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RIS3 WORKBOOK (A) FOR LEARNING-
DRIVEN REGIONAL DEVELOPMENT
For project organizations, regions and project consortiums
involved in regional development projects
Toni Pienonen and Mikko Markkanen, Business Arena Oy
!
www.innofokus.fi
Change2020 development program was part of
the operations carried out by INNOFOKUS
project which was funded by European Social
Fund, Ministry of Education. INNOFOKUS
project was managed by Aalto University School
of Business Small Business Center (SBC).
Summary
RIS3 WORKBOOK FOR LEARNING-DRIVEN REGIONAL DEVELOPMENT
provides a practical view on how project organizations, regions and project
consortiums involved in regional development projects can meet the smart
specialisation requirements of EU programme period 2014-2020.
Contents of this workbook were documented by Toni Pienonen and Mikko
Markkanen as part of INNOFOKUS project and its Change2020 program.
Throughout the year 2014, the program organized several opportunities to create
clarity on these issues. Following tens of participatory workshops and bench-learning
events for hundreds of participants, this workbook summarizes the results.
This workbook has a companion piece RIS3 WORKBOOK FOR PROJECTS which is
intended for individual projects. You can find at it at www.innofokus.fi


* Please note that in this context, ”projects” mean specifically regional development
projects or applied and demand-driven research projects, unless otherwise stated.
Contents
The approaches described in this workbook can be used to orchestrate
the regional development activity of a project organization, a region or a
project consortium. Workbook has four blocks.
1) Smart specialisation is not a fixed top-down strategy paper, but an
ongoing process of experimentation and discovery.
2) Regional developers need to pool together a variety of resources
around the same vision. To make this happen, anyone working with
regional development can utilize ”activity portfolio thinking” in one way or
another. Portfolios are an instrument for project organizations, regions and
project consortiums involved in regional development projects to manage
interlinked activity.
3) Orchestration ensures that actors behind activities interact, learn and
move in the purposeful direction.
4) Idea and case examples help to illustrate how to increase interaction
and learning in practice according to RIS3 requirements.
Catalyzation and facilitation
Activity portfolios
Orchestration
Idea and case examples
The purpose of smart specialisation
(RIS3) is to act as a catalysis for a
bottom-up process. It is not static
paper or structure, but an evolving
process, where participants learn by
doing. This attitude requires a new
set of processes and instruments
from everyone involved. Instead of
control, facilitation and shared
ownership are the key.
1)
CASE EXAMPLE: Kymenlaakso Change2020 journey - university as regional smart
specialization facilitator
During the Change2020 program, KyAMK became the regional primus motor in the process of
setting smart specialisation on track in Kymenlaakso. They learned first hand that smart
specialization is an evolutionary learning process of discovery and increasing co-creation.
1/2014
KyAMK enters in
Change2020 program
Aalto partnership
possibilities in Russia-
cooperation
10/2014
Learning from
Lapland and local
universities’ role as
smart specialisation
primus motor
1/2015 →
Partnership
possibilities with
Change2020 regions
Jumping off to moving
train - regional council and
Cursor onboard in ”Team
Kymenlaakso"
Common Kyme
delegation to
Brussels 12/2014
Team Kyme opening
new networks
internationally
Finding out about own
regional strengths with
help of outside viewpoints
EXAMPLE: First Follower - Leadership
Lessons from Dancing Guy
http://youtu.be/fW8amMCVAJQ
Video on what catalyzation and change making is
really about in simple straightforward manner -
starting and nurturing a movement.
• be easy to follow
• be clear about what you want
• go public, work in the open
• make it easy to follow and join in
• nurture the first follower
• the first follower is what makes a dancing
madman into a popular movement
Activity portfolios are a set of
projects and development
activities guided by a shared vision
in a specific theme. By utilizing
portfolio-thinking, regional
developers can leverage and reach
resources that would otherwise be
unattainable.
2)
Activity portfolio always needs a specific
theme
Building the portfolio starts with identifying a
specific theme that brings together different
activities and actors.
For example, the common thematic can be
formed around:
• a societal challenge, issue or a wicked
problem
• a regional smart specialisation spearhead
• an emerging technology
• a multidisciplinary industry / field
If the theme is too narrowly defined, you may end
up limiting the scope too much. Make it too big,
and there isn’t enough glue to connect activities
in a sensible way.
Activity portfolio always a needs a
strong vision
Just like individual projects (and even more so)
portfolios need a shared vision. A well-defined
common theme helps to set it out. Activity
portfolios are essentially self-organizing networks
that cannot be controlled - they can only be
nudged in the right direction. Vision is a glue that
binds together individual activity and gives a
sense of purpose for people involved.
Activity portfolios can take place on
three different levels
Secondly, portfolios to define on what level the
activity portfolio takes place. Roughly speaking,
portfolios can exist on three levels that overlap
each other:
• A project organization (one organization):
for example, a university may have its set of
project and activity portfolios for certain
themes
• Region (one region, many organizations):
projects and activity used to advance a specific
goal, for example related to bioenergy, often
implemented by various individual project
organizations
• Programme or a project consortium (many
regions, many organizations): a network of
different project organizations working
together with interlinked activities
Portfolios should use
funding instruments in
synergy
In Finland, domestic funding for
regional development projects is being
significantly reduced. At the same time
European Union expects that ESI funds
and domestic funding instruments
should be used increasingly more in
synergy with H2020 funding and other
international project instruments.
For Finnish HEIs and project
organizations to be able to better reach
out for international project
possibilities, a sort of investment
thinking towards project orchestration
is required. Leveraging international
funding with domestic funding is the
key.
