The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 38 OPEN INNOVATION THE GOOD, THE BAD, THE UNCERTAINTIES Phd Student Eliza
Over the past decade, an increasing number of firms have started actively to involve customers, suppliers,
Hence The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 39 forward, the value creation process has included the network of external sources of new ideas,
The research results support the importance of risk management in the open innovation environment. Given the overall sparse attention given to the dark side of open innovation form the risk management perspective,
Another important factor was the growing availability of private venture capital, which has helped to finance new firms
The new paradigm focuses on the significant The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19),
2014 40 value of external R&d and on building a business model so effective and innovative that it won't matter
The drastic shortening of product life cycles, the globalization of competition with the accompanying growth in the number of possible innovators, the interacting influence of products
The main driver of open innovation is inherently communication between stakeholders. In IBM's recent CEO study, more than three quarters of the 765 CEOS queried cited collaboration
The technology has had the greatest contribution to facilitating the new communication and collaboration techniques, especially by the growth of the Internet, through social networking, Web conferencing and instant messaging.
and the risk involved with the development of new products and services (Chesbrough 2003; Reichwald and Piller 2009.
and services of relevance to the company; reduced costs associated with moving a larger portfolio of innovations down the pipeline;
reduced risk as others put their human capital to work on risky propositions; and accelerated time-to-market as innovation is freed from the shackles of the cumbersome large-company financial,
Companies increasingly innovate with the aid of customers, suppliers, universities, competitors (Kruse, 2012), public research centres, competitors, groups of product users (Duarte and Sarkar, 2011), development partners,
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 41 The diversity of actors that form the open innovation framework is noticeable.
The external knowledge is generated by the employees, business partner, customers, consultants, competitors, business associations, internet sales and service units, internal research and development units and academia.
26%of innovative firms were engaged in co-operation with other enterprises, universities, public research institutes, suppliers, customers and competitors in the EU-27.
In the Member States, the most common co-operation partners were followed suppliers by customers (respectively, 17%and 14%of innovative firms),
who increasingly expects tailor-made products and services based on individualized and immediate feedback. The early involvement of the customer reduces time-tomarket by eliminating time-consuming iteration cycles
Such particular organizational demands are placed on the management of innovation by the Open Innovation paradigm itself (Arnold, 2008.
Shifting the focus towards exploiting resources outside the company's own market may dilute the firm's focus at the expense of its customers.
Increased attention to outbound open innovation may then have a positive effect on short term profits and a negative effect on long term profits (Huizingh, 2011.
Later on, a firm must carefully maintain its employee relation and The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19),
the authors Opening the boundaries of a company by incorporating knowledge generated by customers, suppliers, education institutions, consulting agencies leads to intellectual capital development through knowledge sharing.
expanding their investment in external R&d in order to stay alert to new ideas brought to the market instead of investing only in internal resources.
since open innovation reduces the time-to-market for new products and services, through shorter development time.
The rising costs of The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 43 technology development, correlated with the shortening product lives
Financial constraints being a tough burden to bare in the current economic environment open innovation helps building up the capital positions of firms
However, there is a scarcity of research regarding the costs and barriers of open innovation. A number of both internal factors (within individual companies or single industries) and external factors (related mainly to marketplace
the authors The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 44 Figure 3 depicts in further detail the major risk drivers
Knowledge sharing risks are correlated strictly with the lack of trust in the partner and poor communication among collaborators about common goals and strategies
the authors The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 45 The constant changing needs of the customers pose a significant challenge on firm
However, this search for short term competitive advantage, by shifting the focus towards exploiting resources outside the company's own market may dilute the firm's focus at the expense of its customers.
Increased attention to outbound open innovation may then have a positive effect on short term profits and a negative effect on long term profits.
Opportunity risk is another facet of collaboration barriers, since difficulty in finding the right partner to innovate is high and,
The USV Annals of Economics and Public Administration Volume 14 Issue 1 (19), 2014 46 CONCLUSIONS AND FURTHER RESEARCH The use of external relationships is interpreted increasingly as a key factor in enhancing the innovation performance of modern enterprises (Lasagni, 2012).
Therefore, it can be argued that the ability to access external knowledge resources efficiently and overcoming the risks encountered in the process can become a huge competitive factor for companies.
knowledge sharing, complexity of collaboration, market tensions, client pressures, access to finance, technology advances and demands related to intellectual property rights protection.
on the background the current globalized economy. While awareness on the barriers and drawbacks of open collaboration projects is decisive,
Southwestern Cengage Learning. 2. Brunold, J. and Durst, S. 2012)" Intellectual capital risks and job rotation",Journal of Intellectual Capital, Vol. 13 (2), pp. 178
http://ec. europa. eu/enterprise/policies/sme/facts-figures-analysis/performancereview/files/countries-sheets/2012/romania en. pdf 8. Fleming, L
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 47 14.
Innovation Union Scoreboard 2011 (2012), European Commision, http://ec. europa. eu/enterprise/policies/innovation/files/ius-2011 en. pdf 16.
Aspects of a theory of value creation and innovation in a global knowledge economy. International Journal of Information management, vol. 30 issue, p. 502-511 18.
a look at the performance, tenure and communication patterns of 50 R&d project groups, R&d Management, Vol. 12, No. 1, pp. 7-19 19.
and is not the official position of the European commission services. This work is licensed under a Creative Commons Attribution Noncommercial Share Alike 3. 0 Unported licence, available at www. creativecommons. org.
Some Lessons 32 Open Innovation and Its Implication for Universities 41 How to Combine Openness and the Protection of Research Investments in University Inventions US and Nordic 49 CHAPTER II:
including all stakeholders as active players in jointly creating and experimenting in the new ways of doing things
and creating new services and products. Innovation is very much daring to see the unexpected and capture the moment.
with real people is a strong driver to stretch the boundaries for new marketplaces, new products and new services,
letting all the stakeholders do their best, and play together. Exactly like a good conductor makes the sound of an orchestra.
We have the opportunity to experiment, scale up successes and kill early stage ideas which do not make sense;
to be able to focus our limited resources correctly to create a genuine winwin game for all stakeholders.
Open/Big data and fast mobile communications are all creating opportunities for major changes in business models, in societal behaviour and in value-creation models in general.
services and products benefiting all stakeholders. Do we have the courage to seek for disruptions?
Horizon 2020, the Digital Single Market, Member State activities, regional innovation systems All these public initiatives create a good environment to match the innovation needs in society,
European Innovation Systems'governance issues will be very critical for impacting innovation investments. Innovation is daring to seek the unexpected
, Intelligent Lighting Institute E d. Ouden@tue. nl Erkinheimo Pia DIGILE Finnish Centre for Science and Innovation in the Internet Economy pia. erkinheimo@digile. fi
Holzmann Thomas Strascheg Centre for Entrepreneurship Thomas. Holzmann@sce. de Huuskonen Mikko Lappeenranta University of Technology & the Ministry of Employment and the Economy, Finland Mikko.
engaging all stakeholders and entering into a relatively short rapid prototyping and experimentation phase. All these elements are an integral part of the Open Innovation 2. 0 paradigm.
The article goes beyond the current crowdfunding platforms and extends that to crowdsourcing, and even crowdworking.
Work builds on the very deep experience of the authors on crowdsourcing in various environments.
The new role of universities also leads to new approaches in Intellectual Property (IP) management, interlinking universities to joint actions with other stakeholders and developing new operating modes for academic institutions
Huuskonen elaborates the Intellectual Property rights (IPR) and intellectual capital in open ecosystems from a sharing and collaborative ecosystem perspective.
enabling new value creation processes involving wider stakeholder communities. Kleibrink and Schmidt are addressing open innovation ecosystems from communities of practice and an innovation lab perspective.
Strong community commitment is evident in the design of the Living Lab and the current operations as the glue between all the Executive Summary 7 stakeholders.
We have heard about the excellent developments of Smart Lighting in open innovation environments in previous editions of the Yearbook.
The shift from products to services, from technology for people to societal needs and from products to platforms are all leading to refocusing the needs of the stakeholders in innovation environments.
The shift to a continuous innovation environment and processes increase the interlinkages between all the stakeholders in the quadruple helix innovation process,
Future City is an urban innovation ecosystem where each of the stakeholders has a specific role.
