Open Innovation 2.0 - Elias carayannis plenary 1 final
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Transcript of Open Innovation 2.0 - Elias carayannis plenary 1 final
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QUADRUPLE AND QUINTUPLE INNOVATION HELIX
ECOSYSTEMS:SMART, SUSTAINABLE AND
INCLUSIVE GROWTH
INVITED LECTUREOPEN INNOVATION 2.0
DUBLIN, IRELANDMAY 20-21, 2013
ELIAS G. CARAYANNISGWU
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LOOKING BACK TO SEE AHEAD…
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THE CHINA QUESTION:Li Yuese nanti
• Few people, other than scholars, will be familiar with the story of the Cambridge don whose study of China’s scientific history helped to change the West’s appraisal of a civilisation once thought hopelessly backward.
• By the time Joseph Needham died in 1995, he had published 17 volumes of his “Science and Civilisation in China” series, including several that he wrote entirely on his own.
• The Chinese began printing 600 years before Johannes Gutenberg introduced the technique in Germany. They built the first chain drive 700 years before the Europeans. And they made use of a magnetic compass at least a century before the first reference to it appeared elsewhere.
• So why, in the middle of the 15th century, did this advanced civilisation suddenly cease its spectacular progress?
• So powerful has Needham’s contribution been to the historiography of Chinese science that this conundrum is still known as “The Needham Question”. Even the Chinese themselves use it: the phrase in Mandarin is Li Yuese nanti.
• In 1936 three Chinese assistants came to work in his biochemistry laboratory. One, Lu Gwei-djen, who came from Nanjing, began teaching him Chinese, which ignited Needham’s interest in the country’s technological and scientific past. He retrained as a Sinologist and took a job in Chongqing as Britain’s scientific emissary.
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• Network Ubiquity –More than a billion Internet users and three billion wireless subscribers, worldwide
• Open Standards –Widely-adopted technical and transaction specifications
• New Business Designs –Horizontally-integrated operations
World Knowledge Economies and Societies in a New and Emerging Era:
21st-Century Drivers of Change
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TOP PRIORITYFROM SOCIO-ECONOMIC BEING TO
TECHNO-ECONOMIC BECOMING
From natural (and/or artificial) scarcity to technology- and knowledge-enabled abundance
(Adapted from Carayannis et al, Smart Development, MacMillan, 2005)
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Key Resources of the
Knowledge Economy and Society…Adam Smith defined Land, Labor and Capital as the key input factors of the economy in the 18th century.
Joseph Schumpeter added Technology and Entrepreneurship as two more key input factors in the early 20th century
In the late 20th and the beginning of the 21st century, numerous scholars and practitioners such as Peter Drucker, have identified Knowledge as perhaps the sixth and most important key input and output factor of economic activity.
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TRIPLE VS. QUADRUPLE & QUINTUPLE INNOVATION HELIX
• The Triple Helix focuses on top-down government, university and industry policies and practices whereas the Quadruple Helix focuses on BOTH:– top-down government, university and industry policies and
practices as well as – bottom-up and mid-level out civil society grass-roots initiatives
and other actions that help better shape, fine-tune and make more effective and efficient the government, university and industry policies and practices.
• The Quintuple Helix adds to the Quadruple Helix the environmental dimension to ensure that said top-down, bottom-up and mid-level out policies, practices and initiatives are indeed as smart, sustainable and inclusive as possible and meet the triple bottom line (financial, social, and environmental) hurdles criterion. 9
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TRIPLE VS. QUADRUPLE & QUINTUPLE INNOVATION HELIX
• The social and natural considerations act as the “creative glue” for promoting smarter, more sustainable and more inclusive growth opportunities in the Knowledge Economy and Society for both developed and perhaps even more so for transitioning and emerging economies.
• In this latter case, civil society and environmental structures, infra-structures and institutions are often lacking or under-developed allowing for the cumulation of substantial negative externalities (such as pollution) and other transactional costs of growth (such as corruption) as well as impeding or even suppressing market, knowledge and network spill-over effects (positive externalities).
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"The innovator has for enemies all who have done well under the old, and lukewarm defenders in those who may do well under the
new law."
Nicolò Machiavelli
Words of Wisdom to remember...
