Smart Cities asInnovation Ecosystems?- European response

bror.salmelin@ec.europa.eu

Adviser, Innovation Systems, EuropeanCommission

VUCATIONAL society

• Volatile• Uncertain• Complex• Ambigious

Innovation?• Make things happen!

Sustainable innovation is full of disruptions!

Science 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• “organic”

• NON-controllable, only catalyzing possible

Diversity matters (MIT 2002)!

•

High low

Low

high

Valu

eof

inno

vatio

n

Breakthrough

average

insignificant

Alignment of team members’ disciplines

Talent attracts talent!

Value Chain

collaborationprocess

Value Network

Dynamic ValueConstellation

mediationValue Chain

process

Value Network

New Business Structures

Maslow 2.0 for organisations

M

M

M

Customers

M=Management response of a given task in a given time point is given to the competencenode which understands the customers problem best

Group of competencies needed toperform a task

Competence nodes networking (IMS, 1996)

Testbed FDinland(FI)

SURFnet/Kennisnetproject: pilotschools (NL)

SiliconHill (FI)

Kenniswijk (NL)

Octopus(FI)

DigitalPlaygrounds(NL)

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

q Knowledge Focus: Single and controlled contexts VS. Multiple & Emergingcontexts

Test and Experimentation Platforms

••• 11

Innovating together!

Open

InnovationCitizens

and users

ApplicationEnvironments

Technology andInfrastructure

Organisationand methods

Expertise

Creative Commons; tools, IPR, practise, experience

Innovation moving out of the Lab

Centralizedinward lookinginnovationClosedInnovation

Ecosystem centric,cross-organizationalinnovationInnovationNetworks

Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005

Externallyfocused,collaborativeinnovation

Open Innovation

Creating Innovation Platforms

Engagement platforms“Assemblages of persons,interfaces, processes, andartifacts, purposefullydesigned to intensifyengagements to co-createvalue”

from Prof V Ramaswami

Prioritize Quadruple Helix Innovation

Government, Academia, Industry and Citizens collaborating together todrive structural changes far beyond the scope of any one organization

could achieve on it’s ownInvolve all stakeholders in quadruple helix to innovate and experiment in real world settings, in creating frictionless

innovation ecosystems

Government/Public

Academic

Industry

Citizen

Create incentives to encourage Openness toInnovation and Experimentation

• We solve too many problems with taxes andpenalties, create incentives to encourageexperimentation and prototyping, not "perfectplanning for yesterday".

• Promote Successful innovators and entrepreneursas Hero’s

• Change our European culture where honourablefailure is seen as a badge of honour :"failing fast,but small"

Drive Intersectional Innovation

• The breakthroughs happen at the boundaries ofculture, domains, nations and technologies

• Prioritize support for innovation which targetintersectional, disruptive and architecturalinnovation

• Create a de Medici effect to enable a newEuropean 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:

• 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

• Clusters are not enough to create new; ecosystems needed!

• Experimentation and prototyping in real world settings especiallyimportant in areas close to societal changes and challenge

• Experience from first calls: Too little emphasis on impact

• JOIN OPEN INNOVATION 2.0 CONFERENCE 7.-9.6.2015 inESPOO!

More information

www.ec.europa.eu/research/horizon2020

http://ec.europa.eu/digital-agenda

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

bror.salmelin@ec.europa.eu