Should we focus on start-ups or established larger enterprises? Should we look at shared or trusted economy drivers?
Should we focus on disruptions? What is beyond the obvious technology trends; connectivity and computation? How should all that influence our choices
We have the opportunities Open Innovation 2. 0 is paving the way for, in an inclusive, safe but disruptive way.
collective and distributed thinking about societal change, real challenges, contributing relevant support, building renewal capital.'
just as societal welfare depends to a large extent on economic development, jobs for people and new opportunities for industry.
Renewal capital can only be built by having a better understanding of the overall challenge the processes involved, the diverse projects in progress and the proposed, targeting joint actions based on that.
Part of the renewal process is needed the mentality to fuel the spirit of enterprise and the mindset of entrepreneurial discovery that needs to be embraced by large portions of society;
Of course, all these joint actions and new enterprises need to be financed. There are diverse European instruments for this,
industrial and other private investments are one source of financing; national, regional and local public actions are another;
More recently, the new Juncker-Katainen investment package (EUR 315 billion within the next few years.
Challenges of the knowledge economy It is abundantly clear that working in this way in the coming years calls us to action.
There are many ways to engage stakeholders at all levels to participate in and actively contribute to these processes.
It is the key mindset defining the new knowledge economy. There are many ways to create value
and many ways for stakeholders and citizens to contribute, but there are also diverse challenges along the way.
entrepreneurial regions and entrepreneurial citizens become aware of new opportunities for business and social innovation and leverage resources to take advantage of them.
It calls for the spirit of entrepreneurship: curiosity, creativity and courage (for calculated risk-taking.
and demographic changes to discover opportunities to produce new goods and services'.'Kirzner focused on entrepreneurship as a process of discovery, in which the entrepreneur looks for previously unnoticed profit opportunities, after
which he/she initiates a process in which these newly discovered opportunities are acted on in the marketplace.
Of course, opportunity discovery for enhancing societal value is an entrepreneurial process as well. The Financial times Lexicon tells us that,
‘Entrepreneurship involves creating or discovering new ideas or opportunities for the purpose of creating value,
whether economic, social, or even political and forming a new organisation to do so'.'3 Dominique Foray, one of the conceptual founding fathers of smart specialisation, describes entrepreneurial discovery as the‘discovery and exploration of a new space of opportunities,
which is likely to generate many innovations and the development of a new activity'.'4 It is a process at the core of renewing Europe's capacity for renewal.
As the Committee of the Regions wrote in its 2013 Opinion on Closing the Innovation Divide:‘
communities and businesses be given the opportunity to have their say, as traditionally they have often felt that they do not have a voice.'
participants co-created a document about using Open Innovation 2. 0 to help achieve a sustainable economy and society,
and new approaches to innovation adoption based on open business models. The realisation of action points like these on a European-wide scale is no easy matter.
Develop a New Business model for the European union; Action No 2: Design for a New End State;
Stimulate High Expectation Entrepreneurship; Action No 10: Drive Intersectional Innovation; Action No 11: Promote Successful Innovators and Entrepreneurs as Heroes. 6 R E g I O N A l I N N O V A t I O N,
the completion of the European innovation ecosystems demands evidence-based policy-making and transparency in order to encourage public acceptance and support.
and technology can help turn research into profits and tackle unemployment in Europe. The Declaration calls for stimulating collaboration between citizens, businesses, universities and governments and for moving from the ERA towards European innovation ecosystems.'
Conference participants will have an opportunity to propose concrete activities to translate each of the action points into practice in their own real-world environments
or unbridled desire to maximise profit. For orchestrating open networks, learning is a key competence,
or ICT-intensive services sectors. 5 000 researchers and 16 000 students can also be found in the area. 200 of the local companies are foreign. 110 nationalities mix in the area.
and one of the most attractive innovation hubs and urban environments in the world by 2020 by enhancing the collaboration between the city,
universities, research institutions and enterprises. Operating since 2012, the EUE programme has brought together a broad group of researchers, innovators,
diverse challenges and opportunities are being addressed. Mega-endeavours like the West Metro, a major transportation infrastructure project with a capital investment of close to EUR 1 billion
is one such example of effective collaboration within the innovation ecosystem. Additional investments in housing and businesses in the West Metro corridor are tens of billions of euros in the next decades.
These create growth and new jobs, and renew the city structures. The Espoo Innovation Garden sees innovation as key to its further development,
This conference builds ecosystem support services into its design: support and facilitation for taking ideas further after the event is over.
and proposals will be able to prototype them after the event itself ends. The conference as a service is based on the idea that:
-and-out-of-the-box opportunities for creating breakthroughs in a process of collaborative solution seeking.
explore opportunities for open innovation and help eliminate the obstacles that block it. During the Camp, multi-disciplinary and international groups develop new ideas
After the Camp, prototypes of promising ideas are tested and improved at locations where the issues occur.
and engage all the stakeholders of the challenge innovation ecosystem, and supports parallel open, co-creative innovation processes in the real world,
Follow-through takes place at diverse and relevant locations, with direct stakeholder engagement, and orchestrated support from facilitators, coaches and experts on different steps in the innovation process.
This leads to more robust prototypes to practical experiments, pilots and with sufficient commitment plans for fast-track realisation.
empowering people to translate their ideas into prototypes and test them in experiments, supported by peers, facilitators and virtual working environments custommade for this purpose.
ACSI creates early prototypes and brings them to the immediate attention of a vastly larger audience of people participating in the hackathon
and create and test prototypes in the weeks that follow. Together, they bring the spirit of entrepreneurial discovery and open innovation into the sphere of hands-on practice.
and issues like low carbon economy in urban planning, Europe's industrial renaissance and e-health.
and opportunities for realising the strategy with a broad group of local and international stakeholders.
While the camp and conference will lead to diverse prototypes and project proposals to be developed further in the coming months,
an opportunity for its many pioneering innovation-based regions to organise open collaborative activities to engage the rest of Europe.
the basis for building Europe's renewal capital will be laid. R E g I O N A l I N N O V A t I O N,
The ACSI process will develop new perspectives, promising possible solutions and prototypes for testing in practice.
and improving the prototypes should lead to one or more ideas ready for realisation. The entrepreneurial discovery process will engage hundreds of stakeholders,
allowing their buy in and broadening ownership of the results. They will make discoveries, and profit from what they learn.
In the course of the nine months, they will practise new skills and develop new abilities, acting in the spirit of the new mentality,
These processes are powerful mechanisms to drive innovation, turning demand into supply and knowledge into value.
With small steps and bold steps that we can develop the renewal capital that Europe calls for,
and building a Europe of excellent opportunities, co-created by its own citizens. References (1) Committee of the Regions (2014),‘Smart Specialisation Strategies:
term=entrepreneurship. 4) Foray, D. 2013),‘Measuring Smart Specialisation'(S3 Thematic Workshop presentation. Available at:
& Enterprise Educore Future Centre Alliance, Founding Partner hankkune@educore. nl R E g I O N A l I N N O V A t I O N,
firstly, the traditional triple helix innovation model with enterprises, research and public sector players (being often topdown) is replaced by the co-creative quadruple helix innovation model where users have an active role too, in all phases
of the innovation, from the early ideation to the co-creation of solutions. Secondly, the ecosystem drives for multi-disciplinarity rather than clusters,
The innovation ecosystems are breaking from the past linear innovation model towards a mash-up process creating positive sparks across the stakeholders and the different disciplines too.
and fosters the much-needed sparks of ideas in rich environments. Thus, open platforms build an essential element for ideas to be developed and prototyped in the real world.
Twenty characteristics of Open Innovation 2. 0 The quadruple helix is essential as only by involving the users as active agents from the beginning of the innovation process can we create genuine new markets for products and services.
And, by involving the citizens (as customers) for the new developments, we also see at an early stage which elements of the idea are successful and scalable,
The simple idea is to have rapid prototypes and experiments in the‘real world'to filter out the bad ideas from the good
With all the stakeholders involved. Experiments with curiosity are the drivers for new. This requires courage,
In a knowledge society, the products and services are increasingly intangible. Often the tangible products get their additional value through intangible components like services,
or the tangible products are the access devices to services. The servitisation is quite an interesting trend affecting the lifecycle design of traditional products too.
