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Innovation Economics:
Harnessing the Power of
Open Networks

Ed Morrison
Purdue Center for Regional Development
June 24, 2011
Oklahoma City, 1993
A basket case
Oklahoma City, 2010
A national model
Realities in 1993...
Another clear fact
Globalization matters
Networks matter
First rumblings of the Internet
 Millions of Users


    2,000



    1,500



    1,000



      500



        0
            1995     1998   2001   2004   2007   2010
Clusters matter
OK, Smart guy...
How do you build
an innovation economy?

How do you develop clusters?
New Ways of
It comes down    Thinking
to this...

                New Ways of
                 Behaving


                New Ways of
                  Doing
New Ways of
It comes down    Thinking
to this...

                New Ways of
                 Behaving


                New Ways of
                  Doing
The Shanghai Perspective
Deal with it
Confront your Switchpoint
We have choices to make
Engage the Internet
Our first interactive mass medium
Move to a new S curve
Wealth created by networks
Understand the challenges
We are between two economies
Link assets to create
pathways and opportunities
Develop 5 types of networks
Build a balanced portfolio
Find the leverage points
Everything is connected
Think in new ways
Networks are different
Study networks
Welcome to a new world
Molecular biology
Look familiar?
Understand
Open Source
software
How did Linux happen?
Manage
complexity
with simplicity
The world is complex enough
It comes down   New Ways of
to this...       Thinking


                New Ways of
                 Behaving


                New Ways of
                  Doing
Our civic economy is in a ditch
Proof point: High School Dropouts
Transform our civic economy
To make our entire economy more productive
Create shared value
Vital to our productivity
Embrace diversity
What is the reality of the coffee cup?
Civility is strategic
So we can do complex thinking
Create rules of civility
There are none, unless we do
Cross invisible fences
(They don’t work in global markets...besides they’re for dogs)
Confront your Personal Switchpoint
Behave in ways that build trust and mutual respect


  If your actions inspire others to dream more,
  learn more, do more and become more,
  you are a leader

                                      John Quincy Adams
It comes down   New Ways of
to this...       Thinking


                New Ways of
                 Behaving


                New Ways of
                  Doing
Why Strategic Doing?
Old approaches are too costly, inflexible and difficult to manage
Strategic Doing aligns networks
with “Link and Leverage” Strategies
Powerful experiences
Experiences that connect and move people...




                                              Strategic Doing session
                                              Kokomo, IN
Innovation
The Nation’s first green manufacturing certification




                        Starting point:
                        12 people conducting a Strategic
                        Doing session in the basement of the
                        White County courthouse
Cluster activation
Milwaukee Water Cluster launched a strategic agenda
Speed
Milwaukee Water Cluster 3 months after launch session
Strategic Doing accelerates trust
By moving people to action quickly
A core team leads the cluster
The team commits to principles of open innovation
Core Team
Privately led with civic
support

Commitment to
collaborative innovation
(creating shared value)

Rules on information
sharing, confidentiality,
governance emerge
Higher education anchors
Colleges and universities can anchor the cluster
Others align to the cluster
Development organizations align to advance the strategy agenda
Build strategy portfolios
Five types of networks support a cluster
Place-based
innovation
Use the same strategy
map
Charleston Digital Corridor
Place-based innovation
21 million jobs
needed to return to full employment
by 2020
Source: McKinsey Global Institute
OK, Smart guy...         New Ways of
How do you build
an innovation economy?    Thinking


                         New Ways of
                          Behaving


                         New Ways of
                           Doing
OK, Smart guy...         New Ways of
How do you build
an innovation economy?    Thinking


                         New Ways of
                          Behaving


                         New Ways of
                           Doing
Small Business Vitality Rankings
We can transform



                    1. Austin

                    2. Oklahoma City

                    3. Charleston, SC

                    Source: Business Journal Digital Network
                    April 11, 2011
Strategic Doing
Accelerating solutions through civic collaboration
Coming Fall 2011
Purdue Strategic Doing Professional Certification
Get Connected
Purdue Center for Regional Development
Thank you!
Ed Morrison

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