Markku Markkula

• Member of the EU Committee of the

Regions, Rapporteur on “Horizon 2020” and

“Closing the Innovation Divide”

• Advisor to the Aalto Presidents at Aalto

University

markku.markkula@aalto.fi

EU Presidency Conference Open Innovation 2.0:

”Closing the Innovation Divide”

At the request of the Irish Presidency, the EU Committee of the Regions (CoR) is submitting proposals on

1. Measures required of the regions and all their various players, and2. Measures required under EU Commission programmes, funding and

other activities.

In my presentation I will highlight a few key messages of the CoR Opinion (which is to be approved by the CoR Plenary on 30th May.

3. Implementing EU2020 a few crucial policy guidelines 4. Entrepreneurial Discovery a key driver of transformation5. Regional innovation ecosystems attractive innovation environments6. A circular economy highlighting the importance of knowledge reuse7. Creating challenge platforms bench-learning & bench-doing

My key messages:1. A Few Crucial Policy Guidelines in Implementing EU2020

In Europe, we need to:1. stress the importance of Europe-wide collaboration and transnational cooperation projects

between regions, building on innovation support and smart specialisation strategies;2. encourage bottom-up activities: co-creation, co-design and co-production, working in true

"know-how" collaboration instead of just urging governments to develop new "solutions" for citizens.

3. strive for societal innovation, with living labs, testbeds and open innovation methods in regional innovation policy-making, while getting citizens on board;

4. implement the Knowledge Triangle as a key principle in European university reform (greater synergies between research, education and innovation);

5. focus more on the active use of innovative public procurement, combined with simplification of procedures;

End user’s needs and potential:

Individuals & Organizations

We need societal innovation

for sustainable impacts

Research and Innovation Knowledge Base

Open Innovation & Smart Specialisation Fill the Gap between Research and Real Life Practice

Real Life Practice

“Smart Region as the innovation

laboratory”

markku.markkula@aalto.fi

SMART SPECIALISATION

Scientific Excellence & Industrial Leadership

Horizon 2020 Frame for Research and Innovation:How to Speed up and Scale up EU 2020 Implementation

Regional Innovation

Ecosystems Pioneering

EU2020

Markku Markkula, markku.markkula@aalto.fiChair CoR-EPP Task Force on Europe 2020, Aalto University, Finland

MoreSocietal

Innovations

UrbanDesign

Solutions

Digitalized Real Life Test-beds

Open Innovation & Digital Entrepreneurship

Business Model Levers Technology Levers

Value Proposition

Value Chain Target Customer

Product and Service

Process Technology

Enabling Technology

Cultural Levers

Regional InnovationEcosystem

Space (Ba & Flow)

Design

Mindset

Learning

Transformation: the levers for the 3 types on innovation

Incremental innovations

Semi-radical innovations

Radical innovations

Markkula M & Pirttivaara M, (2013). Adding the Cultural Levers. Developed from Davila T, Epstein MJ and Shelton RD, (2013), Making Innovation Work, FT Press, New Jersey.

Now: also the cultural levers are the drivers of change.

In the past: the focus on innovations has been on business and technology.

Conceptualizing the Implementation of Knowledge Triangle:

Create Synergy between Research, Education and Innovation

Innovation

EducationResearch

Platform for Blended Learning

Platform for Working Life DevelopmentPlatf

orm fo

r Fore

sight &

Co-creati

onOrchestration

Focus on:A. Value creation based on better use of intangible assetsB. New processes and methods for university-industry collaborationC. Systemic change and societal innovations

Benefits are evident:For studentsFor teaching staffFor researchersFor working life professionals

Special need to:A. PlatformsB. ProcessesC. Orchestration

markku.markkula@aalto.fi

My key messages:

2. Entrepreneurial Discovery a Key Driver of Transformation

1. As many phenomena of the digital society have already demonstrated, significant transformation takes place from the bottom up, and a pervasive mindset of "entrepreneurial discovery" is critical. The term "entrepreneur" is inadequate here because it is often interpreted rather narrowly.

2. Discovery also means more than innovation. It is rather a new activity – exploring, experimenting and learning what should be done in the relevant industry or subsystem in terms of research, development and innovation to improve its situation.

3. Entrepreneurial discovery means experimentation, risk-taking, and also failing. It means individuals often working together with others in networks, assessing alternatives, setting goals and creating innovations in an open-minded way.

