1. Gatekeeper 1 created by Wesley Shu, Ph.D. in MIS, University of Arizona

2. Caveman 2 created by Wesley Shu, Ph.D. in MIS, University of Arizona

3. “Caveman” Social Structure In a cave: Overlapping and redundant relationships Unwanted behavior by any individual will become more widely known Collective punishment of unwanted behavior will be easier Trust, discipline Caves (clusters) are linked by ‘bridging connections.’ 3 created by Wesley Shu, Ph.D. in MIS, University of Arizona

4. “Caveman” Social Structure Robert Steward in the following slide. He is a gatekeeper. 4 created by Wesley Shu, Ph.D. in MIS, University of Arizona

5. Inventors in Boston’s Largest Connected Cluster circa 1986-1990 5 created by Wesley Shu, Ph.D. in MIS, University of Arizona

6. Allegory of the Cave 6 created by Wesley Shu, Ph.D. in MIS, University of Arizona

7. Caveman Benefit Cohesively clustered structure will greatly enhance the development of an idea. Cohesive structure can also aid the subsequent diffusion of an idea from its original creators to potential adopters. 7 created by Wesley Shu, Ph.D. in MIS, University of Arizona

9. Caveman Problem Clustering makes seminal creativity less likely. Isolated groups of inventors go stale and risk vulnerability to groupthink. Inventors within cohesive clusters are less likely to invent a new idea but the new ideas are more likely to be developed and adopted by other inventors. 9 created by Wesley Shu, Ph.D. in MIS, University of Arizona

10. Solution to the Caveman Problem Cohesive clusters with bridging connections 10 created by Wesley Shu, Ph.D. in MIS, University of Arizona

11. Solution to the Caveman Problem Bridging connections counterbalance insularity by bringing in fresh and non-redundant information. Gatekeepers are ‘interpreters.’ 11 created by Wesley Shu, Ph.D. in MIS, University of Arizona

12. Examples - Lombardy “…the components of the design system – schools, studios, and manufacturers – were not significantly better or worse in that region than elsewhere. What distinguished Lombardy was the number, strength, and quality of the links between these components.” Cf. Rochester, NY Roberto Verganti, Design-Driven Innovation, p. 159. 12 created by Wesley Shu, Ph.D. in MIS, University of Arizona

13. Italian furniture manufacturers’ portfolio of designers 13 created by Wesley Shu, Ph.D. in MIS, University of Arizona

14. Interpreters as Designers “The designer who wants to propose a project doesn’t have to bring drawings, …He has to present new ideas, new proposals, even if he doesn’t know how to implement them. It is our Center for Research and Development that gives life to the project.” Federico Busnelli, B&B Italia 14 created by Wesley Shu, Ph.D. in MIS, University of Arizona

15. 15 created by Wesley Shu, Ph.D. in MIS, University of Arizona

16. Example - Intel Open Innovation – will be introduced later created by Wesley Shu, Ph.D. in MIS, University of Arizona 16

17. Danger Most companies use regional centers only as antennas to detect local trends rather than to mediate local talent. Need to know the rich web of local relationships 17 created by Wesley Shu, Ph.D. in MIS, University of Arizona

18. Six Degree of Separation Drawing a sample from the white pages of Midwest towns and designating a friend in a Boston suburb as a “target,” Milgram asked each Midwesterner to forward a letter to a personal friend who might know the target. J. Travers and S. Milgram, “An Experimental Study of the Small World Problem,” Sociometry, 32 (1969): 425-443. 18 created by Wesley Shu, Ph.D. in MIS, University of Arizona

19. Six Degree of Separation Intermediate recipients who did not know the target were asked to forward the letter to friends who might. The process continuing until the letter reached the Boston target. The average number of connections was six. 19 created by Wesley Shu, Ph.D. in MIS, University of Arizona

20. The World Is Smaller WTO Bilateral FTA Talents are free to move. Non competing or non disclosure agreements will not work. True talents do not want to be bound by them. Silos may be the norm if companies want to keep ‘talents’ inside. And what we should do? 20 created by Wesley Shu, Ph.D. in MIS, University of Arizona

21. What Companies Should Do in a Smaller World? Not afraid of information or talent outflow But to maximize the inflow! 21 created by Wesley Shu, Ph.D. in MIS, University of Arizona

22. What Companies Should Do in a Smaller World? Gatekeeper! gatekeepers—technical professionals who span organizational boundaries, accelerating the process of invention by contributing to and capitalizing on inter-firm “spillovers” of technical knowledge. Fleming, L, & Marx, M., “Managing Creativity in Small Worlds,” California Management Review, 48(4), Summer 2006. 22 created by Wesley Shu, Ph.D. in MIS, University of Arizona

24. Altimeter Group23 created by Wesley Shu, Ph.D. in MIS, University of Arizona