Knowledge Across BordersAccelerate Building Trust to Unleash Innovation

Martha G RussellInnovation Ecosystems Network

Stanford Media X led Research Initiative

October 7, 2010

Martha G Russell

• Public-private partnerships – for science, technology & development– Tecnopolis, MAMTech, IC2 Institute, Incubators linking SMEs to Value Chain,

CSATA, Agricultural Experiment Station, UNIDO

• Research consortia: University – Industry IDR Research initiatives for education, research and outreach

– Microelectronic and Information Sciences Center– Center for the Development of Technology Leadership– Burnt Orange Productions– IC2 Institute (Innovation, Creativity, Capital) Think and Do Tank

• Technology Transfer, Marketing and Organizational Change– Internet2 Sociotechnical Summit, 1999– Brand relationships, Retail messaging, Youth markets

Innovation takes at least two.Team skills are required.There are winners and loosers.

Although people can communicate anywhere, anytime, it’s difficult for anyone to have all the insights necessary at any one time for major decisions on the complex global issues

The Innovation Ecosystems Network (IEN) brings together an international interdisciplinary team that seeks to develop and diffuse novel data and tools for understanding the catalytic impact of regional ICT experiments.

Innovation Ecosystems & Value Co-Creation

A dynamic innovation ecosystem is characterized by a continual realignment of synergistic relationships of people, knowledge, and resources that promote harmonious growth of the system in agile responsiveness to changing internal and external forces.

Innovation Ecosystems refer to the inter-organizational, political, economic, environmental, and technological systems through which a milieu conducive to business growth is catalyzed, sustained, and supported.

Value is co-created for the innovation ecosystem through events, impacts and coalitions/networks that emerge from a shared vision of the desired transformations. Data-driven metrics measure, track and visualise the transformation, empowering interaction with feedback for the shared vision.

www.innovation-ecosystems.org

Innovation Ecosystems Transformation Framework

Research Problem/Questions

Theme: How can data-driven visual social network analysis provide insights on innovation ecosystems?

We look for insights that can be used to:• Identify and empower influential individuals for critical actions• Connect components to catalyze the evolution of the ecosystem• Develop and implement programs (meetings, funding, initiatives) to foster

co-creator networks • Communicate complexity to co-create vision• Measure and transform an innovation ecosystem

How do co-creation networks enable local/regional ROI on innovation investments made for globalization?

Work in progress!www.innovation-ecosystems.org

Structure of the presentation

• Innovation models are changing

• The places of innovation are changing

• Preliminary results from

– Executive Women in Tech-Based Companies

– Investments into and from China

– Norway

• Value Co-Creation

Models of innovation

Economic Innovation (producer innovation)-Schumpeter 1934

End-user Innovation-von Hippel 1986

Strategic Innovation- Hamel and Prahalad 1994

Open innovation-Chesbrough 2003

Collaborative Innovation Networks- Gloor2005

eClusters !

Innovation Ecosystems

Resources

Knowledge

People

Innovation Ecosystem Networks

Transformation

Shared vision

Silicon ValleyThe highest concentration of entrepreneurial high-tech companies in the world;

STANFORD:

Entrepreneurial management

Federal funding for fundamental research

Problem-oriented laboratories

Faculty leaves and industry affiliates

Students as inventors, disseminators, and workforce

Encouraging student entrepreneurship on campus …

Silicon Valley dense but ad hoc social networks and

nearby planting ground for ideas, startups, &

funding

NorwayNational and regional level innovation systems and policies & support

Government-Academia-Industry relations

The network of Norwegian universities and polytechnics, technology centers,

programs, and other operations…

The Way We USED to Think About Organizations New Organizational Chart Based on Relationships

Relationship-Focused Co-Creation Infrastructure

(Visual) Social Network Analysis “. . . allows investigators to gain new insights into the patterning of social connections, and it helps investigators to communicate their results to others.“ (Freeman, 2009)

Infrastructure for Resource Flows- - - Relationships

(Companies are interlocked through key people – information flow, norms, mental models.(Davis,1996)

Relationship Interlocks

• Executives and key employees– Transfer of technologies and knowledge, professional networks, business

culture, value-chain resources

• Directors– US Fortune 500 firms interlocked (shared directors) with average 7 other firms

• Corporate governance embedded and filtered through social structures – Executive compensation, strategies for takeovers, defending against takeovers

• Gerald F. Davis, “The Significance of Board Interlocks for Corporate Governance,” Corporate Governance 4:3, 1996

• Investors and service providers– Awareness of external forces, competitive insights, resource leverage

