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Open Innovation 2.0 – creating ecosystems!

- European response

bror.salmelin@ec.europa.eu

Adviser, Innovation Systems, European Commission

Contents

• VUCA?

• OI2?

• Drivers

• How does the paradigms change?

• How to respond to the challenges?

The Future

• Prediction is difficult,

Especially about the future

• Niels Bohr

• The best way to predict the future is to invent it!

• Alan Kay

3

VUCATIONAL society

• Volatile

• Uncertain

• Complex

• Ambigious

Innovation?

• Make things happen!

Sustainable innovation is full of disruptions! Science based linear innovation is NOT mainstream anymore! HOW TO CREATE NEW???

• User-centric innovation • Open innovation • Systemic innovation • Experimental mash-up

Essential drivers

• connectivity

• open

• interaction

• “organic”

• NON-controllable, only catalyzing possible

Open Innovation 2.0:

A New Renaissance IF NOT……

Diversity matters (MIT 2002)!

•

High low

Low

high

Va

lue

of

inn

ova

tio

n

Breakthrough

average

insignificant

Alignment of team members’ disciplines

Talent attracts talent!

Value Chain

collaboration process

Value Network

Dynamic Value

Constellation

mediation Value Chain

process

Value Network

New Business Structures

Maslow 2.0 for organisations

Still linear innovation model!

Testbed FDinland(FI)

SURFnet/

Kennisnet

project: pilot

schools (NL)

Silicon

Hill (FI)

Kenniswijk (NL)

Octopus

(FI)

Digital

Playgrounds

(NL)

Degree of participation: LOW (Observation) VS. HIGH (Observation +

Creation)

Knowledge Focus: Single and controlled contexts VS. Multiple & Emerging

contexts

Test and Experimentation Platforms

Sources of idea generation split into external

and internal knowledge

Source: Straub, 2006a

M

M

M

Customers

M=Management response of a given task in a given time point is given to the competence

node which understands the customers problem best

Group of competencies needed to

perform a task

Competence nodes networking (IMS, 1996)

••• 16

Innovating together!

Open

Innovation Citizens

and users

Application

Environments

Technology and

Infrastructure

Organisation

and methods

Expertise

Creative Commons; tools, IPR, practise, experience

Innovation moving out of the Lab

Centralized inward looking innovation

Closed Innovation

Ecosystem centric, cross-organizational innovation

Innovation Networks

Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005

Externally focused, collaborative innovation Open Innovation

Creating Innovation Platforms

Engagement platforms

“Assemblages of persons, interfaces, processes, and artifacts, purposefully designed to intensify engagements to co-create

value”

from Prof V Ramaswami

High expectation jobs count for 80% of new job creation

But:

High expectation……. ……the “Unexpected”

Pathfinders

and/or

Path Creators ?

PATHFINDER – the “knowledgist”

Knowledge maps

Measurement Optimization Path

Specialization Path

Neutralization Path Silos

Horizon of

certainty

Disobedience (“Ignorance is bold and knowledge reserved”, Thucydides

“Future knowledge is not possible in the present”, Karl Popper )

Uncertainty

Inaccuracy

Horizon of

doubt

Imagination

(“Knowledge circumscribes the imagination”, Giacomo Leopardi, Notebooks)

A range of

disciplines

PATH CREATOR – the “resilient persona”

Search for adjacent ideas

“one door leading to

another door”

Innovation is a “body sport”

A

B

C

“I am going to use my idea in my field of use, and you are welcome to use it in your own field”

Bridger as new profession

Extraordinary: Large Deviations Make the Difference In experiments events supposed not happening, happen

“normal” is not

the focus

“extremes” are

the focus “extremes” are

the focus

Feedback loops

Cumulative, snowballs, arbitrary

and unpredictable effects

You don’t tame uncertainty

looking at extraordinary

events

We reward

acts of

prevention

rather than

treatment

Discovery of valuable ideas by crowds!

Number

crowd experts

Value

Area of interest Old space

New space

Curators and Bridgers as new skills

New innovation space

• New professions: Curators and Bridgers

• New types of ecosystems:

• Self directed

• Real world prototyping and experimentation

• Common interest

• Open platforms

• Recognition beyond ordinary means

• Brings fast scale-ups

• Flagships (?)

time

value Transition speeding + disruption+ risk mgmt

Experimentation in real world Multidisciplinary Co-creation of new marketplace

Create incentives to encourage Openness to Innovation and Experimentation

• We solve too many problems with taxes and penalties, create incentives to encourage experimentation and prototyping, not "perfect planning for yesterday".

• Promote Successful innovators and entrepreneurs as Hero’s

• Change our European culture where honourable failure is seen as a badge of honour :"failing fast, but small"

Drive Intersectional Innovation

• The breakthroughs happen at the boundaries of culture, domains, nations and technologies

• Prioritize support for innovation which target intersectional, disruptive and architectural innovation

• Create a de Medici effect to enable a new European Innovation renaissance

Horizon 2020

• Commission proposal for a 80 \billion euro research and innovation funding programme (2014-20)

• Part of proposals for next EU budget, complementing Structural Funds, education, etc.

• A core part of Europe 2020, Innovation Union & European Research Area: • Responding to the economic crisis to invest in future jobs and growth • Addressing peoples’ concerns about their livelihoods, safety and

environment. • Strengthening the EU’s global position in research, innovation and

technology

• Three main focus areas: Industrial leadership (LEIT), Socieoeconomic challenges and Research Excellence

Accelerate the Innovation Union by the following 10 actions

• Action No 1: Develop a new business model for the European Union

• Action No 2: Design for a new end state – Sustainable Intelligent Living

• Action No 3 Create an European Innovation Ecosystem (EIE) having European Research Area as one important part of it

• Action No 4 Focusing on evidence based innovation strategy, execution and funding in the EU actions

• Action No 5: Create a European Innovation System and Capability (what, how, when)

• Action No 6: Prioritize Quadruple Helix Innovation

• Action No 7: Focus on Innovation Adoption

• Action No 8: Create incentives to encourage Openness to Innovation and Experimentation

• Action No 9: Stimulate High Expectation Entrepreneurship and social entrepreneurship

• Action No 10: Drive Intersectional Innovation

Dublin Declaration – Open Innovation 2.0 May 20 & 21 2013 Mission: Develop a widespread innovation literacy in Europe Vision: Open Innovation 2.0 – The next new Official Language of the European Union Initiative by OISPG, Open Innovation Strategy and Policy Group, chair Martin Curley, INTEL

Paradigm change is REAL!

• Closed innovation Open innovation Open innovation 2.0

• Dependency Indepencency Interdependency

• Subcontracting Cross-licensing Cross-fertilisation

• Solo Cluster Ecosystem

• Linear Linear, leaking Mash-up

• Linear subcontracts Triple Helix Quadruple Helix

• Planning Validation, pilots Experimentation

• Control Management Orchestration

• Win-lose game Win-win game Win more-Win more

• Box thinking Out of the Box No Boxes!

• Single entity Single Discipline Interdisciplinary

• Value chain Value network Value constellation

Conclusions

• The paradigm shift to Open Innovation 2.0 is real

• Essential to find positive collisions to create new markets

• Clusters are not enough to create new; ecosystems needed!

• Experimentation and prototyping in real world settings especially important in areas close to societal changes and challenge

• Experience from first calls: Too little emphasis on impact

More information

www.ec.europa.eu/research/horizon2020

http://ec.europa.eu/digital-agenda

http://ec.europa.eu/digital-agenda/en/open-innovation

bror.salmelin@ec.europa.eu