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Why "Innovation Ecosystems?" Lecture


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Lecture on 18 March 2010 at Georgetown University to the Communications, Culture & Technology course on "Creating a Culture of Innovation," taught by Dr. Mike Nelson.

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Why "Innovation Ecosystems?" Lecture

  1. 1. Why “Innovation Ecosystems?” CCTP673: Creating a Culture of Innovation (Nelson) 18 March 2010 Jeffrey Alexander, Ph.D. Senior Science & Technology Policy Analyst Center for Science, Technology & Economic Development
  2. 2. Key Topics & Concepts <ul><li>Terms of Reference—Defining Innovation </li></ul><ul><li>Innovation Ecosystems—Modeling Innovation </li></ul><ul><li>Evaluating Innovation Capacity—Measuring Innovation </li></ul><ul><li>Social Aspects of Innovation—Enabling Innovation </li></ul>Page 18 March 2010
  3. 3. First, a bit about me & where I come from…
  4. 4. Who We Are SRI is a world-leading independent R&D organization Page 18 March 2010 <ul><li>Founded by Stanford University in 1946 </li></ul><ul><ul><li>A nonprofit corporation </li></ul></ul><ul><ul><li>Independent in 1970; changed name from Stanford Research Institute to SRI International in 1977 </li></ul></ul><ul><li>Sarnoff Corporation acquired in 1987 (formerly RCA Laboratories) </li></ul><ul><li>2,000 staff members combined </li></ul><ul><ul><li>800 with advanced degrees </li></ul></ul><ul><ul><li>More than 20 locations worldwide </li></ul></ul><ul><li>Consolidated 2008 revenues: approximately $490 million </li></ul>SRI headquarters, Menlo Park, CA Sarnoff headquarters, Princeton, NJ SRI Washington, D.C. SRI Tokyo, Japan SRI Harrisonburg, Virginia SRI St. Petersburg, Florida SRI State College, Pennsylvania
  5. 5. A Couple of Innovations… Page 18 March 2010 <ul><li>1967: Doug Engelbart patents the computer mouse </li></ul><ul><li>“ SRI patented the mouse, but they really had no idea of its value. Some years later it was learned that they had licensed it to  Apple  for something like $40,000. </li></ul><ul><li>1969: SRI is the recipient of the first packet transmission on what became ARPANET </li></ul>
  6. 6. Terms of Reference Inventors, Innovators & Innovation
  7. 7. Inventors or Innovators? Page 18 March 2010
  8. 8. Meanings of “Innovation” Page 18 March 2010 <ul><li>As a noun </li></ul><ul><ul><li>“ An innovation is an idea, object or practice that is perceived as new by an individual or other unit of adoption.” (Rogers, 1962, emphasis added) </li></ul></ul><ul><ul><li>Contrast with an “invention” </li></ul></ul><ul><ul><ul><li>Novelty </li></ul></ul></ul><ul><ul><ul><li>Non-obviousness </li></ul></ul></ul><ul><ul><li>An exogenous force…? </li></ul></ul><ul><ul><ul><li>Diffuses through a group or network </li></ul></ul></ul><ul><ul><ul><li>Has an impact </li></ul></ul></ul><ul><ul><li>Does innovation imply improvement? </li></ul></ul><ul><li>As a process </li></ul><ul><ul><li>An act of creation, but with a practical outcome or objective </li></ul></ul><ul><ul><li>Often the byproduct of taking a unique perspective (therefore nonobvious?) </li></ul></ul><ul><ul><ul><li>John Seely Brown: “Seeing Differently” </li></ul></ul></ul><ul><ul><li>Generally encompasses commercialization or implementation (Schumpeter) </li></ul></ul><ul><ul><li>Often involves a way of organizing and/or executing </li></ul></ul><ul><ul><ul><li>Therefore, innovation is inherently social </li></ul></ul></ul>
  9. 9. Why “Innovation Ecosystems?” The Power & Perils of Metaphor
  10. 10. The Innovation “Pipeline” Is it really a pipeline? Page 18 March 2010 Research Research Develop Design Produce
  11. 11. The “Chain-Linked” Model of Innovation Page 18 March 2010
  12. 12. The “Total Process Model” of Innovation Page 18 March 2010
  13. 13. One Depiction of the “Innovation Ecosystem” Page 18 March 2010 Source: Council on Competitiveness, 2004
  14. 14. Characteristics of Ecosystems Page 18 March 2010 <ul><li>Evolving </li></ul><ul><ul><li>Organic </li></ul></ul><ul><ul><li>Diverse </li></ul></ul><ul><ul><li>Symbiotic </li></ul></ul><ul><li>Complex </li></ul><ul><ul><li>Self-organizing </li></ul></ul><ul><ul><li>Self-regulating </li></ul></ul><ul><ul><li>Adaptive </li></ul></ul><ul><li>Fragile —or Resilient? </li></ul>
  15. 15. Why Models Matter Selecting the Portfolio of Innovation Policies Page 18 March 2010 Source: Dr. Gregory Tassey, NIST, 2007 and 2010
  16. 16. Evaluating Innovation Capacity Measuring Innovation
  17. 17. Comparing National Innovation Systems Who is more innovative? Page 18 March 2010 Source: R&D Magazine, December 2009, Analysis by Battelle Memorial Institute
  18. 18. Ranking Nations by “Innovation Capacity” Results of the INSEAD Global Innovation Index versus ITIF “Global Innovation-Based Competitiveness” Page 18 March 2010 INSEAD ITIF
