Showing posts with label Innovation and development. Show all posts
Showing posts with label Innovation and development. Show all posts

Saturday, December 10, 2011

Rubbing Off: Microsoft in Mallorca

If you take a look at the list of companies on Palma's ParcBit technology park, many will probably be unfamiliar. Halfway down the alphabet, though, you will find a very familiar name. Microsoft.

In May 2009, Microsoft opened its first technology centre devoted to tourism anywhere in the world. The Palma-based Microsoft Innovation Center (note the suitably Americanised spelling) Tourism Technologies was founded with three main objectives in mind, one being, and this would be pretty obvious, to create new initiatives for technological innovation that add value to the tourism sector.

Microsoft's mere presence in Mallorca has been a boost to the island's technology industry, but how much of a boost?

When the Microsoft centre was opened, the then president, Francesc Antich, spoke of it as contributing to an aim of raising the value of innovation and development in the Balearics to 5.6% of GDP by the end of his period in office. This was probably always a somewhat ambitious target. Though spend on I+D increased by 10.5% in 2010, the actual contribution in terms of GDP via investment was the lowest of any region of Spain - 0.41% of regional GDP.

One of Microsoft's flagship developments was a "distribution platform" for the whole tourism offer in the Balearics. This web-based portal, described as not being a website as such, was intended to be a single system for different players in the tourism industry by which they could commercialise their services and products and make savings of up to 40% in doing so.

The fanfare that surrounded its announcement in spring last year did rather downplay the fact that it was going to cost the regional government more than had been envisaged. As always, I stand to be corrected, and I would very much like to be, but I cannot find a reference to its having been launched.

Another development has been the "global tourism hub" for the Windows Phone 7, a "killer" application for the tourism industry. Whether it will really prove to be a killer app is another matter. Microsoft also faces competition; from Google, for instance.

Nevertheless, the development, with the Palma centre behind it, has indicated Microsoft's intent and, as much as Microsoft also provides consultancy services to local businesses, it is the rub-off effect from its presence on Mallorca's technology industry that is arguably the greatest benefit the island stands to gain in its aim of getting I+D to be a far more significant element in the regional economy.

The gain for I+D is not, though, the only one that is hoped for, because tourism is at the heart of the Microsoft technologies, and the rub-off effect for tourism is coming from a possibly unexpected area - that of tourism connected to the cinema.

Though, as far as I am aware, it has not been stated as such, a reason for the filming of parts of "Cloud Atlas" on Mallorca may have been Microsoft. The company's reputation (and its being American) is one thing, but as important if not more is its relationship with the Mallorca Film Commission and with the Cluster Audiovisual, the association of audiovisual producers in the Balearics.

Microsoft, together with the Cluster Audiovisual, has come up with what is potentially a brilliant idea, and one that goes a long way to overcoming what might be the disadvantage for tourism from filming at locations such as those used for "Cloud Atlas". The idea is known as "Film Travelling", the slogan for which is "what film do you want to journey to'".

Essentially what this is, or will be, is a video database that will show locations of a film on a map. The intention is to map the Balearics and give a guide to where filming has occurred and what was filmed, and it wouldn't have to be confined to cinema productions. The rub-off would be that the database could be used by the tourism industry to sell visits related to the locations.

When the filming for "Cloud Atlas" was first spoken about, along with its potential benefits for tourism, a point I made was that these benefits would not be as great as might be hoped for as fans of the film wouldn't necessarily know what the locations were. "Film Travelling" solves this problem. It will be launched, it is hoped, at the same time as the premiere of "Cloud Atlas", which does just make you wonder a bit more about whether Microsoft had some influence on the choice of location. Whether the company did or didn't, its benefits to Mallorca's technology and to its tourism are beginning to rub off.


Any comments to andrew@thealcudiaguide.com please.

Friday, March 25, 2011

Twenty-Twenty: Mallorca's innovation boundary

A contactless bank card that is just waved over a terminal. A fixed solar heating system that will warm water to up to 200 degrees. Mini wind turbines for generating electricity.

None of these are revolutionary, but they are all innovative. La Caixa has introduced, with the help of Visa, a card that doesn't require swiping; it is said to be the first of its type in a European region. Engineers and scientists from the Universitat de les Illes Balears in Palma have developed a solar energy system, ideal for hotels and being trialled at one in Montuïri, that remains fixed and doesn't require movable machinery to incline panels towards the sun. The wind turbines of Vent Illes in Inca, specifically designed with limited land resource and also limited wind in mind, are in production.

These are examples of innovation that are coming out of Mallorca. They are examples of what you all too rarely hear about; the tapping of local engineering, scientific and technological wherewithal that will, it should be hoped, lead the island towards a more diverse industrial economy.

At the start of his administration, President Antich made much of two plans going forward to 2020. One was the "Plan Turismo", under which were envisaged fewer tourists but greater revenues. The other was for innovation and development (I&D). The two go hand in hand. As the island becomes less dependent upon tourism, so it increases its reliance upon new technologies.

This, at least, is the theory. We still hear murmurs about I&D, but very little, if anything, about the tourism plan.

While there are examples of technological innovation, and tangible benefits being produced, the actual investment in I&D paints a rather different picture. In 2009, the amount invested in the Balearics fell to around 55 million euros. In 2005, before the Antich administration, the figure had been 183 million. The slump may well be attributable to economic circumstances, but a fall in investment to the tune of a third between 2008 and 2009 alone was not mirrored in many other regions of Spain where there were in fact healthy increases: 25% in Madrid, 12% in Aragon as examples.

The total level of I&D investment has thus fallen to under 1% of total GDP in the Balearics; the highest level in Spain is in fact in Navarre at 2.13%. The difference may not sound great, but it is troubling, nonetheless. What is also troubling is the fact that even the poorest regions of the Spain, the two African autonomous cities of Ceuta and Melilla, have managed a major increase in I&D intensity.

Most of the innovation spend is coming from smaller businesses, those with fewer than 250 employees. This may indicate an entrepreneurial spirit, so is to be welcomed, but larger businesses have all but stopped their investments.

If one contrasts the percentage of local GDP devoted to I&D with that derived from tourism (80%, give or take the odd percentage point), one gets some perspective as to the gap which exists between the present of tourism and the future of greater technology. The contrast doesn't give an exact picture of the relative sizes of particular industrial sectors, but it does give an indication as to the difference between the hope for technology and the reality. As Mallorca is, effectively, a one-product island, the need for more intense development is pressing, and 2020 is now an awful lot closer than it was when Antich came into government in 2007.

The political agenda, overshadowed as it is by issues not central to the economic future of Mallorca, needs to sharpen up. The discourse ahead of coming local elections will doubtless be dragged down by discussions of corruption, language and other such side-shows when it should be one in which the parties engage in clear visions of the future. A party that is willing to establish the right framework, in terms of incentives and funding, that can facilitate a more diverse economy would be one well worth listening to.

Mallorca has shown that it has the skills, the people and the appetite for innovation. All it needs is a real political will and not just the spin that was spun in 2007. If it gets it, then 2020 may yet become a reality.


Any comments to andrew@thealcudiaguide.com please.