Innovation policy mix

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Innovation policy mix

  1. 1. Norrköping 01042014 Tailoring the policy-mixes to the needs of priorities – state of the art in innovation policy research Vesa Harmaakorpi Professor of Innovation Systems Dean of School of Industrial Engineering and Management Lappeenranta University of Technology
  2. 2. Innovation modes  Science-based  Science, technology, innovation (STI)  Practice-based  Doing, using, interacting (DUI) Berg Jensen et al. 2007
  3. 3. Types of knowledge production  Mode 1 knowledge production is traditional knowledge production based on single disciplines. It is homogeneous and primarily cognitive (STI).  Mode 2 knowledge knowledge production, by contrast, is created in broader, heterogeneous interdisciplinary social and economic contexts within an applied setting (DUI). Gibbons et al. 1994
  4. 4. Science-based innovation (STI, Mode 1) Practice-based innovation (DUI, Mode 2a) Practice-based innovation (DUI, Moodi 2b) Most typical logics and capital Agglomeration – Clusters – Economies of scale Intellectual capital – Financial capital Proximity Related variety – Innovation platforms Social capital – Institutional capital Distance Developing innovation capability – Breaking silos Social capital – Structural capital ”Near distance” Most typical innovation types and processes Radical technological innovations and related concepts Analytical Radical concepts and system innovations Interpretative Organisational innovations - Social innovations - Service innovations Interpretative Most typical innovation methods and environments and knowledge transfer mechanism Scientific methods World class scientific centres Technology diffusion for the firms of cluster Science and related expertise Methods of intellectual cross- fertilisation (also virtual) Arenas of intellectual cross- fertilisation in value networks Scanning and absorbing technology and market signals Networks, Serendipity, Customers Problem-based learning (e.g. culture- based methods) Arenas of developing organisational innovation capability Organisational learning ”Normal” staff, Customers Most typical logics of knowledge production World classic scientific expertise in narrow field Codifield knowledge Analytical Homogeneous knowledge production Brokering – General ability to build possible worlds Future-oriented Synthetic Heterogeneous knowledge production Brokering – General ability to build possible worlds Tacit knowledge Symbolic Heterogeneous knowledge production Most typical communication Integrative Dissipative Dissipative Most typical evaluation Input-type measures Output-type measures Dynamic measures Dynamic measures Differences in science-based and practice-based innovation
  5. 5. Bringing STI- and DUI-modes together Mode 2 knowledge production -> DUI-mode of innovation Mode 1 knowledge production -> STI-mode of innovation Context of knowledge application (companies and public sector organizations) Policy instruments and tools aiming at promoting knowledge transfer and utilization
  6. 6. Global threat of sustainable value creation − ”Triple debt” 1. Ecological: Natural resources are 1,5 times over-utilized. 2. Economic: Europe, countries and municipalities are living on credit. We are eating from the plates of our children. 3. Social: People feel bad under growing pressure. Weakened competitiveness of companies, public sector and society. Preventing the triple debt is offers business opportunities for regions.
  7. 7. Areas and challenges of sustainable value creation − Development of innovation systems − Innovation systems cannot respond to the challenges of open innovation − Insufficient dialogue between science and practice leads to unnecessary use of limited resources − Exploitation of innovation potential is weak − Development of management and processes − Productivity is taken from people not processes − Knowledge in organizations is poorly utilized. − Benefits of networks are not used − Development of ICT − ICT is seen only from a technical point of view, not as part of business processes − ICT is not applied in novel ways − Openness is just on the way, closed systems prevent open innovation
  8. 8. Our response: Productivity innovations “Productivity is not everything but in the long run it is almost everything” (Krugman 1994) “Production and use of knowledge is at the core of value-added activities, and innovation is at the core of growth” (Archibugi and Michie 1995) “Europe suffers of productivity gap preventing sustainable growth“ (EU) “80% of growth is explained by increased productivity; 80% of the increased productivity is explained by innovation” (Cooke, 2005) Development of Innovation Systems Development of Management and Processes Development of ICT PRODUCTIVITY INNOVATIONS
  9. 9. (Geels & Schot, 2007) Transformation
  10. 10. Tools of Change Intellectual cross-fertilization User-driven processes Making visible out of invisible Drivers of Change Triple debt: environmental, economic, social New innovation philosophy Globally networked digital society  Structural silos  Central planning  Slow path-dependent development Old Mode of Management  Ability to build possible worlds  Crowding and experiments  Peer progressives New Mode of Management
  11. 11. Final words  The concept of regional innovation policy has to be rethought based on  Modes of innovation  Consequencies of triple debt  Regional strengths and global niches including proper interaction within the global context  Smart specialisation is the European way to lead the transformation process  There is a great demand for proper road-maps and monitoring tools in the regional processes
  12. 12. Book on practice-based innovation  Melkas, H. & Harmaakorpi, V. (eds.) (2012). Practice- based Innovation. Insights, Applications and Policy Implications. Axel Springer Verlag.

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