4. The CoR encourages all parties concerned to actively engage in science-society dialogues that explore and underscore how to translate the results of research into real-life practice. Schools and all educational bodies play a crucial role here.

Identify Societal / Market Needs & define system requirements & barriers

Develop useful insights from Fundamental Knowledge

Integrate fundamental research & innovation knowledge into Enabling Technologies

Applying Experiences from Industrial Systems:

Systemic Approach to Tackle Societal Innovations by Interacting Learning & Research & Innovation Activities

(E O’Sullivan: Adapted from NSF ERC Strategy Framework)

Professor Sir Mike Gregory, 13 Feb 2013

Three steps to understand the system:

Key Points to Learn from Industrial Innovation

• Design in Science• Technology ‘Roadmapping’• Open Innovation• ‘Technology Intelligence’

Wor

k in

Pro

gres

s

We need more Science-Industry-Society DialogueReview the following practical approaches to innovation and design:

Professor Sir Mike Gregory, 13 Feb 2013

Create Creative Spaces – Attract Passionate People

we.learn.it

we.learn.it

Digitisation drives change, and convergence towards digital services is speeding up:1. The best laboratories for breakthrough innovations today are no longer traditional university

facilities, but regional innovation ecosystems operating as testbeds for rapid prototyping of many types of user-driven innovations, based on transformative and scalable systems.

2. Innovation communities operate as ecosystems through systemic value networking in a world without borders.

3. Innovation processes are strongly based on demand and user orientation and customers as crucial players in innovations.

4. Innovation strategies focus on catalysing open innovation and encouraging individuals and communities towards an entrepreneurial mindset and effective use and creation of new digitalised services.

5. Innovation is often based on experimenting and implementing demonstration projects by partnerships, using the best international knowledge and creating new innovative concepts.

My key messages:3. Developing Attractive Innovation Environments

Regional Innovation EcosystemAalto University Campus 2020

According to the plans, by 2020, there will be new investments of 4-5 billion €: metro, tunnel construction of ring road, other infra, housing, office and business buildings, public services, university buildings, sports and cultural facilities…

Aalto University

Nokia

RovioTapiola

Garden City

EIT ICT LabLaurea

Young entrepreneurial mindset

Aalto Campus based on Prof. Nonaka: Ba & Flow (our “Idea Space” developments)

1. A circular economy is an economy in which things are not thrown away or lost, but allowed to circulate and be reused so that their value is not lost, but enhanced.

2. The term derives from new thinking about next-generation concepts for sustainable development. In a circular economy for knowledge, the results of research programmes and projects – ideas, insights, recommendations, methodologies, practical proposals, prototypes and inventions – can be rediscovered, accessed, and applied in current programmes and projects in related and relevant areas.

3. In moving towards a circular economy for knowledge, national funding bodies could revisit and explore the results of projects completed during the last 5 10 years‑ , and unlock their treasures for reuse in new regional and national contexts. Directorates-General in the Commission could do the same, making results accessible more broadly across different domains, in order to address societal challenges.

4. RDI activities are required to pilot and create prototypes of a. spatial configurations with physical, intellectual and virtual dimensions, and b. orchestration and knowledge management toolkits needed to address challenges.

My key messages:

4. A Circular Economy – Knowledge Sharing and Reuse

Working space built into the latest 3-dimensional regional information model of Espoo T3 innovation hub.

2012 Juho-Pekka Virtanen, Tommi Hollström, Lars Miikki, Markku Markkula

Based on research on Regional Information Modelling by:Juho-Pekka Virtanen, Hannu Hyyppä, Marika Ahlavuo, Juha Hyyppä

2012 Juho-Pekka Virtanen, Tommi Hollström, Lars Miikki, Markku Markkula

Based on research on Regional Information Modelling by:Juho-Pekka Virtanen, Hannu Hyyppä, Marika Ahlavuo, Juha Hyyppä

More Information on the platform used, download and install: www.meshmoon.com

Aalto City Integrating Real and Virtual Worlds

Aalto University campus with its surrounding business and residence areas is the innovation hub of the Helsinki Region. This picture is based on the Energizing Urban Ecosystems research program. The program with its € 20 million multidisciplinary research integrates new science, art and business developments to working in a virtual environment. Regional Information Modeling is the breakthrough dimension in this research.

