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.
and the impact of the new approach in action, involving all stakeholders into the common journey from invention to innovation.
clusters and also triple helix innovation where the stakeholders are academia, industry and public sector. Open Innovation 2. 0 however brings us further,
taking the full advantage of strong seamless interactivity across all stakeholders, including users, across the whole innovation ecosystems.
and unanticipated opportunities. As the CEO of Supercell, Ilkka Paajanen tells us‘one never knows a priori which product will be a breakthrough'.
frictionless innovation space where all the stakeholders can share their ideas, prototype them and scale up the successes rapidly.
And, of course all stakeholders should be able to build and contribute to the innovation ecosystems by bringing in their competencies,
and also their hearts, with growing trust in genuinely experimenting, prototyping and making success together.
Sharing is the best guarantor for growing the pie for all stakeholders. I believe this edition of the yearbook gives you stimulus
Daria European Institute of Innovation and Technology daria. tataj@eit. europa. eu Huuskonen Mikko Lappeenranta University of Technology & Ministry of Employment and the Economy, Finland mikko
Real world settings, user experience and clear process to embed the feedback in the design process are shown in several practical cases, in logistics, well-being and green services context.
as it creates entirely new opportunities for configurable, user-centric‘things'.'The article discusses also the new business model opportunities in light of a case study from the banking sector.
Carayannis further elaborates on the quadruple helix innovation model which encompasses the mash-up innovation and the multilevel policy approach.
and reflects on the more complex approach of quintuple helix innovation environments! It is extremely interesting to see the drivers needed for the transformation to the new,
including new ventures, products, services and processes. Turkama and Schaffers elaborate in their article on the evolution of large-scale public-private research and innovation initiatives;
and demand, innovation ecosystem thinking so that environments function properly. As example, they analyse the Future Internet PPP funded by the European commission during the period 2011-2016.
In her article, Lin discusses the aftermath of the financial crisis in the light of the excellent work done on knowledge capital, structural intellectual capital and the effects on national competitiveness.
Policy measures from different parts of the world are set in context of increasing intellectual capital.
1 4 In the article there are good references to a wider set of studies targeting the major OECD countries (Organisation for Economic Co-operation and Development) regarding intellectual capital and competitiveness.
Open data and open platforms create a strong raw material basis for new enterprises and young people to create their own jobs.
This new interaction model leads to a more inclusive society based on joint wins across all stakeholders.
Chatterjee describes quite an interesting approach to entrepreneurship and growth. The Openeyif (Open European Youth Innovation Framework) sets a blueprint for an open innovation ecosystem for young entrepreneurs focusing on Open Innovation as process.
The roadmap includes presentation of new tools supporting entrepreneurship and interaction in the open space as well.
'Crowd-based assets are a new source of innovation and economic growth. Many organisations are aware of this,
The article shows also by several examples how crowdfunding and crowd sourcing has worked, and which are the pain points.
(and remove) the hinders for future innovative technology approaches and business models. Examples of implementing new technologies in virgin environments are shown also to highlight the importance of‘new'thinking in all professions.
As a good and inspiring end for the yearbook we have Roos'article! Innovation capability in organisations is the most important asset in the modern enterprises.
How to maintain and preferably increase the innovation capability by acting differently, organising the enterprise differently
and developing values and practises for creativity? How do we transform our organisations from data-to design-driven innovation?
These challenges provide a significant opportunity to create new shared value through innovation. Society's challenges may well reflect the transition to innovative solutions,
and sustainability needs is creating a unique opportunity to enable an explosive increase in shared value due to innovation.
it will be dwarfed by the efforts of teams that enable a wide spectrum of stakeholders to take on active roles.
Silos will be replaced with creative commons, shared societal capital, and the systematic harvesting of experimental results.
There is significant opportunity for growth based on Europe's strong hubs and regions that garner high scores on measures of innovation, including competitiveness and other Information Communication Technology (ICT) maturity indices.
It is important to note that Europe is traditionally stronger in research output and weaker in innovation take-up (i e.,
but customers adopting.''This statement perfectly characterises the shift in mindset that is a hallmark of OI2.
and product adoption and thus enable much higher returns on research investments. Joint Pathfinding occurs where research laboratories and business groups share resources, risks,
when a wider spectrum of stakeholders participates, is heard more frequently from world leaders, as the following comments reveal.
No company alone would have the incentive to (make this investment) on its own, but together companies are willing to move forward'(5). The EU Commissioner for Research, Innovation,
'At last, in the Western economies, there is recognition that a long-term view is needed. As stated in the Obama Administration's Strategy for American Innovation,
‘A short-term view of the economy masks under-investments in essential drivers of sustainable, broadly-shared growth.
The role of the public sector is to create the environments for OI2 where the mash-up of the needed components can happen in a frictionless environment.
It is also important to create efficient political and legal environments to catalyse innovation and experimentation.
and services that are adopted quickly. Once again we want to stress the importance of the creativity beyond organisational boundaries as essential to creating valuable components for innovation from a societal (market) perspective due to new co-creation processes across all stakeholders.
The EU's Open Innovation Strategy and Policy Group (OISPG) unites industrial groups, academia, governments
and will help achieve broader scale innovation benefits for larger numbers of stakeholders. In OI2 there is also a cultural shift away from resisting change and toward innovation and the creation of shared value.
When communication bandwidth increases, trust builds quickly among collaborators. According to Karl-Erik Sveiby, greater bandwidth and accelerated trust lead to the creation of more innovative options as more shared ideas are activated.
Recent experiments such as the creation of wikis demonstrate how powerful communication networks can be when enabling large groups of individuals to collaborate.
Indeed, many successful innovations are adaptions of existing ideas, products or services which are adopted already and successful in some other sphere.
‘Innovation is the fusion of a user need and a technological opportunity. Ultimately there is only successful innovation when a user
Doblin's research showed that often the highest returns from innovation come from business model innovation, ecosystem orchestration, user experience innovation,
The growth of the global app. economy is one such example where an industry that did not exist a decade ago is being fuelled by millions of individuals working as developers.
In Europe alone, the EURAPP report estimates the revenues in the European App. economy were EUR 17.5 billion with contract development work being EUR 11.5 billion of this.
By 2018 the European app. economy is projected to grow to EUR 63 billion with contract development work growing to EUR 46 billion.
and development of innovative products and services where producers and consumers both participate. An engagement platform is the place where people
and their environment join so that co-creation can begin. An engagement platform can be as concrete as a brick
OI2 focuses on creating increased social capital, enabling broader boundary spanning and the creation of new activation triggers for innovation options.
That is where you find the creative ferment which drives a modern dynamic economy'.'From OI2 perspective we need to go beyond the rather monolithic cluster thinking to multidisciplinary ecosystems,
the most and demanding users of the ideation and innovation processes. In this case, users are academics, industrialists, members of government,
Highexpectation entrepreneurship occurs when disruptive technologies meet high ambition, creativity and hard work. HEE is especially important as according to a report from the Global Entrepreneurship Monitor,
HEE's contribute about 80%of all new jobs created. When HEE's attach themselves to fast moving ecosystems
The first phase is supporting early prototypes and feasibility studies to see whether the idea is worth developing further.
and thus reinforce the flow from research and ideation to new products and services. Innovation vouchers can be powerful
when transforming enterprises more digital which is essential when moving ahead with the digital agenda in Europe.
when looking at future services of public interest becoming more user-centric. Competitions have been proven to be successful mobilising very large communities to solve the problems published.
Example of this is, e g. the Ansari prize for commercial space travel. Commission has decided to bring this instrument into practise also in H2020
supported by other actions focusing on web entrepreneurship, young innovators and interlinking policy actions with H2020 as well.
there is a new opportunity for an entrepreneurial renaissance. To paraphrase Alan Kay, ‘The best way to predict the future is to innovate it.'
including societal capital, creative commons, and communities.##3: Innovation Ecosystem Orchestration and Management Innovation has moved out of the lab and into an ecosystem that crosses organizational boundaries.
Innovation Co-creation and Engagement Platforms Co-creation includes all stakeholders, including citizens, users, or customers, in the development of innovative solutions.
An engagement platform provides the necessary environment, including people and resources, for co-creation.##5:
User Involvement, User Centricity, User Experience The role of the user has changed from being a research object,
it is customers adopting. In OI2 there is purposeful effort focused on driving adoption of innovations.#
Sustainable Intelligent Living Beyond designing for user experience, OI2 defines innovation as co-creation of services
Business model Innovation Business model innovation is about defining and designing new models for capturing business value.
Osterwalder & Pigneur's (2010) business model canvas is a good tool for visualizing and prototyping business models and incorporates techniques such as visual thinking, design thinking, patterns, and platforms.#
#12: Intersectional Innovation Breakthrough insights occur at the intersection of fields, disciplines and cultures, according to Frans Johannson.
Doblin's research showed that often the highest returns from innovation come from business model innovation, ecosystem orchestration, user experience innovation and brand innovation.
create and act upon business opportunities.##17: Management of Innovation as a Process or Capability OI2 recommends explicitly setting up management systems for innovation and systematically improving innovation capability in individual organizations as well as across members of innovative ecosystems.#
#18: High-Expectation Entrepreneurship High-expectation entrepreneurship is the intersection of high ambition and disruptive technology to create growth businesses.
High expectation entrepreneurs (HEE's) expect to employ 20 employees or more within five years and are a primary source of job creation. 18 O P E N I N N O V A t I O N y E A r B o
University of chicago Press. 9) Rogers, E. M. 1962. Diffusion of Innovations. Glencoe: Free Press. 10) Shapiro, C. & Varian, H. 1999.
Distributed Packet Switching for Local Computer networks, Communications of the ACM 19 (7): 395 405. Mulgan, G.,with Tucker, S.,Ali, R,
Business model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley. Wilson, E. J. 2012.
and innovation environments when we moved from the traditional approaches to the Open Innovation 2. 0 paradigm.
and the environments have changed all fundamentally. It is important to see how these changes in the drivers for success have led to different policy approaches by all stakeholders.
Also the roles and collaboration of stakeholders is very different from the past. Introduction The traditional innovation approach is based on linear innovation,
where there are clear phases from the ideation leading through research, development and piloting to scaling up of results.
Very often this approach is based based on science excellence or focused on improvements of the existing products or processes.
which lead to sustainable societal and economic development through new products and services, even in entirely new sectors at the crossroads of old disciplines.
Innovation is increasingly based on cocreation processes across all stakeholders, including the end-users. Here we need to have a look at one of the most important assets in Europe for growth:
which from the very beginning the user (s) communities co-create the new products and services.
and services they need, and the suppliers get scalable products and services. If this co-creativity and prototyping in real world settings would not take place there would be a real risk that the development work would lead to a win-lose setting between the existing players in the market,
and no new markets would be created either. Cross-disciplinary innovation together with prototyping and experimentation is bringing forward the required dynamics.
which enable business model (more generally value creation model) innovations. The areas of business model innovation together with the new markets emergence are clearly dimensions/realms in which
we Europeans, can do/perform much better. How to achieve the fluidity and frictionless environments for multi stakeholder trials, including legal
and policy elements is the key to root in the European mind-set. We need to speak about openness for innovation, innovation 2. 0 culture,
we realised that one of the critical elements is the scalability of the work, which naturally results in increased success rate.
