Open Innovation 2.0 –creating ecosystems! creating ecosystems!

- European response

Bror Salmelin

Adviser, Innovation Systems, European Commission

Contents

• VUCA?

• OI2?• OI2?

• Drivers

• How does the paradigms change?

• How to respond to the challenges?

The Future

• Prediction is difficult,

Especially about

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

the future

• Niels Bohr

to invent it!

• Alan Kay

3

VUCATIONAL society

• Volatile

• Uncertain• Uncertain

• Complex

• Ambigious

Innovation?

• Make things happen!

Sustainable innovation is full of disruptions!

Science based linear innovation is NOT mainstreamScience based linear innovation is NOT mainstreamanymore!

HOW TO CREATE NEW???

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

Essential drivers

• connectivity

• open

• interaction• interaction

• “organic”

• NON-controllable, only catalyzing possible

Open Innovation 2.0:A New Renaissance IF NOT……

Diversity matters (MIT 2002)!

•

high

Breakthrough

High low

Low

Val

ue o

f inn

ovat

ion

average

insignificant

Alignment of team members’ disciplines

Talent attracts talent!

Value Chain

collaborationprocess

process

New Business StructuresNew Business Structures

Value Network

Dynamic ValueConstellation

mediationValue Chain

Value Network

Maslow 2.0 for organisations

Still linear innovation model!

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

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

Test and Experimentation Platforms

Testbed

FDinland(FI)

SURFnet/

Kennisnet

project:

pilot

schools

(NL)

Silicon

Hill

(FI)

Kenniswijk (NL)

Octopus

(FI)

Digital

Playgrounds

(NL)

Innovating together!

Open

InnovationCitizens

and users Expertise

••• 14

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 interfaces, processes, and artifacts, purposefully designed to intensify engagements to co-create

value”

from Prof V Ramaswami

PATHFINDER – the “knowledgist”

Knowledge maps

MeasurementOptimization PathSpecialization PathNeutralization Path Silos

Horizon of certainty

Disobedience

PATH CREATOR – the “resilient persona”

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

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

UncertaintyInaccuracy

Horizon of doubt

Imagination

(“Knowledge

circumscribes

the imagination”,

Giacomo Leopardi,

Notebooks)

A range of disciplines

A

B

“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

C

Extraordinary: Large Deviations Make the Difference

In experiments events supposed not happening, happen

“normal” is not the focus

“extremes” are “extremes” are “extremes” are

the focus“extremes” are the focus

Feedback loopsCumulative, snowballs, arbitraryand unpredictable effects

You don’t tame uncertaintylooking at extraordinary events

We rewardacts of preventionrather than treatment

Discovery of valuable ideas by crowds!

Number

crowd experts

Value

Area of interestOld space

New space

Curators and Bridgers as new skills

New innovation space

• New professions: Curators and Bridgers

• New types of ecosystems:

• Self directed• Self directed

• Real world prototyping and experimentation

• Common interest

• Open platforms

• Recognition beyond ordinary means

• Brings fast scale-ups

• Flagships (?)

value Transition speeding +disruption+ risk mgmt

time

Experimentation in real worldMultidisciplinaryCo-creation of new marketplace

Prioritize Quadruple Helix Innovation

Government, Academia, Industry and Citizens collaborating together

to drive structural changes far beyond the scope of any one

organization could achieve on it’ s own

Involve all stakeholders in quadruple helix to innovate and experiment in real world settings, in creating frictionless innovation ecosystems

Government/PublicGovernment/Public

AcademicAcademic

IndustryIndustry

CitizenCitizen

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 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 • 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:• 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), Socieoeconomicchallenges and Research Excellence

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• 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-agendahttp://ec.europa.eu/digital-agenda

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