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INNOVATION DEFINEDInnovation enhances the yield of resources via successful technology commercialization
Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value
•US National Innovation Initiative
Innovation is a socio-economic, socio-technical, and socio-political phenomenon
Delivering an Innovation Economy AND Society is the key structural challenge for new growth in gloCalized Europe and World Knowledge Economies and Societies.
We may need to think in terms of TARGETED OPEN INNOVATION terms…
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Source: Adapted from Elias G. Carayannis, GWU Lectures and in print, 2005
STAG
E O
F IN
NOVA
TIO
N
SECTORSECTOR
TECHNOLOGYTECHNOLOGY
Start-up technology
ventures
Corporate R&D Labs
Nanotechnology
Information and Communication
Technologies
Non-profit R&D Labs
Biotec
hnolo
gyDeployment
Development
Discovery
Government R&D Labs
Advan
ced
Mat
erial
s
Diffusion
Commercialization
THE INNOVATION CUBE
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Idea | Research | Fuzzy Front End | Product Dev | Commercialization
Resources
Research Resources
Commercialization Resources
VALLEY OF DEATH
Early Stage Innovations
1 in 5,000!
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GLOCALIZED INNOVATION
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FROM TRADE IN GOODS TO TRADE IN TASKS
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S3 Business Technology Life Cycle
Time (t)
Tech
nolo
gy P
erfo
rman
cepe
r Uni
t Cos
t (TP
/$)
[ Effi
cacy
or V
alue
]
R&D or ProductDevelopment
Market Acceptance,Adoption, and Innovation
Legacy or Heirloom Technology
Diminishing Returns
Econ
omic
D
iseq
uilib
rium
EMERGENCE GROWTH MATURITY DECLINE
• Also known as the product evolution S-curve.– Showing axes and various curve components labeled
with appropriate descriptors for the world of IS.
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Time (t)
Tech
nolo
gy P
erfo
rman
cepe
r U
nit C
ost (
TP/
$)
[ Eff
icac
y or
Val
ue]
Limit of PhysicsThere is a natural physical limitation to the behaviors of matter and energy upon which any technology is based.
Diminishing Economic ReturnsAt some point (even if the limit of physics is not obtained) the amount of marginal economic return becomes vanishingly small no matter how much additional resources are input.
S3 What Makes the Curve S-Shaped• Every technology life cycle S-curve inevitably
levels off at the top.– At which point, NO additional incremental gain can be derived
from a system regardless of further resource availability.
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Heterogeneity dynamics – (IPO)
Number of firms
Size of firms
Number of products
Firm Performances
Market concentration
C C C
Input H Output HProcess H
Land/Labour/Capital
Technology
Entrepreneurship
Knowledge
C3 to S3: Co-opetition, Co-evolution , Co-specialization
Source: (CARAYANNIS ET AL, DIVERSITY IN THE KNOWLEDGE ECONOMY AND SOCIETY, MAY 2008)
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The S3 BlueprintMode 3 C3: Co-evolution, Co-specialization, Co-opetition:
21st Century Innovation Ecosystem
BusinessIntegration
Product Effectiveness
Product Efficiency
BusinessReach
Entrepreneur
Academia
Entrepreneur
Government GovernmentIndustry Industry
INNOVATION
Developing and refining new competences
Solidifying andleveraging existingbusinessrelationships
Identifying andexploiting newbusinessrelationships
Refiningexistingcompetences
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SKARSE dimensions – place & contentSKARSETM: Strategic Knowledge Arbitrage and Serendipity
Know-whatKnow-howKnow-who Know-why
Global
Regional
Local
Tacit Explicit
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Strategic Knowledge Serendipity
Strategic Knowledge Arbitrage
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“SKARSE” Entrepreneurial Ecosystems:Conceptual Model of New Venture Formation
5/19/2013 26CARAYANNIS_SKARSE ECOSYSTEMS
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ENTREPRENEURSHIP AND INNOVATION ECOSYSTEMS:
THE CASE OF MINALOGIC
Projects Members vs. non-members
Public-private partnerships
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Regional Innovation Network
Intermediaries
Model adapted from Komninos; Porter et. al.