Only by moving to the quadruple helix model where the innovation process happens‘out there'with real people in real environments we can speed up the successful results and kill the bad ones in time.
When products integrate into services and get more complex, we have seen networking between suppliers to be established, e g. in the automotive sector,
not as earlier when the services were determined by organisational structures. In turn, this also means that the end users will be much more dominant in the innovation process for modern products and services, especially on their functional level.
The innovation process change affects also radically the management styles of successful companies. We have plenty of examples where an authoritarian control-type of management is replaced by strong leadership.
It is the courage to experiment and prototype. It is the courage to fail and scale.
All use cases appertain to the domain of the Internet of things (Iot) based services. Results show that
-based services. Finally, the resulting holistic UX model, XD process and use cases are described briefly assessed
and sharing of innovation options constitute a significant competitive advantage with broader scale benefits that leverage and benefit all stakeholders.
I want to see the biographies and the sociologies of the great customers and clients of innovation.
what customers adopt.''Pia Erkinheimo-Mennander, Head of Innovation Crowdsourcing at Nokia, explains (3: innovation failure rates have reached as much as 86 percent,(4) primarily because of the lack of end-user adoption;
'However, it requires all stakeholders, including users, to be engaged along the design process for co-creating,
as well as decreasing investment needs for SME, micro-organisations and start-ups, since they can share resources without mobilising so much 23 venture capital;
and share access to a broader base of ideas, especially for large companies. Since 2006, the LL approach was applied gradually within EU projects for involving all stakeholders, especially users and also policy-makers,
at the earlier stage of R & D. A LL is defined often as a usercentred open innovation ecosystem integrating research
in order to result in the most appropriate UX while sharing knowledge and crystallising the collective work of the LL stakeholders.
Concept Design, Prototype Design and Final Solution Design (recently replaced by Innovation Design), the number of iteration in the XD process is predefined not
but rather occurring until the evaluation of UX satisfies all project stakeholders. Furthermore, the XD process concurrently occurs at different granularities,
and services including the identification of potential business models as they are expected to consume the resulting services.
the Iot based Green Services use case was launched with the innovative idea of getting real-time air quality that leads to multiple usage scenarios involving different categories of users, such as:
artefacts and/or innovative scenarios as sessions of collective creativity involving all concerned stakeholders and especially users;
explore alternative scenarios in setting the scene through the use of different immersive techniques within a live environment;
experiment alternative scenarios in prototyping concrete application/services through the use of a technological platform within a real-life environment;
and discussion with all stakeholders of potential refinements in order to prepare the next iteration until it reaches the proper level of user adoption.
and explore value propositions that are intended to contribute to the increase of user adoption of innovative products/services.
or empathical value through people connections and interactions, economical value with a low-cost or luxury business model or technological value with a low or high-tech solution.
for example in view of solving societal issues (e g. smart city services) but merely requires immersive techniques/technologies for engaging all stakeholders, especially users, in the environment of augmented creativity.
Use Cases All use cases belong to the domain of the Internet of things (Iot) based services, namely:
Logistic Services (LS), Wellbeing Services (WS), Green Services (GS), Retail Services (RS), Environmental Services (ES) and Healthcare Services (HS.
The logistics Use Case The logistics use-case, set up within the BIBA and Logdynamics Living Lab (LL) environment,
and encourages stakeholders to freely explore alternatives for increasing safety and Figure 5: The Logistic Use Case 28 O P E N I N N O V A t I O N y E A r B o O k 2
The Wellbeing Services Use Case The City of the Future Living Lab is involved in the ELLIOT Project within several use case scenarios (23.
and motivational support during the hospitalisation period through an interactive totem able to provide applications including meal ordering, leisure services and gaming to hospitalised children.
The activity in the Media scenario experimentation phase consisted of the investigation of the outcomes gained from the co-creation stage and the subsequent development into prototypes and mock-ups for validation.
The Wellbeing Use Case 29 The Green Services Use Case The Green Services Use case managed by Inria for ICT Usage Lab in Nice aimed at co-creating green Iot-based services
with a set of stakeholders on air quality and noise measurement via citizen sensing. During the XD process involving 50 active users,
offering various green services such as the visualization of environmental data collected by citizen, the alert services via mail or SMS, the ability to download data, the gamified forum for sharing ideas and best practices
The Green Services Use Case The Retail Services Use Case The retail use case was organised in one of the largest bookstores of Budapest.
and the customers who volunteered to be participants could use NFC phones even their own one
and other information from the books and use the other services provided by the smart shopping experience.
The pilot was using Iot technologies in combination with mobile communication. Mobile handsets were used, and local proximity communication NFC was combined with remote mobile channels,
to identify products and retrieve relevant information from back office servers. NFC both its reader-writer function and its card emulation capability was used also for smart couponing services as well. 30 O P E N I N N O V
A t I O N y E A r B o O k 2 0 1 4 The Environmental Services Use Case The Environmental services use case focuses
on an application of ambient intelligence methods and Iot-based technologies namely the Smart Home approaches and devices, into an office environment.
This use case is based on LL codesign and user experience monitoring for finding a proper balance between the work environment settings, individual comfort of office employees, work efficiency,
and reduction of energy consumed by an office during regular work hours. In accordance with these high-level objectives, pilot application was designed by INT
and the developed Smart Office prototype was deployed to the testing office room located in premises of RWE IT Slovakia,
an application partner for the Environmental services use case. The pilot was implemented and installed in the testing office room.
which hosts services interfacing the installed sensors and devices, is built on the Arduino platform and an embedded computer that remotely communicates with the Smart Office application server,
The Environmental Services Use Case The Healthcare Services Use Case The Cardiovascular diseases (CVDS) are globally number one among those causing death:
The Retail Services Use Case 31 collected in it and Medical Doctor had access to them after certain amount of time.
The first Bulgarian prototype (TEMEO) of the cardio belt monitored online 24 hours per day was developed three years ago by Security Solutions Institute.
This prototype became the basis for further development of the SHSB system. The SHCB pilot had been selected after thorough analyses considering the public needs not only in Bulgaria but also in Europe wide,
the level of the necessary development and the possible impact of the product for overcoming the current gaps and lacks of the existing prototype.
The Healthcare Services Use Case Figure 11: Instantiation of the Holistic UX Model Instantiation of the Holistic UX Model The Experiential Design process includes the instantiation of the holistic UX model that is based on the specificities of the selected scenario
3 S2. 1 Communication 1 1 1 1 4 S2. 2 Collaboration 1 1 2 S3. 1 Collective Intelligence 1
Top-down because the holistic UX model guides project stakeholders in foreseeing the types of value and corresponding user experience they would like to design in their Iot related product/service.
Overall, it has increased significantly the user acceptance and consequently the potential user adoption of the innovative IOT-based services.
and services where the competition relies on the combination of creating new knowledge while shortening the time-to-market.
Technology Management Conference and 19th International Conference on Engineering, Technology and Innovation, ICE'2013‘Responsible Innovation and Entrepreneurship',The hague, The netherlands, 24 26 june 2013 (17
Co-Creating Environmental Services based on Pollution Citizen Sensing. The Interdisciplinary studies Journal (ISJ), Special issue on Smart Cities, Vol. 3, No. 4, pages 331-350, ISSN 1799-2710.23) Vicini, S.,Bellini, S
Wellbeing Services Use Case Sauro Vicini San Raffaele Hospital sauro. vicini@hsr. it 37 Green Services Use Case Brigitte Trousse INRIA & ICT
Usage Lab brigitte. trousse@inria. fr Retail Services Use Case Andras Vilmos Safepay vilmos@safepaysys. com Environmental Services Use Case
Karol Furdik Intersoft karol. furdik@intersoft. sk Healthcare Services Use Case Roumen Nikolov Virtech roumen@virtech-bg. com 38 O
and therefore in contrast with our economic growth in western countries. It seems to occur that our smart phones are literally becoming the key not only to our virtual world,
This article is about the opportunity for (open) hardware development in the financial industry inspired by open innovation 2. 0 and consumer needs.
collaborative and participative crowdfunding platform, and you will be amazed by the amount of novel emerging technologies.
As noted above, there will be a huge increase of mobile-only Internet users in the next few years, leading to whole new ways of web usage that demand marketers'attention.
we want to expand our thinking by looking at the opportunities that the phone as tool can provide,
Developing a Business model As the current margin for financial institutes is decaying, a new possible business model is very important.
Might the entry into hardware be a good move for financial institutions? Selling hardware is totally different from a service offering.
Interaction with hardware has a huge potential to change the entire business model of the economic region:
Philips Design and ABN AMRO Dialogues Incubator launched a first financial wearable concept car. The tool, Rationalizer was used to enhance the psychological knowledge of a customer.
while he was working at ABN AMRO Dialogues Incubator. In 2010, Dialogues Incubator halted the further development of this accessory.
Philips still uses this prototype for further studies. For more information, check out: www. mirrorofemotions. com. Market Success Factors The new paradigm of Open Innovation 2. 0 will certainly enter the scene in the creation of this market space.
Principles of integrated collaboration, cocreated shared value, cultivated innovation ecosystems, unleashed exponential technologies, and extraordinarily rapid adoption will apply.
as a tool for taxi drivers and other SME's that could not connect to the regular banking payment systems due to costs and work environment.
This will make more sense to the customers, who will experience this as an extension of the integrated system of a financial institution.
This will also be great source of opportunity to scale and broaden the marketing with lower costs of investments.
Figure 1: Rationalizer: emotion awareness for online investors (Phillips and ABN AMRO 2009)( 5) 41 Conclusion‘Don't go where the puck is.
It also made clear just how interdependent and inter-linked the EU's economies are.
Greater economic policy coordination (1) across the EU will help Member States to address these problems and boost growth and job creation in the future.
The Europe 2020 Strategy (2) is a comprehensive economic policy agenda focusing on three priorities: smart, sustainable,
This new EU strategy is about delivering growth that is (a) smart, through more effective investments in education, research and innovation;(
b) sustainable, thanks to a decisive move towards a low-carbon economy; and (c) inclusive, with a strong emphasis on job creation and poverty reduction.
and to create conditions required for a more competitive economy. Such an approach aims to help Member States and their regions to deliver higher levels of employment, productivity,
as well as public and private investments. While some regions are quickly advancing with the development of an original research and innovation smart specialisation strategy (RIS3),
and compete in the global economy in a sustainable (financially as well as environmentally and socially) manner following the smart, sustainable and inclusive growth priority.
The S3 principle further requires uniting national and regional stakeholders and resources around an excellence-driven vision of their future.
and regions to strengthen their innovation systems, maximise knowledge flows, absorption and utilisation as well as spread the benefits of innovation throughout the entire national/regional economy via market,
as an expansion from the dyad of industry and government as primary institutions of the industrial society, to a triad of primary institutions specific to a knowledge based society and economy.
business support institutions (science parks, business/technology incubators; financial support institutions for new technology-based firms (public and private venture capital firms, angel networks, seed capital funds, etc..