Domestic
€
International
€€
International + domestic
€€€
One way to depict the
structure of activity
portfolios is to position
individual projects and
activities in the big picture
according to typology of
these three different types:
1. Capacity building:
Helping businesses and HEI
to build groundwork.
2. Creating new: Research
and development with
(international) partners.
3. Research to market:
Applying latest research and
knowledge in practice.
Note that this is not a stop-
gate model. Portfolio,
projects and information
flows can work in different
directions.
1. Capacity
building
2. Creating new 3. Research to
market SHARED
VISION
information and resource flows
Activities Activities Activities
As certainty increases, iterate
and scale up by pooling more
resources. Build pathways for
university-society-
cooperation and international
leverage. Involve businesses in
development.
World-class research: R&I,
demonstration pilots and
development of KETs (key
enabling technologies)
CAPACITY BUILDING
Platforms, living labs, communities,
ESI and EAFRD funds, Tekes and
other development activity for:
capacity building, skills, proof of
concepts and business advisory
services.
CREATING NEW
Horizon 2020 and other
international funding instruments
for networked R&D.
RESEARCH TO MARKET
Platforms, living labs, ESI and
EAFRD funds, Horizon SME
instrument, Tekes and other
development activity for applied
technology and knowledge transfer
to businesses and market.
Small-scale experiments test the ideas and
solutions in practice. Objective is to
demonstrate the impact, benefits and learn
as much as possible. Experiments also attract
resources (networks, inertia, partners) behind
the idea.
Transferring and
implementing latest research
knowledge into innovations
with businesses as early
adopters. Sourcing existing
knowledge and combining it
into new concepts.
EXAMPLE OF A
PORTFOLIO
UTILIZING SYNERGY
OF DIFFERENT
FUNDING
INSTRUMENTS
Circle = project or activity,
radius of the circle
corresponds to the size of the
project or activity SHARED
VISION
Portfolio requires
an orchestrator who
supports and
facilitates the key
players - with
information,
resources and
learning
3)
In the end, it’s not about who owns the projects and
activity, but who orchestrates the portfolio - someone
who connects the dots, understands the big picture
and drives others towards vision.
Orchestration ≠ traditional
leadership
Since activity portfolios (and smart
specialisation in regions) are
essentially networks based on
collaborative leadership, where
leadership is shared and comes in
different forms (as opposed to
hierarchy and official leadership),
orchestrator needs to use a
different kind of leadership
mindset.
Networks are living systems of self-
organization. They cannot be
controlled, only nudged in the
right direction.
Collaborative leadership maxims that orchestrators
should follow
• There is no leader in a network. Networks are orchestrated with strong vision,
sense of purpose and meaningful roles.
• Paint the big picture and show a common direction. Connect the dots. Make
it clear how individual elements are connected to each other.
• Communication in its many forms (face-to-face meetings, events, etc.) is vital.
• Orchestrator should help others to learn from each other and recognize
opportunities. Make learning, success stories and good failures visible - not
to punish, but to learn effectively.
• Bring expertise from the network for common use and help to combine
resources.
• Instead of planning, focus on doing things. 90% of time spent in a network
should be about doing, 10% planning. Trust builds from results.
• Help people in the network to become more active; seek champions and first
followers, and nurture them
Examples of
orchestrator’s tasks.
Learning and co-
creation enable
portfolios to function
successfully
Organize events and
workshops
Broker and connect
people, activities and
resources
Remove impediments
Document the process
and lessons learned
Use digital open
platforms to make it
easier to share


Turn experiences into
stories
Developed and modified from
Scrum methodology and Kari
Mikkelä’s description of Urban Mill
service process: urbanmill.org
QUESTION: Who in your
organization or region should
be the orchestrators?
!
Failed
experiment
Successful
experiment
Portfolio orchestrator needs to analyze which solutions in different
projects and activities work and do not. He follows the mindset of
”Failure is a result. Fail fast, learn fast. You cannot find the right answers,
but workable solutions.”
Learning takes place all the time - within projects and across the portfolio. A
portfolio needs both physical and virtual arenas for sharing tacit and explicit
knowledge.
Furthermore, portfolio orchestrator and individual project managers need to maintain
flexibility and a vigilant watch for black swans, the unexpected surprises that can result in
profitable spin-offs and spin-inns.
Idea and case
examples on how to
increase learning and
co-creation in
portfolios
4)
CASE EXAMPLE: Lapland’s staff
exchange, a good practice
Since most valuable project knowledge (tacit
knowledge and social capital) is so strongly
embedded in individual people - and is therefore
difficult to transfer - one of the best ways to
increase learning in project portfolios is staff
exchange.
Regional project organizations can cooperate and
learn from each other by allowing their experts to
simultaneously work in two different organizations
and / or projects.
It was discovered in Change 2020 activities that
Lapland in particular had excellent experiences
from widespread use of staff exchange between
HEIs and regional development organizations.
30%
Regional
development
agency
70%
University
”Knowledge transfer on legs.”