• Relationship interlocks provide– Social relationship “filter” for governance, information flow & norms– Transfer of implicit and explicit know-how– Mental models

http://fusionenterprises.ca/Business_Training.php

Archetypes of Social Business Design

• Ecosystem – a community of connections

• HiveMind – a socially calibrated mindset of individuals

• Dynamic Signal - the constant multi-faceted means of collaboration

• Metafilter- a method of finding signals in vast amounts of noise

Social Roles in Social Media

Journal of Social Structure “Visualizing the Signatures of Social Roles in Online Discussion Groups”

http://www.cmu.edu/joss/content/articles/volume8/Welser/

• Answer person– Outward ties to local isolates– Relative absence of triangles– Few intense ties

• Reply Magnet– Ties from local isolates often inward only– Sparse, few triangles– Few intense ties

Discussion person Ties from local isolates often inward only Dense, many triangles Numerous intense ties

Through personal relationships companies have interconnects

http://www.fabcats.org/owners/feeding/info.html http://www.flickr.com/photos/manpsing/2618332693/

Passive Learning Active Learning

http://www.flickr.com/photos/tomatoskin/1339929731/

Traditional Data Gathering Methods

http://www.flickr.com/photos/clydeorama/3495284608/

Have to react QUICKLY

OrganizationsNewsSocialMedia

Federation

AnalysisMining

VisualizationPrivateData

Data to measure/track innovation?

IEN Dataset

Martha Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

Global dataset, includes China

Updated quarterly with 20% growth each quarter

Making Relationships Visible

Willie Framework, OPAALS, 2010.

Data for Visualization & Knowledge Crystallization

Accessing Data Streams about Innovation Building a Dataset on Innovation

Crystallisation Through Visualisation The Card-Mackinlay-Shneiderman visualisation reference model:(Card et al., 1999; Miksch, 2005)

Towards Actionable Co-Creation Insights

Relationship interlocks structure resource flows for co-creation.

Openly accessible data provides directional results. Data can be federated to co-create datasets.

Visual network analysis • Reveals co-creation relationships

• People, companies, funding• Reveals patterns of co-creation

• Existing edges and potential links• Provides analytical opportunities

• Augment dataset with data from multiple sources, if needed

• Communicates complex relationships to diverse groups

Johari Window, Joseph Luft and Harry Ingham, 1955

We apply these methods and tools to

better understand how local/regional

investments made for globalization can

return benefits to the local region.

Make complex relationships known for

sharing and co-creation

Place of innovation

Localized concentrations -Marshall 1890

Menlo Park (Research Park) 1948, Stanford Industrial Park 1951, Research Triangle Park 1959

Clusters- Porter 1998, Saxenian1994

Regional Innovation Systems-Metcalfe 1995

Innovation Cluster- Yim2008, 2002

Innovation AccelerationNetworks !

.

Technology-based companies - worldwide, Dec 2009

35,000 companies include:

Sectors: Advertising, biotech, cleantech, consulting, ecommerce, enterprise,

games_video, hardware, legal, mobile, network_hosting, public relations,

search, security, semiconductor, software, web, other firms serving these.

Investment profiles from Ltd to public, financing rounds identified

Merger & Acquisition profiles

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

.

.

Employees in technology-based companies - worldwide, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

.

Technology-based companies – worldwide

by employee size and sector, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

Number of European Technology-based companies

Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

.

Number of European Technology-based companies

by employee size, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

Number of European Technology-based companies

By sector, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

European Technology-based companies

By sector and number of employees, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

Distance

Old

New

The new maps may be based on the connections - rather than on distance.

Example: Executive Women in Technology-Based Companies

• National dependence on science, technology, math for competitiveness

• Shortage of women entering, staying, leading• In tech-based companies,

– roughly 8 % executives are women

• Cleantech sector lowest– Fewer women in: enterprise, semiconductor and mobile

• Biotech sector highest– More women in public relations, legal, consulting

What interventions can attract more women to leadership positions in technology-based companies?

Figure 1: Point-to-Point Figure 2: Tree Figure 3: Complex Tree

Figure 4: Simple Star Figure 5: Complex Star Figure 6: Mesh Figure 7: Complex Mesh

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Type of Networks Company Executives, Investors

And Board Members in Technology-Based Companies

Networks of Female and Male Executives

in Companies in the Clean Tech Sector

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Networks of Female and Male Executives

in Companies in the Biotech Sector

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Networks of Female and Male Executives

in Companies in the Public Relations Sector

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Networks of Female and Male Executives

in Companies in the Web Services Sector

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Networks of Female Executives

in Companies – All Sectors

CTOs

the CTO of doctr.com CTO at Hemarina

Co-founder of

HEMARINA

Vice President

Engineering at Survey

Monkey

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

CTOs – R&D Execs

Principal Research

Scientist at Yahoo!

