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8/4/14
1
1
Innovation Ecosystems:
Benefits, Challenges, and
Structures
Discussion
August 5, 2014
Joel West
Professor, Inno...
8/4/14
2
3
Users
Smartphone Ecosystems
West & Wood, Advances in
Strategic Management (2013)
4
Networks, Communities
•  Net...
8/4/14
3
5
Marengo: Platforms
• Interdependence and complementarity
of ecosystems
• Particular interest in platforms
• Com...
8/4/14
4
7
Miles: Communities
• We know collaboration is important
• What are the barriers between firms?
• What are the b...
8/4/14
5
9
Snow: Communities
• Multi-firm innovation ecosystems
• How can firms best collaborate?
• What are the rules?
• ...
8/4/14
6
11
Teece & Leih: Local
Ecosystems
• What is the proper role for a university
in the local innovation ecosystem?
•...
8/4/14
7
13
Final Thoughts
• Ecosystems are increasingly recognized
as important to firm success
• Important to theory and...
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Discussant: Innovation Ecosystems (AOM 2014)

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Closing discussant slides for August 4, 2014 session at Academy of Management 2014 entitled “Innovation Ecosystems: Benefits, Challenges, and Structures.” Covers talks by Luigi Marengo, Raymond Miles, Charles Snow and David Teece

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Discussant: Innovation Ecosystems (AOM 2014)

  1. 1. 8/4/14 1 1 Innovation Ecosystems: Benefits, Challenges, and Structures Discussion August 5, 2014 Joel West Professor, Innovation & Entrepreneurship School of Applied Life Sciences 2 Innovation Ecosystems • Interdependence between firms •  Joint need for ecosystem health •  Work cooperatively to create value •  Specialization and niche finding • Often lead by dominant firm •  Firm success depends on ecosystem management skills •  Importance of building healthy and complete ecosystem Moore 1993, Iansiti & Levien, 2004, Adner, 2012
  2. 2. 8/4/14 2 3 Users Smartphone Ecosystems West & Wood, Advances in Strategic Management (2013) 4 Networks, Communities •  Networks link multiple organizations via transactions or ongoing ties •  Powell, 1990; Gomes-Casseres, 1996; Staudenmayer et al, 2000 •  Communities add shared identity and governance •  Markus, 2007; von Hippel, 2007; O’Mahony & Lakhani, 2011 •  Ecosystems link firms that provide complementary goods and services •  Moore, 1993; Iansiti & Levien, 2004; Adner & Kapoor, 2010 •  Platforms combine a technical compatibility architecture with an ecosystem •  Gawer & Cusumano, 2002; West, 2003; Eisenmann, 2008 See West, New Frontiers in Open Innovation (2013)
  3. 3. 8/4/14 3 5 Marengo: Platforms • Interdependence and complementarity of ecosystems • Particular interest in platforms • Complex systems • Mutual interest in platform success • Need to evolve ecosystem and its outputs • Studied via a model 6 Marengo: Further Research • Opportunity to generalize insights on dynamic platform competition • Examine competing platforms • Four basic types of platform contests (Gallagher & West, 2009): • Static (VCR) • Episodic (early videogames) • Linked (cellphones, current videogames) • Continuous (smartphones, social media)
  4. 4. 8/4/14 4 7 Miles: Communities • We know collaboration is important • What are the barriers between firms? • What are the barriers within firms? • Is it driven by firm (or societal) norms? • How can we change things? • Direct links to cumulative innovation • Allen, 1983; Nuvolari, 2004; Scotchmer, 2004; Murray & O’Mahony, 2007; also von Hippel, 2005 8 Miles: Further Research • Many firms compete w/o cooperating • Rarer are examples of firm cooperation • Inventors of the airplane (Meyer, 2013) • Standardization communities (Axelrod et al, 1995; Leiponen, 2008; Simcoe, 2012) • Open source software (West, 2003; Stam, 2009; Spaeth et al, 2010) • Are differences attitudinal or strategic? • An open empirical questions
  5. 5. 8/4/14 5 9 Snow: Communities • Multi-firm innovation ecosystems • How can firms best collaborate? • What are the rules? • What benefits can be realized? See Fjelstad et al (2012), Moore (1993) 10 Snow: Further Research • We have examples of the architecture of interfirm collaboration •  West & O’Mahony, 2008; Fjeldstad et al, 2012 • But need a more general solution •  What are the fundamental axioms? •  Moderators? •  Contracts and property rights? • Other research designs (experiments, simulations, ethnographic, etc.) •  Cf. O’Mahony & Ferraro, 2007; Terwiesch & Xu 2008
  6. 6. 8/4/14 6 11 Teece & Leih: Local Ecosystems • What is the proper role for a university in the local innovation ecosystem? • How can it be made more effective? • What are the needs of new firms? • How can both parties benefit? • Will this corrupt the university? 12 Teece & Leih: Further Research • Some of this is well-trodden • Universities as seeds of local industry clusters (cf. Kenney & Mowery 2014) • University tech transfer • University-firm open system • Measuring ongoing flows (both ways) • Measuring simultaneous ties • Role of boundary spanners
  7. 7. 8/4/14 7 13 Final Thoughts • Ecosystems are increasingly recognized as important to firm success • Important to theory and practice • An opportunity for future research • Considerable research on ICT and other digital goods • How do these ideas extend beyond ICT? • E.g. Kim et al 2014 study of Chez Panisse • Clearly delineate overlap with other constructs

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