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Why "Innovation Ecosystems?" Lecture
The document discusses the concept of 'innovation ecosystems' and their significance in creating a culture of innovation. It covers various aspects such as the definitions of innovation, characteristics of ecosystems, the importance of collaboration, and the prerequisites for successful innovation communities. Additionally, it highlights the need for effective governance and trust within innovation networks to enhance productivity and knowledge creation.
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Why "Innovation Ecosystems?" Lecture
- 1. Why “Innovation Ecosystems?” CCTP673:Creating a Culture of Innovation (Nelson) 18 March 2010 Jeffrey Alexander, Ph.D. Senior Science & Technology Policy Analyst Center for Science, Technology & Economic Development © 2010 Jeffrey Alexander
- 2. Key Topics &Concepts • Terms of Reference—Defining Innovation • Innovation Ecosystems—Modeling Innovation • Evaluating Innovation Capacity—Measuring Innovation • Social Aspects of Innovation—Enabling Innovation 18 March 2010 © 2010 Jeffrey Alexander Page 2
- 3. First, a bitabout me & where I come from… © 2010 Jeffrey Alexander
- 4. Who We Are SRI is a world-leading independent R&D organization • Founded by Stanford University in 1946 – A nonprofit corporation – Independent in 1970; changed name from Stanford Research Institute to SRI International in 1977 • Sarnoff Corporation acquired in 1987 SRI headquarters, Menlo Park, CA (formerly RCA Laboratories) • 2,000 staff members combined – 800 with advanced degrees – More than 20 locations worldwide • Consolidated 2008 revenues: approximately $490 million Sarnoff headquarters, Princeton, NJ SRI Harrisonburg, Virginia SRI State College, Pennsylvania SRI Tokyo, Japan SRI Washington, D.C. SRI St. Petersburg, Florida 18 March 2010 © 2010 Jeffrey Alexander Page 4
- 5. A Couple ofInnovations… • 1967: Doug Engelbart patents the computer mouse • “SRI patented the mouse, but they really had no idea of its value. Some years later it was learned that they had licensed it to Apple for something like $40,000. • 1969: SRI is the recipient of the first packet transmission on what became ARPANET 18 March 2010 © 2010 Jeffrey Alexander Page 5
- 6. Terms of Reference Inventors, Innovators & Innovation © 2010 Jeffrey Alexander
- 7. Inventors or Innovators? 18March 2010 © 2010 Jeffrey Alexander Page 7
- 8. Meanings of “Innovation” • As a noun • As a process – “An innovation is an idea, object or – An act of creation, but with a practice that is perceived as new by practical outcome or objective an individual or other unit of – Often the byproduct of taking a adoption.” (Rogers, 1962, emphasis unique perspective (therefore added) nonobvious?) – Contrast with an “invention” • John Seely Brown: “Seeing • Novelty Differently” • Non-obviousness – Generally encompasses – An exogenous force…? commercialization or • Diffuses through a group or network implementation (Schumpeter) • Has an impact – Often involves a way of organizing – Does innovation imply and/or executing improvement? • Therefore, innovation is inherently social 18 March 2010 © 2010 Jeffrey Alexander Page 8
- 9. Why “Innovation Ecosystems?” The Power & Perils of Metaphor © 2010 Jeffrey Alexander
- 10. The Innovation “Pipeline” Is it really a pipeline? Research Develop Design Produce Research 18 March 2010 © 2010 Jeffrey Alexander Page 10
- 11. The “Chain-Linked” Modelof Innovation 18 March 2010 © 2010 Jeffrey Alexander Page 11
- 12. The “Total ProcessModel” of Innovation 18 March 2010 © 2010 Jeffrey Alexander Page 12
- 13. One Depiction ofthe “Innovation Ecosystem” Source: Council on Competitiveness, 2004 18 March 2010 © 2010 Jeffrey Alexander Page 13
- 14. Characteristics of Ecosystems • Evolving –Organic –Diverse –Symbiotic • Complex –Self-organizing –Self-regulating –Adaptive • Fragile—or Resilient? 18 March 2010 © 2010 Jeffrey Alexander Page 14
- 15. Why Models Matter Selecting the Portfolio of Innovation Policies Source: Dr. Gregory Tassey, NIST, 2007 and 2010 18 March 2010 © 2010 Jeffrey Alexander Page 15
- 16. Evaluating Innovation Capacity Measuring Innovation © 2010 Jeffrey Alexander
- 17. Comparing National InnovationSystems Who is more innovative? Source: R&D Magazine, December 2009, Analysis by Battelle Memorial Institute 18 March 2010 © 2010 Jeffrey Alexander Page 17
- 18. Ranking Nations by“Innovation Capacity” Results of the INSEAD Global Innovation Index versus ITIF “Global Innovation-Based Competitiveness” INSEAD ITIF 18 March 2010 © 2010 Jeffrey Alexander Page 18