RELATIONSHIPS: Here we distinguish between two main types of relationships as the social evolutionary mechanisms inducing change in Triple Helix systems:
collaboration and conflict moderation (including provision of R & D and consultancy services, competence-building,
and changing organisations and/or institutions, networking, technology transfer or acquisition of goods and services through market or non-market interactions,
the provision of public venture capital a traditional task for the industrial sphere. Similarly, universities, in addition to their teaching
and even funding to encourage entrepreneurial ventures, thus enacting some of the traditional role of industry.
of the era of the Internet and more open societies and economies (varieties of capitalism).
This new emerging divide represents both a challenge and an opportunity. While very different in nature, both models present a unique chance to better understand the principles of knowledge economy
and society learning in various institutional and socioeconomic environments. They also allow implementing more effectively innovation policies
and practices and improving the mechanisms of public engagement and deliberation. Given the fluidity and the speed of change in most (social economic,
and engages all sectors of the economy and society. Such a model is seen as the key for future sustainable growth and prosperity.
Policy initiatives such as S3 allow regional and national policymakers to focus on a number of core processes in the knowledge economy and society,
The Fifth Report on Economic, Social and Territorial Cohesion prepared by the European commission (2010) has advocated further the importance of engaging fully relevant local and regional stakeholders, social partners,
and to further the knowledge-based economy (13). The established Triple Helix model is a strong environment of parallel relationships between (national or regional) authorities, the wider business community (industry),
and academia (including other researchfocused institutions). This approach places more emphasis on the role of each one of these categories of actors in the innovation process:
In line with this perspective, new innovative products, services and solutions are developed with the involvement of users in their role as lead users, codevelopers and co-creators (20.
which then connect users with their stakeholders across industry, academia, or government (21). In turn, the role of actors in the other three helices would be supporting citizens in such innovation activities (e g. to provide tools, information,
Furthermore, industrial players and public sector stakeholders would then be able to exploit the innovations developed by citizens.
It should also ensure a more effective and complementary use of EU investments in the regions
and help channel private capital into regional smart specialisation niches. The RIS3 approach also maintains that through application of horizontal forms of multilevel Figure 2:
The Quadruple Helix as an Architectural Innovation Blueprint to support RIS3 The RIS3-focused policymaking can help develop regional environments that support
and operational functionalities and complementarities of these sectors in the context of the knowledge economy.
and inclusive) growth-driving entrepreneurship and innovation ecosystems (as well as clusters, networks and other agglomerations) at the regional level (23).
However, to benefit from these, policymakers should ensure mechanisms such as crowdsourcing and crowdfunding capabilities in instruments,
catalysts and accelerators of exploration and exploitation dynamics) that could substantially empower any Quadruple Helix RIS3 strategy (26)( see Figure 3). Figure 3: 48 O P E N I N
challenges as well as opportunities. This is not to say that entrepreneurs or other value creators and innovation agents are only found in civil society
Utiliser, e g. to utilise the user-oriented development services provided by QH innovation environments by themselves (as part of the development of public services;
'or standards for QH type of activities and for other co-creation environments and to assess the quality of QH type of activities by means of these standards.
and innovation systems interacts with the political and economic systems for the purpose of regional development.
Policymaking, legislation, steering, coordination and communication are the tools available for influencing the dynamics of a society and economy.
The political system aim at stimulating and coordinating the performances of the other societal systems. 2. The self-rationale of the economic system:
The economic system aim at achieving wealth. In doing this, the economic system can assess how to avoid for example inequality or negative environmental impacts. 3. The self-rationale of the knowledge system:
The knowledge system creates and distributes knowledge. The knowledge system can potentially influence the other societal systems by supporting
The political system is able to influence the economic system directly through economic policy, but in many cases, the political system can do this even more efficiently through innovation policy.
As mentioned, the economic system, that is, business and firms, act in accordance with a rationale of profit,
The ambition with this concept is to push for‘a sustainable development perspective that brings together innovation, entrepreneurship and democracy'(33.
This is where the demand for evolving the concept of Triple Helix to Quadruple Helix steps in.
are expected to influence the creative environment in a specific region and, in turn, the innovation system (36).‘
‘Creative Knowledge Environments'(Hemlin et al. 2004) and‘creative class'(Florida 2004) are relevant concepts in this context.
In the view of Carayannis and Campbell, the fourth Helix highlights a demand for innovation policy to‘present'itself to the public through media,
and innovation in the glocal knowledge economy and society requires a substantive supporting of the development and evolution of innovation cultures''(37).
economies seem to have one important thing in common they put innovation at the heart of their regions'economic sustainability and growth.
See for instance the case of Finland and the Nordic region at large as outlined in excerpt from a recent Economist report (Economist
The Start-up Sauna a business accelerator that is still run by young enthusiasts but now funded by government,
It offers a wide range of services: working space, coaching for budding entrepreneurs, study trips to Silicon valley
and plenty of networking opportunities (including in the Sauna's many saunas). The Sauna-masters have an understanding of entrepreneurship in advance of their years.
They recognise that there is more to innovation than high tech: the Sauna also has design and knitting factories.
They realise that promoting entrepreneurship is a matter of changing culture as much as providing money.
The centrepiece of their innovation system is a collection of business accelerators, partly funded by the government and partly by private enterprise,
that operate in every significant area of business and provide potential high-growth companies with advice and support from experienced businesspeople and angel investors.
investors everywhere are looking for new opportunities and bright young things are running companies in converted warehouses.
They are telling their schools to sing the praises of entrepreneurship. Many of the region's most interesting entrepreneurs operate at the low end of the tech spectrum,
Hemfrid now has 10 000 regular customers and 1 326 employees 70%of them born abroad.
It raised capital from outside investors such as Microsoft, which chipped in $42m. Rovio now has 500 employees in Finland
Quadruple Helix plus (QH+)for Smart, Sustainable and Inclusive (SSI) growth In closing, the environment as a major and perhaps the key (at least in the medium to long term) externality needs to be taken into account
Which are the mechanisms to have wide and effective involvement of stakeholders in priority selection?
as well as the Quintuple Helix, taking a new look at the limitations and possibilities of the natural environment and natural resources of the region?
In a discussion of the role of the environment as a driver and delimiter of smart, sustainable and inclusive growth, Carayannis, Campbell and Barth (2010), outline the following ideas and concepts that may be of both conceptual and practical
Furthermore, there is rising demand for‘new green'knowledge solutions and know how in order to utilise resources innovatively for society and the economy in an environmentally conscious manner.
Moreover, our present way of life and lifestyle must be scrutinised under a sustainable impact assessment. Apart from environmental protection, it also demands the protection of biodiversity (see Barth 2011a;
Bhaskar 2010; Le monde diplomatique 2009, pp. 22-23,72-73,92-93; UNDP 2007. Global warming concerns us all as it takes place on a‘local'as well as‘global'level
and implies ramifications for the‘glocal knowledge economy and society'(49). It is clear that the challenge of global warming is accompanied with the challenge of sustainability (for the 56 O P E N I N N O V A t I O N y E A r B o
that require‘sustained action',political and economic‘leadership'or‘empowerment'and‘intelligent use of technology'(Carayannis and Kaloudis 2010, p. 2) 1.)‘Financial/Economic system'(1);
innovation and entrepreneurship as drivers of knowledge societies'(9).(1) The area of‘Financial and Economic system'refers to financial and economic aspects of the effects of climate change.
9) The area of‘technology, innovation and entrepreneurship as drivers of knowledge societies'emphasises the fact that a sustainable development in knowledge societies can only be achieved
when innovations (with a new entrepreneurship) are developed further (see here the idea and concept of the‘Academic Firm',Campbell and Güttel. 2005;
a higher competitiveness of their economies or a better and sustainable quality of life, have to apply the resource of knowledge.
In the transformation to a knowledge-based society, knowledge-based economy or knowledge-based democracy (51), also under the aspect of climate change, it is possible to generate new and usable knowledge in conjunction with sustainable development.
and diversity of knowledge and innovation modes as being necessary for advancing societies and economies.
and Quadruple Helix Model and adds as fifth helix the‘natural environment'.'The Quintuple Helix is a‘five-helix model,
'‘where the environment or the natural environments represent the fifth helix'(63):‘‘The Quintuple Helix can be proposed as a framework for transdisciplinary
whether in the future a state (nation-state) is leading in world politics as well as in the world economy is also being determined by the social (societal) potential to balance new knowledge, know-how and innovation with nature.
The basic innovation‘core model'of the Triple Helix focuses on the knowledge economy. Quadruple Helix already brings in the perspective of the knowledge society (and of knowledge democracy.
From the point-ofview of the Quadruple Helix innovation model it is evident that there should be a co-evolution of the knowledge economy and of knowledge society (see also Dubina et al. 2012.
The Quintuple Helix finally stresses the socio-ecological perspective of the natural environments of society.
)‘ Measuring the knowledge base of an economy in terms of triplehelix relations among‘technology, organisation, and territory.'.'Research Policy 35 (2): 181 199.12) Leydesdorff, L.,M. Fritsch (2006.‘
Innovation and the Environment relate to each other? A Proposed Framework for a Transdisciplinary analysis of Sustainable development and Social Ecology.'
Encyclopedia of Creativity, Innovation, and Entrepreneurship. New york, Springer. 14) Etzkowitz, H. 1998.‘‘The norms of entrepreneurial science Cognitive effects of the new university industry linkages.'
Global Warming as a Challenge and Driver for Innovation, Journal of Innovation and Entrepreneurship, August.
http://www. innovation-entrepreneurship. com/content/1/1/2 9 (further references:(29)( 30)( 31)( 32)( 33)( 34)( 36)( 37)( 38)( 40)( 42)( 43)( 54))(23) Carayannis, Elias G.,David F. J
and Entrepreneurship for Development. New york, NY: Springer (further references:(29)( 30)( 31)( 32)( 33)( 34)( 36)( 37)( 38)( 40)( 42)( 43)( 54))(23) Carayannis, E g.,
Conceptual framework for an analysis of diversity and heterogeneity in the knowledge economy and society.
Diversity in the knowledge economy and society: heterogeneity, innovation (pp. 95 116. Cheltenham: Edward Elgar Publishing Limited (further references:(
The Smartphone CEO Study, Journal of the Knowledge Economy, June. further references:(26)( 50))(39) Harmaakorpi, V.,Melkas, H..Knowledge management in Regional Innovation Networks:
Innovation and the Environment relate to each other? A Proposed Framework for a Transdisciplinary analysis of Sustainable development and Social Ecology.'
Appendix Good practices emerging from theory and practice In this context, some key remaining challenges and opportunities for theory,
These were designed to catalyse innovation to become a value driver value defined as a new generation of entrepreneurial Europeans, new ventures, new products,
and sometimes disruptive, services and products return to the people. As a result, the public debate regarding the acceleration of innovation is restricted often to specific requests for example to increase budgets for academic research,
which is translated in turn to applied research leading to prototypes picked up by industry that markets the product to customers.