Implementing Open Innovation 2. 0 through engagement platforms Creating engagement platforms in different product and services areas interestingly changes the economies of innovation too.
We are approaching a zero marginal cost for innovation. E g. developing a new app costs almost zero
and the trials on the market on platforms are almost free. This means that a wide spectrum of ideas can be tried in affordable engagement platforms
These kinds of environments lower significantly the barrier of entrepreneurship, provided that other e g. legal conditions are favourable.
Interlinking the zero marginal cost drivers with experimentation clearly indicates the feasibility of wide spectrum prototyping and trials, with the selection and scaling up of those solutions,
which are more successful in real world environments with real people. One of the new trends is crowdsourcing (beyond crowdfunding.
Crowd processes can bring good, disruptive ideas or reinforce some solutions when used properly. But, what is the role of experts in developing,
self-configuring environments. Will the companies be able to capture the talent and the connections in timely manner, changing dynamically the team compositions depending on the tasks
Experimenting in nearly zero marginal cost environments with real users, and taking their feedback in a co-creation mode means a safety net for even the craziest ideas.
and one that has the courage to test and prototype ideas with all the actors in real world.
It drives for new approaches having all the stakeholders involved from the start, and it advocates for searching for the unexpected.
and doing the prototypes, as well as engaging the stakeholders to the process and also by enabling infrastructures.
The Digital Agenda for Europe and the Single Digital Market are important tools for the scale up.
with this engagement of all stakeholders, there is a lot better possibility to capture the best ideas,
because valuable innovation-related knowledge is being increasingly widely distributed to different actors, organisations (e g. companies, customers, suppliers, universities etc.)
Such tasks are typical in the development of complex business-to-business products and services. In the present report, we focus strongly on this new era of Industrial Crowdsourcing by focusing on crowdsourcing activities of the above type in companies that manufacture industrial products and services.
Additionally we focus on crowdsourcing in the business-to-business sector companies, which were thought earlier commonly to be a very challenging or even impossible target for crowdsourcing activities.
services and systems have been reported in the last couple of years. Furthermore the value creation approaches, models and success factors of industrial crowdsourcing have recently been studied academically
Solved), testing of software and hardware products (e g. utest), ideation and concepting (e g. Atizo) or pre-purchase crowdfunding (e g.
Kickstarter), see Table 1. From some platforms, industrial companies can reach a vast number of experts in specific field (e g. more than 1. 5 million mechanical engineers in Grabcad),
while others provide access to a smaller crowd of world-class experts (experts e g. in the area of environment, energy, mobility, construction and design related to cleantech in Solved).
1) crowdsourcing,(2) crowdfunding 11 and (3) crowdworking. These concepts are referred to by numbers 1-3. These concepts are interrelated partly and intersecting.
company focused on cleantech advisory services, to develop a new residential area-related concept‘Net Positive Residential area,
'including solutions for smart energy systems, energy and resource efficient design, sustainable materials, sustainable lifestyle shared services and goods, smart waste management,
co-creating a ready-to-use roadmap with feasible solutions and related business models, and support in realising such a concept.
Equity-based crowdfunding represents an interesting opening for Europe, as in many EU countries the legislation is enabling it,
and the Internal Market and Services DG has established recently a group to assist the Commission in developing policies for crowdfunding to help it to flourish
equity-based crowdfunding‘matchmaking'platforms vary from language and geographical market perspective in Europe; e g.
Crowdcube is based an UK crowdfunding service, while Fundedbyme originated from Sweden and is now active also in Finland, Denmark, Germany and Spain.
Invesdor, Venture Bonsai and Vauraus Suomi are active mostly on Finnish equity-based crowdfunding markets.
In terms of the size of the market, for example the three biggest crowdfunding companies in Finland have raised together over EUR 20 million equity funding.
Ideation and concepting the typical concepts in engaging the crowd Ideation is one of the most common application areas for crowdsourcing;
Using crowdsourcing for concepting can be organised for example as engineering competitions or be a continuation of engaging the crowd
so that the minimum viable product sees the daylight of its audience. Estonian-founded crowdsourcing start-up Grabcad (http://grabcad. com/
Crowdworking services can help i e. in creating a logo, making a design for a website,
or a competition that the customer (i e. the new organisation) has defined. There is no employment relationship between the crowdworker and the crowdworking service or between the crowdworker and the one posing the challenge.
and understanding the quest for authenticity that the audience demands nowadays, why wouldn't the organisation ask marketing-like content e g. goodenough social media marketing videos,
'By the word‘earned'it is meant in the context of digital services where there one nowadays makes a distinction between paid, owned and earned media 17.
digital marketing or strategic influencing and communication, it has been found that earned R E g I O N A l I N N O V A t I O N,
Services like eyeka, from EU, is operating in 12 languages for truly localised content, or US-based Tongal which started from the supply point of view:
or to invite crowds to co-fund the production, prepurchase crowdfunding, as one form of crowdfunding, has gained a lot of popularity in recent years.
Pre-purchase crowdfunding is in the sweet spot of combining earned media marketing (word of mouth i e. the crowd contributes significantly to marketing efforts)
and crowds contributing with money. As crowds vary, there are currently many such matchmaking platforms all around the world,
as the costs to enter to the markets in the Internet economy are marginal. While pre-purchase crowdsourcing has been popular in consumer markets already for years,
New services have also become available for those companies that are planning to launch a funding campaign of an industrial product on Kickstarter, Indiegogo or Fundable,
which provides services for prequalifying the manufacturability of products from a crowdfunding campaign and in supporting the factory selection process and onsite factory project management for the funded product.
and existing customers to test, give feedback and support each other in using the products and services that the company is providing;
this is where customers serve each other and contribute to product development and go-to-market strategies.
Nowadays, many software and consumer electronics companies say openly that they are not the experts in the usage of their products and services,
as their audience knows best what to do with‘stuff they have bought'.'Memes evolve and companies use the imagination of their audience in communication
and act as a platform or an ecosystem builder between their audiences. As an example, when making Internet search enquiries for a specific (software or electric device usage related) problem, the users do not end up at the official brand Q&a sites as the first hit,
Recently, also industrial companies have started making use of communities and services for crowdsourcing testing of their products.
P, et al, Future of crowdsourcing and value creation in different media environments, Academicmindtrek‘13 Proceedings of International Conference on Making Sense of Converging Media, Tampere, 2013, p
n Jäsenlehti 2013: 10 3. 11) Collins L, Pierrakis Y, The Venture Crowd. Crowdfunding Equity Investment into Business, 2012.12) Surowiecki J.,The wisdom of crowds:
Why the many are smarter than the few and how collective wisdom shapes business, Economies, Societies and Nations 2004.13) Barnett C.,The Crowdfunder's Guide to General Solicitation and Title II of the JOBS
Act, Forbes 2013.14) Baeck P, Collins L, Zhang B.,The UK Alternative Finance Industry Report 2014, Nesta, 2014.15) Erkinheimo P, Dombowsky
P.,Crowdsourcing and Open Innovation for Enterprises, 2013. R E g I O N A l I N N O V A t I O N,
and Innovation in the Internet Economy pia. erkinheimo@digile. fi 32 O P E N I N N O V A t I O N y E
Information and communication technologies (ICT) have been considered as the key enabler to accelerate growth, equality and sustainability,
and emphasising demand-side stimulation and societal and economic elements, rather than just technological impacts.
Given the multi-disciplinary and cross-industry characteristics of the European programmes, these programmes could be termed‘systemic instruments'2 where the objective is to engage and mobilise a wide range of stakeholders to tackle shared challenges.
This broadens the policy scope significantly towards the adaptation side and towards demand-side policy instruments,
such as lacking entrepreneurship and business creation, and lacking impact on societal innovation. This demonstrates the need for a focal actor with no vested interests to steer
Environments within which RDI programmes function are characterised by technological, market and political uncertainties which are multiplied by the requirements for openness
This way an RDI programme evolved in its ecosystem environment establishes a‘living lab'within societal contexts,
The main part of the debate on innovation impact on economic growth centres around technology and infrastructures 12, is failing to appreciate the underlying institutional, capability and learning-related aspects.
and the demand orientation. This work is useful as a conceptual framework for analysing systemic problems.