Utilize cities, regions and
social environments as living
labs and testbeds
“The laboratories for innovation are no longer traditional
university facilities, but regional innovation ecosystems
operating as testbeds for rapid prototyping of many
types on user-driven innovations: new products, services,
processes, structures and systems, which need to be of
transformative and scalable nature.” - CoR Opinion on
Horizon 2020
© Toni Pienonen
Platform-based approach and
ecosystems are the new black in
regional development
Some typical characteristics of platforms:
• facilitating bottom-up activities, letting things happen (instead
of control or management)
• testbeds for knowledge co-creation, citizens, business and
society, universities and public sector together (quadruple helix)
• experimentation, prototyping and piloting possibilities
• solving thematic issues via multidisciplinary approach
• intermediaries that connect HEIs, business, users and society
• agile resource-sharing, continuous organizing and reorganizing
around required tasks via individuals, who can take care of
them, not by organizations
Urban Mill is a thematic focal point and open innovation platform
service for global urban innovators in Espoo, Finland. It is a co-
working space, an innovation community, as well as a change
orchestration tool for urban development. It aims to re-define the way
in which people accomplish joint innovation work, and aims to make
societal impact in a global urban context. Urban Mill is part of Espoo
Innovation Garden, a focal point of innovation buzz on Aalto University
campus. www.urbanmill.org
CASE EXAMPLE:
Platforms are essential, as paradigm
of Open Innovation 2.0 takes a
prominent role. The key is to involve
users and society, business,
universities and public sector in
cross-fertilisation, experimentation
and rapid prototyping in real world
setting.
It is vital to understand the
importance of individuals and their
impact. Tasks should be organized
according to individuals and shared
ownership, not organizations.
(source: Bror Salmelin, DG Connect)
Don’t lock your
mindset in
arbitrary strategy
boxes - design the
activities based on
real-life needs,
those of the
customers and
society
If you represent an European region or
organization trying to find international
partnerships, it might be easier to build common
ground and vision with partners and business by
creating solutions to real-life societal challenges.
Don’t be fixated by your own arbitrary strategy
boxes of supposed smart strengths. Instead,
reflect your RIS3 priorities or themes in
comparison to grand societal problems and
needs, e.g. ”urbanization”.
Understand how answering to these societal
needs translates into untapped international
business opportunities, particularly in growing
markets of Asia, Americas and Africa. Europe
should not be too inward-focused.
Co-create new solutions with society, business,
public sector and universities.
Utilize the various testbeds and platforms
provided by European partners, living labs, R&D
facilities. Experiment and validate your solutions
internationally. Europe is after all a diverse place
with different markets and regions. Make use of
this diversity to create references that work
anywhere around the globe.
Scale-up rapidly and commercialize
society
business
universities
public 

sector
Thematic approach: For example,
topic of urbanization crosses many
different smart specialisation
spearheads - for example in case of
Uusimaa ”urban cleantech”,
”welfare city” and ”smart citizen”
Societal need:
Internationally,
urbanization
touches particularly
growing economies
Quadruple helix:
co-creation to build
solutions
Experimentation:
European testbeds for
experimentation and
validation to create
European solutions
CASE EXAMPLE: Two-part project call for creating more cooperation and synergies between
different funding instruments in a region
1. Thematic idea tender:
regional financing authority
requests solutions and ideas
for regionally important
themes
3. Feedback to ideas:
financing authorities give
feedback for all tender
participants
4. Combining and sparring
ideas: using virtual and
physical environments, the
financing authority brings the
participants together, helps
them to identify common
possibilities and portfolios
5. Public project call: As a
result, the project bidders are
better equipped to answer
the official project call - there
is more cooperation and
actual project call phase is
faster
2. Proposing solutions:
project organizations,
businesses and stakeholders
propose ideas and solutions
North Karelia Centre for Economic Development, Transport and the Environment and Regional Council of North Karelia
organized a similar idea process in the spring of 2014 with much success. Before phase 4), ideas were added to an
open virtual board for discussion and overview: https://trello.com/b/lwCZ02vV/pohjois-karjalan-hankeidealeiri-2014
!
KYMENLAAKSO
CHANGE2020 JOURNEY
LAPLAND
CHANGE2020 JOURNEY
POLAMK
CHANGE2020 JOURNEY
AALTO
CHANGE2020 JOURNEY
Ideas and connections for Open
Innovation 2.0
Partnership possibilities with
Change2020 regions + sharing
international connections
Partnership possibilities with
Change2020 regions
Showcasing Otaniemi campus
area and platforms
Lapland as an internationally
recognized example to other
regions in smart
specialisation
Outsiders’ perspective and
input for identifying Lapland’s
strengths Partnership possibilities with
Change2020 regions +
sharing international
connections
Ideas and benchmark from
other universities
Tools and input for improving
PolAMK’s Horizon 2020 capability
KyAMK as facilitator and
accelerator of Kymenlaakso
smart specialisation
Aalto partnership possibilities
in Russia-cooperation
Learning from Lapland and
universities’ role as smart
specialisation initiator
Advancing Lapland’s smart
specialisation with
Change2020 feedback
Opening international
networks to other
Change2020 participants,
demonstrating Aalto’s role in
Uusimaa smart specialisation
Activating internal development
- excitement and activation
Partnership possibilities with
Change2020 regions
Identifying new activity
possibilities in Nordic
and Arctic reach
Jumping off to moving train -
regional council and Cursor
onboard in Team Kymenlaakso
Common Kyme
delegation to Brussels
Team Kyme opening new
networks internationally
Opening up Aalto University
resources and connections to
Change2020 partners
Reflecting and
learning from others
CASE EXAMPLE: Change2020 - how different regions benchlearned from others and
formed new partnerships in one year with common thematic workshops
Gamification metrics - make project work fun
In his TED talk, Tom Chatfield described seven ways on video games engage
the brain. Gamification can be applied in project work to make it funnier and
more efficient*.