In reality there are enormous efforts of complex networks needed to secure smart investment, to provide interdisciplinary connection between academia, research institutes, businesses, local and national authorities, nonprofit sector and to a growing degree of end users.
Many people not involved in this process are shocked often to learn that the development of a single novel product may need a private investment that can reach a level of hundreds of EUR millions as in the case of some pharmaceuticals
that communication between people of different skills and background gives rise to breakthroughs and last but certainly not least,
such as free flow of products and services, capital, talent and knowledge, and its existing tremendous innovation capacity.
On the same day, the renowned investment bank, Lehman brothers, went into bankruptcy. Meeting for the first time, the founding Governing board led by its first Chairman,
and prospect to find an opportunity in the crisis and the will to not implement‘more-of-the-same'regarding innovation policy in Europe.
Previous CEOS or Chief executives from leading innovative corporations, cofounders of renowned high tech enterprises, presidents and vice-presidents of modern and firstclass universities, representatives of well-backedup private foundations supporting
and the future information and communication society. The KICS and their impact on Europe's competitiveness are discussed below.
and agree upon the‘business model'of the EIT. There were many ideas in the air on how to tailor the mission of the EIT.
communication across disciplines is key. Based on the advice of Gottfried Schatz the former president of The swiss Research Council, that‘creative ideas are children of solitude,
interdisciplinary and game-changing environment (5). Everybody felt there was a missing link and it was the group most anchored in the arena of entrepreneurship that threw this topic into the debate.
The Figure 1: The knowledge triangle that is research, education and innovation as well as technology, business, and customers with their needs and aspirations, need to be integrated by entrepreneurs who are able to create value.
Source: Veugelers, R. 2009), A Lifeline for Europe's Young Radical Innovators, Bruegel Policy Brief, Issue 2009/1 March 2009.
business, and customers with their needs and aspirations, need to be integrated by entrepreneurs who are able to create value.
European VC investment continues to lag the US Share of GDP Source: Marston L.,Collins, L.,Bravo-Biosca, A. Lane, H.,(2013), Unchaining Investment.
Barriers to US venture investment in UK Internet and digital businesses, Nesta Report, June 2013 Some of the questions raised in the debate were as follows:
Could entrepreneurship be an integrative force for the Knowledge Triangle components? Could it act as a facilitator and accelerator of different kinds of flows across the Triangle?
What could entrepreneurship mean in the specific context of the EIT and its KICS? For example, how would this concept materialise in a new funding model
and trust-driven governance by the EIT towards its KICS? How would it create value for large industry through entrepreneurship, open innovation learning environments,
or corporate venturing? What would be the right model for entrepreneurial education for engineers and scientists?
How to shorten the time from labs to markets and society? The concept of value creation brought a vivid discussion among Board members representing all the Knowledge Triangle.
which is different for diverse stakeholders collaborating in such an open innovation environment. We realised that it is yet different for a university professor who also would like to start a company
The discussion on value creation strengthened the role of entrepreneurship as the very process during
we can learn that innovative companies can create value not necessarily built on revenues and profits.
It means that there is no direct correlation between revenues, profits and company valuation. Even 80 or 90 percent of all biotech companies have no regular revenues
no profits, do not even have a product on the market but they still convey very important economic value as well as social value developing knowledge,
educating employees and tackling public health challenges. Not welcomed by all members and initially with some reluctance,
and unanimously backed up the notion that focusing the innovation strategy of the EIT on entrepreneurship could be its unique selling proposition
This recognized the complex reality of an open innovation environment in which all stakeholders have their own interests
and goals and they all contribute to value creation. The EIT and its KICS State of the art and First achievements The EIT has defined itself as a high impact innovation investment institute.
This novel entrepreneurial Institute is seed to trans-European ecosystems 65 where research, business and higher education come together on topics of societal challenges.
These strive, in the long term, to create trust from venture capital and other investors (6). In 2009, only one year after its setup,
and communication society and KIC Innoenergy focused on sustainable energy. Each of the KICS defines its own legal structure and governance model.
and instilling entrepreneurship in this process. Their goal is to educate generations of entrepreneurial Europeans breed new high-growth companies,
a summer‘crash course'in entrepreneurship. Climate-KIC offers EIT-labelled degrees, including Phd level.
EIT ICT Labs innovates in the areas of future information and communication society. It has developed a‘catalyst-carrier model'that is based on the EIT funding as a catalyst for leveraging existing ICT capabilities and resources in Europe.
because this open framework helps them come together in a neutral environment and better understand emerging trends in technology Figure 3:
It is working on a new finance facility with the European Investment Fund. It manages a number of business networking events
The KIC's shareholders agreed on a business model that will hopefully lead it to financial sustainability.
EIT ICT Labs Entrepreneurial Talent and Venture Development Model Business Ideation Talent Identication STRATEGIC COACHING ACCESS TO FINANCE TECH TRANSFER Innovation Radar INNOVATION RADAR
KIC Innoenergy Highway SME's Promising Idea/project or business opportunities NO-GO NO-GO OUT Idea Visibility/Opportunity Assessment Online form Opportunity Development
Business Launching (Commercialization) Consolidation Business plan Project Research Studies (ongoing) Contests Business Ideas Forums, etc Ideas Management Pre-Incubation Stage Incubation Stage
Post-Incubation License Spin-ostart-up For future development Start-up Creation Commercialization Products/Services in the market+ACTORS Senior Entrepreneur Expert board (internal+external
Knowledge & Innovation Mkt Business Incubator Network SW for idea management Observatory Expert entrepreneurs Lead customers Expert professors Mixed team (technicians+MBA
& debt management Internationalization support Business Development (growth strategies) Networking VC Forums Consolidation/Defining the appropriate Business model Training Competence development Protection of IPR+Patents
Proof of Concepts (Poc) Business plan Coaching/Team creation Assess the attractiveness and the potential of the idea considering:
KIC Services Tools & mechanisms related Novelty Market demand Competence Economic viability Technological valorization Team competences & skills assessment IP conflicts 67
KIC Innoenergy houses the ventures for a limited period of time during which it provides coaching and helps with marketing and business development.
This co-location of people will allow stakeholders to work together face-to-face and move forward effectively towards KIC goals.
It is a long investment and there needs to be at least some warranty to the investors.
since there is always competition and somebody may pick up an idea before it is protected formally. The KICS have individual policies for structuring open innovation partnerships and intellectual property management.
The RICS offer a programme‘Pioneers into Practice'that matches local entrepreneurs with internship opportunities within the KIC's network.
and build trust and relations core assets in an open innovation environment. EIT ICT Labs has extended to seven co-location centres located in Berlin
Furthermore, the KIC's incubator is hosted by‘Creapolis',the ESADE Business school innovation centre in Sant Cugat.
The co-location leverages preexisting large investments to develop national industrial clusters such as Capenergies and Tenerrdis.
thus understanding that an open innovation environment needs to have an inroad for ideas from the peripheries.
The former relates to a businesslike assessment process of the KICS'strategic visions, operational capabilities and business plans.
Taking into account the very nature of the open innovation environment which is competition and collaboration, creative ways of finding synergies,
to accelerate the flow of people, knowledge, and capital between the networks and to interlink them will exponentially enrich each and every player including those at the very peripheries.
Early Learning, Next Steps & Future Perspectives of the EIT and its KICS As of 2014, the three existing KICS operate as network enterprises,
with their co-location nodes becoming switching points in the European scheme of overlapping academic,
industrial, venture capital and other networks. They are driven business towards financial self-sustainability so that when in the longterm, the EIT funding stops,
they will further expand having a sound value proposition based on a strategic vision and a viable business model.
follow business plans and are governed by their respective Governing or Supervisory Boards. Ownership, accountability and personal risk taking are positioned at the centre of the innovation process (10.
Joseph Schumpeter referred to an entrepreneur as a driver of economy who by combining assets (including technologies) in new ways creates new opportunities, new markets, new economic values and effectively new demand and supply curves.
We celebrate their success with special entrepreneurship awards. The winners of the 2012 and 2013 competitions were Christopher Williams (Naked Energy) and Dominik Peus (Antaco) from Climate-KIC;
Rosa Vilarasau (Noem) and Lionel Chaverot (Enerstone) from KIC Innoenergy; and Patrick Duessel and partners (Trifense) and David Tacconi (Corehab) from EIT ICT Labs. In 2013, additional special recognition was given through a new category the C. H. A n. GE.
it would be that the EIT has managed to refocus European innovation processes on entrepreneurship and this has brought already
and will bring far-fetching results in terms of growth, development of human and social capital, and quality jobs.
A KIC needs a business plan that outlines its expected trajectory towards creating value for its stakeholders.
Its stakeholders include the EIT but also industry and academia. The grants administered by the EIT are not to become another state subsidy
but a seed investment and therefore the EIT as an‘investor'has to accept the logic of private sector to the extent possible for a European body.
they will not be able to deliver value for their shareholders and stakeholders. Some KIC partners express a real concern on how to define the business model of a KIC.
In most cases, they expect the KIC to educate a new type of engineers and scientists, integrate value chains
The dynamics of transformation were fuelled by a generation of entrepreneurial people who grasped opportunities and took risks.
They created business ventures but also democratic civil society institutions. This entrepreneurial talent should be integrated within the most advanced KICS to bring fresh blood, a different sort of thinking and a‘hungry'immigrant mentality that remains the critical driver of Silicon valley's success (13.
in order to place ownership, accountability and entrepreneurship into the centre of innovation, to overcome the silos mentality of the players within and between Member States and to catalyse the integration of the knowledge triangle.
'in a similar fashion, KIC co-location centres will emerge as innovation powerhouses where entrepreneurial talent is given opportunities to flourish
Knowledge Triangle and Emerging Business models, Warsaw University of Technology Publishing house. 2) Dufour, A.,Carroll, S b. 2013),‘Great myths die hard',Nature, October 2013, vol 502.3) Elis, A.,(2010), Mein Traum ist länger als
.,Bravo-Biosca, A.,Lane, H.,(2013), Unchaining Investment. Barriers to US venture investment in UK Internet and digital businesses, Nesta Report, June 2013.8) EIT Call for KICS (2009).(9) Taleb, N.,(2010), The Black swan:
The Impact of the Highly Improbable, ed. 2.,Random House Trade Paperback Edition. 10) European commission (2011.
Culture and Competition in Silicon valley and Route 128, Boston Cambridge London: Harvard Business school Press. 14) EIT's Strategic Innovation Agenda (SIA.
and is based on developing a Future Internet service platform with wide application and exploitation opportunity.
Introduction European union investments in advancing the European Knowledge Economy and Single Digital Market development are by definition longitudinal and accumulative by nature.
Europe's Innovation Union strategy for 2020 emphasizes the investments not only in corporate R & D and science and technology driven research,
The new PPPS are explorative industry lead initiatives that simulate real market environments with public sector participation in a co-creation process.
and services, thereby enabling developers across Europe and globally to build, prototype and test their own applications in a range of business and societal sectors, for example within smart city environments.
and the programme was aimed at elevating the competitiveness of the European ICT industry in global competition.
including the identification of opportunities for standardisation, policy contributions and emerging business opportunities from cross-industry collaboration.
