serempathy a new approach on innovation and its application to european union countries

UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN

Creative Regions in Europe:

Challenges and Opportunities

Southampton (UK), 22-23 march 2010

SEREMPATHY: A new approach on

innovation and its application to European union countries

Barcelona, 6 may 2011

Miguel Ángel Pesquera Pablo Coto-Millán Pedro Casares Hontañón Pablo de Castro


Index of contents

01 The economic context: Crisis

02 Globalization: From Phronesis to Seremphaty concept

03 EU-15 Indexes for Human, Technological, and Serempathic Capital

04

Serempathy and economic growth in Europe

05

Conclusions


A CRISIS of Globalization

Open Systems: more complex and more uncertain


Economist Robert Reich

What will it look like? Nobody knows.

All we knows is the current economy can’t ‘recover’ because it can’t go back to where it was before the crash.

We should be asking when and how the new economy will begin.


CRISIS Today: The Great Reset

Richard Florida

“The First Great Reset occurred in the 1870's, the second

in the 1930's, and the third is now under development”


CRISIS Today: MACROWIKINOMICS

Don Tapscott and Anthony Williams

“The world has reached a critical turning point: reboot all the old models ….Society has at its disposal the most powerful

platform ever for bringing together the people, skills, and

knowledge”


Index of contents




04


05

Conclusions


“How CEOs can learn practical wisdom to help them do what’s

right for their companies-and

society”

Harvard Business Review May 2011

THE WISE LEADER

Ikujiro Nonaka and Hirotaka Takeuchi


From Knowledge to Wisdom


The origin of practical wisdom lies in the concept of phronesis, one of the three forms of knowledge that Aristotle identified.

PHRONESIS is “a true and reasoned state of capacity to act with regard to the things that are good or bad for man.”

It is similar to: Japanese concept of TOKU, a virtue that leads a person

to pursue the common good and moral excellence as a way of life.

Indian concept of YUKTA, which connotes “just right” or “appropriate.”


From Episteme to Phronesis


EPISTEME, or universally valid scientific knowledge is know-why

TECHNE, or skill based technical is know-how.

PHRONESIS is know-what should-be-done.


The Six Abilities of Phronetic Leaders Nonaka and Takeuchi

1. Wise Leaders Can Judge Goodness.

2. Wise Leaders Can Grasp the Essence.

3. Wise Leaders Create Shared Contexts.

4. Wise Leaders Communicate the Essence.

5. Wise Leaders Exercise Political Power.

6. Wise Leaders Foster Practical Wisdom in Others.


“Why the best environments for

creativity are diverse,

colaborative and tolerence of

failure. WIRED Oct 2010”

WHERE IDEAS COME FROM

Kevin Kelly and Steven Johnson


WHERE IDEAS COME FROM

Kevin Kelly and Steven Johnson

We should think of IDEAS as connections, in our brain and among people.

Ideas aren’ t self-contained things; they’ re more like ecologies and networks.

Ideas travel in clusters.


Ecosystems that form in the portion near the coast that is under a shallow depth water.

Often called “rainforests of the sea”, coral reefs form some of the most diverse ecosystems on earth.

Vulnerable to certain natural events, pollution, sedimentation.

Coral reef as a model of innovation

Steven Johnson


Coral Reef: Examples

TWITTER: not to see what people are having for breakfast, but to see what people are talking about, the links to articles and posts.

UNIVERSITY: As much as we sometimes roll our eyes at the ivory tower isolation of universities, they continue to serve as remarkable engines of innovation.


SCENIUS

Innovation doesn’ t come just from giving people

incentives; it come from creating environments where their ideas can connect.

The innovation comes from social scenes, from passionate and connected groups of people.

INNOVATION: New Concepts


SEREMPATHY It is the combination of serendipity (which is achieved by

chance) and empathy (putting yourself in the other).

Is "contact with luck, " the use of empathy for what we want to randomly.

SEREMPATHY: New theoretical approach to innovation


SEREMPATHY: The Power of Pull Three principles

Access people and resources where you need them (Empathy).

Attract people and resources you didn’t even know existed (Serendipity).

Achieve potential with less time and more impact than you imagined possible (Serempathy).


Pull Economy: The Power of Pull

John Hagel III, John Seely Brown

“The book's central premise is that institutions will be shaped to provide platforms to help individuals achieve their full potential by connecting with others and better address challenging performance needs. This is greatly possible thanks to the use of technology and digital media.”