- 19. Pay Attention toWhat You Measure Elements of the Innovation Value Chain Inputs The “raw materials” to enable innovation Human capital, financial capital, intellectual capital Processes Factors that transform the inputs Connective organizations, facilities, infrastructure regulation Outputs The proximate results of innovation Patents, start-up firms Outcomes Improving the local economy and community? Industry growth, employment growth, quality of life 18 March 2010 © 2010 Jeffrey Alexander Page 19
- 20. Focus on China What’s the nature of the threat? 18 March 2010 © 2010 Jeffrey Alexander Page 20
- 21. How Is ChinaDifferent? 18 March 2010 © 2010 Jeffrey Alexander Page 21
- 22. The Social Aspectsof Innovation Enabling Innovation © 2010 Jeffrey Alexander
- 23. Myth or Fact • Myth: • Fact: The Garage Innovator Modern innovators are teams – Two guys working in a garage can – Innovation requires many types of change the world expertise – Includes financiers, consultants, designers and more 18 March 2010 © 2010 Jeffrey Alexander Page 23
- 24. Why Ecosystems Matter 18March 2010 © 2010 Jeffrey Alexander Page 24
- 25. Is Google Innovative? 18March 2010 © 2010 Jeffrey Alexander Page 25
- 26. New Directions inthe Mode of Innovation • Recent analysis of innovation processes pinpoint the need for collaboration – No one group or organization has all the knowledge for innovation – Innovations which cross boundaries tend to have greater impact – Distinguish between “open innovation” and “open source innovation” 18 March 2010 © 2010 Jeffrey Alexander Page 26
- 27. The Open InnovationModel Source: Dr. Henry Chesbrough & PRTM 18 March 2010 © 2010 Jeffrey Alexander Page 27
- 28. Open Innovation atRoyal Philips Electronics 18 March 2010 © 2010 Jeffrey Alexander Page 28
- 29. The Significance of“Innovation Communities” • Innovation productivity and knowledge creation is increased by linking disparate networks – “The strength of weak ties”—the best links are those which cross between communities – Boundary-spanning is an element of “seeing differently” (John Seely-Brown) 18 March 2010 © 2010 Jeffrey Alexander Page 29
- 30. Building a Communityof Innovation • Strong leadership to build trust among participants • Existence of significant incentives to motivate collaboration • Governance process for managing conflicts • Institutions which reinforce and bridge across phases of the innovation value chain • Processes for socializing community participants to create their own subculture 18 March 2010 © 2010 Jeffrey Alexander Page 30
- 31. Prerequisites for SuccessfulInnovation Communities Trust-building Knowledge Social capital sharing & & affinity exchange Leadership Incentives Governance Interaction Socialization Learning processes & communities of learning 18 March 2010 © 2010 Jeffrey Alexander Page 31
- 32. Example: Albany’s College of Nanoscale Science & Engineering & SEMATECH 18 March 2010 © 2010 Jeffrey Alexander Page 32
- 33. Operating Model 18 March2010 © 2010 Jeffrey Alexander Page 33
- 34. Re-Envisioning the InnovationProcess 18 March 2010 © 2010 Jeffrey Alexander Page 34
- 35. The CNSE Communityof Innovation • Leadership – Entrepreneurial visionary (Prof. Alain Kaloyeros) – Credibility (backing of SEMATECH, Governor Pataki, NIST) • Incentives – Massive capital costs for moving to next generation of semiconductor manufacturing – Opportunities to share pre-competitive knowledge • Governance – Dynamic networks of research teams – Partners select where they will put their investments • Socialization – Shared research and office space – Faculty and students are the “glue” linking partners 18 March 2010 © 2010 Jeffrey Alexander Page 35
- 36. How Can YouInnovate in Innovation? Facilitate innovation Lower the inherent barriers to creating and adopting innovations Accelerate innovation Reduce time-to-market by streamlining the formation of innovation teams Optimize innovation Focus resources on innovation opportunities with highest potential for success and impact 18 March 2010 © 2010 Jeffrey Alexander Page 36
- 37. Thank You! Menlo Park Headquarters SRI International 333 Ravenswood Avenue Menlo Park, CA 94025-3493 650.859.2000 jeffalex@stanfordalumni.org Washington, D.C. SRI International 1100 Wilson Blvd., Suite 2800 jeffrey.alexander@sri.com Arlington, VA 22209-3915 703.524.2053 Additional U.S. and international locations www.sri.com © 2010 Jeffrey Alexander