Critics of economic network analysis claim there is too little focus on environments external to the ecosystems and lacking attention to the inter-organisational processes.
The ecosystem can consist of various types of offerings and business models, while the platform owner defines the interface and quality criteria for the inputs.
and opportunities for entrepreneurs and SMES to build on the ecosystem offering, or use it as a channel to reach a broader customer base.
For ICT innovation in particular, the fundamental unpredictability of products and services usage has revealed a clear demand for European-level research.
and networked forms of collaboration between industrial, government and academic stakeholders on the one hand, and the public sector on the other.
Consequently, the Europe 2020 Innovation strategy and its European union Flagship Initiatives emphasises the investments not only in corporate R & D and science and technology-driven research
In this view, the State becomes the‘buyer'rather than the supplier of the services 24.
implementation accelerator and co-creator, and as a regulator on the other 25. The new PPPS for research simulate real market environments,
where the public sector participates in a co-creation process with the private sector, and thereby can experiment
It was realised further that much tighter collaboration between the stakeholders is necessary for achieving the targeted industry level transitions and impact.
Governance structures should involve broader sets of different stakeholders and include complementary macro-level competences e g. foresight, emerging technologies, commercialisation of research results,
and innovation themes Open cloud based platform of APIS for developing new collaboratively created services for various application areas Federated testbed facilities for research,
Testbed facilities responding to evolving academic and industry needs, experimentation tools and methodologies, European-wide federation of testbed facilities Educational programs, research projects, portfolio of business acceleration services, like accelerator,
Societal interfaces Target for real life implementations, living lab type test environments. Public sector driving adaptation through PCP measures.
Opportunities for SMES and entrepreneurs. Establishing a core infrastructure of federated testbeds as a resource for users (academia, research institutes, industry, SMES.
The European commission and stakeholder communities are involved also heavily in the implementation of each of the programmes.
In the EIT ICT Labs there is specific focus on accelerator and incubation activities, and thus participants in the projects include significantly start-ups, entrepreneurs and innovation agencies.
which led to the formation of numerous ecosystems consisting of the core partners to the programme and other stakeholders.
As an example, the more established literature on innovation policies and systemic instruments is isolated fairly from emerging literature regarding platform economics and open innovation.
innovation literature emphases the early involvement of users and patterns in technology adaptation, that can help upfront planning of investments and returns.
'5) http://www. tekes. fi/en/programmes-and-services/strategic-centres/(6) Etzkowitz, H.,L. Leydesdorff (2000),‘The Dynamics of Innovation:
12) Ulku, Hulya (2004),‘R & D, Innovation, and Economic growth: An Empirical Analysis',IMF Working Paper WP/04/185.13) Galli, R. and Teubal M.,(1997),‘Paradigmatic Shifts in National Innovation Systems',Edquist C
The case of Apple's ipod',Communications of the ACM Being Human in the Digital Age, CACM Homepage archive, Volume 52 Issue 3, pp. 140-144.15) Mazzucato, Mariana
The case of enterprise software',MIS Q.,Vol. 36, Nr. 1, pp. 263-290.22) European commission (2010),‘Interim Evaluation of the Seventh Framework Programme, Report
2010),‘Impact of European Policy on the Development of the ERA in the Areas Relevant to Environment',Final Report Prepared for European commission, Research Directorate-General, Directorate I Environment.
the need to review their curriculum to respond to new skills and market demands, the rise of open education platforms and social media, community engagement and crowdsourcing.
and/or A&d Technology driven Business value driven Knowledge ownership Knowledge access Product orientation Business model orientation Engineering job Everyone's Job market push-technology driven Market
pull-need driven Closed innovation Open innovation Calculated risk High risk Investment companies are now adapting new processes and business models,
In addition there are stronger opportunities to experiment with potentially risky technologies outside the company's boundaries using venture capital support and finances.
universities are playing an everincreasing role in contributing to knowledge-based economies. The Knowledge Economy Index developed by the World bank 5 considers education and innovation factors in measuring national effectiveness in developing knowledge-based economies.
The Global Competitiveness Index (GCI) developed by the World Economic Forum 6 also measures education and innovation factors as fundamental for national competitiveness and economic sophistication.
This results in knowledge flows between universities, companies and external stakeholders; knowledge is becoming a source of competitive advantage This trend positions universities as key partners for industrial companies and places them in the epicentre of regional and national innovation ecosystems;
At the same time universities act as partners and customers of regional services, SMES and large companies; growth of venture capital markets This trend makes it possible for promising ideas
and technologies to be developed further outside universities thus allowing universities to profit from their knowledge and research outputs;
customer expectations are increasing Universities are affected also by increasing customer sophistication, increased transparency and digitisation.
which is the system for evaluating the quality of research in UK higher education institutions 7. Open innovation university To respond to global open innovation challenges universities need to open up their business models
marketing and communication department to interact with stakeholders and public; alumni relationship office; research office to monitor
and develop funding opportunities; technology and knowledge transfer offices; education technology structures to develop education and learning products;
enterprise infrastructure focusing on entrepreneurship agenda within the university and professional and executive education units offering commercial programmes.
processes and policies in order to develop innovative and sustainable business models. Key trends in universities'open innovation practices include:
Cultural differences between academia and industry Parameter Academia Industry Responsibility Social responsibilities Shareholders responsibilities Research type Basic research Applied research Output New
The UK Science & Innovation investment framework 9 proposes a research model to combine fundamental and applied research‘to bring together public and private funding
income leveraging government funds access to facilities case studies source of funding demonstrating impact competitiveness knowledge based economy innovation national growth Examples of successful university
and made recommendations for long-term investment in a network of the UK technology and innovation centres
university technologies supported an estimated three million jobs in the economy (1996-2010) and technology transfer contributed to creation of 671 new companies and 591 new products in 2011 alone.
Imperial Innovations'business model includes all elements of technology commercialisation from technology scouting, IP management and investment into promising technologies.
which act as venture capital to spur innovation, entrepreneurship and economic growth. According to the Thomson One database there were 26 university funds established between 1973 and 2010 24.
The main objective of such funds is to invest equity capital to university technology companies and speedup commercialisation processes within universities.
Another development in university innovation management and enterprise are collaborations between universities to expand the pool of technologies, expertise and capacity.
which recently named the top university business incubator in Europe. CETSQUARED is the enterprise collaboration between University of Bath, University of Bristol, University of Exeter, University of Southampton and University of Surrey 25.
New skills, programmes and learning technologies The spread of open innovation and a greater permeability of organisational boundaries place new demands on skills and capabilities of employees.
Universities need to respond to new requirements and prepare students who are market ready to embrace open innovation.
A further emphasis is placed on incorporating entrepreneurship creativity and innovation management subjects into university curriculum across subject areas.
which is teaching students to explore social science thinking from different perspectives, e g. economics, law, politics,
versatility, multidisciplinary thinking, critical thinking and effective communication. Similar trends are observed in business education. The HBR Blog Network 29 has argued recently for revisiting business education placing emphasis on holistic thinking, global perspectives, technology, entrepreneurship,
creativity and the ability to make decisions affected by complexity and chaos. A greater openness of university education programmes is manifested further through a rising choice of courses on MOOCS platforms (e g.
University marketing in the age of open innovation Open Innovation brings new opportunities and new challenges to universities in promoting their education programmes,
A greater transparency and openness in communication approaches results in new technology and trends in developing universities websites.
Universities are gradually exploring crowdsourcing and crowdfunding opportunities. While there is a need to pay some scrutiny to funding sources there are new crowdfunding platforms
which are dedicated to education and research, e g. the Hubbub platform 39. We estimate that community engagement
and technologies as well promote their services and expertise. It is fundamental for universities to find the right balance between openness
9) Science & innovation investment framework, HM Treasury, DTI, Department for Education and Skills, July 2004.10) Pasteur's Quadrant:
(23) Croce A.,Grilli L.,Murtinu S.,Venture capital Enters Academia: An Analysis of University-Managed Funds, Journal of Technology Transfer, 2013.24) Thomson One database.
E A r C H 49 How to Combine Openness and the Protection of Research Investments in University Inventions US and Nordic Views Who owns the rights to university inventions and under which terms?
The researcher as a stakeholder wants protection for his/her creative work and wants credit for scientific career through being acknowledged as the inventor in scientific publications.