Index of contents




04


05

Conclusions


Human Capital: 5 indexes

Doctorates per 1.000 population aged 25 to 64 (Human Capital 1).

The number of graduate students per 1.000 population aged 20 to 29 (Human Capital 2).

Population aged 25 to 64 with tertiary education (Human Capital 3).

Share for every 100 people in learning throughout life between 25 and 64 (Human Capital 4)

The number of young people aged 20 to 24 who have reached secondary education level (Human Capital 5)


European Indexes for Human Capital of the EU-15

Rank Score Human Capital 1 Human Capital 2 Human Capital 3 Human Capital 4 Human Capital 5

1. Finland 8.2 6.9 7.4 10 7.6 9.0

2. Sweden 8.1 4.7 7.2 8.7 10 9.2

3. Denmark 7.7 8.7 2.9 9.4 10 7.4

4. United Kingdom 7.6 8.7 5.5 8.7 6.6 8.2

5. Ireland 7.1 9.9 3.6 9.3 3.4 9.2

6. Holland 6.3 6.2 2.9 8.8 5.6 8.0

7. France 6.5 9.9 4.0 7.5 2.4 8.8

8. Belgium 6.0 7.6 3.0 8.8 2.3 8.6

9. Luxembourg 6* n.a. n.a. 7.6 2.8 7.6

10. Portugal 5.6 6.7 10.0 3.9 1.8 5.7

11. Austria 5.4 3.8 5.3 4.9 4.4 8.9

12. Germany 5.4 4.6 5 6.9 2.6 7.8

13. Spain 4.8 4.4 2.1 8.0 3.4 6.3

14. Italy 4.4 4.8 3.0 3.9 2.1 8.0

15. Greece 4.3 4.2 1.6 6.2 1.0 8.6

SOURCE: EUROSTAT, 2009. * Information for Luxembourg is not available. The figure of 6 is the average of the data.


Human Capital European Index EU-15

SOURCE: Compiled from EUROSTAT, 2009


Human Capital: Results

The leader countries in relation to the synthetic index of the human capital are Finland, Sweden, Denmark and United Kingdom. Another three nations – Ireland, Holland and France- also obtain very high scores.

Two countries obtain the highest scores in doctoral programs (Human Capital 1) – France and Ireland -, followed closely by Denmark and United Kingdom.

Two countries stand out in college graduates (Human Capital 2) – Finland and Sweden -, followed by United Kingdom, Austria and Germany.

Four countries – Finland, Denmark, Sweden and Ireland - are in top positions in secondary education (Human Capital 3).

Finland, Swede, Ireland, Austria and France lead the working population between 20 and 24 years which finish the secondary studies (Human Capital 5).


Technological Capital: 7 Indexes

% of GDP in public expenditure in R&D (Technological Capital 1).

% of GDP invested in new companies (Technological Capital 2).

% of GDP of Private Credit (Technological Capital 3).

Number of companies with 10 or more employees with broadband access (Technological Capital 4).

% of GDP of the total company expenses in R&D according to the definitions of Frascati´s manual (Technological Capital 5).

% of the GDP dedicated to Technology Innovation (Technological Capital 6).

% of the innovation expenses on the full business turnover excluding the R&D expenses (Technological Capital 7).