The FI-PPP platform concept aims to support stakeholder roles in the future Internet value network, in particular technology providers, infrastructure providers, integrators, service providers, application developers and users.
For a particular application environment, e g. a smart city, application developers will be able to use FI-WARE technology to build Future Internet applications.
thus connecting to an environment of open innovation (2). So far, the FI-PPP programme can be considered to have succeeded in its objective to engage the major stakeholders in Europe
and attract interest among new stakeholder groups and communities. The current programme beneficiaries include all major European ICT companies,
including Deutsche Telecom, Orange, Atos, Telefónica and Nokia Solutions and Networks, as well as actors from vertical application sectors, like Technicolor, BBC and Disney.
because it is established not within an organisation with existing interests but in an environment which fosters collaboration,
In these contexts, value is created co by the ecosystem members, through processes of both collaboration and competition,
and architectural information (4). A main characteristic of the ecosystem is to provide an environment for experimentation resulting into successes or failures through natural selection.
such as the engagement of a variety of actors from different sectors and representing both demand and supply side, the creation of‘use case'projects piloting Future Internet technologies and their application in real-life settings,
and the creation of an open lab environment. However the dynamic evolution and sustainability of this ecosystem is guaranteed not as FI-PPP's structure
and services in‘multi-sided markets'(5, 6, 7). Such multi-sided markets act as economic platforms as their participants gain the benefits of network effects.
This raises a range of issues regarding future FI-PPP platform ownership business model and governance.
such as industrial demand and venture capital, and to open up the ecosystem for developer communities based on free access to developed technologies and know-how.
The resistance often stems from the participating organisations'own strategic priorities and objectives for the participation, competition, conflicting cultures and norms,
whereas some others perceived it as a political tool or a means to create new business opportunities for their company.
CONCORD, together with a task force of lawyers from all major stakeholders, drafted a contract and collected feedback from all participants in two rounds of iterations by structured template by email
The different boards developed their own routines for interactions and communications. Also the horizontal programme level working groups on Figure 2:
A r B o O k 2 0 1 4 dissemination, exploitation and business models, policy and regulation, and standardisation were established.
More effort was needed for cross-board communications and sharing between the technical and other constituencies in order to develop the networks
and ecosystems required for service delivery and business model development and validation. Emergent questions included also issues related to more detailed definitions of the access rights and sustainability of the developed technologies.
More attention was allocated to dissemination and stakeholder engagement. This included establishing linkages to other related initiatives in technical and policy domains for leverage
The role of this Board was to ensure the commitment of the major industrial stakeholders, and strengthen the business linkages
and across the various programme governance bodies and to represent the FI-PPP programme among external stakeholders.
This new role simplified the communications and representation of the FI-PPP programme towards the broader stakeholder audiences.
Prototypes were built by some projects but not all. Programme level focus was lower due to priorities in project level management and impact creation in thematic networks.
Towards a Sustainable Ecosystem Complexity in FI-PPP's environment and in the programme itself combined with a high level of ambition requires an ecosystems approach to the programme governance and facilitation
Some observations of FI-PPP evolution 2011 2013 FI-PPP evolution 2011 2011 2013-2014 Evolution of FI-PPP's external environment Setting up and institutionalising
and communication patterns Relations management with key stakeholders Increased networking with stakeholder communities Process based management FI-PPP as programme organization Standard management rules and procedures Governance
and formal communications Limited to debates regarding effective governance Cross-programme dialogues in working groups Dialogues including external parties
and having established ICT-based instruments of communication and collaboration. However the ambition to become a sustainable ecosystem after lifetime will require the programme organisation,
and adapt to the changing environment. We propose an explicit transition process from the Phase 3 situation to a sustainability driven ecosystem environment.
On the short term, this calls for pushing the openness of the current programme for external driving forces,
but equally important are the informal communication structures, collaboration mechanisms and the commitment of the participating organisations.
The Platform Leader's Dilemma',Communications of the ACM, Vol. 54 No 10, pp. 21 24.7) Eisenmann, T.,Parker, G.,Van alstyne, M. 2006.‘
‘The Economics of Two-sided Markets'.'Journal of Economic Perspectives, Vol. 23, Nr. 3, pp. 125 143.9) Pisano, G.,Verganti, R. 2008.‘
12) Bennet, A.,Benner, D. 2008),‘The Decision-making Process for Complex Situations in a Complex Environment'.
and 135 000 training opportunities for the young unemployed. The rationale behind such design was to assist the low-skilled workers
Different from Australia's innovative investment on physical properties, the Chilean government's innovation centred on intangible process improvement
Introduction The 2008 global financial crisis is considered by many economists to be the worst since the Great depression of the 1930s.
During this period, economies worldwide slowed, credits tightened, international trade declined, and business and consumer confidence eroded with enormous and rapid job losses.
capital crunch, currency crash, high inflation, high unemployment, undulations in housing and equity prices, and government defaults on international and domestic debts (1). The source of the problem generally includes improper rules and policies, ineffective governance, failed surveillance systems,
and Ireland (2). It is our deep belief that national intellectual capital, albeit intangible, can provide valuable insights for searching a national benchmark as well as for future risk control.
This paper aims to report two innovative governments Australia and Chile which the author believes will leave legacies for their innovative measures in combating the 2008 global financial crisis.
When businesses ran short of capital, their daily operations were affected, including production stoppage and shedding off excessive manpower.
and purchasing goods. This cyclical problem affected the real economy thus developed into the deepest and most synchronised global crisis in the last eight decades.
and direct foreign investments were withdrawn swiftly. As a result a domino effect was triggered and global recession set in.
In 2009, Chile's economy contracted by 1. 5, %export volume dropped by nearly 20,
In recent decades, Australia has transformed itself into an internationally competitive and advanced market economy with focuses on services, technologies,
I O N y E A r B o O k 2 0 1 4 The Australian economy grew for 17 consecutive years before the 2008 global financial crisis,
the Australian economy entered the global financial crisis with a strong base. Gross domestic product (GDP) grew by 3. 7%in the 2007 2008 financial year (ending June 30)
and the unemployment rate stood at 4. 2%(6). The government also had a substantial fiscal surplus for the stimulus measures introduced after the onset of the crisis. Chile has oriented a market economy characterised by high levels of foreign trade
and its banking industry was ranked 4th (out of 133 countries) in terms of soundness (3). Exports account for more than one-fourth of its GDP, with commodities making up about three-quarters of its total exports.
and low levels of public debt (3). The Impact of 2008 Financial crisis Australia Australia was hit hard by the 2008 global financial crisis due to its export-oriented economy.
and consumption (representing over 60%of the Australian economy) and to be quick acting with significant cash bonuses paid to those in need within weeks of the announcement (9). In early December 2008,
and to boost economic growth by about 0. 5%and 0. 75 1%of its GDP in 2008 09 and 2009 10, respectively (9, 10).
The government anticipated this package would provide up to 135 000 young Australians with higher qualifications and a more skilled workforce in preparation for the return of normal labor market demand.
Chile With a relatively small market and far away from the centre of the world economic activities, Chile enhanced its longstanding commitment to trade liberalisation with the signing of 57 free trade agreements including the US, the European union, the Common market of the South america, China, India, South korea,
Because of its high trade and capital market integration, the economy was affected severely by this financial crisis.
its unemployment rate grew from 7. 5%in 2008 to 10.8%during the second quarter of 2009 (3). Inflation rose from an average of 2. 6%in 2006 to 7. 8%in 2008,
with a peak of 9. 9%in October 2008 (3). 81 Chilean stimulus package was planned based on four pillars, namely government spending and investment,
. In addition to provide liquidity to the market, the government launched its major fiscal stimulus package of US$4 billion (2. 8%of its GDP and 14%of planned current fiscal expenditures),
job protection and job-training stimulus. Fiscal policy was at the core of the Chilean government response to the crisis,
mainly targeted at low-income households (US$1. 1 billion), investment (US$1. 7 billion), and tax cuts (3). In addition,
In the past, the Chilean government conducted a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices
and economic growth, allowing deficit spending only during periods of low copper prices and growth. As of September 2008, those sovereign wealth funds kept mostly outside the country
maintaining good levels of business investment and employment (14). According to the OECD, Australia's timely stimulus measures, with a strong focus on direct government investment,
are amongst the most effective of all OECD fiscal packages in stimulating activity and supporting employment (10).
6). Australia was one of the first advanced economies to recover from the financial crisis and to raise interest rates, with seven rate hikes between October 2009 and November 2010 (5). In addition to substantial trades with China,
retail sales and economic growth. With strong prudential and corporate reporting framework, Australia coped well with the financial turmoil,
and under to enhance up to 135 000 young Australians with higher qualifications for future labour market demand.
and arrangement for widely distributed job opportunities. These smart stimulus designs and efficient execution will leave legacy to the benefited schools
In general, Australia weathered the world recession better than almost all other advanced economies (Debelle, 2009;
and the terms of trade rose by 2. 9%.The Australian economy grew by 1. 2%during 2009 the best performance in the OECD (5). The outlook for private business investment improved,
resource investment in Australia has continued to expand rapidly. Work continued on very large projects, capital imports grew strongly,
As a result of an improved economy, the government expected to return to budget surpluses as early as 2015 (5). In addition to Australia's proven resilience during this financial crisis,
and has the power to impose sanctions (3). Pension fund investments are ruled also by risk criteria
the Chilean economy started to show signs of a rebound in the fourth quarter of 2009,
Chile's government received high marks from economists and its citizens for its countercyclical spending in 2009 (financed largely from saved copper revenues) to offset the effects of the global economic crisis (16.
However by 2011, the economy had recovered from the effects of the earthquake, which caused only a temporary disruption in Chile's economic activity (17).
Although Chile's economic rebound was owed partly to the fast recovery of China (its largest export market in 2010),
and 135 000 training opportunities for the young unemployed. Different from Australia's innovative investment on physical properties
Chilean government's innovativeness was manifested through its intangible process improvement, including transparent stimulus information sharing to facilitate consensus among different parties, efficient enactment of relevant law for smooth implementation of stimulus plan.
and consumer price inflation (CPI). In addition, tangible (GDP per capita ppp) and intangible (national intellectual capital, NIC) co-development also provide some clues for future national development.
Four Macroeconomic Indicators Figure 1 and Figure 2 compare and contrast general economic situation before, during,
Figure 2 shows that Chilean GDP growth plummeted sharply in 2009, with its heavy export-dependent economy.
Australia managed to avoid sharp downturns even amid the crisis due to booming demand for its raw materials from industrialising Asia, especially China.
Australian central bank has cut interest rates repeatedly to spur weaker sectors of the economy such as retail and housing construction, by boosting consumer spending (18.
the Chilean government has made efforts to develop global services (off shoring) as a new source of exports (3). An Innovation Council is in charge of identifying
GDP-NIC Co-development In the current knowledge economy, intangible asset plays an increasingly important role in national development.
and financial capital (19). NIC is the sum of the above capitals. National human capital is the competencies of individuals in realising national goals,
market capital represents a country's capabilities to meet the needs of its international clients,
process capital comprises mainly a country's infrastructure, and renewal capital refers to a nation's capability for innovation that sustains a nation's competitive advantage (19).