The university as a stakeholder has a mission to maintain a high level of research and education,
The interests of businesses as research stakeholders are naturally the use of inventions for commercial innovations.
The universities are given an opportunity to express their opinion on proposed legislation concerning their issues.
which could be regarded as somewhat contradictory to the idea of incentivising investment to research. A researcher, who is employed by the university,
it would be relatively easy to change the argument towards the idea of research funding as investment;
the university makes an investment into intangible assets, namely research results and findings. Like any investment, this could be successful or lead to failure.
This could make the universities more free to judge where to invest, but at the same time, the ultimate financier would set targets not necessarily scientific but economic.
This position would also mean greater independency and responsibility for the university as rights holder, rights owner, licensor and start-up/incubator.
I shall take the Harvard Office of Technological Development (OTD) as a benchmark. OTD is an organisation specialising in technology transfer,
OTD operates under Harvard university's supervision 5. The starting point of the policy of OTD is that all stakeholders, the university,
Bayh-Dole supporters underline the fact that having a patent-based incentives system encourages investment into expensive, complicated and risky research projects.
which information in turn helps planning research investments also from society's point of view 17. Bayh-Dole produces efficiency benefits
Unit for Bio-entrepreneurship is concentrating on research and education concerning entrepreneurship. The‘mother company'KI Holdings takes care of economy and administration.
Within the ownership of KI Holdings AB exist three companies: KI Innovations AB is a company,
is based on sound law and economics foundation, namely, in order to make transactions (sell, licensing, waiving the rights) of IP,
in order to attract investment and thus encourage dissemination of the invention or innovation in this phase, if you like.
It would make sense to see the universities'main task as investment to research, the protection and utilisation of which are important parts of the universities'societal functions.
The issue of the grace period should also be looked at both from the perspectives of international competition of patenting systems
, Law and Economics',This initial conclusion looks surprisingly correct from theoretical point of view, considering especially the so-called‘Coase Theorem'regarding the allocation of rights in economic analysis. 27) Wikipedia, Novelty (patent).(
However, one has to find out the proper way to identify collaboration opportunities among the diverse innovation ecosystems leading to innovative co-created values
the brokerage session is intended more to offer to participants a source of leads for collaboration opportunities in terms of potential project proposals.
Logically, the next big issue for proposers is to find out either potential opportunities to join an ongoing research
The main goal of these matchmaking sessions was to provide every participant with a chance to identify collaboration opportunities in view of specific targeted actionlines of the H2020 Work-programme (WP.
and the potential adoption of matchmaking services by LLS and other organisations members of ENOLL.
and suitability of an online serendipity service (CONEX) to identify H2020 collaboration opportunities 6. The results of this previous study provided interesting insights in terms of individual
and an emerging matchmaking approach for systematically sensing collaboration opportunities. Related theories and previous work Open innovation
novel products and services. OI2 is based on extensive networking and co-creation across organisational boundaries well beyond traditional licensing
and collaboration schemes 3. Keeley et al. 4 explain that often the highest returns from innovation come from business model,
compliant with the quadruple helix innovation mode, was applied gradually within EU projects for involving all stakeholders, especially users and policy-makers, at the earlier stage of R & D and innovation.
& Salmelin 3 consider LLS as a significant example of the open innovation ecosystem where users are engaged in co-creating value together with all project stakeholders.
Matchmaking in the open innovation approach becomes an element of paramount importance 9 (Galbraith et al. 2008) in identifying collaboration opportunities.
and/or business model alternative that determine the future innovation direction. People, concepts, networking and online serendipity Beside the review by André et al. 11 of existing systems supporting serendipity in one form or another;
Concurrently, the PCN approach was implemented into a software prototype 6, 12,13 named CONEX that operates as an online service.
H2020 partners search and opportunity finding Idealist was established in 1996 as an international ICT (Information and Communication Technologies) network.
Idealist is intended to support proposers in offering several services 14, such as opportunity finder and partners search through specific online tools and brokerage events.
On the Idealist website, it is mentioned that‘Idealist addresses ICT companies and research organisations worldwide wishing to find project partners for a participation in the Horizon 2020 programme of the European commission.
and other services helping to ease participation in Horizon 2020'.'In terms of empirical study on the Idealist partnersearch, beside the nine Idealist success stories, about FP7 ICT projects who found partners through the use of the partner-search tool, available on the website,
Research approach The overall matchmaking strategy for this event was based on the competition between two elements, namely:
2) on the other hand, an online application tool (CONEX) offered a connection map (named‘My Network')providing a set of potential collaboration opportunities to every registered participant before, during and after the event.
The first one provided a source of identification of collaboration opportunities among attendees wearing the same colour-coded H2020 Challenge.
further exploration of all identified collaboration opportunities during the event or even after the event through asynchronous exchange (e-mail) or synchronous discussions (e g. phone or online).
in order to identify potential collaboration opportunities. CONEX users, simply browsing their network map, were able to identify the most relevant participants they had to talk to as a top priority;
in order to further explore these collaboration opportunities. Figure 1: Example of network map showing connections between participating entities (organisations and H2020 topics) O P E N I N N O V A t I O N 2. 0:
and to discuss eventual collaboration opportunities. This identification of relevant attendees could be done through the analysis of the CONEX network map based on the number of tags involved Figure 2:
It means that the overall matchmaking activity was good enough that every participant was quite busy with further discussing collaboration opportunities until the end of the event.
the matchmaking approach is intended more to create systemised connections among potential proposers that lead to unsolicited collaboration opportunities and eventually new breakthrough ideas.
One could conclude that the two approaches perfectly cover the full spectrum of proposers'cases in their willingness to identify collaboration opportunities
appropriate and attractive mean for creating event attendees'opportunities to connect and interact. For sure, it works until they are in the same physical space
Furthermore, it would be great to have the opportunity to explore and experiment the contribution of digital matchmaking (e g.
and speed-dating sessions offer much more opportunities of physical presence and social interactions due to their use in a physical space.
One could even start the discussion about collaboration opportunities through asynchronous and synchronous technologies (e g. e-mailing,
augmented and mixed reality platforms as well as sensors/actuators platforms) for anticipating, through iterative prototypes and experiments, the user experience and the induced adoption of technological artefacts by users.
and Profits, Free Press. 3) Curley, M. & Salmelin, B.,(2013), Open Innovation 2. 0:
Pallot@nottingham. ac. uk Dr Thomas Holzmann Scientific Project Manager and Research Associate Strascheg Centre for Entrepreneurship Thomas. Holzmann@sce. de Piotr
social activists and many more are making products and services for our future. How can governments possibly deal with this increasing complexity
Governments have to find new ways of organising their activities and structures in support of innovation in the economy and in society at large.
In times of 3d printing, open source solutions and new forms of crowdfunding, even enthusiastic hobbyists face relatively low barriers to innovate.
These spaces offer opportunities for testing and experimenting with ideas, business models and practices; they allow for flexible forms of cooperation in and across government, academia, research,
business and civil society 9. Labs are surely no new phenomenon, given their common usage in the natural and in medical sciences, for instance,
The principles of the design thinking movement and from behavioural economics have driven this latest surge of labs. Design thinking stresses the added value of out-of-the-box thinking 11 driven by interdisciplinary collaboration
and user-orientation resulting in prototypes of products and services. Behavioural economics pays attention to ways citizens
and consumers can be nudged in the right direction by intentionally targeting unconscious behavioural patterns. Both strands of thinking are built on the assumption that various different disciplines (economics, psychology, design, etc.
are needed to fully grasp human behaviour. In this more modern understanding of lab, the Helsinki Design Lab was probably the first publicly founded lab in 1968.
Both concepts, labs and Cop, emphasise the need for more open trans-and interdisciplinary collaboration geared towards the co-development of new services and products together with users.
as well as incubators and accelerators driven by investors). Table 1: Types of innovation labs and their main features 13 Lab features Cop constellation Objectives Role of government Time horizon Policy labs Civil servants and external experts
Technology Incubator (IL), EIT ICT Labs (EU) In the next two sections we will discuss each type of lab,
and the OECD recently underlined the pressing need for co-design and co-production of policies and new products and services 15.
