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Innovation Ecosystems

Built from the Bottom Up

Mary AdamsMichael OleksakI-Capital Advisors

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Industrial era ends…

Knowledge era begins

PBS: The First Measured Century

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Industries that will be re-made

• Energy• Transportation• Healthcare• Education• Food production• Manufacturing• Construction• Services• Information technology

…fueled by knowledge

and innovation

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Innovation is the New Strategy

…Why?• Knowledge is dispersed across organizations

and geographies

• New opportunities come from sharing and collaboration, not ownership of assets

• This means that innovation is a bottom-up process

• The role of leaders is to facilitate and support (not command and control)

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Dual challenges of leading/influencing innovation

1. Create an innovation process� to support idea generation, selection,

development and commercialization

2. Cultivate an innovation ecosystem� to ensure a continuous flow of new ideas

and an environment where the innovation process will thrive

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Innovation Ecosystem =

Intangible Capital (IC)

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The IC-Innovation Ecosystem

Human Capital

Structural Capital

RelationshipCapital

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• Education• Expertise• Competencies• Experience• Knowledge

Human Capital

Human-stored

knowledge

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• Data, information• Communication

systems and networks• Organizations• Intellectual property• Infrastructure/physical

resources (labs, facilities)

• Institutions

Structural Capital

Recorded knowledge/

Infrastructure

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• Knowledge• Markets• Financing• Media• Networks• Programs

RelationshipCapital

Access to external

resources

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Example: Chongqing, China

• China produces 50% motorcycles globally• Chongqing has largest production in China• Featured in Wikinomics as model for peer

production of a physical product• Hundreds of producers collaborate on

design and manufacture• Local producers now moving into auto

market, building global brands

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Chongqing innovation ecosystem

ManufSkills

JapaneseMotorcycle

manufacturers

ReverseEngineering

Laissez faire policy

Just-in-time sourcing

Entrepreneurial culture

Modular designs

Chinesemotorcycle

industry

Financing

Global customers

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Key WA innovation ecosystems

• Infrastructure• Food• Entrepreneurship• Health• Manufacturing

• Energy• Export• R&D

Commercialization• Learning

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Resources

Book: www.IntangibleCapitalBook.comCommunity: www.ICKnowledgeCenter.comBlogs: www.SmarterCompaniesBlog.com

www.TheEndGameBlog.com

Mary Adams, 781-729-9650 Michael Oleksak, 781-729-1008

adams@i-capitaladvisors.com oleksak@trekconsulting.comTwitter: maryadamsica Twitter: mikeoleksak