IMPROVEMENT (-1,5)
 CONCLUSIONS

• Companies priority is focused in the capacity development always in

long time periods.
• Most important activities in future will be “understand clients needs”,
“reduce cost” and “find new costumers”.
• Companies are increasing the management tools in use.
• Big companies usually work with all of the tools. SME´s only choose
some of them.
• Companies usually use more than one tool.
• It´s difficult to find companies using internet and/or tic´s to develop
their tools.
• The number of companies subcontracting external consulting is
increasing.
 Contact
Javier Deusto Cristina Murua
javierd.leia@sea.es cristinm.leia@sea.es

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