Interestingly, its foundation was partly the response to demands by business scholars who wanted to see the Ministry of Business Affairs not only preach to others about innovation
and Employment) and the Odense Municipality are Mindlab's main stakeholders, main customers and provide the largest share of funding.
External demand from international organisations like the OECD, the United nations Development programme and the European commission has been on the rise in the past few years.
The core team currently comprises members from eight different disciplines ranging from anthropology and sociology to performance design.
and public sector stakeholders (3). Proto-typing takes place together with citizens and businesses to create possible solutions.
and how they use public services. When conducting this research, quickly patterns of actual citizen experience and perception emerge.
Especially in the early days of Mindlab this required ongoing explanations to the stakeholders. Solutions developed in innovation labs are meant to facilitate
'Berlin seems to provide a fruitful breeding ground for founding labs, due to the high density of research and development facilities, the dynamic political and economic transformation subsequent to German reunification, a growing creative economy
Grassroots labs Grassroots labs offer an environment for creatively experimenting and collaborating with ideas and tools.
private initiatives found grassroots labs. Both user communities and lab providers often dissociate themselves from commercial and profit-driven objectives,
devices and services for interdisciplinary and collaborative work addressing diverse mobile professionals (freelancers, microentrepreneurs, start-ups), most of whom work in creative industries such as design, media, arts or software development.
Consultations and extra services are subject to further expenses. The labs usually offer flexible opening hours that include weekends as well.
are explicitly open not solely to entrepreneurs and small enterprises, but also to other groups, such as school and university students, tech-enthusiasts and tinkerers.
Triggered by key investments and projects (such as the creative and artist store Modulor or justmusic),
Firm-driven innovation labs in Berlin are mainly working in information and communication technologies, media, design,
and consultancy services 21. Operators of firm-driven labs set up spaces for integrating external knowledge and talents, e g. from small and medium sized firms, freelancers and experts.
The labs'operators thus offer cost intensive equipment to users who otherwise would have no resources to set up comparable technology intensive environments.
Therefore, the lab's user community comprises the UFA company, technology firms, research and development facilities, media enterprises, students,
3) An agency offers services in cooperation with freelancers. Through these services, UFA is able to finance Blue sky innovation projects.
These three activity bundles build up a large community of partners and talents that UFA then can frequently activate for further projects and services.
Academic-driven innovation labs Like firm-driven innovation labs, academic-driven innovation labs are an instrument to open the organisational and institutional boundaries of higher education and research institutions to more complex and interdisciplinary actor constellations in innovation processes.
Additionally, labs can bridge market demand and academic basic research. The labs identified in Berlin are orientated primarily towards technology-intensive industries such as ICT
Sometimes, strategic partnerships are established (e g. with multinational enterprises such as Deutsche telekom AG or Daimler Benz AG) to circumvent the temporal fixation of academic-driven labs. Usually,
The lab facilitates interdisciplinary design projects with the objective of bridging the gap between people's needs and demands,
The projects lead to joint patents, subsequent projects, spin-offs and consultancies for enterprises (particularly for Deutsche telekom.
Investor-driven labs Investor-driven labs are testing arenas for new business ideas and business models.
scalability, profit potential and potential returns on investment. Usually venture capital providers or large companies that are clearly profit
and yield-orientated businesses manage investor-driven labs S2. In return for supporting lab users, investors receive a share of the start-up's turnover or, alternatively,
Investors either provide an incubator, act as business developers or accelerators or they organise education programmes for entrepreneurship.
Apart from capital e g. seed capital, investors provide in-house co-working spaces and additional O P E N I N N O V A t I O N 2. 0:
L I V I N G L a b S 71 infrastructure and equipment, offer coaching programmes with national and international industry experts,
initiate networking events with (inter) national stakeholders and potential large industry partners for the start-up for a limited time span.
Large multinational enterprises such as Deutsche telekom AG, Deutsche Post AG, Otto Group, Bertelsmann AG, Axel Springer AG, Prosiebensat. 1, Microsoft and Google
the beneficiary learns through competition in labs and benefits from the investor's programmes, networks, distribution channels and markets.
Found Fair Ventures Found Fair Ventures is an incubator and company builder founded by the investor Burckhardt Bonello in 2010 in Berlin-Mitte.
access to business networks and working stations with a focus on online business models. Found Fair Ventures supports start-ups and start-up teams through different channels:
Start-ups and teams with a product or prototype can submit their business plan (concept, team and market analysis) for feedback.
Interns and entrepreneurs in residence are potential founders of new start-ups that are integrated in an existing start-up company of Found Fair for several months.
Finally, venture partners are established companies that are either part of the expert network or function as partners for one of the internal start-ups.
either through collaboration or by competition. Start-ups additionally receive consultancy from Found Fair Venture's mentors.
Conclusion Despite their great variety, all lab types discussed in this article share five key characteristics 24.
Each lab offers a physical environment equipped with desks, machines, computers, audio-equipment, materials and substances that can be arranged flexibly.
by selecting available equipment and by offering specific services, lab providers establish a frame for a community of practice that they want to attract to their labs. However,
Learning also takes place in highly competitive environments like in investor-driven innovation labs. Fourth, labs offer creative freedom,
Instead, labs offer an environment for the user to experiment with ideas without an economic goal fixation by the flexible access and detachment from sheer economic profit.
and services for like-minded enthusiasts and experts who first dedicate their energy to addressing a specific need, demand or problem.
this fosters demand-driven innovation that might lead to new businesses, but it can equally well result in social innovations, new forms of policies or problem solutions.
Enterprises and academic institutions exploit labs to create a community that supports their open innovation strategy
because their members are enrolled in collaboratively answering a specific demand or solving a problem. Additionally, these communities are characterised by a social constitution that comprises diverse actors affected by a specific topic:
citizens, users, bureaucrats, interest groups, experts, partners, financiers, economic and academic stakeholder and students etc. This diversity facilitates avoiding blind spots in innovation processes.
governments will be equipped better to construct regional advantages for their innovation economies 27. Labs are a tool
Many thanks go also to the‘Projekt Zukunft'of the Berlin Senate Department for Economy, Technology and Research for their financial and content-related support for mapping innovation and creativity labs in Berlin.
Spaces and Events as Interfaces for Innovation and Creativity, Study Commissioned by the Berlin Senate Department for Economics, Technology and Research.
Senate Department for Economics, Technology and Research. 25) Olma, S. 2014), Innovationsökonomien. Strategien zur Erneuerung unternehmerischer Praxis, Wuppertal.
I O N y E A r B o O k 2 0 1 5 Basaksehir Living Lab Introduction A Living Lab is an environment where developments are tested,
improved upon and implemented in the surroundings designed to mimic their natural environment, through interaction with real users.
A Living Lab is organised in such a way that its operation can be extended to any specific environment required by the development in question
and innovation model that is providing to add real value to the products and services that it handles.
and accurately amend it in accordance with market demands. The first Living Lab of Turkey opened its LEED Gold certified doors in 2014 in the Basaksehir Municipality of Istanbul.
It has 30 000 small and medium-sized enterprises (SMES), which employ 300 000 workers
I O N y E A r B o O k 2 0 1 5 The focus of the Basaksehir Living Lab is to provide an environment for developing ICT products and services such as;
Design and innovation, entrepreneurship schools. Basaksehir Living Lab Innovation and Technology Centre The Basaksehir Living Lab Innovation and Technology Centre building is constructed in Basaksehir
Living Lab Incubator The incubator is a workshop and office environment where any kind of equipment,
or small enterprises to make developments is available. There is an electronics laboratory and a‘design factory'with rapid prototyping capabilities, a conference hall, separate meeting rooms and a large unified working area.
L I V I N G L a b S 77 Living Lab User Experience Centre Showroom The Living Lab User Experience Centre is the environment where new technological products
and services are shared with users and business partners and where feedback is received. It can be used by entrepreneurs and established business partners.
Thanks to its present infrastructure, it can effectively deliver IT services to the public and carry out projects to launch future services.
Some of these projects are listed below: High-speed broadband infrastructure (1 Gbit/s symmetric connectivity to each new flat in the municipality;
Free public access to information services; i e. Wi-fi points, IP TV; Providing all public services, especially security, health education and economic services through web portals and applications;
Becoming a pilot area for new technologies such as 4g and 5g, Wimax, IPTV, Wi-fi points and Basaksehir mobile applications;
L I V I N G L a b S 79 Contribution of Basaksehir Living Lab to innovation and entrepreneurship The incubation and experience centres at the Living Lab allow ideas to turn into products and services.
