innovation ecosystems' evolution - how to manage within them? - jorn bang andersen

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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 [email protected] / www.nordicinnovation.org www.jo rnbangandersen.com

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Presentation given by Jørn Bang Andersen regarding the Evolution of Innovation Ecosystems and How to Manage Within Them. Presentation made for Innovation Forum Norway, Oslo April 12 - 2011.

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Page 1: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

[email protected] / www.nordicinnovation.org

www.jornbangandersen.com

Page 2: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 3: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 4: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 5: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 6: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 7: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 8: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 9: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

Innovation Ecosystems Network

• Where: US - Stanford + China, Finland, Japan

• When: 2010

• Enablers: Formation of alliances

• Focus: Co-creation, investment capital, network centric views

http://www.innovation-ecosystems.org/ Copyright: Jørn B. Andersen 2011

Page 10: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 11: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

•  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

Baku - World’s Leading Ecosystem 1900

Copyright: Jørn B. Andersen 2011

Page 12: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 13: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

How to Manage Within Innovation Ecosystems in 2011?

Copyright: Jørn B. Andersen 2011

Page 14: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

Consider a SimpleTextile factory...

• Fifty-two different operations all totally interchangeable

• To establish optimal sequence i.e. technology, director faced with a decision problem: 52 alternatives...

1068

Example from Paul Romer

Copyright: Jørn B. Andersen 2011

Page 15: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Copyright: Jørn B. Andersen 2011 Source: Henry Mintzberg

Page 16: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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.

Distributed Management

Copyright: Jørn B. Andersen 2011

Page 17: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

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

Page 18: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

• 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

Page 19: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

Copyright: Jørn B. Andersen 2011

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

Page 20: Innovation Ecosystems' Evolution - How to Manage Within Them? - Jorn Bang Andersen

Thank you for listening