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Victor W. HwangRAINFOREST DYNAMICSWHAT MAKES ECOSYSTEMS TICK?
Where are we today in history?
1776Classical economicseconomic value from cost of raw inputs
1871Neoclassical economicseconomic value from supply-demand equilibrium
1990Business cluster theoryeconomic productivity from geographic concentration
Today, it all seems unsatisfactory.How do we cultivate systems,not just describe them?
The world needs a new frameworkto accelerate growth…  1776    1871     1990                           ?                   ...
A new paradigm for innovation…  Plantation         Rainforest
While plants are harvested mostefficiently on farms,weeds sprout best in Rainforests.
Rainforests nurture serendipitous interactions...
A radical shift in perspective,from this...
… to the real world.Not gears, but human beings.                   Landlord       Land                     Engineer       ...
And real human beings are separated… by geography, culture, language, social networks, andlack of trust.
This happens across entire systems.             Across an entire system
Elinor Ostrom, 1933-2012Nobel Prize in Economics, 2009                                 Zero-sum games can indeed          ...
The Secret of Innovation Ecosystems  Economies thrive when culture                 Across an entire system  overcomes soci...
But how do we design networkswhere value comes from chaos?Can we engineer serendipity?
It’s not just creative destruction.Far more important—and harder—is creative reassembly.
The culture of the American frontierrequired strangers to trust fast, or die…
Rules of the RainforestRule #1: Break rules and dream.Rule #2: Open doors and listen.Rule #3: Trust and be trusted.Rule #4...
How do humans change behavior?          Across an entire system
Tools to Build RainforestsTool #1: Learn by DoingTool #2: Enhance DiversityTool #3: Celebrate Role Models and Peer Interac...
What does it mean?OLD                           NEW1. Factors of production      1. Cultural transformation2. Clusters, te...
Rainforests thrive by nurturingwhat makes us uniquely human.
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
Victor Hwang, Act I (Global Innovation Summit 2012)
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Victor Hwang, Act I (Global Innovation Summit 2012)

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Victor Hwang, Act I (Global Innovation Summit 2012)

  1. 1. Victor W. HwangRAINFOREST DYNAMICSWHAT MAKES ECOSYSTEMS TICK?
  2. 2. Where are we today in history?
  3. 3. 1776Classical economicseconomic value from cost of raw inputs
  4. 4. 1871Neoclassical economicseconomic value from supply-demand equilibrium
  5. 5. 1990Business cluster theoryeconomic productivity from geographic concentration
  6. 6. Today, it all seems unsatisfactory.How do we cultivate systems,not just describe them?
  7. 7. The world needs a new frameworkto accelerate growth… 1776 1871 1990 ? 2012
  8. 8. A new paradigm for innovation… Plantation Rainforest
  9. 9. While plants are harvested mostefficiently on farms,weeds sprout best in Rainforests.
  10. 10. Rainforests nurture serendipitous interactions...
  11. 11. A radical shift in perspective,from this...
  12. 12. … to the real world.Not gears, but human beings. Landlord Land Engineer Labor Output Capital Investor Technology? Scientist
  13. 13. And real human beings are separated… by geography, culture, language, social networks, andlack of trust.
  14. 14. This happens across entire systems. Across an entire system
  15. 15. Elinor Ostrom, 1933-2012Nobel Prize in Economics, 2009 Zero-sum games can indeed become positive-sum
  16. 16. The Secret of Innovation Ecosystems Economies thrive when culture Across an entire system overcomes social barriers and fosters connectivity, trust, and collaboration between diverse people…
  17. 17. But how do we design networkswhere value comes from chaos?Can we engineer serendipity?
  18. 18. It’s not just creative destruction.Far more important—and harder—is creative reassembly.
  19. 19. The culture of the American frontierrequired strangers to trust fast, or die…
  20. 20. Rules of the RainforestRule #1: Break rules and dream.Rule #2: Open doors and listen.Rule #3: Trust and be trusted.Rule #4: Experiment and iterate together.Rule #5: Seek fairness, not advantage.Rule #6: Err, fail, and persist.Rule #7: Pay it forward.
  21. 21. How do humans change behavior? Across an entire system
  22. 22. Tools to Build RainforestsTool #1: Learn by DoingTool #2: Enhance DiversityTool #3: Celebrate Role Models and Peer InteractionTool #4: Build Tribes of TrustTool #5: Create Social Feedback LoopsTool #6: Make Social Contracts Explicit
  23. 23. What does it mean?OLD NEW1. Factors of production 1. Cultural transformation2. Clusters, technoparks, 2. Human connectivity, not just and incubators physical proximity3. Local first, then global 3. Wherever the value chain goes4. Writing smaller checks = 4. Fund managers and their venture capital human qualities matter5. Hiring by skills and 5. Character, trust, respect, role resume models matter6. Plan specific outcomes 6. Experiment, adapt, iterate7. Measure output 7. Measure environment
  24. 24. Rainforests thrive by nurturingwhat makes us uniquely human.

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