The services that the Living Lab offers are limited not to the facilities within the physical building.
Thanks to partnerships established between the Living Lab and other organisations, additional services, such as the following, are offered:
Supporting the development of business models and bolstering relationships with the finance sector in order to obtain financial resources;
However the most vital issue is that entrepreneurs have environments to test their products and have the opportunity to adapt their highest-scoring products to the market through the feedback that they receive from users.
Furthermore, thanks to Basaksehir municipality joining the European Network of Living Labs (ENOLL), many Living Labs around the world can be used as practical test environments,
and the opportunity to present products on international platforms will arise. The Executive Board Committee of ENOLL has decided during Open ENOLL 2014
and General assembly in Amsterdam (3-6 september 2014) that Open ENOLL 2015 and General assembly will be organised at the Basaksehir Living Lab between 25-29 august 2015.
smaller investments provide faster responses, as other Livinglab examples have shown. This will increase Turkey's competitiveness in the global market.
Innovation Competition The Turkish Export Assembly (TIM) is organising an‘Innovation Week'every year at the beginning of December in Istanbul.
Basaksehir Living Lab has organised an‘Innovation Competition'among primary and secondary schools as well as university students with TIM and IOSB (Ikitelli Organised Industrial District) for the Innovation Week. 200 innovative projects were submitted
facilitating adaptation to the digitalisation of services, facilitating a healthier lifestyle and emphasising the connection between arts and innovation.
and they become a key part of the knowledge economy.''The Basaksehir Living Lab provides equal opportunity to all who visit,
and see opportunities in new ICT-based technologies. Public lighting and public lighting infrastructure can play a significant role as a stepping stone to achieve the ambitions of cities to become‘smart cities'.
'New technology enables cities to offer a wide range of intelligent and integrated services to benefit both individual citizens and society at large.
This requires a paradigm shift towards the continuous innovation of services for people. Practical projects indicate four paradigm shifts:(
and other stakeholders who will benefit from the value created. A‘designerly'approach facilitates citizens in participating as experts on their own quality of life.
and jointly seeking opportunities that deliver the best value for all partners. Introduction Cities strive to improve quality of life for their citizens
and see opportunities in new ICT-based technologies. At the same time companies are looking for ways to create a sustainable business in the smart city domain.
and smart services that have not been possible before. Technological developments include an upgrade of the public lighting infrastructure and system by connecting to ICT solutions.
The resulting growth in the availability of data from sensors and controls creates many new service opportunities.
This enables cities to offer a wide range of intelligent and integrated services that will benefit both individual citizens and society at large.
but especially it needs a change of mindset for all participants in the quadruple helix a fundamental mind shift towards continuous innovation of services for people.
from products to service The dominant business model in the lighting and ICT industry has mainly been based hardware:
This shift from products to services will be illustrated by the Amsterdam Smart Lighting project, in which an adaptive lighting solution is designed
and provides a unique environment with a diversity of entertainment, shops, sports, restaurants and bars.
creating new design opportunities that address the innovation questions at different levels. If the system can create any desired ambiance for any moment, then
Who are the users and other stakeholders, what are their needs and when do they experience them?
The shift in focus from products to services makes it possible to continuously innovate without further investments in the hardware infrastructure.
from technology to people and societal needs The changing focus to services requires a second mind shift to a focus on people and societal needs.
There is a need to get a deeper understanding of the different stakeholders'needs in relation to good quality of life to enable the definition of meaningful solutions.
Espoo and Bassano del Grappa) cooperating on procuring innovation and testing innovative ICT-based lighting solutions in a real-life environment.
Each pilot area has its own dynamics, stakeholders and context. In depth understanding of the specific needs of the stakeholders in the pilot area is needed,
as well as good understanding of the city's policy with its strategic ambitions for the city as a whole.
as shown in Figure 2. External stakeholders included residents, police officers, employers, hotel owners, representatives of citizens, scholars etc.
and these led to a coherent overview of the desired stakeholder needs in relation to the cities'strategic ambition.
The identification of societal needs with all stakeholders in the ENIGMA project 86 O P E N I N N O V A t I O N y E
and tourists through the city gems as well as providing services to residents (such as driving directions highlighting restricted car areas, car parks, cycle paths, the presence of bike sharing, ongoing events, services
In the process it is important to engage all stakeholders and listen to their specific needs.
so they address the societal needs for the city above the individual preferences of stakeholders.
The presence of adaptive lighting technology enables the creation of such a street performance stage without extra investment in the infrastructure.
At the same time the new services that can be designed on top of the platform introduce new business and new business models.
The idea allows for a range of business models: bar owners can rent it for their customers,
visitors to the square can pay a fee to use it, or organisers of larger music events can provide it as Figure 4:
A r B o O k 2 0 1 5 a service to their customers. It is not clear (yet) who would be the logical operator of the new service;
and viability of such a solution to the stakeholders before the market takes it up.
and promote the development and exploitation of new and innovative services falls outside their traditional responsibility (and comfort zone) of the municipality,
changing contexts and new opportunities. An example of a project that aims for a continuous learning environment to find ways to influence mood
and social behaviour is the Stratumseind area, a large inner-city entertainment area in the city of Eindhoven in
which a living lab has been set up to explore the opportunities for innovative lighting solutions that will improve the atmosphere
Different business models can coexist in such a platform however since many of the partners have invested time and money in the setup of the living lab,
Such arrangements to share investments and revenues are important in creating open ecosystems of this kind.
Next to the challenges in finding sustainable and scalable business opportunities, there are also challenges in how to deal with privacy and ethics.
Moving towards continuous innovation of services for people, and for that purpose integrating a‘mash-up'of products
and services from different organisations, require changes in the ecosystem for innovation as well as in the roles of all partners within the ecosystem simultaneously.
The ultimate aim is to offer more value to more stakeholders thereby significantly improving the quality of life in cities through new innovations.
V A t I O N y E A r B o O k 2 0 1 5 to earlier, it also requires new thinking on investments and depreciation, maintenance contracts and product life-cycles,
as well as respecting each other's business models and shared value creation. The key aspect in the new ecosystem is real co-creation.
academia and private individuals to co-create novel products and services. The shifts described above also make it important to ensure that the business models support sustainable exploitation of the system by integrating societal and economic interests.
Such business models need to be developed and implemented through a transition from the existing to the desired business model.
This quadruple helix innovation approach is most successful when there is a shared vision and shared value is created.
The projects shown as examples demonstrate that starting from a societal need is a good way to create a common vision on the desired impact of an innovation.
customers (such as municipalities) would indicate the functional requirements and the industry would then respond with tenders based on their existing products.
followed by the development of integrated solutions made up of products and services. Starting from the end-user needs often leads to the co-creation of innovative solutions (products
and services) that exceed the boundaries of contemporary lighting solutions and lead to lighting as a value-added service.
It also enables the integration of specific products from small and medium-size enterprises (SMES) into a more common and globally scalable platform.
An open, adaptive platform enables the rapid integration of new modules to provide new services.
The shift from a focus on products to integrated services also creates the opportunity for recurring revenues in service development.
Services typically have shorter life-cycles than the supporting products and platforms. A combination of a flexible, adaptive platform with continuous service innovation enables simultaneous exploration and exploitation of new services.
A smart system enables continuous monitoring and learning, dealing with the impact of the services on the quality of life in cities.
As stated earlier to create a sustainable ecosystem the business models should ensure the integration of the societal and economic interests of the different stakeholders.
The system integrator has an important role to play in the urban lighting ecosystem. As long as current industrial partners offer propositions from a single business perspective,
In the example projects there is a lack of a partner to take the responsibility for integrating the mash-up of products and services from different organisations into a total solution.
In this situation, the partners in the projects will hesitate to take full responsibility for each other's products and services.
In the Green Deals, the Ministry of Economic Affairs in The netherlands is taking concrete steps towards a sustainable economy.
