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Innovation in the New ICT Ecosystem: How New Knowledge is Endogenously Created in the ICT Sector Martin Fransman Professor of Economics and Founder-Director Institute for Japanese-European Technology Studies University of Edinburgh
The challenge facing Europe ,[object Object],[object Object],[object Object]
How is new knowledge endogenously created in the ICT Sector?  Paradoxically, even Schumpeter does not provide an answer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How is new knowledge endogenously created in the ICT Sector? ,[object Object],[object Object],[object Object]
How do they fit together as creators and users of knowledge?
The Creators and Users of Knowledge  in the ICT Sector ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Financial Markets Regulation Layer 1 Output of innovative goods and services  (from all three layers) A Simplified Model of the New ICT Ecosystem Cont. & App. Providers Converged Networks Final consumer Standardisation Global trade Global trade Layer 3 Layer 2 Networked elements
ICT Companies in the FT Top 500 from  the US, Japan, Europe and East Asia   (Korea, Taiwan and China), 2006   Source : M. Fransman (copyright), calculated from FT Top 500, 2006 US 12 Japan 9 Europe 6 East Asia 2 29 I US 5 Japan 3 Europe 8 East Asia 2 18 II US 6 Japan 2 Europe 1 9 III Number of companies by region Total number of companies Layer
There are  6 symbiotic relationships  between these four players
6 symbiotic relationships in the New ICT Ecosystem 3. PLATFORM, CONTENT & APPLICATIONS PROVIDERS 2. NETWORK  OPERATORS 1. NETWORKED ELEMENT PROVIDERS CONSUMERS CONSUMERS C O N S U M E R S 4 1 2 3 5 6
3 Flows within the Symbiotic Relationships ,[object Object],[object Object],[object Object],[object Object]
Old and New Symbiotic Relationships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Examples of Symbiotic Relationships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mobile Handset Makers: Market Share
Symbiosis – example 4 ,[object Object],[object Object],[object Object]
The Environmental Context of the Knowledge-Creating Symbiotic Relationships ,[object Object],[object Object]
Symbiosis is Environmental Context-dependent 6 Symbiotic Relationships COMPETITION FINANCIAL INSTITUTIONS REGULATION & COMPETITION  LAW OTHER INSTITUTIONS e.g. legal standardisation universities
The Innovation Opportunity ,[object Object],[object Object],[object Object],[object Object]
4 Implications for Government Policy-Makers ,[object Object],[object Object],[object Object],[object Object],[object Object]
3 Implications for Regulators ,[object Object],[object Object],[object Object],[object Object]
Problems regarding governance by telecoms regulators ,[object Object],[object Object],[object Object],[object Object]

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Innovation in the new ICT ecosystem

  • 1. Innovation in the New ICT Ecosystem: How New Knowledge is Endogenously Created in the ICT Sector Martin Fransman Professor of Economics and Founder-Director Institute for Japanese-European Technology Studies University of Edinburgh
  • 2.
  • 3.
  • 4.
  • 5. How do they fit together as creators and users of knowledge?
  • 6.
  • 7. Financial Markets Regulation Layer 1 Output of innovative goods and services (from all three layers) A Simplified Model of the New ICT Ecosystem Cont. & App. Providers Converged Networks Final consumer Standardisation Global trade Global trade Layer 3 Layer 2 Networked elements
  • 8. ICT Companies in the FT Top 500 from the US, Japan, Europe and East Asia (Korea, Taiwan and China), 2006 Source : M. Fransman (copyright), calculated from FT Top 500, 2006 US 12 Japan 9 Europe 6 East Asia 2 29 I US 5 Japan 3 Europe 8 East Asia 2 18 II US 6 Japan 2 Europe 1 9 III Number of companies by region Total number of companies Layer
  • 9. There are 6 symbiotic relationships between these four players
  • 10. 6 symbiotic relationships in the New ICT Ecosystem 3. PLATFORM, CONTENT & APPLICATIONS PROVIDERS 2. NETWORK OPERATORS 1. NETWORKED ELEMENT PROVIDERS CONSUMERS CONSUMERS C O N S U M E R S 4 1 2 3 5 6
  • 11.
  • 12.
  • 13.
  • 14. Mobile Handset Makers: Market Share
  • 15.
  • 16.
  • 17. Symbiosis is Environmental Context-dependent 6 Symbiotic Relationships COMPETITION FINANCIAL INSTITUTIONS REGULATION & COMPETITION LAW OTHER INSTITUTIONS e.g. legal standardisation universities
  • 18.
  • 19.
  • 20.
  • 21.