Download link: http://www.businessarena.fi/wp-content/uploads/2015/03/Change2020-RIS3workbook-learning.pdf Workbook provides a practical view on how project organizations, regions and project consortiums involved in regional development projects can together meet the smart specialisation requirements of EU programme period 2014-2020 and end with better results by synergy creation. The approaches described in this workbook can be used to orchestrate the regional development activity of a project onrganization, a region or a project consortium.

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