This will bring together more green energy with economic growth, and with projects that pay for themselves. The Green Deal helps to overcome obstacles (such as confusion about licences,
and in thinking of new possibilities and future services. Next, municipalities have an important role in creating lasting prosperity.
the task of the public sector is to create the environment for Open Innovation 2. 0, in
which the mash-up of required components can happen in a frictionless environment, bringing in the fuel for the innovation process,
which aim to generate value from knowledge by supporting multi-disciplinary academic entrepreneurs in turning knowledge into services and products that impact society.
New business models are explored, and it can be stated safely that the municipality has moved from the role of facilitator to that of a participant in the Brainport innovation ecosystem.
In the new generation, knowledge institutes, citizens and other stakeholders are involved intensively in research and education with the aim of co-creating meaningful solutions.
So the only way to create a solution that fulfils the (often unarticulated) needs of the stakeholders is to jointly embark on a co-creation process to explore possible solution spaces.
but require facilitation in being involved in design, new possibilities and future services. Co-creation of meaningful innovations requires strong involvement by citizens,
Technologies like this will enable citizens to experience solutions without large investments in technology infrastructure.
and take responsibility for their environment. It is not sufficient to complain if something is not right:
such as those regarding the procurement of innovative smart lighting and smart city platforms and services that start from the desired societal impact.
Since current business models are often based on the ownership of IP, this hampers cooperation. As stated earlier,
'Such a platform will allow all kinds of parties (both profit and nonprofit organisations, but also citizens and students) to develop applications that can be plugged into the system.
companies and designers to create innovative new services to join the platform. But it will also inevitably raise questions of privacy and security.
Realising smart cities Experience from implementation projects in public lighting in practice reveal the challenges with the paradigm shift towards continuous innovation of services for people.
and opens up new opportunities for the co-creation of shared value through innovation. Public lighting and public lighting infrastructure can play a significant role as a stepping stone towards achieving the ambitions of cities in their transition towards smart cities. 94 O P E N I N N
and other stakeholders who benefit from its value. A‘designerly'approach facilitates citizens in participating as experts on their own quality of life.
embracing the uncertainties in the outcome and jointly seeking opportunities that offer the best value for the most partners.
With more stakeholder involvement, multiple leaders will be nurtured and, hopefully, a self-organising system will be established to sustain the transformation.
because the formation of free global economy and the convenience of the Internet have blurred the boundary of national borders.
As a result, cities are the uprising competitive units, leading to intensified competition at this particular level.
and competition for the ultimate goal of attracting talent, knowledge, capital for wealth creation and quality of life.
This seeming economic disaster turned out to open opportunities for developments of new industries, the creation of new markets and the chance to build a new identity.
symbolising the fact that nurturing environments are very important at the initial stage of city transformation.‘
and even the stability of the region's economy (Unesco, 2009 14). In other words, citizens as well as the city government join together in their efforts to make Kanazawa a better known creative city.
and other stakeholders all join their efforts to sustain Lyon as a city of media arts for everybody's benefit.
universities and research centers to achieve fields of excellence through offering high-quality business support services Fia's restaurant used 80%organic food.
Host international competitions for relevant companies in Greater Lyon to reach their full potential in terms of innovation.
coherent and efficient services to Greater Lyon residents to enhance digital applications. In addition, the Lyon urban area offers world-class training
As a result, economic stakeholders, local authorities or public utilities, artists and designers all contribute to the development of these tools
References (1) Cabrita, M. R. and Cabrita, C.,2010, The Role of Creative Industries in Stimulating Intellectual Capital in Cities and Regions, Proceedings of the European Conference on Intellectual Capital
Urban Competitiveness in the Knowledge Economy, Intereconomics, 38 (5), 260-269.3) 2thinknow Global innovation Agency, 2011, Innovation cities top 100 Index 2011
A Portuguese Case, Proceedings of the European Conference on Intellectual Capital, 350-358.5) Donald, B.,2001 Economic competitiveness and quality of life in city regions:
Capital Model Applied to Cities, Proceedings of the European Conference on Intellectual Capital: 17-25.9) Thite, M..2011.
To this end, a Smart City is an urban innovation ecosystem, an accelerator and an agent of change.
digital and human systems in order to build an environment that will deliver a sustainable, prosperous and inclusive life for its ecosystem participants (citizens, businesses and government).
'The role of each stakeholder engaged in this ecosystem is crucial. Each participant in this ecosystem can be a change agent.
in order to secure the maximum economic and social impact for all the stakeholders involved. Collaborative skills, shares ideas, values and processes, open data need to be in place to make the collaboration efficient,
A services and technology-driven future city 1 O P E N I N N O V A t I O N 2. 0:
A smart city as a system of a system Most cities can agree that there is real value in having a smart economy, smart environmental practices, smart governance, smart living, smart mobility and smart people.
G. Sargsyan, called the‘Reverse Innovation Pyramid'4 where the users/citizens are shared part of the profit,
Reversed innovation pyramid 4 Will this model be the way towards an effective citizens'engagement in the Open Innovation 2. 0 process, by leveraging societal capital as a vital factor for maximum impact?
and how to make it efficiently empowered by societal values for ICT-intensive user-driven services.
-regions 6 5. Arup estimates that the global market for smart urban services will be USD 400 billion per annum by 2020.
combining social and economic values using enablers, such as ICT. Technology is an enabler among a series of other enablers
and shared economies will result in full happiness for all parties involved. Getting citizens involved in planning
and collaboration with citizens will contribute to societal capital. References (1) Illustration of Future City, The Smart Day Group,(2014).(2) M. Curley and B. Salmelin.‘
towards interactive and global innovation environments',International Journal of Innovation and Regional Development,(Inderscience Publishers.
The dilemmas covered are in the field of innovation management, OI2. 0 inspirations, sharing values, economics and use of technology.
The company focuses on communication in teams that combines implementation of archiving, chat and instant documents.
-With an investment from Google Ventures and the world's famous venture capitalist Kleiner Perkins, the valuation of the company amounts to USD 1. 12 billion.
because they are all the underdogs starting with a business model or technology that is quite different from the existing norm.
and to make a business model for this. Through initiatives such as the Correspondent, Medium and Blendle that sector has been awakened.
Blendle offers the opportunity to pay only for the article you want to read. Correspondent is an adfree medium that delivers the so-called long reads People are joining the movement for quality journalism.
You could say Medium is the opposite of Facebook media stars like Buzzfeed 4. All examples are in conflict with the business model of a traditional publisher.
Crowdfunding, another good example of co-creation and sharing, payment options and money transfers back to your home country,
and start a dialogue that can stimulate the internal vision and business model, that produces an interesting mix.
It often involves partnering with start-ups and other stakeholders, but not focusing on the innovation capacity from outside alone.
Sharing economy or trusted economy? Last year, we read a lot about new business models. Parties like Airbnb 7 and Peerby 8 are new, sexy and idealistic.
This also fits with the image of start-ups as sharing, peer-to-peer and collaborative consumption. It's all about the same thing:
a bonus for you and good for the environment by avoiding all additional personal consumption.
Adopt the collaborative economy value chain, Collaborative Economy (Altimeter Group, 2013) 9 O P E N I N N O V A t I O
The images we associate with it as good for the environment or sharing is not such,
The competition is limited therefore. Uber understands marketing much better, but is not radically different or technologically more advanced.
The shift to shared economy primarily means that the money goes to the few hundred men who are in a start-up.
and services that can empower all instead of a few. The previous two dilemmas were dealing with technology.
such as the environment, education and health. This means an infinite decision speed and increased accumulation of knowledge by applying technology.
or connectivity will add value for customers? Even a tech guru who wants to have time to read, talk and actually live,
We think that many opportunities lie in no-tech solutions, but as an innovator can you sell something that the rest do not even believe in?
combining social and economic values using enablers, such as ICT. We think that technology is only an enabler among a series of other enablers
and the ultimate objective of this process is shared the values and shared economies resulting full satisfaction/happiness for all the parties involved.
because it has become a commodity. Take for example all those programming classes at primary schools all over Europe.
This undoubtedly means that new business models will emerge. Being human also means limited scalability. Technology is scalable because of its zeros and ones,
which can simultaneously have the same quality everywhere. Being human brings fluctuations in the quality
/what-is-watson. html (7) Airbnb, www. airbnb. com (8) Peerby, https://www. peerby. com (9) Collaborative Economy, Altimeter Group, 2013.10) Uber,
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