mel horwitch: leapfrog leadership
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21st Century Innova0on: New Opportuni0es for Leadership and
Leapfrog Mel Horwitch
Dean and University Professor CEU Business School
September 5, 2014
The Pessimism Trap (1)
It’s High Time for a New Public Discourse
The Pessimism Trap (2): Rankings
The Problem With Snapshots
Stuck: Macro-‐Reality?
Source: Global Innova0on Index 2014
Source: Global Innova0on Index 2014
How We Frame Our World Has Implica0ons: Stages of Development
Source: Global Compe00veness Index 2014-‐2015
Source: Global Innova0on Index 2014
An Endless Loop With the Same Cast of Characters?
But is this True?
Are there just winners and losers in the race to for value Crea0on…..and is the gap geSng larger?
Viewing the World Via Global Ci0es: Does that Help?
Source: AT Kearney Global Ci0es Index 2014
In fact, this appears to an era belonging to smart small countries and
smart ciKes and metropols • Switzerland • Singapore • Israel • Denmark • Taiwan • Hong Kong • Estonia • Sweden
“CiKes of Opportunity” Criteria: • Intellectual capital & innova0on • Technology readiness • City gateway • Transporta0on & infrastructure • Health, safety & security • Sustainability & natural environment • Demographics & livability • Economic Clout • Ease of doing business • Cost
Source: Ci0es of Opportunity 6, PwC, 2014
“CiKes of Opportunity” Are Everywhere
Source: Ci0es of Opportunity 6, PwC, 2014
Some Fundamentals-‐Need to Move to a Knowledge-‐Driven Economy
Source: OECD Science, Technology and Industry Scoreboard 2013
Some Fundamentals: The New Geography of Innova0on
Source: OECD Science, Technology and Industry Scoreboard 2013
Some Fundamentals: Job Growth Depends on New Firms
Source: OECD Science, Technology and Industry Scoreboard 2013
Surprises and Resiliency: Small Na0ons & Ci0es (1): The Saga of Sea[le
Lagos, Nigeria & the Rise of Nollywood Surprises and Resiliency: Small Na0ons & Ci0es (2)
Surprises/Resiliency-‐ Small Na0ons & Ci0es (3): Shenzhen
Strategy’s New Macro Fron0er−Nurturing Innova0on Ecosystems: How Societal in Scope Can
this be Applied? • The “Japanese Century” that never was.
During the 1980s Japan (and a few other na0ons) a[empted to apply no0ons of business strategy to the na0on state, especially targe0ng winners. Ul0mately, with the impact of the Internet revolu0on, this a[rac0on and power of this idea diminished considerably.
• However, a new macro strategy fron=er is emerging. Na0ons may be able to learn from firm-‐based strategy today. Like pacese@ng firms, socie=es should explicitly encourage and nurture innova=on ecosystems, where the emphasis is on community building, fast collabora=on and opportuni=es to assemble-‐disassemble-‐reassemble− locally, regionally and globally.
Strategy’s New Macro Fron0er−Nurturing Innova0on Ecosystems: How Societal in Scope Can
this be Applied? (Con0nued)
GE IBM Cisco
Innovation Ecosystems in Smart Grid Strategy, Circa 2010
Source: Ari Ginsberg, Mel Horwitch, Subhendu Mahapatra, Chhavi Singh,“Ecosystem Strategies for Complex Technological Innovation: The Case of Smart Grid Development,” PICMET ’10 Conference Proceedings, July 18-22, 2010
A Macro-‐Strategy for the 21st Century:
• Aim for the Hard-‐to Imitate (At Least for a While) Spaces Where the Mul0pliers are Greatest
• Cul0vate the Ul0mate Knowledge Resources: • At the Individual (and Ins=tu=onal) Levels:
• Passion, Crea0vity and Commitment But Underpinned at the Same Time by:
• World-‐Class Management, Professionalism and Sophis0ca0on
• At the Societal Level: Nurture and Leverage Powerful Innova0on Ecosystems Linked with Other Ecosystems Nearby and Far Away
A Prac=cal Example for Developing Such Forward-‐Thinking & Ac=ng “Dual” Individuals and Thereby for Nurturing a Powerful Innova=on
Ecosystem in Hungary
Budapest-‐Based, Global in Scope
gef.ceubusiness.org
Ø Serves a key gap in the CEE entrepreneurship ecosystem: how to scale and go global
Ø Serves already proven entrepreneurs Ø Adds professional global management
to the required repertoire of of the 21st century entrepreneur
Ø And all this can be taught Ø CEU Business School is developing GEF
with in partners from industry Ø Aims to help develop CEE's finest
entrepreneurs into global business leaders as well
Ø Doing so is impera0ve for CEE to be compe00ve in the 21st Century
Global Entrepreneurship Fellows Program
Design thinking behind GEF: • Combines new thinking and ac0on
learning • Learn from successful global
entrepreneurs, execu0ves in established mul0na0onals, relevant scholars, and each other!
gef.ceubusiness.org
Structure of GEF: Ø Part One (Oct 9-‐
Nov 19): Founda=onal knowledge and illustra0ons and London study tour
Ø Part Two (Nov 26-‐Dec 10): Applied project Part Three (Dec 17): Jury presenta=ons and assessment
Ø Part Four (June, 2015): Update presenta=ons on implementa=on results
Some Final Thoughts • New and Essen0al Role for Business Schools in the Twenty-‐
First Century (Business Schools Are, Almost By Defini0on, Flexible, Mul0-‐Disciplinary, Pragma0c, Teaching as Well as Research-‐Driven, Neutral Zones, Hubs, Magnets, and They Must Be Adap0ve, Market-‐Driven) Statement of Opinion: World-‐Class Business Schools on the Ground Are Essen=al for World-‐Class Clusters of Innova=on
• Who Assumes the Mantle of Leadership in this New World? It’s Not all that Predetermined Anymore. Instead, it’s Up for Grabs
• Not so Silly Ques0on: Why Can’t Hungary Be More Like a “Switzerland”?
• What kind of Leadership is required? • All this May Represent a Pathway for Leapfrog?
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