European Indexes for the Technological Capital of the EU-15

Rank Score Tech

Capital 1 Tech

Capital 2 Tech

Capital 3 Tech

Capital 4 Tech

Capital 5

Tech Capital

6

Tech Capital

7

1. Sweden 8.4 8.5 8.4 5.9 9.0 10.0 10.0 2.0

2. Denmark 8.0 7.1 2.7 10.0 8.1 6.9 8.4 1.5

3. Finland 7.9 8.2 4.9 3.9 9.3 10.0 8.9 n.a.

4. United Kingdom 7.1 5.5 10.0 9.6 8.8 4.4 9.2 n.a.

5. Holland 6.8 6.4 3.5 8.8 8.7 3.2 8.7 0.9

6. Germany 6.8 6.9 1.8 4.9 8.5 6.7 7.6 n.a.

7. Austria 6.7 6.8 9.9 5.4 7.7 6.8 7.4 n.a.

8. Spain 6.6 5.4 3.3 9.0 9.3 2.7 3.7 1.5

9. Ireland 6.4 4.1 1.3 9.9 8.4 2.2 4.5 3.3

10. France 6.3 6.3 3.1 4.9 9.3 4.6 8.2 1,0

11. Belgium 5.9 5.1 3.5 4.3 9.2 4.8 7.4 2.2

12. Luxembourg 5.4* n.a. 3.5 n.a. 8.8 4.8 7.4 2.7

13. Italy 5.0 4.8 1.0 4.8 8.2 2.2 4.5 3.3

14. Portugal 4.0 5.5 2.1 8.2 8.2 2.8 4.7 2.8

15. Greece 4.0 3.6 3.0 4.2 7.5 6.0 3.2 2.2

SOURCE: EUROSTAT, 2009. * The average data available for Luxembourg is 5.4.


Technological Capital European Index EU-15



Technological Capital results

Sweden, Denmark, Finland and United Kingdom, are in first place in the technological capital ranking, measured by the synthetic indicator.

Seven other countries are reasonably well located in relation to the Synthetic Indicator of Technology. These countries are Holland, Germany, Austria, Spain, Ireland, Belgium and France.

In the last positions of the technological ranking we find: Italy, Portugal and Greece.

In the global technology index, Spain occupies a middle position –8th-, among the 15 countries considered, with scores very close to his predecessors and ahead of Italy, Ireland, Belgium, France, Portugal and Greece.


Serempathic Capital: 4 Indexes

Sum of small and medium enterprises with innovation activities (Serempathic Capital 1).

Sum of small and medium enterprises with innovation activities in collaboration with other companies and institutions in the three previous years (Serempathic Capital 2).

Sum of the creations and destruction of small and medium enterprises with more than five employees (Serempathic Capital 3).

Number of research publications carried out jointly by the public and private sector (Serempathic Capital 4).


European Indexes for Serempathic Capital of the EU-15

Rank Score Serempathic

Capital 1 Serempathic



Capital 4

1. Finland 7.7 8.8 10.0 0.7 5.3

2. Germany 5.8 9.9 3.3 5 2.5

3. Denmark 5.6 8.8 5.4 1.9 6.4

4. Austria 5.6 8.9 6.5 3.8 3.3

5. Holland 5.3 5.9 4.5 6.2 4.5

6. Ireland 4.7 8.4 4.3 5.32 1.1

7. Sweden 4.5 9.0 6.0 2.5 6.4

8. United Kingdom 4.3 6.6 6.6 3.9 0.1

9. France 4.2 6.1 4.2 4.6 1.8

10. Greece 4.1 7.1 4.8 4.1 0.6

11. Portugal 4.0 7.4 2.4 5.8 0.5

12. Luxembourg 2.9* n.a. 5.5 2.7 0.5

12. Spain 2.9 5.3 1.8 4.0 0.7

13. Italy 2.8 6.1 1.6 2.5 1.0

14. Belgium 2.6 3.3 1.4 4.1 1.0

SOURCE: EUROSTAT, 2009. * European Indicator for Luxembourg (2.9) has been obtained as the average of the available data.


Serempatic European Index of the EU-15



Serempathic Capital

Finland, Denmark, Austria and Holland occupy the top positions. Meanwhile Germany, Ireland, Sweden and the United Kingdom follow them closely.

It should be noted that regarding the Serempathic Capital, Spain, Italy and Belgium occupy the last positions.

The other countries are in an intermediate section.


Serempathic Capital: results

European countries, particularly the Scandinavians, seem to have a significant competitive advantage.

Denmark is the leader in scoring, while Sweden, Germany, Finland and Belgium scores also obtain very high levels of global Serempathy.

In a second intermediate group are Holland, Austria, Italy, France and United Kingdom.

Spain occupies the last place 15º, being surpassed by Italy, Portugal and Greece, which as we have seen were at lower positions in Human and Technological Capital.