1. Using an experience system: everything should count in some way towards steady
individual progression
2. Multiple long and short-term aims: create an array of larger and smaller objectives that
help people take ownership of their progress, and keep them feeling they are
progressing and succeeding
3. Reward for effort: credit people for everything they try and do, make everything count
towards a clear measure of progress
4. Rapid, clear, frequent feedback: central to all forms of learning and engagement; show
a clear link between things, allow people to experience this experimentally
5. Uncertainty and engagement that rewards
6. Moments of enhanced attention
7. Other people: rewards come from doing something in comparison and in
collaboration with others
* List originally proposed by Tapio Järvenpää and Ilkka Kankare
in their book ”Veikö Moolook vallan? Vapauta projektisi
tuhlaajakultista”
© Nintendo
The workbook
comes with an
additional canvas
template for
practice
purposes.
You can use the
activity portfolio
canvas to
summarize your
activity portfolio
Find it at
www.innofokus.fi
!
! PORTFOLIO ACTIVITY
a) CAPACITY BUILDING: Helping businesses and
HEI to build groundwork for further cooperation.
What projects and activities take place here? How
are they linked together and to portfolio?
b) CREATING NEW: R&D and world-class frontier
research with (international) partners.
What projects and activities take place here? How
are they linked together and to portfolio?
c) RESEARCH TO MARKET: Applying research and
knowledge in creating innovation.
What projects and activities take place here? How
are they linked together and to portfolio?
SHARED VISION
What is the shared vision that binds all the activity
together in the portfolio?
PORTFOLIO ACTIVITIES
PORTFOLIO ORCHESTRATOR
Who is responsible for orchestrating the activities?
KEY PEOPLE IN THE PORTFOLIO KEY ORGANIZATIONS IN THE PORTFOLIO SHARED RESOURCES AND SUPPORT OFFERED
FOR PORTFOLIO ACTIVITIES
FOUNDATION
COMMON THEME
For example, the common thematic can be a
societal challenge or wicked problem, regional
smart specialization strength, emerging technology
or specific industry / field.
TYPE OF PORTFOLIO
On what level the portfolio takes place?
!( ) a project organization
( ) region
( ) project consortium
EXISTING STRENGTHS AND CAPABILITIES
What previous work and efforts the portfolio is
based upon?
CHANGE2020 ACTIVITY PORTFOLIO CANVAS
© Business Arena Oy, Aalto University School of Business Small Business Center
NAME%OF%THE%PORTFOLIO
Activity
portfolio canvas
contains an
additional
template for
deeper
understanding
of support
offered by the
portfolio
orchestrator.
SHARED RESOURCES AND SUPPORT OFFERED FOR PORTFOLIO ACTIVITIES
© Business Arena Oy, Aalto University School of Business Small Business Center
!
!
!
How does the portfolio support the key players 

with information, resources and learning?
- events and workshops
- documenting the process and lessons learned
- connecting the right people, activities and resources


What are the milestones and critical moments?
!
!
!
!
!
!
!
January
July
!
!
PORTFOLIO ACTIVITY
a) CAPACITY BUILDING: Helping businesses andHEI to build groundwork for further cooperation.What projects and activities take place here? Howare they linked together and to portfolio?
b) CREATING NEW: R&D and world-class frontierresearch with (international) partners.What projects and activities take place here? Howare they linked together and to portfolio?
c) RESEARCH TO MARKET: Applying research andknowledge in creating innovation.What projects and activities take place here? Howare they linked together and to portfolio?
SHARED VISION
What is the shared vision that binds all the activitytogether in the portfolio?
PORTFOLIO ACTIVITIES
PORTFOLIO ORCHESTRATORWho is responsible for orchestrating the activities?
KEY PEOPLE IN THE PORTFOLIO
KEY ORGANIZATIONS IN THE PORTFOLIO
SHARED RESOURCES AND SUPPORT OFFERED
FOR PORTFOLIO ACTIVITIES
FOUNDATION
COMMON THEME
For example, the common thematic can be asocietal challenge or wicked problem, regionalsmart specialization strength, emerging technologyor specific industry / field.
TYPE OF PORTFOLIO
On what level the portfolio takes place?!( ) a project organization
( ) region
( ) project consortium
EXISTING STRENGTHS AND CAPABILITIESWhat previous work and efforts the portfolio isbased upon?
CHANGE2020 ACTIVITY PORTFOLIO CANVAS
© Business Arena Oy, Aalto University School of Business Small Business Center NAME%OF%THE%PORTFOLIO
Authors’ concluding words
In their commentary, Change2020 development program
participants relished the opportunities they’d been given to try
out new methods, create space for informal networking and
sharing viewpoints. We’d like to thank everyone of them for the
fun time we had.
Innovation activity is moving out of laboratories into the open,
from enclosed living labs to real-life testbed environments and
bottom-up platforms. Until now, Finnish regional development
projects have been planned, financed and - to some extent-
executed in enclosed systems. Risk-taking has been minimized.
Can we afford that anymore?
Open Innovation 2.0 thematic board (see right) contains many
similar themes that also Change2020 tackled. They serve to
remind us on what European Union expects from policy makers
and innovation actors in solving key European challenges by
embracing change.
Our answer could be: ”Maximize the coincidence. Prototype
rapidly and experiment. Harness the bottom-up activity and
nurture the first followers - don’t restrict too much. Pull up your
sleeves and act as much as you can. Keep learning.”