Figure 3 to Figure 7 show the co-development path of GDP-NIC,-NHC,-NMC,-NPC,
and-NRC of Australia and Chile from 1995 to 2010. The figures also indicate the relative position of the two countries in a 59-country landscape,
In other words, less developed countries with lower GDP may have better market capital than more advanced countries.
For example, Chile has better market capital than Australia. Figure 6 is the co-development of GDPNPC,
That is, Australia has an overall progress in renewal capital, despite some backward development, whereas Chile was stagnant in renewal capital over the long period from 1995 to 2010.
Figure 3 to Figure 7 present the co-development patterns of national tangible and intangible assets for Australia and Chile over 16 years (1995 2010.
and regulatory reforms can be viewed as the necessary restructuring costs for transitioning from the existing economy to an even more robust one.
but also left legacies for people to remember and for other countries to benchmark. Although the two innovative governments successfully implemented their respective stimulus measures
In fact, Australia recently encountered the decreasing demand from China and its resources industry has shed thousands of workers as a result.
E A r B o O k 2 0 1 4 declining process capital in recent years (Figure 6) is another sign for attention.
In addition to the country's pledged educational reform to increase human capital and reduce poverty special attention needs to be paid to its low renewal capital.
Chile needs to have higher degree of national renewal capital in order to achieve its goal of having per capita income of the OECD average (US$26, 000) by the end of this decade.
In an era of knowledge economy with keen global competition the growing importance of intangible assets is recognised a trend.
-Aggressively expanded monetary policy and provided liquidity to the market in January 2009. -A mixture of new fiscal spending, targeted at low-income households (US$ 1. 1 billion), investment (US$ 1. 7 billion) and tax cuts.
-Injected US$ 500 million in fresh capital into the state bank to provide credit to small and medium-sized companies.
Stimulus package (1) Allocated US$ 7. 1 billion (A$ 10.4 billion) stimulus package of around 1%of its GDP in late 2008,
and to boost economic growth by about 0. 5%and 0. 75 1%of its GDP in 2008 09 and 2009 10,
-US$ 1. 7 billion (A$ 2. 7 billion) for private business investment through a business investment tax break.
9780691142166 (2) Lin, C. Y. Y.,Edvinsson, L. 2011) National Intellectual Capital: A comparison of 40 countries.
A comparative assessment of economic governance in 14 economies. Gütersloh: Bertelsmann Stiftung, 2010. Retrieved from http://www. bertelsmann-transformationindex. de/pdf/Chile. pdf (4) ECLAC (2009) Economic Survey of Latin america and the Caribbean 2009-2010:
Retrieved from http://www. dol. gov/ilab/media/events/G20 ministersmeeting/G20-australia-brief. pdf (7) Gregorio, J. 2008) The Chilean economy in the current
doc=speeches/2009/011. htm&pageid=005&min=njs&year=&doctype=(11) Access Economics (November 2008) The impact of the global financial crisis on social services in Australia, prepared for Anglicare Australia
Australia, November 2010 overview, OECD. Retrieved from http://www. oecd. org/economy/economicsurveysandcountrysurveillance/46467368. pdf (16) US State department (December 16, 2011) Background note:
2010) Chile's economy is‘back on track,'set for 5%growth this year, IMF says, Bloomberg.
Retrieved from http://www. bloomberg. com/news/2010-09-29/chile-s-economy-is-back-on-trackset-for-5-growth-this-year-imf-says. html (18) Dow jones
C. Y. Y.,Edvinsson, L. 2013) National Intellectual Capital in Israel and Financial crisis Impact, International Journal of Knowledge Based Development, 4 (3). 245 273.
*Abstract The economic downturn hit young people especially hard, limiting their opportunities to success. High unemployment, job insecurity,
strong competition and a rapidly changing environment requires a new approach that ensures our youth competitiveness.
All this requires refocus and reinvent education to return to our young the status of the best prepared for new and aggressive market environments.
and motivation to make possible an environment based on innovation. Motivation can be defined as an inner force that leads individuals to action.
usually much unproductive'(1). In a work environment as competitive as described before, the only factor that can lead to success occurs
where those young people who wish have to prepare for the new economy that will dominate the world and‘hone the skills, capabilities,
and attitudes that will help economy remain prosperous and competitive'(4). Clearly the scheme where pupils sit for hours watching a teacher speaks no longer works.
with classes and materials delivered on demand, encouraging collaboration and with Interdisciplinary approaches better than knowledge silos We have a clear model of the changing role of education in the pioneer Aalto University in Europe,
as an example of applying criteria of entrepreneurship, sharing and co-creation and innovation as a strategy (5). Figure 2:
Government Creating policies to avoid penalising the failure of entrepreneurship and foster taking risks. It is known only a small percentage of all startups will succeed.
Entrepreneurship and implementation of innovation may be less risk if rely on theories and systematic approaches. On the other hand, the synergies generated through multidisciplinary studies
Enterprises Enterprises need closest approaches to innovation and change corporate culture to measure success with different formulas than the short-term‘Return of Inversion'.
'They also need to soak up new business models more in line with today's society. In this way:
Services offered by the companies approach closer to the actual user demand. Virtual companies will be considered by their own and not like a reflection of physical businesses.
Social network or crowdsourcing businesses reflect these new business models and a new philosophy where Internet is the natural environment in
which business are conducted. Citizens The innovative thinking has to lead to more and better services demand.
We have to be convinced that services can and must grow to meet our needs. We live in a highly competitive environment where we cannot compete in production of products.
Europe is positioned better to compete in advanced services: there are many areas in our welfare society where we are ahead of many other countries like health, tourism, social policies,
luxury products, care for the elderly, etc. Data as Raw material Innovation models and paradigms exist to help in the process of reinventing.
One of these models is the‘combination innovation model'consisting of the mixture of elements already existing in a way that had not previously been done before.
The data begin to be seen as a commodity very capable of generating wealth and under the new‘Big data'phenomenon lays an opportunity to create value
and benefits for society, business and citizens. According to an IDC study only 1%of the world's data are analysed (6),
and multidisciplinary skills and consequently there is a clear opportunity for employment. This opportunity is tailored to our society:
we have the people, the data and the academic strength to provide analytical skills to fill the gap between offer
and demand taking advantage of a new economic asset comparable to gold in words of the Word Economic Forum (8). 93 This opportunity also have to question us with a little bit of self-criticism
and improve access to services such as health education etc. Otherwise the particularities are buried within the global population data.
while must meet a growing demand for an aging society with great expectations in the care of older people is a good example of how can be based on analysis of these data to better understand patterns in the field of health and stop bad
More precise mapping of needs and services Mckinsey Global Institute says (10) that if US healthcare were to use big data creatively
Twothirds of that would be in the form of reducing US healthcare expenditure by about 8%.In the developed economies of Europe
Syracuse university (12) who refers to the Science of Data as an‘emerging area of work related to the collection, preparation, analysis, visualisation, management and preservation of large amounts of information'.
The next frontier for innovation, competition, and productivity. Mckinsey Global Institute; 2011. Available from: http://www. mckinsey. com/insights/business technology/big data the next frontier for innovation (11) PALANTE:
we can see the contours of a more expansive and more inclusive co-creative economy and society,
and evolution of value among stakeholding individuals and enterprises (1). Wealth-Welfare-Wellbeing as the Basis of Joint Creation and Evolution Of value In the typical value creation process,
enterprises and stakeholders had distinct roles. Stakeholders had a stake in value creation, but enterprises viewed stakeholders as being largely passive and docile recipients of value creation.
Stakeholding individuals now expect to have a more active role contributing through their differences in views of value
and their agency in creating value. Individuals as stakeholders, whether inside the enterprise network or outside as part of the enterprise ecosystem, are integral to this differential process of jointly defining
and creating value. A key point to CHAPTER III Open Innovation 2. 0 in a Real-world Setting Figure 1:
Contours of a Co-Creative Economy and Society Expanding Joint Interests Humanization Of value as Individuated Co-Creation Experiences Economies and Societies as a Nexus of Ecosystems of Capabilities Jointly Building Co
-Creative Capacities of Ecosystems Maximizing Individual Self-interest Value as Relational Property Supply and Demand of Goods and Services Unilateral Capacity Building Wealth, Welfare,
and Wellbeing as the basis of Joint Creation and Evolution Of value Source: Adapted from Venkat Ramaswamy and Kerimcan Ozcan,
In other words, while the primacy of different stakeholders may vary depending on the particular framing of an economic system,
stakeholders must be recognised as human beings in all their complexity, whose ideas about value can go beyond just narrow conceptions of‘left-brained self-interests,'as it were.
The notion that individuals as stakeholders matter and must be conceptualised as being an integral part of the value creation process has gained hold in recent years.
Stakeholders are seen increasingly as contributing intrinsically to value creation rather than as entities to be managed merely by an enterprise.
Although advances have been made in going beyond the one-dimensional view of shareholder value (profit) maximisation and seeing management as beholden to shareholders
a‘homo economicus'view of stakeholders still lingers. Stakeholder theory has evolved to a more human-oriented‘homo sapiens'view.
The enterprise is seen now as not just an economic but also a moral and human institution,
where businesses are populated by and have consequences for human beings in all their complexity; this opens up the enterprise's purpose to a plurality of values and a social view of value as much as an economic one:‘
‘businesses should be the best we can create together, rather than avoiding the worst'(3). This view opens up the possibility of additional value creation, rather than a zero-sum game,
and of competition being emergent and value expanding, rather than being determined by industry structures and mere appropriation of value.
stakeholding individuals can themselves be seen as contributing‘value creation capital'with different kinds of contributions in an (innovation) ecosystem of value creation.
the role of the stakeholder in value creation also changes from passive to active, affecting enterprises and being affected by them, opening up various kinds of causalities in the value creation process.
Co-Creation thinking evolves stakeholder capitalism even further with its individuated agency and experience-centric view of joint value creation,
wherein agency presupposes and entails value (s is co-creative, and is co-evolutionary (1). Agency is distributed in (organisations as) assemblage systems
Value creation is predicated on access to competence in the joint resource network (with stakeholders and enterprises still‘owning'particular key resources).
So when an engagement platform based offering entails multiple enterprises as part of the resource network supporting the offering,
‘mutuality'considerations often apply, particularly in value creation instances where there is no common‘shared'value ground among resource-providing value-generating parties.
At the heart of the co-creation-based view of economies and societies is the impulse for‘becoming'.
'Whether as customers, employees, managers, financiers, partners, or citizens in communities, every stakeholding individual can bring capital to the value creation process through their‘value creative capacities'and,
As individuals'and enterprises'joint interests expand, they create value together through a multitude of channels and interactions.
