a western view of china's internal and external innovation ecosystem - ict sectors
DESCRIPTION
A network analysis of flows of information and investments a relationship perspective on the internal and external innovation ecosystems of China's ICT sectors. Crowd-sourced English language press release-type information provides a Western view in a systems framework.TRANSCRIPT
中国2.0内部和外围的创新生态系统网Martha G Russell, Neil Rubens, Camilla Yu
May 10, 2011
Photo: Kaisa Still, 2010
创新生态系统网络(IEN)汇集国际跨学科的团队,旨在发展和传播新型数据和工具,从而了解信息和通信技术在区域内起到的促进作用。
2Innovation Ecosystems Network, 2011
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创新产生于至少两个人之间。团队精神是必须的。总是有赢家和输家。
虽然人们可以随时随地地沟通,但对于复杂的全球性问题,一个人很难在某个时刻具备所有必须的洞察力,从而做出决定。
Strategic Value Creation Networks
• Critically important in technology development and economic growth
• Co-creation relies the relationship infrastructure of people, organizations and policies. – These complex intangible relationship assets can be observed through
network analysis of small, medium and large enterprises. – By identifying relationships through which information and financial
resources flow, visual insights toward a shared vision can be created and strategic network orchestration can be implemented.
– Using social network analysis, these relationship patterns can reveal• competitive forces• gatekeepers • collaboration opportunities • within and across sectors • in internal and external innovation ecosystems • around the world, including China 2.0.
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Models of innovation
Economic Innovation (producer innovation)-Schumpeter 1934
End-user Innovation-von Hippel 1986
Strategic Innovation- Hamel and Prahalad 1994
Open innovation-Chesbrough 2003
Collaborative Innovation Networks- Gloor2005
• Identify and empower influential activatethe evolution of the ecosystem
• Develop and implement programs(meetings, funding, initiatives) to foster co-creator networks
• Communicate complexity to co-create vision
• Measure the transformation of an innovation ecosystem
Innovation Ecosystems & Value Co-Creation
A dynamic innovation ecosystem is characterized by a continual realignment of synergistic relationships of people, knowledge, and resources that promote harmonious growth of the system in agile responsiveness to changing internal and external forces.
Innovation Ecosystems refer to the inter-organizational, political, economic, environmental, and technological systems through which a milieu conducive to business growth is catalyzed, sustained, and supported.
Value is co-created for the innovation ecosystem through events, impacts and coalitions/networks that emerge from a shared vision of the desired transformations. Data-driven metrics measure, track and visualise the transformation, empowering interaction with feedback for the shared vision.
www.innovation-ecosystems.org
Innovation Ecosystems Transformation Framework
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The Way We USED to Think About Organizations New Organizational Chart Based on Relationships
Relationship-Focused Co-Creation Infrastructure
(Visual) Social Network Analysis “. . . allows investigators to gain new insights into the patterning of social connections, and it helps investigators to communicate their results to others.“ (Freeman, 2009)
Infrastructure for Resource Flows- - - Relationships
(Companies are interlocked through key people – information flow, norms, mental models.(Davis,1996)
Relationship Interlocks
• Executives and key employees– Transfer of technologies and knowledge, professional networks, business
culture, value-chain resources
• Directors– US Fortune 500 firms interlocked (shared directors) with average 7 other firms
• Corporate governance embedded and filtered through social structures – Executive compensation, strategies for takeovers, defending against takeovers
• Gerald F. Davis, “The Significance of Board Interlocks for Corporate Governance,” Corporate Governance 4:3, 1996
• Investors and service providers– Awareness of external forces, competitive insights, resource leverage
• Relationship interlocks provide– Social relationship “filter” for governance, information flow & norms– Transfer of implicit and explicit know-how– Mental models
http://fusionenterprises.ca/Business_Training.php
Alumni Form Value Creation Networks
Global Video & Games Sectors
CapDigital membersmanually inflated for emphasis10Preliminary and proprietary for CapDigital
Permission required for sharing© 2010 Innovation Ecosystems Network
From IEN Dataset 2010Global video_games sector
CapDigital members in sector manually enhanced for emphasis
Innovation Ecosystems Network
Networks of Female and Male Executives
in Companies in the Biotech Sector
Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report
http://www.flickr.com/photos/tomatoskin/1339929731/
Traditional Data Gathering Methods
http://www.flickr.com/photos/clydeorama/3495284608/
Have to react QUICKLY
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“There is no data like more data” (Mercer at Arden. House, 1985)
2,000 points 500 Points8,000 points
“There is no data like more data” (Mercer at Arden. House, 1985)
Easy, fast integration, using APIs and data sources to produce results that were not the original reason for producing the raw source data [wiki].