Open Innovation 2.0 thematic board. (http://ec.europa.eu/digital-
agenda/en/open-innovation-20)
This material was analyzed, written and put together by Toni Pienonen
and Mikko Markkanen from Business Arena Oy in April 2014 - January
2015. We’re a Finnish company specializing in university-business-
cooperation, high-impact projects and learning networks. For more
information, see: www.businessarena.fi
Toni Pienonen
toni.pienonen@businessarena.fi
0400 737 238
Mikko Markkanen
mikko.markkanen@businessarena.fi
+358 40 758 8712
Change2020 development program was part of the operations
carried out by INNOFOKUS project which was funded by
European Social Fund, Ministry of Education.
INNOFOKUS project was managed by Aalto University School of
Business Small Business Center (SBC).
www.innofokus.fi

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Change2020 RIS3 workbook for learning-driven regional development

  • 1. RIS3 WORKBOOK (A) FOR LEARNING- DRIVEN REGIONAL DEVELOPMENT For project organizations, regions and project consortiums involved in regional development projects Toni Pienonen and Mikko Markkanen, Business Arena Oy
  • 2. ! www.innofokus.fi Change2020 development program was part of the operations carried out by INNOFOKUS project which was funded by European Social Fund, Ministry of Education. INNOFOKUS project was managed by Aalto University School of Business Small Business Center (SBC). Summary RIS3 WORKBOOK FOR LEARNING-DRIVEN REGIONAL DEVELOPMENT provides a practical view on how project organizations, regions and project consortiums involved in regional development projects can meet the smart specialisation requirements of EU programme period 2014-2020. Contents of this workbook were documented by Toni Pienonen and Mikko Markkanen as part of INNOFOKUS project and its Change2020 program. Throughout the year 2014, the program organized several opportunities to create clarity on these issues. Following tens of participatory workshops and bench-learning events for hundreds of participants, this workbook summarizes the results. This workbook has a companion piece RIS3 WORKBOOK FOR PROJECTS which is intended for individual projects. You can find at it at www.innofokus.fi 
 * Please note that in this context, ”projects” mean specifically regional development projects or applied and demand-driven research projects, unless otherwise stated.
  • 3. Contents The approaches described in this workbook can be used to orchestrate the regional development activity of a project organization, a region or a project consortium. Workbook has four blocks. 1) Smart specialisation is not a fixed top-down strategy paper, but an ongoing process of experimentation and discovery. 2) Regional developers need to pool together a variety of resources around the same vision. To make this happen, anyone working with regional development can utilize ”activity portfolio thinking” in one way or another. Portfolios are an instrument for project organizations, regions and project consortiums involved in regional development projects to manage interlinked activity. 3) Orchestration ensures that actors behind activities interact, learn and move in the purposeful direction. 4) Idea and case examples help to illustrate how to increase interaction and learning in practice according to RIS3 requirements. Catalyzation and facilitation Activity portfolios Orchestration Idea and case examples
  • 4. The purpose of smart specialisation (RIS3) is to act as a catalysis for a bottom-up process. It is not static paper or structure, but an evolving process, where participants learn by doing. This attitude requires a new set of processes and instruments from everyone involved. Instead of control, facilitation and shared ownership are the key. 1)
  • 5. CASE EXAMPLE: Kymenlaakso Change2020 journey - university as regional smart specialization facilitator During the Change2020 program, KyAMK became the regional primus motor in the process of setting smart specialisation on track in Kymenlaakso. They learned first hand that smart specialization is an evolutionary learning process of discovery and increasing co-creation. 1/2014 KyAMK enters in Change2020 program Aalto partnership possibilities in Russia- cooperation 10/2014 Learning from Lapland and local universities’ role as smart specialisation primus motor 1/2015 → Partnership possibilities with Change2020 regions Jumping off to moving train - regional council and Cursor onboard in ”Team Kymenlaakso" Common Kyme delegation to Brussels 12/2014 Team Kyme opening new networks internationally Finding out about own regional strengths with help of outside viewpoints
  • 6. EXAMPLE: First Follower - Leadership Lessons from Dancing Guy http://youtu.be/fW8amMCVAJQ Video on what catalyzation and change making is really about in simple straightforward manner - starting and nurturing a movement. • be easy to follow • be clear about what you want • go public, work in the open • make it easy to follow and join in • nurture the first follower • the first follower is what makes a dancing madman into a popular movement
  • 7. Activity portfolios are a set of projects and development activities guided by a shared vision in a specific theme. By utilizing portfolio-thinking, regional developers can leverage and reach resources that would otherwise be unattainable. 2)
  • 8. Activity portfolio always needs a specific theme Building the portfolio starts with identifying a specific theme that brings together different activities and actors. For example, the common thematic can be formed around: • a societal challenge, issue or a wicked problem • a regional smart specialisation spearhead • an emerging technology • a multidisciplinary industry / field If the theme is too narrowly defined, you may end up limiting the scope too much. Make it too big, and there isn’t enough glue to connect activities in a sensible way. Activity portfolio always a needs a strong vision Just like individual projects (and even more so) portfolios need a shared vision. A well-defined common theme helps to set it out. Activity portfolios are essentially self-organizing networks that cannot be controlled - they can only be nudged in the right direction. Vision is a glue that binds together individual activity and gives a sense of purpose for people involved. Activity portfolios can take place on three different levels Secondly, portfolios to define on what level the activity portfolio takes place. Roughly speaking, portfolios can exist on three levels that overlap each other: • A project organization (one organization): for example, a university may have its set of project and activity portfolios for certain themes • Region (one region, many organizations): projects and activity used to advance a specific goal, for example related to bioenergy, often implemented by various individual project organizations • Programme or a project consortium (many regions, many organizations): a network of different project organizations working together with interlinked activities