Chief Software Editor at

Yandex

Advisor at

PlaceBlogger

Was a VP at

Netscape and AOL, a

senior director of

Product Development

at Yahoo

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Creative CMOs – Biz DevProduct Marketing

Manager at Google

Worked in Public

Relations at Apple,

Marketing at Tiny

Pictures,

VP, Marketing at Loopt

Was VP Marketing at

Project Playlist

Director of User

Experienceof Kosmix

Was Principal UI

Designer at Bebo

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

CEOsCEO of NUS Enterprise at

the National University of

Singapore

Was Managing Director,

Investments, of Bio*One

Capital Pte Ltd

CEO of SeedCamp

was part of the

Venture team at 3i

CEO of Piazzza

worked at Facebook on

their News Feed Team

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

Board MembersCo-Chair Disney Media

Networks and

President, Disney-ABC

Television Group

CEO of FON USA and

president of the US Advisory

Board

Board of Directors of Posit

Science, Sabrix,

AccountNow, Danger,

QuinStreet, The Threshold

Group and the Board of

Directors of the NVCA

Advisor at Betwyx

Was VP, Western

Sales at Glam

Media.

Was VP of sales at

MySapce

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

FoundersFounder/CEO

SmartWork Network

Co-founded Flickr

Ran Yhoo Tech Dev

group

Co-founded Brickhouse

Now product Officer at

Hunch

Founder of

TinyMassive

Formerly COO

Wireless @

Realhome.com

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

FoundersFounder of Google

Webmaster Central

Now works for Ignition

Partners as an

„entrepreneur in residence‟

CEO and Founder of

LiveHit

Was Vice President of

Products and Marketing

at Piczo

Co-founder at

23andMe

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

InvestorsInvestor at

InnerRewards

Was executive

digital strategist

at Johnson &

Johnson

Invested in Fluidinfo; The

Extrodinaries; Factual;

Vizu;Square; Vurve;

Fluidinfo; ChallengePost;

Airship Ventures; Joobili;

Dopplr; Wee Web

A Partner with Accel Partners

Board at Wetpaint; Trulia;

Kosmix; Jaser Design;

Imperva; Forescout; Glam

Media

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

NETWORKS MATTER

Apricots and Walnuts

In 2009 nearly 50% of US VC went to Silicon Valley’s.

SV is characterized by dense networks of innovation.

What is

Silicon Valley?

The highest concentration of

entrepreneurial high-tech companies

in the world

Silicon Valley Number of technology companies by sector – High proportion are small cos (startups)

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

Context of Investments into/from China

Insights into Innovation

Social Network Analysis

Socially Constructed

Data

Socially constructed dataset, in English, openly available– all challenges in China

Innovation Ecosystems Dataset:

•323 technology-based companies with one or more locations in China•42 Chinese, 77 foreign investment firm•Investment into China US$ 5.4 B•Investment originating from ChinaUS$ 3.1 B

Insights explored:

The flow of financial resources into and out of China

More illustrative than descriptive/prescriptive results

Innovation Ecosystem Network

Example: Chinese International Investments

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation

Ecosystem, Journal of Networks, Fall, 2010.

Initial Data Analysis:53% (113) of the Chinese companies from eCIS business sector

50 % (66) of the foreign companies are from the eCIS business sector

Toward Insights about:

Patterns and differences in the characteristics of investment flows

into and from China

More Specific: Context of eCIS sectoreCommerce and electronic security=

eCommerce, software search, network hosting, mobile, games &video, enterprise

Insights into Innovation

Social Network Analysis

Socially Constructed

Data

Innovation Ecosystem NetworkNeil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation

Ecosystem, Journal of Networks, Fall, 2010.

HARVESTInvestments from Chinese

(making investments)

Innovation Ecosystem NetworkNeil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation

Ecosystem, Journal of Networks, Fall, 2010.

CULTIVATIONInvestments into China

(receiving investments)

Innovation Ecosystem Network

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell

A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.

Emerging Chinese business clusters linked by firms’ relatioships

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.

• Cultivation / Harvesting modes - value co-creation

• Chinese interlocks at the investment firm level– Government-led investment firms

– Knowledge of government guarantees

– Investments in firms that return benefits to China

• Global interlocks at both investment firm and enterprise levels

• Opportunity network & value co-creationhttp://successbeginstoday.org/wordpress/wp-content/unexpected2.jpg

Topline Findings

http://www.slowtrav.com/blog/chiocciola/Geirangerfjord.jpg

Example: Norwegian Tech-based CompaniesTheir Branch Offices and Their Financial Orgs

Links show relationships

PRELIMINARY

Example view to IEN dataset in Gephi. Companies are selected

with keyword search “Norway + Norwegian;” the funding

organizations associated with those companies are added Nodes

represent companies and their investors; edges indicate resource

flows. The network layout is created with Yifan Hu Multilevel

algorithm and nodes are inflated according to their indegree, i.e.

the number of the connected investors.