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Mashup
http://www.iro.umontreal.ca/~bengioy/yoshua_en/research_files/CurseDimensionality.jpg
Could be easier to find patterns
More Data is Need
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Higher Dimensions: Double Edged Sword
Data for Visualization & Shared Vision
Accessing Data Streams about Innovation Building a Dataset on Innovation
Crystallisation Through Visualisation The Card-Mackinlay-Shneiderman visualisation reference model:(Card et al., 1999; Miksch, 2005)
Place of innovation
Localized concentrations -Marshall 1890
Menlo Park (Research Park) 1948, Stanford Industrial Park 1951, Research Triangle Park 1959
Clusters- Porter 1998, Saxenian 1994
Regional Innovation Systems-Metcalfe 1995
Innovation Cluster- Yim2008, 2002
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Number of US Technology-based companiesBy sector, Dec 2009
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.
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Number of US Technology-based companiesAdvertising & Web, Dec 2009
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Behind the Innovation Curtain: Mobile Players and Their Moves.” Submitted to the International Conference on Mobile Business,” Intl Conf on Mobile Business.Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.
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Number of US Technology-based companiesBiotech & Cleantech, Dec 2009
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Behind the Innovation Curtain: Mobile Players and Their Moves.” Submitted to the International Conference on Mobile Business,” Intl Conf on Mobile Business.Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves”
Technical Report. Media X, Stanford University, Feb.2010.
Distance
Old
New
The new maps may be based on the connections - rather than on distance.
Global Perspectives - Three Examples
• Parisian Innovation Ecosystem: Digital Media
• Norwegian ICT Innovation Ecosystem
• China ICT – Western view
– Internal Ecosystems
– External Ecosystems
Case Study - CapDigital
Vision
To catalyze the new digital infrastructure in France with global connections
To create an ecosystem to facilitate the relationship between France and global market
Enable Paris to become global region of the market for digital services
Conducted stakeholder interviews to understand shared vision, tap knowledge in practice, identify transformational metrics
•CapDigital staff
•CapDigital members:
– Small startup
– Large company
– Collaboration
25Innovation Ecosystems Network November
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Network GraphParisian Innovation Ecosystem
Pale Red: French companyDark Red: CapDigital member
Light Green: Foreign Venture/ firmDark Green: French venture firm
Blue: Foreign company
From IEN Dataset 2010Selected Paris companiesLinked people & venture/financing entitiesLinked companies, people & v/f entities
1 degree2 degree
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Innovation Ecosystems Network
Parisian Innovation EcosystemCapDigital – France - Global
Pale Red: French companyDark Red: CapDigital member
Light Green: Foreign Venture/ firmDark Green: French venture firm
Blue: Foreign company
From IEN Dataset 2010Selected Paris companiesLinked people & venture/financing entitiesLinked companies, people & v/f entities
1 degree2 degree
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Innovation Ecosystems Network
Zone 1 OpportunityVC Community
In Zone 1, most of the companies are highly connected with VC or other companies.
VCs are making investments actively - many high potential opportunities to funding.
Venture & financing provides local relationships
Alto-invest
Funds 6 French media companies, none are CapDigital members
Some funded by other VCs also
Some VCs and companies provide global relationships– Unruly Media (headquartered in London)
– Unruly Media helps agencies and marketers distribute branded content on the social web.
– Using a cost-per-engagement pricing model and non-interruptive advertising formats, Unruly Media’s global network of influential blogs, cult web properties, video sites, and social media applications brings scale, targeting, and safety to a fragmented and chaotic long-tail media landscape.
– Founded in 2006 by Scott Button, Matt Cooke and Sarah Wood, Unruly is headquartered in London, UK.
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Zone 2 OpportunityPotential New Members for
Cap Digital
In zone 2, most of the companies have fewer connections
There are many French based companies, to which CapDigital reach out
Some zone 2 companies already have global connections to be leveraged.
• Webwag publishes Mobile and Web widget convergent solutions, helps users create a personalized home page with data feeds and web 2.0 services that are always accessible from any computer or mobile. Its technologies are made available in white brand to its customers that include Network Operators, handset and connected devices manufacturers, service owners and media publishers.
30Innovation Ecosystems Network
Zone 3 OpportunityExpand Global Network
Many foreign companies in Zone 3 - opportunities for CapDigital to seek international partnerships.
Wellington Partners
• A venture capital firm that invests in French and intl firms in Digital Media and Software
• Offices in Munich, London, Palo Alto, Zuirch.
• Co-invests with a French VC.
31Innovation Ecosystems Network
http://www.slowtrav.com/blog/chiocciola/Geirangerfjord.jpg
The Norwegian Puzzle
• Norway is a wealthy country with high standard of living and almost NO unemployment
• Yet, low rate of technology-based innovation
• What is the future of Norway after oil reserves have been extracted?
• Given technology targets:
– How can innovation be catalyzed?
– How can establishing global relationships be accelerated?