Index of contents




04


05

Conclusions


Structure of relations between Human Capital, Technological Capital and Serempatic Capital with the

Economic Growth

Human Capital

Nº Secondary Schl Serempathy

Technological

Capital

Output

Throughputs

Human Capital

Nº Graduates

University Nº Doctors

Serempatic Capital

Innovation


The Model EU 15

Output=+β01 SerempathicIndex+ε0 (1)

Output=α+β11TechCap+β12Human.Cap+β13Seremphatic.Cap+ε1 (1´)

Troughputs=+β21Human.Cap+β22Tech.Cap+β23Serempathic.Cap+ε2 (2)

Tech.Cap.=+β31Human.Cap+ β32 Serempathic.Cap + ε3 (3)

Human.Cap=+β41Tech.Cap+β42Serempathic.Cap+ ε4 (4)


Estimation results for the first two equations

of the model

Output 1 Output 2 Throughput Output 2 Throughput

Explanatory Variables Equation (1´) Equation (1) Equation (1) Equation (1´) Equation (2)

Constant 8,772

(3,212)

3,330

(2,616)

-0,558

(-0,299)

3,124

(2,567)

-0.123

(0,892)

Human Capital 0,123

(2,732)

-

-

0,203

(1,984)

0,497

(2,184)

Technological Capital 3 0,468

(4,034)

-

-

0,627

(0,342)

0,497

(2,184)

Serempathic Capital 4

0,907

(4,842)

-

-

0,021

(0,190)

0,184

(1,346)

Serempathic Synthetic

Index

-

0,384

(1,677)

0,913

(2,719)

-

-

Data of the Estimation

Observatory 14 14 14 14 14

Statistical R2 0,872 0,435 0,617 0.784 0.714

Source: Personal Compilations


Estimation results for the third equation

of the model

Technological

Capital

Technological

Capital

Explanatory Variables Equation (3) Equation (3)

Intercept 0,307

(1,442)

1,968

(2,405)

Human Capital

0,314

(2,431)

-

Human Capital 3 -

0,310

2,477)

Serempathic Capital 4

2,578

(2,702)

0,301

(3,072)

Observation 14 14

Statistical R2 0,844 0,844



Results, equation 1, 2 and 3

Serempathy explains well the Output and the

Throughput, as a Serempathic synthetic index as well as

with the three elements in which it´s divided: Human,

Technological and Serempathic Capital.

The coefficient between the Human Capital 1 and the

Output is significant. The Technological Capital has a

direct effect over Output 1 and the Throughput, but not

over the Output 2, more related to the employment.

Serempathic Capital 4 is also significantly associated with

the Output 1 and 2, and with the Throughput.


Results, equation 1, 2 and 3

The coefficient for Human Capital 1 is positively and significantly associated with employment ant technology. The first case is associated with the Technological Capital and the second with the Serempathic Capital.

Human Capital 1 acts indirectly on growth through his interaction with technology. in combination and by means of the technology to affect regional development through productivity growth.

Throughput can be reasonably explained by the three key variables – Human Capital, Technological Capital and Serempathic Capital.


Estimation results of the fourth equation of the

model (Production of Human Capital)

Human Capital 1

Explanatory Variables Equation 3

Intercept 4,969**

(8,087)

Technological Capital 2 0,124**

(1,412)

Serempathic Capital 4 0,124**

(1,827)

Data of the Estimation

Observation 14

Statistical R2 0,403



Results, equation 4

Technological and Serempathic Capital factors play a

significant role in the generation of Human Capital 1

(measured by the number of doctors per 1000

inhabitants).

The two factors of generation of Human Capital are

strongly correlated with each other.

To summarize, regions with lower barriers and more

technological and relational facilities for Human Capital,

more opened, have the characteristics required for

technological innovations.


Index of contents




04


05

Conclusions


Conclusions (1)

With our databases of European countries we have found empiric evidences that the Human Capital 1, particularly the core which we have called university doctors, predicts better the growth than other non-traditional measures of talent based on others university and non-university educational levels.

Collaborative relationships between University, Private Companies and Public Administration are significantly associated with the generation of Output 1 and Throughput.

Human Capital is explained by means of Serempathic and Technological Capital.


Conclusions (2)

The analyze shows that the serempathic factors have a positive and relevant role in the production of Human and Technological Capital, and in the economic growth.

The three factors of Human, Technological and Serempathic Capital don´t operate in competition with each other, but they tend to act playing complementary roles in the economic growth process.

The results obtained indicate that the structure of relations between the previous factors and the Output of the countries is of great complexity.


Only we need

Discretionary emotional energy

Passion, excitement, enthusiasm, and dedication.


Live in complex and uncertain contexts

mirror neuron speaking from the

heart

+ =

=

serempathy a new approach on innovation and its application to european union countries

Business

seremphaty

departamento

ingenieros

globalization

serempathic

wise leaders

crisis02 globalization

coral reef