Advisors & Investors Expand AccessInvestors leverage co-creation

opportunities with investments in

multiple companies. Intl companies not

shown.

Companies leverage value co-creation

opportunities through relationships with

multiple investors. Some investors are

international.

Timeline analysis of investment events

reveals patterns of co-investment – an

indication of intention to co-create value

and, perhaps, stimulus programs.

IEN Dataset, July 2010

International Relationships for Value Co-Creation

Huge opportunities for international relationships lie 2 & 3 degrees out from Norwegian companies

Example view to IEN dataset for keyword search. Nodes represent companies and their previous and current

employees. The network layout is created with Fruchterman Reingold algorithm and nodes are inflated according to

their outdegree. Protocols for anonymity are evolving.

IEN Dataset, July 2010

Globalization of Innovation Ecosystems

IEN Dataset, July 2010

Norwegian tech-based

companies with financing

are more likely to have

networked relationships.

Norwegian tech-based

companies have access to

global relationships

through current board

members, investors, and

key personnel.

Discussion & Takeaways

Knowledge crystallization provides co-creation feedback loop: also support for interventions, action research, policy analysis.

Visualizations reveal multidimensional complexities.

SNA metrics highlight patterns of ecosystem relationships.

Technically, our framework for tracking, processing and visualizing data enables the parallel uses of various state of the art analysis tools.

Data sources abound and can be federated for co-creation of analytical & actionable insights. Collaborations are welcome.

Discovering the story behind numbers and their visualizations requires context, perspective, interaction and iteration!

www.innovation-ecosystems.org

http://4.bp.blogspot.com/_qFju91K89HM/SxRpABd1DTI/AAAAAAAABjw/6LaSJfjfk-I/s1600/Unexpected_Guests.jpg

What do we know to ask?What can we learn that we don’t

know to ask?

Make complex relationships known for

sharing and co-creation

• Martha G Russell, PhD, martha.russell@stanford.edu– Sr. Research Scholar, HSTAR Institute– Associate Director, Media X at Stanford University

• Neil Rubens, PhD, neil@hrstc.org– Assistant Professor, Graduate School of Information Systems– University of Electro-Communications, Tokyo

• Jukka Huhtamäki, jukka.huhtamaki@tut.fi– Researcher, Lecturer– Hypermedia Laboratory (HLab) of Tampere University of Technology (TUT).

• Kaisa Still, PhD, kaisastill@yahoo.com– Knowledge Management Specialist– Beijing DT Electronic Technology Co., Ltd

http://www.innovation-ecosystems.org

Innovation Ecosystems Network

• Mario Gastel, mariogastel@zeelandnet.nl

– Graduate student, Texas Advertising, UT Austin

– Fulbright Scholar (2009-11)

• Jiafeng (Camilla) Yu, camillayu@gmail.com

– M.A. in Advertising in Planning Track

– The University of Texas at Austin

AppendixIEN Work in Progress

Regional case studies are underway:

•Cap Digital, Paris

•Birmingham Science Park Aston

•New York City Media Labs

Recent & Future presentations

July 31, Huangshan, China, “A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem,” International Symposium on eCommerce and Internet Security 2010.

August 2, 2010, Hong Kong University of Science and Technology, “Identifying Value Co-creation in Innovation Ecosystems Using Social Network Analysis,” Inaugural Lecture: Innovation Forum.

August 5, 2010, University of Electro-Communications, Tokyo, Japan, “Leveraging Social Media for Analysis of Business Networks in Regional Technology Development.”

September 14－17, 2010, Nokia, Finland, “Social Networks and Co-creation in Innovation Ecosystems,” EBRF 2010.

September 18-19, 2010, Beijing, China, “Innovation Ecosystems: New Insights with Network Approach,” Beijing First Global World City Conference.

October 5, 2010, Skei, Norway, “Innovation Ecosystems in Traditional and Changing Cultures: Examples from Minnesota and Silicon Valley”, Norwegian Information Technology Forum.

October 7, 2010, Olso, Norway, “Knowledge Across Borders: Accelerate Building Trust to Unleash Innovation,” Business Institute.

October 22, 2010, Madrid, Spain, “Using Social Media to Leverage Triple Helix Insights in Innovation Ecosystems,” Workshop at Triple Helix Conference VIII, October 12, 2010, Madrid, Spain.

November 7-10, 2010, Austin, TX, “Using Data-Driven Social Network Analysis for Insights on Innovation and Change,” INFORMS, Austin, TX.

November 14 – 17, 2010, Sacramento, CA, “Social Media Conversations and Value Networks in the Green-tech Innovation Ecosystem,” 2010 Behavior, Energy and Climate Change Conference.

68

Collaboration is invited.

Let’s Get Started!

Martha.Russell@stanford.edu