  • 9. Portfolios should use funding instruments in synergy In Finland, domestic funding for regional development projects is being significantly reduced. At the same time European Union expects that ESI funds and domestic funding instruments should be used increasingly more in synergy with H2020 funding and other international project instruments. For Finnish HEIs and project organizations to be able to better reach out for international project possibilities, a sort of investment thinking towards project orchestration is required. Leveraging international funding with domestic funding is the key. Domestic € International €€ International + domestic €€€
  • 10. One way to depict the structure of activity portfolios is to position individual projects and activities in the big picture according to typology of these three different types: 1. Capacity building: Helping businesses and HEI to build groundwork. 2. Creating new: Research and development with (international) partners. 3. Research to market: Applying latest research and knowledge in practice. Note that this is not a stop- gate model. Portfolio, projects and information flows can work in different directions. 1. Capacity building 2. Creating new 3. Research to market SHARED VISION information and resource flows Activities Activities Activities
  • 11. As certainty increases, iterate and scale up by pooling more resources. Build pathways for university-society- cooperation and international leverage. Involve businesses in development. World-class research: R&I, demonstration pilots and development of KETs (key enabling technologies) CAPACITY BUILDING Platforms, living labs, communities, ESI and EAFRD funds, Tekes and other development activity for: capacity building, skills, proof of concepts and business advisory services. CREATING NEW Horizon 2020 and other international funding instruments for networked R&D. RESEARCH TO MARKET Platforms, living labs, ESI and EAFRD funds, Horizon SME instrument, Tekes and other development activity for applied technology and knowledge transfer to businesses and market. Small-scale experiments test the ideas and solutions in practice. Objective is to demonstrate the impact, benefits and learn as much as possible. Experiments also attract resources (networks, inertia, partners) behind the idea. Transferring and implementing latest research knowledge into innovations with businesses as early adopters. Sourcing existing knowledge and combining it into new concepts. EXAMPLE OF A PORTFOLIO UTILIZING SYNERGY OF DIFFERENT FUNDING INSTRUMENTS Circle = project or activity, radius of the circle corresponds to the size of the project or activity SHARED VISION
  • 12. Portfolio requires an orchestrator who supports and facilitates the key players - with information, resources and learning 3)
  • 13. In the end, it’s not about who owns the projects and activity, but who orchestrates the portfolio - someone who connects the dots, understands the big picture and drives others towards vision.
  • 14. Orchestration ≠ traditional leadership Since activity portfolios (and smart specialisation in regions) are essentially networks based on collaborative leadership, where leadership is shared and comes in different forms (as opposed to hierarchy and official leadership), orchestrator needs to use a different kind of leadership mindset. Networks are living systems of self- organization. They cannot be controlled, only nudged in the right direction. Collaborative leadership maxims that orchestrators should follow • There is no leader in a network. Networks are orchestrated with strong vision, sense of purpose and meaningful roles. • Paint the big picture and show a common direction. Connect the dots. Make it clear how individual elements are connected to each other. • Communication in its many forms (face-to-face meetings, events, etc.) is vital. • Orchestrator should help others to learn from each other and recognize opportunities. Make learning, success stories and good failures visible - not to punish, but to learn effectively. • Bring expertise from the network for common use and help to combine resources. • Instead of planning, focus on doing things. 90% of time spent in a network should be about doing, 10% planning. Trust builds from results. • Help people in the network to become more active; seek champions and first followers, and nurture them
  • 15. Examples of orchestrator’s tasks. Learning and co- creation enable portfolios to function successfully Organize events and workshops Broker and connect people, activities and resources Remove impediments Document the process and lessons learned Use digital open platforms to make it easier to share 
 Turn experiences into stories Developed and modified from Scrum methodology and Kari Mikkelä’s description of Urban Mill service process: urbanmill.org QUESTION: Who in your organization or region should be the orchestrators? !
  • 16. Failed experiment Successful experiment Portfolio orchestrator needs to analyze which solutions in different projects and activities work and do not. He follows the mindset of ”Failure is a result. Fail fast, learn fast. You cannot find the right answers, but workable solutions.”
  • 17. Learning takes place all the time - within projects and across the portfolio. A portfolio needs both physical and virtual arenas for sharing tacit and explicit knowledge.
  • 18. Furthermore, portfolio orchestrator and individual project managers need to maintain flexibility and a vigilant watch for black swans, the unexpected surprises that can result in profitable spin-offs and spin-inns.
  • 19. Idea and case examples on how to increase learning and co-creation in portfolios 4)
  • 20. CASE EXAMPLE: Lapland’s staff exchange, a good practice Since most valuable project knowledge (tacit knowledge and social capital) is so strongly embedded in individual people - and is therefore difficult to transfer - one of the best ways to increase learning in project portfolios is staff exchange. Regional project organizations can cooperate and learn from each other by allowing their experts to simultaneously work in two different organizations and / or projects. It was discovered in Change 2020 activities that Lapland in particular had excellent experiences from widespread use of staff exchange between HEIs and regional development organizations. 30% Regional development agency 70% University ”Knowledge transfer on legs.”
