The presentation discusses the evolution of innovation ecosystems through the lens of historical figures and concepts, such as Friedrich List and Michael Porter, identifying various enablers and focuses of these ecosystems across different regions and time periods. It emphasizes the importance of knowledge as a primary factor of production, highlighting the need for new organizational approaches and management strategies to navigate current innovation challenges. The document concludes by suggesting that the greatest obstacles to innovation lie in our thinking about organization and work management.

1. The Evolution of Innovation Ecosystems
and How to Manage Within Them?
Innovation Forum Norway,
12 April 2011
Presentation by
Jørn Bang Andersen
Nordic Innovation Centre
j.andersen@nordicinnovation.org / www.nordicinnovation.org
www.jornbangandersen.com

2. Friedrich List - National System
• Where: Germany -national
economy catching up with
England
• When: 1840
• Enablers: Steam machine,
national political economic
system, industrialization
• Focus: Nation and industry
leaders
Copyright: Jørn B. Andersen 2011

3. Alfred Marshall - Agglomeration
• Where: United Kingdom
• When: 1899 Sheffield
cutlery industry
• Enablers: Steel and coal,
electricity
• Focus: Industry,
entrepreneurs, free
enterprise
Copyright: Jørn B. Andersen 2011

4. Erik Dahmén - Development Blocks
• Where: Sweden
• When: 1950
• Enablers: Entrepreneurs,
capital, creative destruction
• Focus: Study of Swedish
industry transformation
1919-1939.
Copyright: Jørn B. Andersen 2011

5. François Perroux - Growth Poles
• Where: France
• When: France 1950s
and 1960, 1970s
• Enablers: Domination,
asymmetry, location,
globalization
• Focus: Global value
chains, North-South
Copyright: Jørn B. Andersen 2011

6. Michael Piore and Charles Sable - Flexible Specialization
• Where: Third Italy - Districts
of light industry in Northern
Italy.
• When: 1984
• Enablers: Artisan tradition
and economies of scope.
• Focus: Cooperatives of
family enterprises and
municipalities
Copyright: Jørn B. Andersen 2011

7. C. Freeman & B.A. Lundvall - National Systems of Innovation
• Where: Japan and
Scandinavia
• When: 1980s + 1990s
• Enablers: Public innovation
programmes, education,
intermediaries, national level
• Focus: National technology,
innovation and educational
systems
Copyright: Jørn B. Andersen 2011

8. Michael Porter - Clusters
• Where: America -Napa
Valley, Wine Cluster
• When: 1990s, early
2000s
• Enablers: Innovation,
business framework
conditions, clusters
• Focus: Industries,
venture capital,
education, policy
makers
Copyright: Jørn B. Andersen 2011

9. Innovation Ecosystems Network
• Where: US - Stanford +
China, Finland, Japan
• When: 2010
• Enablers: Formation of
alliances
• Focus: Co-creation,
investment capital,
network centric views
Copyright: Jørn B. Andersen 2011
http://www.innovation-ecosystems.org/

10. Community ecosystems
• Where: Silicon Valley,
Bangalore,Google, Apple, Tata,
Huawei, Facebook
• When: 2000s, present day and
beyond 2011
• Enablers: Internet, global
hotspots, globalization
• Focus: Entrepreneurs, global
company value chains,
business model innovation,
service integration
Copyright: Jørn B. Andersen 2011

11. Baku - World s Leading Ecosystem 1900
• 1873 Baku the world s wealthiest city
• 1875 Nobel brothers
• Experts from USA, Germany and
Russia. World s innovation hub no 1
• 1883 Rothschild Brothers established
the Caspian and Black Sea Oil Industry
and Trade Society.
• 1884 organization of entrepreneurs
called the Council of Baku Oil
Industrialists - Nobel
• 1900 more than half of the world’s oil
production
Copyright: Jørn B. Andersen 2011

12. Biggest change?
The economist Paul Romer .. explains that if
you have a scarce, physical resource, pricing
will be driven up by that scarcity.
The value of knowledge is different. It is more
about utility. Knowledge does not become an
economic good until it solves a problem in a
way that people are willing to pay for the
solution.
Once you identify a solution, then the only
limit to the value of that knowledge is how
many people need the solution. Put another
way, there are no physical constraints to the
value of knowledge; the only limit is demand.
Copyright: Jørn B. Andersen 2011

13. How to Manage Within Innovation
Ecosystems in 2011?
Copyright: Jørn B. Andersen 2011

14. Consider a SimpleTextile factory...
• Fifty-two different
operations all totally
interchangeable
• To establish optimal
sequence i.e. technology,
director faced with a
1068
decision problem: 52
alternatives...
Example from Paul Romer
Copyright: Jørn B. Andersen 2011

15. The Manager on Top (hierarchy)
• Out of the network
The Manager in the Center (a hub)
• Centralizes the network
The Manager Throughout (a web)
• linking over leading
• dealing over doing
• convincing over controlling
Source: Henry Mintzberg
Copyright: Jørn B. Andersen 2011

16. Distributed Management
Leadership changes
periodically, as goose in front
gets tired and falls back.
Switzerland is governed by seven
people who rotate the head of
state on an annual basis.
Copyright: Jørn B. Andersen 2011

17. Don t Skate Where the Puck is...
• Skate where the puck
will be next...
• Understand the play a
bit slower....like cool
jazz
Copyright: Jørn B. Andersen 2011

18. • From Friedrich List to Steve Jobs - it has always
been a question of connecting the dots and
organize work in a better and smarter way.
• Possibilities do not add up. They multiply.
• The biggest obstacle today lies within how we
think organization and manage work.
Copyright: Jørn B. Andersen 2011

19. Main Points
Not New
# Innovation ecosystems
# Entrepreneurs
# Technology platforms, tools
# Organizational configurations
New
# Knowledge primary factor of production
# ICT melts manufacturing and services
# Demands change
Copyright: Jørn B. Andersen 2011

20. Thank you for listening