Norwegian Tech-based CompaniesTheir Branch Offices and Their Financial Orgs
Links show relationships
Example view to IEN dataset in Gephi. Companies are selected with keyword search “Norway + Norwegian;” the funding organizations associated with those companies are added Nodes represent companies and their investors; edges indicate resource flows. The network layout is created with Yifan Hu Multilevel algorithm and nodes are inflated according to their indegree, i.e. the number of the connected investors.
Advisors & Investors Expand AccessInvestors leverage co-creation opportunities with investments in multiple companies. Intl companies not shown.
Companies leverage value co-creation opportunities through relationships with multiple investors. Some investors are international.
Timeline analysis of investment events reveals patterns of co-investment – an indication of intention to co-create value and, perhaps, stimulus programs.
IEN Dataset, July 2010
International Relationships for Value Co-Creation
Huge opportunities for international relationships lie 2 & 3 degrees out from Norwegian companies
Example view to IEN dataset for keyword search. Nodes represent companies and their previous and current employees. The network layout is created with Fruchterman Reingold algorithm and nodes are inflated according to their outdegree. Protocols for anonymity are evolving.
IEN Dataset, July 2010
Globalization of Norwegian ICT
IEN Dataset, July 2010
Norwegian tech-based companies with financing are more likely to have networked relationships.
Norwegian tech-based companies have access to global relationships through current board members, investors, and key personnel.
Insights About Norway
• Dual offices: regional and Oslo
• In sectors we studied– Business locations parallel technical university programs
– Investor relationships have strong local links • Some investing organizations are governmental programs
• Expands to Oslo when offices are in Oslo
• International relationships linked to small set of personal relationships at executive level
– International investors drawn through executive relationships• Relationships through execs at Google and AOL provide channels
for global network expansion
Context of Investments into/from China
Insights into Innovation
Social Network Analysis
Socially Constructed
Data
Socially constructed dataset, in English, openly available– all challenges in China
Innovation Ecosystems Dataset:
•323 technology-based companies with one or more locations in China•42 Chinese, 77 foreign investment firm•Investment into China US$ 5.4 B•Investment originating from ChinaUS$ 3.1 B
Insights explored:
The flow of financial resources into and out of China
More illustrative than descriptive/prescriptive results
Innovation Ecosystem NetworkNeil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.
Initial Data Analysis:53% (113) of the Chinese companies from eCIS business sector
50 % (66) of the foreign companies are from the eCIS business sector
Toward Insights about:
Patterns and differences in the characteristics of investment flows
into and from China
More Specific: Context of eCIS sectoreCommerce and electronic security=
eCommerce, software search, network hosting, mobile, games &video, enterprise
Insights into Innovation
Social Network Analysis
Socially Constructed
Data
Innovation Ecosystem NetworkNeil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.
CULTIVATIONInvestments into China
(receiving investments)
Innovation Ecosystem Network
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.
Emerging Chinese business clusters linked by firms’ relationships
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.
HARVESTInvestments from Chinese
(making investments)
Innovation Ecosystem NetworkNeil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.
• Modes of value co-creation• Cultivation • Harvesting
• Chinese interlocks at the investment firm level– Government-led investment firms– Knowledge of government guarantees– Investments in firms that return benefits to China
• Global interlocks at both investment firm and enterprise levels
• Opportunity network & value co-creation
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Topline Findings
A Western View: China’s Internal Innovation Ecosystem
Chinese investment organizations,companies,branch offices
A Western View of China’s External Innovation Ecosystem
Intl investments into Chinese companies
Chinese investments into Intl. companies
Event
Impact
Coalition
Shared Vision
Transformation
Measure & Track
Interact & Feedback
Co-Create Value
Innovation Ecosystem Networks Action ModelTranslate, measure and transform an innovation ecosystem
50Innovation Ecosystems Network 2011
SourceAbsorbExchangeIsolates
GatekeepersStars
• Martha G Russell, PhD, [email protected]
– Sr. Research Scholar, HSTAR Institute
– Associate Director, Media X at Stanford University
• Neil Rubens, PhD, [email protected]
– Assistant Professor, Graduate School of Information Systems
– University of Electro-Communications, Tokyo
• Jukka Huhtamäki, [email protected]
– Researcher, Lecturer
– Hypermedia Laboratory (HLab) of Tampere University of Technology (TUT).
• Kaisa Still, PhD, [email protected]
– Knowledge Management Specialist
– Beijing DT Electronic Technology Co., Ltd
http://www.innovation-ecosystems.org
Innovation Ecosystems Network
• Ben LeNail
• Media X Visiting Researcher
• Mergers & Acquisitions
• Mario Gastel, [email protected]
– Graduate student, Texas Advertising, UT Austin
– Fulbright Scholar (2009-11)
• Jiafeng (Camilla) Yu, [email protected]
– M.A. in Advertising in Planning Track
– The University of Texas at Austin
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Questions?
[email protected]@hsrtc.org
THANK YOU!
Innovation Ecosystem Network
对于创新的洞察
社交网络分析
社交架构的数据
www.innovation-ecosystems.org