Innovation Financing
Technology R&D
Enterprises
• Private/ Venture Capital
• Federal• State/Local
• Management• Firm Size• Resources/ Skills
• University Licenses• Patents/IP• R&D Expenditure
• Role• Source• Programs
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Regional Innovation Network: Comparisons
2 March 2011 Carayannis/Schoonmaker 29
Maryland
Universities 56R&D Spending $14.3 billion
Incubators 15
Portugal
Universities 39R&D Spending $2.1 billionScience Parks 8
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Mode 3: Regional Cultural Comparisons
Dimension Maryland Portugal
Entrepreneur - Focus on product development
- Well-educated (MBA/Ph.D.)- Often, 1st start-up- Focus on incremental steps
- Focus on going global- Well educated (MBA/Ph.D.)- Often, 1st start-up- Focus on incremental steps
Government - Primary support programs offered at regional/local level
-Primary support programs offered at regional/local level
Academia - Limited transfer of knowledge through TTO
- Transfer of knowledge is active via TTO
Industry - Private financing at early stages
-VC financing typically with Biotech
- Private financing at early stages
- Corporate funding for spin-offs
2 March 2011 Carayannis/Schoonmaker 30
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Mode 3: Regional Innovation Network
2 March 2011Carayannis/Schoonmaker31
Dimension BusinessObjective
Network Resources
Culture Goal
Entrepreneur -Firm revenues-Firm profit
-Skills-Knowledge
-Focus-Incremental Approach-Learning style-Well educated (graduate degree)
Creating a going concern
Government Economic development
-Support-Grants
-Motivated by political environment and role of public service
Economic showcase(Political clout)
Academia Royalties IP -Motivated by research –grants and placement of publications
Power of knowledge success (Access to grant funds and best researchers)
Industry ROI Funds -Private/Angel smaller risk profile-VC controlling (larger risk profile)
High “hit” rate (Attracts other investors and higher quality investments)
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Triple Helix to Quadruple Helix: Industry Map
2 March 2011 Carayannis/Schoonmaker 32
Mode
1
Mode
2
Mode
3
Government Academia Industry Civil Society
B2C
I1CI2I
I3I
B5G
M1G
B6G
B7G
I4G
B8G
B9G
I5G
M2GC1G
I6G
E1G
Biotech
Chemical
Energy
ICT
Media
B1G
B1I
B1A B1C
B2A B2IB2G
B3G B3A
B3I
B3C
B4G
B4A B4I B4C
I1G I1A I1I
I2G I2A I2CI3G
I3A
I3C
B5A B5I B5C
M1A
M1I
M1C
B6A
B6I
B6CB7A
B7I
B7C
I4A I4I I4C
B8A
B8I
B8CB9A B9I B9I
I5A
I5I
I5C
M2A
M2I M2C
C1A
C1I C1C
I6A
I6I I6C
E1C
E1A
E1I
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Triple Helix to Quadruple Helix: Regional Map by Cluster
2 March 2011 Carayannis/Schoonmaker 33
Maryland
Portugal
R&D
Funding
Support
Government Academia Industry Civil Society
I2
B5
M2
B3 B5
M2
C1
I1
E1
B1B2 B5 B2B2
B2
B3
B1
B4
I1
I3
I1
I1 I3
I4
B6
B6
I2
B7
B7 B8
I1
B9
B1
C1
I6
E1
B1 B1 B1B2 B3 B5 B9
I2
B4 B5 B6
B2 B3 B7
E1 I1 I4 I5
B2 B4
I5 I6
E1
I6I5
M2M1
B6
B7 B8
I2 I3 I4
M1
B1
I1
B2
I1
E1
B5 B2
B3
B3 B5 B2
B6 B8
I2
I4
I1
M1
M1I3
B7
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Empirical Evidence
2 March 2011 Carayannis/Schoonmaker 34
• Networks with largest number of nodes and density represent 70% of all connections in regional innovation networks. Pharmaceutical and ICT industries are examples. (Christ)
• Positive and significant correlation between universities and regional technology innovation. (Florida)
• Mode 3 regression analysis demonstrated strong prediction (~80%) for payroll, salary, and revenues (Carayannis & Schoonmaker)
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Key Findings
2 March 2011 Carayannis/Schoonmaker 35
• Civil Society– Virtual extension of all actors
• Industries– Biotech and ICT are industries that are beginning to demonstrate
‘Mode 3” and the ‘Quadruple Helix’
• Regions– Maryland is leading the regional progression towards M3/4H– Portugal is operating on the frontier of M3/4H
• Companies– M3/4H Best in Class companies are able to leverage all 4 actors– Highly networked, globally to locally, typically 2nd start-up
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Mode 3: C3 Findings
36
• Academia and entrepreneurs tend to focus on the product dimensions (effectiveness and efficiencies)
• Government and industry tend to focus on the business dimensions (integration and reach)