Co-creative enterprises intensify co-creators'acts of value creation in terms of wealth-welfare-wellbeing. As all enterprising entities and people attempt to change the way reality unfolds,
co-creation thinking expands existing approaches to creating wealth-welfare-wellbeing in economy and society,
Humanisation Of value as Individuated Co-Creation Experiences A traditional conception of an economic system encompasses organisations
With the dawn of a co-creative age, enterprises must now see value creation as orchestrating platforms of engagements for intrinsic affects in and of themselves, beyond relational properties as such.
and co-creation experiences (1). In short, individuated co-creation experiences are now the very basis of value creation in the economy
and services based view to a more humanised view. Consider the field of telematics the provision of mobile information
and services to automobile drivers and passengers. As an example, take On-Star, which was launched by General motors (GM) as a way of providing safety and emergency services to their customers.
Over time, Onstar has evolved as GM has learned more about the broader interests and needs of its more than 6 million customers as stakeholders in experience-based value creation.
Instead of merely asking,‘How can we use information technology to make driving safer and more secure?'
‘What do customers desire to experience through their cars? How can information technology improve the driving experience,
which customers can enjoy personalised co-creation experiences that make driving more entertaining, informative, convenient,
which demands wireless connections via satellite and telecommunication networks to common monitoring stations. Onstar's current capabilities are very impressive.
and learn about my preferences and offer new services as appropriate. When my telematics system discerns (from my past information requests) that I am interested in the performance of certain stocks
enabled by technological capabilities entailing wireless telephony, satellite communication, vehicle integration systems, and internal sensors,
and external services such as 911 emergency networks. The hardware and software requirements and the quality levels needed to deploy Onstar safely as a vehicle-based application are quite impressive,
GM has gone a step further by opening up the applications programming interface of its automotive cloud platform that enables Onstar-based services to developers.
They could also generate new sources of value by linking with other network partners so patients could directly interact with support services
Thus, the capabilities for individuated co-creation experiences through platforms of engagements require the efforts of nodal enterprises that can connect together a variety of services, partners,
Nodal enterprises like GM Onstar recognise the need for collaborative innovation across the private-public-social sectors
and enterprises to enable and connect with the co-creation experiences of individuals, as discussed next.
In other words, a co-creation-based view of economy and society is about expanding collective self-interests for you and me,
The notion of enterprises in the private sector leading initiatives for the greater good has become familiar thanks to the spread of corporate responsibility practices.
Private sector enterprises are creating shared value together with the public and social sectors, and likewise, social (and ecologically oriented) enterprises are benefiting from working with the private sector (6),
(7). The public sector can also have far more economic and social impact through partnerships with the social and private sectors.
highlights both the opportunities for generating‘win more win more'co-created outcomes and the potential pitfalls of less considered inclusivity in connecting with human value.
poor migrant workers who are denied services and benefits when they move. With high levels of corruption
and foster the building of capability ecosystems for all enterprises in the economic and social system,
social, and other public sector enterprises can build services and applications that benefit residents across India.
Enterprises that become part of the UID applications ecosystem get an authentication service via UIDAI confirming almost immediately the identity of any individual through an advanced technology infrastructure that checks incoming UIDS and biometric information against its database.
Although Aadhaar will act only as an enabler of services and systems, it does eliminate redundant systems
The scale of the Aadhaar initiative demands a deeper level of engagement with its myriad stakeholders for it to be successful in the longer term.
the lack of inclusivity of social sector stakeholders from the start appears to have contributed to social discontents.
1 4 concerted efforts are necessary to include social sector stakeholders in order to nurture public trust. Traditional communications efforts to educate the public of the benefits of the initiative are not sufficient anymore in an age where the influences of conventional
and social media can take on a life of their own. Citizens need to be engaged actively in a dialogue about the initiative to ensure that concerns about functionality
however, requires co-designing the engagement design of this platform together with stakeholders both in the communities in which applications are designed and in the communities in
and served customers, there are other key stakeholders such as public/private sector banks, non-banking finance corporations, microfinance institutions,
National Payments Corporation of India (enables interoperability between banks), Reserve bank of India (the banking regulator creating the regulatory environment promoting financial inclusion),
and state governments and departments that enact policies and create systems and processes to deepen financial inclusion.
as a nodal entity, faces the challenge of leveraging the capabilities of these stakeholders to support the strategic architecture of multiple engagement platforms in the financial inclusion application ecosystem.
These engagement platforms will have to bring together the various stakeholders to engage in multifaceted dialogue aimed at generating new ideas in the ecosystem;
and fostering active discussions and experience sharing and consensus building among stakeholders, all to enable significant co-creation of expanded value in the ecosystem.
Further, continuous stakeholder engagement with the various users of applications service platforms would allow the ecosystem to evolve based on feedback from stakeholder experience domains, to minimise conflicts,
and social sector enterprises. Continuing with the UIDAI example consider the real-life applications UIDAI is piloting as part of Aadhaar's application ecosystem.
enabling them to gain access to basic financial savings, affordable credit, remittance services, and insurance and investment products.
Only about half of Indian households have a bank account. The economically disadvantaged pay a poverty premium, as it were,
This is an instance where open ideation of the design challenge can generate new potential solutions.
In the broadest sense, infrastructure is everything in the built environment that is distinct from natural environments.
and water system are described not simply as important physical artifacts but as investments in the city building process.
The history of successful infrastructure investment is less about the direct impact of technology and more about the interaction between technology and society.
The returns on investments are measured in terms of a society's economy, health, and social wellbeing. Infrastructure is thus a critical determinant of co-creative capacities of an ecosystem of capabilities.
The building of smart infrastructures allows cities to intelligently utilise technology to adapt to their environment
Further, the dynamic achievement of a functioning energy, communications, water, or transport network requires constant effort to maintain the functioning system.
and advances in mobile and interactive communications and information technologies, networked individuals around the globe are no longer passive and docile recipients of dispensed instructions and development assistance.
and social sector enterprises. On their part, enterprises are learning how to engage external and internal stakeholders
and to harness their personal, peer-to-peer, and collective knowledge, creativity, and expertise for the purpose of engendering development together.
and opportunities (2). This requires understanding the direct relevance of human capabilities to people's wellbeing
as well as opportunities to leverage ideas and solutions from communities outside the local. Note that community capacity is rooted in the meshwork of human capital
social capital, and organisational resources that is resident within and outside of that community, which can be leveraged to develop solutions to collective issues
and thereby maintain and enhance the wellbeing of that community (14). Community capacity can be tapped by various forms of social agency,
Co-creation thinking can expand value creation in economy and society by seeing it as a nexus of private, public,
and social ecosystems of capabilities, with heterogeneous modes of human experiencebased value creation that go beyond mere modes of‘production'of goods and services and‘relations of production.'
and economic growth and social enrichment in the future, as discussed next. Economies and Societies as a Nexus of Ecosystems of Capabilities Viewing markets as a nexus of differences implies viewing economies and societies as a nexus of ecosystems of capabilities centred on productive and meaningful human experiences
through platforms of engagements of all stakeholding individuals in economy and society as a whole. Consider the case of Rio grande do Sul, one of Brazil's richest states,
which nearly went bankrupt in 2005, as public investment reached its lowest level in 35 years.
Since 1970, one government after another had failed to implement the necessary state reforms to reduce public debt.
In the early 1990s, Brazilian commodity export-oriented states like Rio grande do suffered Sul not only from the negative impact of the overvalued national currency
For starters, a live engagement platform was conceived for engaging different stakeholders, building political consensus, and co-coordinating lobbying activities.
Naturally, this called for a process of consensus building and democratic goal setting by a coalition of diverse stakeholders collectively representing the interests of the public.
and by volunteers, economists, politicians, and external experts led by Symnetics, a consulting organisation, over multiple phases.
either be created within government or outside of it by a coalition of stakeholders. In fact in October 2006, the strategic agenda was presented to the two state government candidates,
While on one level, there have been roadshows and communication efforts and campaigns all over the state, on another level,
Education, Health, Security, Citizenship, Agribusiness, Regional Development, Public Management, Logistic Infrastructure, Innovation and Technology, Environment, Energy Infrastructure,
is predicated on the co-creative transformation of each participating nodal enterprise in the ecosystem, whether private, public or social,
and virtualised and emergent from ecosystems of capabilities see (1) for more details on co-creative enterprise transformation.
Briefly, co-creative enterprise transformation can be broken down into the following components: 1. Jointly creating
3. Affording a variety of novel, personalised interaction environments; 4. Meshing together ecosystems of capabilities;
5. Augmenting creative capacities of enterprise architectures and management systems; 6. Enabling and supporting individuated value creation, personally and in the social, business, civic,
and knowledge to co-evolve human stakeholder experiences of value; 9. Building new strategic capital for enterprises;
and 10. Expanding wealth-welfare-wellbeing. Figure 2: Co-Creative Enterprise Transformation Who: Enterprises Whence:
Goods and Services How: Activities Who: Stakeholders and Enterprises Whence: Individual Human Experiences How: Platforms of Engagements From:
To: Who: Stakeholding Individuals and Enterprises Whence: Co-Creation Experiences How: Co-Creative Engagement Platforms Stakeholding Individuals as Co-Creators Enterprises as a Nexus of Engagement Platforms Source:
Adapted from Venkat Ramaswamy and Kerimcan Ozcan, The Co-Creation Paradigm (2014) 104 O P E N I N N O V A t I O N y
E A r B o O k 2 0 1 4 The late Nobel laureate Ronald Coase, who at age 101 (in 2012) witnessed more structural changes in economy than most of us,
called for reconnecting‘Man and Economy',thus:‘‘It's time to reestablish the connection between economics and the ordinary business of life...
Knowledge will come only if economics can be reoriented to the study of man as he is
and the economic system as it actually exists'(15). Co-creation thinking bridges‘human experience and economy'as it were, providing a way to put back human experiences into the economy in central fashion,
and beyond to‘individuated co-creation experiences in society at large'through the convergence of private, public,
and social sector innovation ecosystems on wealth-welfare-wellbeing and co-creation of human value.
Enterprises must fundamentally stop thinking of individuals as passive and docile recipients of their offerings
but must instead engage individuals as active co-creators of value. All entities that affect or are affected by the actions
and outcomes of a value creation process can be co-creators. In other words the more inclusive the engagement of stakeholders in the act of creating value (through engagement platforms), the better the results.
Value is subjective and not only varies from individual to individual, but also within individuals in the context of their experiences in space and time.
The meaning of value is thus a function of human experiences, and products and services are a means to this human experience-based embodiment of value.
By definition, individuals are an integral part of creating experience-based value, and their creativity is relevant to the outcomes of experience-based value.
Individuals must be engaged as stakeholders in value creation on the same level as enterprises. Convergence of value creation based on individuals'experiences in economy and society necessitates that all enterprises,
whether private, public, or social sector, must engage people both individually and collectively. Private, public,
and social enterprises must build innovation ecosystems of capabilities centred on the wealth-welfare-wellbeing of all individuals.
and social innovation ecosystems have the potential to balance the invisible hand of free markets with the visible hand of governments and civil society, together with stakeholder expectations of more responsible, responsive,
and effective enterprises, and coevolving better states of governance, infrastructure, development, and sustainability. Ultimately, co-creative innovation ecosystems have the power to transform our reality of the world.