Regional Information Modeling(CdR 104/2010 fin)

OPINION of the Committee of the Regions on the DIGITAL AGENDA FOR EUROPE, approved by the CoR Plenary on 6 October 2010

“Committee of the Regions (CoR) points out that management of the built environment and urban planning are sectors with a high impact on the local economy as well as on the quality of the living environment.

New developments in information management can play a crucial role in achieving the goal of establishing an ambitious new climate regime. Building Information Modelling (BIM) is actively used in facility management to provide a digital representation of the physical and functional characteristics of a facility.

The concepts of BIM should be extended to regional and urban planning. It could then serve as a shared knowledge resource for an area, forming a reliable basis for life-cycle analysis, user-driven business process development and value creating decision-making.”‑

Energizing urban ecosystems: Regional information modellingThe research led by Dr Hannu Hyyppä produces the overall concept, methodologies and descriptions of how a regional information model based on the newest digital technology operates. Research will link infrastructure and the present digitalization of buildings in T3 together with the operational activity planning. The outcome is the T3-wide technical demonstration of regional information modeling.

Energizing urban ecosystems: Visualized virtual realityThis research lead by Tommi Hollström Adminotech Ltd focuses especially on creating a new working culture for virtual worlds: a realXtend based social media and virtual reality platform and 3D virtual software applications.

2012 Juho-Pekka Virtanen, Tommi Hollström, Lars Miikki, Markku Markkula

Based on research on Regional Information Modelling by:Juho-Pekka Virtanen, Hannu Hyyppä, Marika Ahlavuo, Juha Hyyppä

1. Regions need new arenas as hotspots for innovation co-creation. These could be described as "innovation gardens" and "challenge platforms", which together form prototype workspaces for inventing the future.

2. We need to speed-up the transformation by Europe wide partnerships based on pioneering and scaling. The CoR stresses that these platforms should be based on both bench-learning (validating ideas that work in one organisation and one region by testing them in other organisations and regions) and bench-doing (giving added value to new ideas by turning them into practical innovations in several regions at the same time).

3. However, we need to stress the importance of research. Knowledge exploitation and capacity-building processes, and knowledge exploitation in organisational learning, are concepts that are becoming important, as well as exploration and knowledge co-creation.

My key messages:5. Creating Challenge Platforms Based on Bench-learning

Open Innovation & University – Industry Collaboration

Justin Rattner, INTEL , Open Innovation 2.0, Dublin, 20 May 2013

Stairway to Excellence Bench-learning: Aalto University Pioneering Ramps for Societal Innovation

Entrepreneurial Mindset

Aalto Living Labs

Real life & Real Case -

Approach

What can we learn from John Kao (Harvard Business Review article in March 2009 / Tapping the World’s Innovation Hot Spots): “The journey to innovation is a 3-act drama”1. An innovation audit is required What

new capabilities need to be built;2. The context for innovation must be

understood: processes, foresight, customer insight;

3. The work of innovation must be carried out through tools, talent, resources and modes of collaboration generate significant sources of value.

Read: The Knowledge Triangle. www.sefi.be

Europe needs pioneering regions, as pathfinders and rapid prototypes. Helsinki Region has forerunner instruments in use:Aalto Design FactoryVenture Garage / Start-up Sauna Urban MillAalto Camp for Societal Innovation ACSI and many more …

Have a look at: www.aaltodesignfactory.fi

Markku MarkkulaCoR & Aalto University

Mindset

http://socialinnovation.se/en/news/acsi2013/

ACSI Value System Framework

Service platformsIncl. knowledge base & learning

environment

Value co-creation• Real cases & rapid prototyping• Integration with research, education

and other innovation activities

Partnerships & community

Networks and orchestration

• Grand Challenges,

• Societal & end users’ need and potential

• New knowledge• Innovative solutions• New RDI agendas• New market

opportunities• Sustainable impacts

Mika Pirttivaara (2010)

Next ACSI in Malmö in August 2013, have a look at: http://socialinnovation.se/en/news/acsi2013/

Aalto Camp for Societal Innovation ACSIJoin us to change the world: Integrating real world & virtual world

Thank you for listening: The Key Is Integrating Real World & Virtual World Energizing Urban Ecosystems

Aalto University as a Living Labmarkku.markkula@aalto.fi & www.aalto.fi

www.acsi.aalto.fi