  • 21. Utilize cities, regions and social environments as living labs and testbeds “The laboratories for innovation are no longer traditional university facilities, but regional innovation ecosystems operating as testbeds for rapid prototyping of many types on user-driven innovations: new products, services, processes, structures and systems, which need to be of transformative and scalable nature.” - CoR Opinion on Horizon 2020 © Toni Pienonen
  • 22. Platform-based approach and ecosystems are the new black in regional development Some typical characteristics of platforms: • facilitating bottom-up activities, letting things happen (instead of control or management) • testbeds for knowledge co-creation, citizens, business and society, universities and public sector together (quadruple helix) • experimentation, prototyping and piloting possibilities • solving thematic issues via multidisciplinary approach • intermediaries that connect HEIs, business, users and society • agile resource-sharing, continuous organizing and reorganizing around required tasks via individuals, who can take care of them, not by organizations Urban Mill is a thematic focal point and open innovation platform service for global urban innovators in Espoo, Finland. It is a co- working space, an innovation community, as well as a change orchestration tool for urban development. It aims to re-define the way in which people accomplish joint innovation work, and aims to make societal impact in a global urban context. Urban Mill is part of Espoo Innovation Garden, a focal point of innovation buzz on Aalto University campus. www.urbanmill.org CASE EXAMPLE:
  • 23. Platforms are essential, as paradigm of Open Innovation 2.0 takes a prominent role. The key is to involve users and society, business, universities and public sector in cross-fertilisation, experimentation and rapid prototyping in real world setting. It is vital to understand the importance of individuals and their impact. Tasks should be organized according to individuals and shared ownership, not organizations. (source: Bror Salmelin, DG Connect)
  • 24. Don’t lock your mindset in arbitrary strategy boxes - design the activities based on real-life needs, those of the customers and society If you represent an European region or organization trying to find international partnerships, it might be easier to build common ground and vision with partners and business by creating solutions to real-life societal challenges. Don’t be fixated by your own arbitrary strategy boxes of supposed smart strengths. Instead, reflect your RIS3 priorities or themes in comparison to grand societal problems and needs, e.g. ”urbanization”. Understand how answering to these societal needs translates into untapped international business opportunities, particularly in growing markets of Asia, Americas and Africa. Europe should not be too inward-focused. Co-create new solutions with society, business, public sector and universities. Utilize the various testbeds and platforms provided by European partners, living labs, R&D facilities. Experiment and validate your solutions internationally. Europe is after all a diverse place with different markets and regions. Make use of this diversity to create references that work anywhere around the globe. Scale-up rapidly and commercialize society business universities public 
 sector Thematic approach: For example, topic of urbanization crosses many different smart specialisation spearheads - for example in case of Uusimaa ”urban cleantech”, ”welfare city” and ”smart citizen” Societal need: Internationally, urbanization touches particularly growing economies Quadruple helix: co-creation to build solutions Experimentation: European testbeds for experimentation and validation to create European solutions
  • 25. CASE EXAMPLE: Two-part project call for creating more cooperation and synergies between different funding instruments in a region 1. Thematic idea tender: regional financing authority requests solutions and ideas for regionally important themes 3. Feedback to ideas: financing authorities give feedback for all tender participants 4. Combining and sparring ideas: using virtual and physical environments, the financing authority brings the participants together, helps them to identify common possibilities and portfolios 5. Public project call: As a result, the project bidders are better equipped to answer the official project call - there is more cooperation and actual project call phase is faster 2. Proposing solutions: project organizations, businesses and stakeholders propose ideas and solutions North Karelia Centre for Economic Development, Transport and the Environment and Regional Council of North Karelia organized a similar idea process in the spring of 2014 with much success. Before phase 4), ideas were added to an open virtual board for discussion and overview: https://trello.com/b/lwCZ02vV/pohjois-karjalan-hankeidealeiri-2014 !
  • 26. KYMENLAAKSO CHANGE2020 JOURNEY LAPLAND CHANGE2020 JOURNEY POLAMK CHANGE2020 JOURNEY AALTO CHANGE2020 JOURNEY Ideas and connections for Open Innovation 2.0 Partnership possibilities with Change2020 regions + sharing international connections Partnership possibilities with Change2020 regions Showcasing Otaniemi campus area and platforms Lapland as an internationally recognized example to other regions in smart specialisation Outsiders’ perspective and input for identifying Lapland’s strengths Partnership possibilities with Change2020 regions + sharing international connections Ideas and benchmark from other universities Tools and input for improving PolAMK’s Horizon 2020 capability KyAMK as facilitator and accelerator of Kymenlaakso smart specialisation Aalto partnership possibilities in Russia-cooperation Learning from Lapland and universities’ role as smart specialisation initiator Advancing Lapland’s smart specialisation with Change2020 feedback Opening international networks to other Change2020 participants, demonstrating Aalto’s role in Uusimaa smart specialisation Activating internal development - excitement and activation Partnership possibilities with Change2020 regions Identifying new activity possibilities in Nordic and Arctic reach Jumping off to moving train - regional council and Cursor onboard in Team Kymenlaakso Common Kyme delegation to Brussels Team Kyme opening new networks internationally Opening up Aalto University resources and connections to Change2020 partners Reflecting and learning from others CASE EXAMPLE: Change2020 - how different regions benchlearned from others and formed new partnerships in one year with common thematic workshops
