Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

The Evolution of Innovation Ecosystems and How to Manage Within Them? Innovation Forum Norway, 12 April 2011 Presentation by Jørn Bang Andersen Nordic Innovation Centre j.andersen@nordicinnovation.org / www.nordicinnovation.org www.jornbangandersen.com

Friedrich List - National System • Where: Germany -national economy catching up with England • When: 1840 • Enablers: Steam machine, national political economic system, industrialization • Focus: Nation and industry leadersCopyright: Jørn B. Andersen 2011

Alfred Marshall - Agglomeration • Where: United Kingdom • When: 1899 Shefﬁeld cutlery industry • Enablers: Steel and coal, electricity • Focus: Industry, entrepreneurs, free enterpriseCopyright: Jørn B. Andersen 2011

Erik Dahmén - Development Blocks • Where: Sweden • When: 1950 • Enablers: Entrepreneurs, capital, creative destruction • Focus: Study of Swedish industry transformation 1919-1939.Copyright: Jørn B. Andersen 2011

François Perroux - Growth Poles • Where: France • When: France 1950s and 1960, 1970s • Enablers: Domination, asymmetry, location, globalization • Focus: Global value chains, North-SouthCopyright: Jørn B. Andersen 2011

Michael Piore and Charles Sable - Flexible Specialization • Where: Third Italy - Districts of light industry in Northern Italy. • When: 1984 • Enablers: Artisan tradition and economies of scope. • Focus: Cooperatives of family enterprises and municipalitiesCopyright: Jørn B. Andersen 2011

C. Freeman & B.A. Lundvall - National Systems of Innovation • Where: Japan and Scandinavia • When: 1980s + 1990s • Enablers: Public innovation programmes, education, intermediaries, national level • Focus: National technology, innovation and educational systemsCopyright: Jørn B. Andersen 2011

Michael Porter - Clusters • Where: America -Napa Valley, Wine Cluster • When: 1990s, early 2000s • Enablers: Innovation, business framework conditions, clusters • Focus: Industries, venture capital, education, policy makersCopyright: Jørn B. Andersen 2011

Innovation Ecosystems Network • Where: US - Stanford + China, Finland, Japan • When: 2010 • Enablers: Formation of alliances • Focus: Co-creation, investment capital, network centric viewsCopyright: Jørn B. Andersen 2011 http://www.innovation-ecosystems.org/

Community ecosystems • Where: Silicon Valley, Bangalore,Google, Apple, Tata, Huawei, Facebook • When: 2000s, present day and beyond 2011 • Enablers: Internet, global hotspots, globalization • Focus: Entrepreneurs, global company value chains, business model innovation, service integrationCopyright: Jørn B. Andersen 2011

Baku - World s Leading Ecosystem 1900 •  1873 Baku the world s wealthiest city •  1875 Nobel brothers •  Experts from USA, Germany and Russia. World s innovation hub no 1 •  1883 Rothschild Brothers established the Caspian and Black Sea Oil Industry and Trade Society. •  1884 organization of entrepreneurs called the Council of Baku Oil Industrialists - Nobel •  1900 more than half of the world’s oil productionCopyright: Jørn B. Andersen 2011

Biggest change? The economist Paul Romer .. explains that if you have a scarce, physical resource, pricing will be driven up by that scarcity. The value of knowledge is different. It is more about utility. Knowledge does not become an economic good until it solves a problem in a way that people are willing to pay for the solution. Once you identify a solution, then the only limit to the value of that knowledge is how many people need the solution. Put another way, there are no physical constraints to the value of knowledge; the only limit is demand.Copyright: Jørn B. Andersen 2011

How to Manage Within Innovation Ecosystems in 2011?Copyright: Jørn B. Andersen 2011

Consider a SimpleTextile factory... • Fifty-two different operations all totally interchangeable • To establish optimal sequence i.e. technology, director faced with a 1068 decision problem: 52 alternatives... Example from Paul RomerCopyright: Jørn B. Andersen 2011

The Manager on Top (hierarchy) •  Out of the network The Manager in the Center (a hub) •  Centralizes the network The Manager Throughout (a web) •  linking over leading •  dealing over doing •  convincing over controlling Source: Henry MintzbergCopyright: Jørn B. Andersen 2011

Distributed Management Leadership changes periodically, as goose in front gets tired and falls back. Switzerland is governed by seven people who rotate the head of state on an annual basis.Copyright: Jørn B. Andersen 2011

Don t Skate Where the Puck is... • Skate where the puck will be next... • Understand the play a bit slower....like cool jazzCopyright: Jørn B. Andersen 2011

• From Friedrich List to Steve Jobs - it has always been a question of connecting the dots and organize work in a better and smarter way. • Possibilities do not add up. They multiply. • The biggest obstacle today lies within how we think organization and manage work.Copyright: Jørn B. Andersen 2011

Main PointsNot New# Innovation ecosystems# Entrepreneurs# Technology platforms, tools# Organizational configurationsNew# Knowledge primary factor of production# ICT melts manufacturing and services# Demands changeCopyright: Jørn B. Andersen 2011

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Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

by Jørn Bang Andersen on Apr 17, 2011

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Innovation Ecosystems’ Evolution - How to Manage Within Them? - Jorn Bang Andersen — Presentation Transcript