• All work dynamically as part of the Ecosystem
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Affordability
Awareness
Accesibility
Availability
CharismaCharacter
Culture
Communication
Coordination
Co-optation
SustainableEntrepreneurship
Entrepreneurial Critical Success And Failure Factors
–Gestation Period and PATIENCE are KEY Factors…–Co-location and a Global / Local View are KEY Factors…
Source: (CARAYANNIS, DIVERSITY IN THE KNOWLEDGE ECONOMY AND SOCIETY, MAY 2008)
Robust Competitiveness
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Tomorrowwith iDeaFramework
What we propose…
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What we propose…
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QUADRUPLE HELIX AND DEMOCRATIC CAPITALISM
• Knowledge-based innovation should never be seen as a privilege of industrialized countries.
• This indeed would be a misleading approach. Knowledge-based innovations are just as valid for emerging economies and developing countries.
• In that sense, the Quadruple Helix and the Quintuple Helix are global und universal.
• The more appropriate question to ask would be what the specific implications and ramifications for knowledge-based innovation would be when applied in diverse political, economic, social, and technological contexts around the globe (Carayannis et al, 1998 to 2012) and how this concerns developed democracies versus emerging autocracies.
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QUADRUPLE HELIX AND DEMOCRATIC CAPITALISM
• In particular, the Quadruple and Quintuple Innovation Helix constructs may well serve to reveal and promote ways and means to help advance growth in a manner that is becoming increasing aligned with the progress of democracy instead of having growth advancing in defiance of and for the suppression of democratic institutions.
• Over the medium to long term, our fundamental belief and premise is that true and transparent democracy constitutes a sine qua non for smart, sustainable and inclusive growth and this constitutes our main motivation and guide for our focus on ways and means that concepts such as the Quadruple and Quintuple Innovation Helices, can serve architect a better tomorrow for the peoples of the world.
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• The brightest frontiers of knowledge reside at the intersection of technology, insight and traditional disciplines
• A collaborative, sustained commitment by industry, government and academia is essential
• Innovation is a culture, not a department
•Nick D’Onofrio, –IBM Sr. Exec. VP–Invited Lecture, GWU SoB, October 2007
Points to Remember…
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Ending Thoughts...• 'Until philosophers are kings, or the kings and princes of this world have the spirit and power of philosophy,... cities will never have rest from their
evils - no, nor the human race as I believe...' [Plato, The Republic, Vol. 5, p. 492]
• 'The lowest form of thinking is the bare recognition of the object. The highest, the
comprehensive intuition of the man who sees all things as part of a system.’ [Plato]
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THE CHINA QUESTION Re-visited…:Li Yuese nanti
• Needham never fully worked out why China’s inventiveness dried up.
• Other academics have made their own suggestions: the stultifying pursuit of bureaucratic rank in the Middle Kingdom and the absence of a mercantile class to foster competition and self-improvement; the sheer size of China compared with the smaller states of Europe whose fierce rivalries fostered technological competition; its totalitarianism.
• With its unreformed one-party system, its rote-learning in schools and state control of big businesses, “new China” is hardly a haven for innovative thinking. Yet the Chinese continue to fret about the Needham question.
• A Communist Party chief of a middle school in central China recently said that it deserved deep thought and that the answer lay in an education system that fails to emphasize improving “character”.
• A former government minister also referred to Needham’s lament that China had produced no idea or invention of global impact for more than 500 years. Its contribution henceforth, the official said, should be “harmony”.
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She – she !!!