  19. 19. Pay Attention to What You Measure Elements of the Innovation Value Chain Page 18 March 2010 <ul><li>Inputs </li></ul><ul><ul><li>The “raw materials” to enable innovation </li></ul></ul><ul><ul><li>Human capital, financial capital, intellectual capital </li></ul></ul><ul><li>Processes </li></ul><ul><ul><li>Factors that transform the inputs </li></ul></ul><ul><ul><li>Connective organizations, </li></ul></ul><ul><ul><li>facilities, infrastructure </li></ul></ul><ul><ul><li>regulation </li></ul></ul><ul><li>Outputs </li></ul><ul><ul><li>The proximate results of innovation </li></ul></ul><ul><ul><li>Patents, start-up firms </li></ul></ul><ul><li>Outcomes </li></ul><ul><ul><li>Improving the local economy and community? </li></ul></ul><ul><ul><li>Industry growth, employment growth, quality of life </li></ul></ul>
  20. 20. Focus on China What’s the nature of the threat? Page 18 March 2010
  21. 21. How Is China Different? Page 18 March 2010
  22. 22. The Social Aspects of Innovation Enabling Innovation
  23. 23. Myth or Fact Page 18 March 2010 <ul><li>Myth: The Garage Innovator </li></ul><ul><ul><li>Two guys working in a garage can change the world </li></ul></ul><ul><li>Fact: Modern innovators are teams </li></ul><ul><ul><li>Innovation requires many types of expertise </li></ul></ul><ul><ul><li>Includes financiers, consultants, designers and more </li></ul></ul>
  24. 24. Why Ecosystems Matter Page 18 March 2010
  25. 25. Is Google Innovative? Page 18 March 2010
  26. 26. New Directions in the Mode of Innovation Page 18 March 2010 <ul><li>Recent analysis of innovation processes pinpoint the need for collaboration </li></ul><ul><ul><li>No one group or organization has all the knowledge for innovation </li></ul></ul><ul><ul><li>Innovations which cross boundaries tend to have greater impact </li></ul></ul><ul><ul><li>Distinguish between “open innovation” and “open source innovation” </li></ul></ul>
  27. 27. The Open Innovation Model Page 18 March 2010 Source: Dr. Henry Chesbrough & PRTM
  28. 28. Open Innovation at Royal Philips Electronics Page 18 March 2010
  29. 29. The Significance of “Innovation Communities” Page 18 March 2010 <ul><li>Innovation productivity and knowledge creation is increased by linking disparate networks </li></ul><ul><ul><li>“ The strength of weak ties”—the best links are those which cross between communities </li></ul></ul><ul><ul><li>Boundary-spanning is an element of “seeing differently” (John Seely-Brown) </li></ul></ul>
  30. 30. Building a Community of Innovation <ul><li>Strong leadership to build trust among participants </li></ul><ul><li>Existence of significant incentives to motivate collaboration </li></ul><ul><li>Governance process for managing conflicts </li></ul><ul><li>Institutions which reinforce and bridge across phases of the innovation value chain </li></ul><ul><li>Processes for socializing community participants to create their own subculture </li></ul>Page 18 March 2010
  31. 31. Prerequisites for Successful Innovation Communities Page 18 March 2010 Knowledge sharing & exchange Learning processes & communities of learning Social capital & affinity Leadership Incentives Governance Interaction Socialization Trust-building
  32. 32. Example: Albany’s College of Nanoscale Science & Engineering & SEMATECH Page 18 March 2010
  33. 33. Operating Model Page 18 March 2010
  34. 34. Re-Envisioning the Innovation Process Page 18 March 2010
  35. 35. The CNSE Community of Innovation <ul><li>Leadership </li></ul><ul><ul><li>Entrepreneurial visionary (Prof. Alain Kaloyeros) </li></ul></ul><ul><ul><li>Credibility (backing of SEMATECH, Governor Pataki, NIST) </li></ul></ul><ul><li>Incentives </li></ul><ul><ul><li>Massive capital costs for moving to next generation of semiconductor manufacturing </li></ul></ul><ul><ul><li>Opportunities to share pre-competitive knowledge </li></ul></ul><ul><li>Governance </li></ul><ul><ul><li>Dynamic networks of research teams </li></ul></ul><ul><ul><li>Partners select where they will put their investments </li></ul></ul><ul><li>Socialization </li></ul><ul><ul><li>Shared research and office space </li></ul></ul><ul><ul><li>Faculty and students are the “glue” linking partners </li></ul></ul>Page 18 March 2010
  36. 36. How Can You Innovate in Innovation? Page 18 March 2010 <ul><li>Facilitate innovation </li></ul><ul><ul><li>Lower the inherent barriers to creating and adopting innovations </li></ul></ul><ul><li>Accelerate innovation </li></ul><ul><ul><li>Reduce time-to-market by streamlining the formation of innovation teams </li></ul></ul><ul><li>Optimize innovation </li></ul><ul><ul><li>Focus resources on innovation opportunities with highest potential for success and impact </li></ul></ul>
  37. 37. <ul><li>Thank You! </li></ul><ul><li>[email_address] [email_address] </li></ul>