  • 27. Gamification metrics - make project work fun In his TED talk, Tom Chatfield described seven ways on video games engage the brain. Gamification can be applied in project work to make it funnier and more efficient*. 1. Using an experience system: everything should count in some way towards steady individual progression 2. Multiple long and short-term aims: create an array of larger and smaller objectives that help people take ownership of their progress, and keep them feeling they are progressing and succeeding 3. Reward for effort: credit people for everything they try and do, make everything count towards a clear measure of progress 4. Rapid, clear, frequent feedback: central to all forms of learning and engagement; show a clear link between things, allow people to experience this experimentally 5. Uncertainty and engagement that rewards 6. Moments of enhanced attention 7. Other people: rewards come from doing something in comparison and in collaboration with others * List originally proposed by Tapio Järvenpää and Ilkka Kankare in their book ”Veikö Moolook vallan? Vapauta projektisi tuhlaajakultista” © Nintendo
  • 28. The workbook comes with an additional canvas template for practice purposes. You can use the activity portfolio canvas to summarize your activity portfolio Find it at www.innofokus.fi ! ! PORTFOLIO ACTIVITY a) CAPACITY BUILDING: Helping businesses and HEI to build groundwork for further cooperation. What projects and activities take place here? How are they linked together and to portfolio? b) CREATING NEW: R&D and world-class frontier research with (international) partners. What projects and activities take place here? How are they linked together and to portfolio? c) RESEARCH TO MARKET: Applying research and knowledge in creating innovation. What projects and activities take place here? How are they linked together and to portfolio? SHARED VISION What is the shared vision that binds all the activity together in the portfolio? PORTFOLIO ACTIVITIES PORTFOLIO ORCHESTRATOR Who is responsible for orchestrating the activities? KEY PEOPLE IN THE PORTFOLIO KEY ORGANIZATIONS IN THE PORTFOLIO SHARED RESOURCES AND SUPPORT OFFERED FOR PORTFOLIO ACTIVITIES FOUNDATION COMMON THEME For example, the common thematic can be a societal challenge or wicked problem, regional smart specialization strength, emerging technology or specific industry / field. TYPE OF PORTFOLIO On what level the portfolio takes place? !( ) a project organization ( ) region ( ) project consortium EXISTING STRENGTHS AND CAPABILITIES What previous work and efforts the portfolio is based upon? CHANGE2020 ACTIVITY PORTFOLIO CANVAS © Business Arena Oy, Aalto University School of Business Small Business Center NAME%OF%THE%PORTFOLIO
  • 29. Activity portfolio canvas contains an additional template for deeper understanding of support offered by the portfolio orchestrator. SHARED RESOURCES AND SUPPORT OFFERED FOR PORTFOLIO ACTIVITIES © Business Arena Oy, Aalto University School of Business Small Business Center ! ! ! How does the portfolio support the key players 
 with information, resources and learning? - events and workshops - documenting the process and lessons learned - connecting the right people, activities and resources 
 What are the milestones and critical moments? ! ! ! ! ! ! ! January July ! ! PORTFOLIO ACTIVITY a) CAPACITY BUILDING: Helping businesses andHEI to build groundwork for further cooperation.What projects and activities take place here? Howare they linked together and to portfolio? b) CREATING NEW: R&D and world-class frontierresearch with (international) partners.What projects and activities take place here? Howare they linked together and to portfolio? c) RESEARCH TO MARKET: Applying research andknowledge in creating innovation.What projects and activities take place here? Howare they linked together and to portfolio? SHARED VISION What is the shared vision that binds all the activitytogether in the portfolio? PORTFOLIO ACTIVITIES PORTFOLIO ORCHESTRATORWho is responsible for orchestrating the activities? KEY PEOPLE IN THE PORTFOLIO KEY ORGANIZATIONS IN THE PORTFOLIO SHARED RESOURCES AND SUPPORT OFFERED FOR PORTFOLIO ACTIVITIES FOUNDATION COMMON THEME For example, the common thematic can be asocietal challenge or wicked problem, regionalsmart specialization strength, emerging technologyor specific industry / field. TYPE OF PORTFOLIO On what level the portfolio takes place?!( ) a project organization ( ) region ( ) project consortium EXISTING STRENGTHS AND CAPABILITIESWhat previous work and efforts the portfolio isbased upon? CHANGE2020 ACTIVITY PORTFOLIO CANVAS © Business Arena Oy, Aalto University School of Business Small Business Center NAME%OF%THE%PORTFOLIO
  • 30. Authors’ concluding words In their commentary, Change2020 development program participants relished the opportunities they’d been given to try out new methods, create space for informal networking and sharing viewpoints. We’d like to thank everyone of them for the fun time we had. Innovation activity is moving out of laboratories into the open, from enclosed living labs to real-life testbed environments and bottom-up platforms. Until now, Finnish regional development projects have been planned, financed and - to some extent- executed in enclosed systems. Risk-taking has been minimized. Can we afford that anymore? Open Innovation 2.0 thematic board (see right) contains many similar themes that also Change2020 tackled. They serve to remind us on what European Union expects from policy makers and innovation actors in solving key European challenges by embracing change. Our answer could be: ”Maximize the coincidence. Prototype rapidly and experiment. Harness the bottom-up activity and nurture the first followers - don’t restrict too much. Pull up your sleeves and act as much as you can. Keep learning.” Open Innovation 2.0 thematic board. (http://ec.europa.eu/digital- agenda/en/open-innovation-20)
  • 31. This material was analyzed, written and put together by Toni Pienonen and Mikko Markkanen from Business Arena Oy in April 2014 - January 2015. We’re a Finnish company specializing in university-business- cooperation, high-impact projects and learning networks. For more information, see: www.businessarena.fi Toni Pienonen toni.pienonen@businessarena.fi 0400 737 238 Mikko Markkanen mikko.markkanen@businessarena.fi +358 40 758 8712
  • 32. Change2020 development program was part of the operations carried out by INNOFOKUS project which was funded by European Social Fund, Ministry of Education. INNOFOKUS project was managed by Aalto University School of Business Small Business Center (SBC). www.innofokus.fi