Stakeholder Theory: The State of the art. Cambridge: Cambridge university Press. 4) Pryor, F. L. 2005. Economic systems of Foraging, Agricultural,
and Industrial Societies. Cambridge: Cambridge university Press. 5) Curley, M.,Salmelin, B. 2013.‘‘Open Innovation 2. 0:
) The Experimental Nature of New Venture Creation: Capitalising on Open Innovation 2. 0, Innovation, Technology, and Knowledge management. Berlin:
‘Saving Economics from the Economists.''Harvard Business Review 90 (12): 36. Contact Dr Venkat Ramaswamy Professor Ross School of business www. venkatramaswamy. com venkatr@umich. edu 105 Oulu Innovation Alliance an Open Innovation Ecosystem
which is regarded also as the Capital of Northern Scandinavia, is located in Northern Finland (Figure 3). This article presents the Oulu open innovation and Public-Private-People-Partnership approach.
and innovation centres Center for Internet Excellence (www. cie. fi), Printocent (www. printocent. net), Center for Energy and Environment (www. cee. fi), Centre for Health Technologies
N y E A r B o O k 2 0 1 4 appliances and services (7). CIE aims to capture
and create Internet-driven growth opportunities and value by combining cutting-edge research innovations with agile new business creation processes.
Oulu Innovation Alliance Organisational Structure Oulu Innovation Alliance 109 the brand OULLABS (Oulu Urban Living Labs)( 9). OULLABS provides ideation, development and testing
services for companies and organisations on one-stop shop principle. OULLABS consists of a unique set of test environments,
such as PATIO forum Online forum for collecting user's opinion at the moment the forum has more than 700 users from all age groups from 18 to 85 (10) panoulu Network of Public Wireless internet
and involving users in the development TTKAAKKURI Product testing platform in the real healthcare environment Converging Networks Laboratory Wireless network testing From the city perspective the user's involvement provides excellent
possibility to develop the services with the real users of the services; and not just for the users of the services.
In this context OULLABS has been used to test the services before actually launching them for good. The user's involvement has also been used in the procurement processes;
Living Lab services have been used as part of the procurement process to test service options from different bidders.
The people who are supposed to use the equipment/services under procurement process have been able to test all the possibilities
and give their comments. These comments have then been taking into account when selecting the winner of the procurement process.
Related to the 3d Internet there is also an open-source virtual environment under development Oulu 3d model
and access point for new services. One example of the city's activities in the field of open innovation and user involvement is the development of a new district, Hiukkavaara,
by using it as a Living Lab environment where people and businesses are taken along already from the very beginning of the planning process.
Besides the end-user perspective for the regional planning from very beginning, this means also big opportunities to develop new energy effective
With help of end-user testing company can test their product/prototype/idea with real users at any phase of the innovation process.
the patient, the doctor, social security, the hospital There are many stakeholders to put sit around the table
I O N y E A r B o O k 2 0 1 4 rifts options and choices design of services to users, partners, business plans.
or sports enthusiasts and people who are interested in maintaining keeping themselves fit With growing demand from users,
and together with rising income levels, there is considerable demand for using sportswear for sports as well as casual purposes.
Sensors technologies measuring heart rate, temperature, physical movement, pain, sleeping status provide accepted and valuable services to users.
and services would come from data analytics such as: How to combine data from different sources?
We have now to prove that customers will make them a reality. This is a challenge
It could give us new opportunities to develop new innovations that could strengthen our position on the market.
when you have so many other things to do and so many potential opportunities on the market in Europe,
In both case, we are probably a good example of the kind of technology that Europe should support regarding international competition in these sectors and the potential of the markets in question.
we still have to find out new relevant opportunities. 114 O P E N I N N O V A t I O N y E A r B o O k 2
platform providers and service application developers working together in the business ecosystem (as described in Figure 1). The goal of the business ecosystem of Careware project is to provide unobtrusive wearable sensor based digital services
4) produce a variety of validated digital services/proof of concepts for personal health and wellbeing, 5) Business models & ecosystem for the digital service creation in health domain.
advanced sensor technologies and application platforms and therefore to allow the generation of unobtrusive digital services for monitoring
and early-stage projects into innovative products and services in areas of vital socioeconomic importance for the future of the European project,
such as Big & Open Data, Smart Cities, Space enabled Services and Digital Social Innovation. Background, Concept and Objectives EYIF's Openeyif leverages Open Innovation processes
products and services makes the following essential observation about the core idea that is the basis for the Openeyif concept:
In order to ensure seed-type activities generating actual take-up of innovative services and applications, it is not enough simply to open calls for participation in an Open Innovation value chain,
support and embedding in an Open Innovation environment for those selected through such calls, to build a sustainable longer-term ecosystem.
such as Big & Open Data, Smart Cities, Space enabled Services and Digital Social Innovation. The best ideas and early-stage projects will be awarded seed grants (below EUR100 000) and crucially,
participation in an incubation programme hosted by one of a European network of business incubators and their ecosystems,
offering new opportunities and creating new, positive and marketable opportunities for the new young innovators.
such as Big & Open Data, Smart Cities, Space enabled Services and Digital Social Innovation using a three-stage integrated framework approach based on Open Innovation mechanisms targeting new constituencies of young innovators i e. between 18 and 30 years,
holistically supported by a cross-stage communication and dissemination process: A European network of business incubators and their ecosystems qualified to host early-stage,
pre-seed start-ups, offering a choice of geographic location and specialisation. A structured incubation programme consisting of technology training and technical support, entrepreneurial education, workshops, seminars,
product and services that can evolve into seedtype activities generating actual take-up of products, services and applications will be engaged and mobilised through a distributed pan-European communication campaign at the target communities,
to apply to the Openeyif open calls for ideas and participation. Stage 2: Build & Try (ideas are selected
incubation of selected grantees in a public-private funded nonprofit business incubator network across Europe as well as virtual incubation and embedding in the innovation ecosystems these incubators are a part of provision of training,
and the specific user communities that they target, continue to be part of the local/regional/European innovation ecosystem they were embedded in to ensure a sustainable longer-term environment for the assets they created The actions taken during Stage 3 will ensure that within these ecosystems the successful
Cross-Stage Communication and Dissemination The Framework foresees a 360 degree integrated approach for communication of the open call for ideas and participation as well as the dissemination of results,
The Openeyif implementation project website and websites of the incubators and their ecosystem actors, social media networks, blogs, specialised discussion forums, technology news sites and through targeted advertising (e g.
Promotional events & activities (hosted locally by participating incubators and ecosystems as well as road shows and external events:
Open EYIF foresees a three-month residency programme in a network of fully-equipped business incubators, with technical training and support
The Cross-Stage Communication and Dissemination of the Openeyif 119 entrepreneurial training, workshops, seminars, business networking,
Grantees who successfully graduate from the programme with a marketable application will receive support for access to finance (accelerator, business angel and venture capital investment) and access to international markets.
The Incubator network's dual missions will be: To facilitate and accelerate the development of the early-stage pre-seed ventures,
by enabling young Europeans to technically skill-up and validate their innovative idea, as well as acquire basic entrepreneurial skills and an European market perspective,
and inducing policy-makers and business leaders to share the risk by actively supporting youth innovation The network of business incubators across Europe will provide the grantees their choice of geographic location and specialisation.
The programme offered by the incubators will consist of several topics like Needs Filtering and Business plans, Brainstorming and Prototyping, Business models and Finance, Concept Development & Implementation,
how to build a robust business plan around the developed prototype, Intellectual Property and Regulatory affairs, Reimbursement Strategy, Sales, Marketing, Pitching and Business Sustainability.
Post-Incubation Support Post Incubation Support will consist of assisting successfully incubated grantees after the incubation period for a six-month period (three months of intense support and three months of support based on request.
while the entrepreneurship ecosystem they will become part of will support them with access to finance (introduction to VCS, business angels, crowdfunding platforms, potential corporate sponsors/partners), markets, policy & decision-makers, business leaders & mentors and local
Impact and Benefits The Openeyif's three-stage integrated framework approach implemented through a communication campaign
such as Big & Open Data, Smart Cities, Space enabled Services and Digital Social Innovation. The Openeyif foresees a cross-border,
as well as the personal advocating of their successful Open Innovation experience providing a sustainable longer-term environment for Open Innovation in Europe.
Abstract The lighting industry is in transition from a hardware only industry to a full solution and services industry.
and flexible lighting systems (with sensors and controls) on the other there are many opportunities for new business with services in lighting.
It also creates opportunities for new professions, such as in the design of lighting services and in the development of software applications for smart solutions:
professions that are new and require different skills than the traditional ones in the hardware related industry.
and seek for meaningful services. In these projects various public and private organisations collaborate to explore new venues.
This enables cities to offer a wide range of intelligent and integrated services benefitting society and individual citizens and bringing cities closer to the ambition of becoming smart cities.
Services At this level meaningful services are developed that provide value for the relevant stakeholders. In urban lighting there are often different stakeholders that use the area, with different needs and wishes.
The ultimate goal of urban lighting solutions is to create value for societal stakeholders by creating a healthy and liveable city.
Smart lighting can offer valuable services for different stakeholders using the ICT based lighting platform.
In this four level model, technology is considered an enabler. Technological developments create new opportunities for applications.
These applications become meaningful when they address relevant societal needs. In the coming years innovation will take place at all four levels.
However, in the field of meaningful applications designed to address societal needs there are more opportunities for new jobs, especially in the domain of developing new services with lighting.
The type of jobs is shifting from hardware related jobs towards the design of lighting services as well is to the development of software applications for smart lighting solutions:
Data analytics becomes an important element to identify emerging patterns and spot new opportunities. It also enables to determine the impact of solutions.
and effectively collect data and integrate all data into a total system. 2. Innovation driven by societal needs requires the active involvement of all stakeholders to find solutions that cater for their different needs.
Stakeholders turn from objects to active participants being involved in all stages, including very early ideation and prototyping.
The active involvement of stakeholders is needed also to develop new revenue models that enable the continuous innovation and further development of the services.
Municipalities may be able to provide basic infrastructures in public lighting, but due to budget restrictions it is not realistic to expect that all investments will be done from the public domain.
By understanding the potential value of innovations for the different stakeholders, also opportunities for co-investment arise.
A Changing Business Environment Meaningful applications in public lighting are based on societal needs and use the enabling technology in lighting and ICT to provide solutions that address the needs of the stakeholders.
Different areas in cities have different stakeholders with different needs. The solutions will need tailoring to the specific situation.
For example, an entertainment district in a city has different stakeholders with different needs than a residential area or an area around a school.
For each project it is therefore important to start with an inventory of the specific stakeholders of the area and their needs.
Based on these needs a creative process starts to define a proposition for an urban lighting solution.
With intelligent lighting solutions it is often possible to address different needs with one technical platform
as long as the platform is able to offer this flexibility. To illustrate this process we give the example of two projects that are currently in development.
In the redevelopment of the area an investigation was made of the main stakeholders in the area and their needs.
Hospitality Various stakeholders wish to improve the hospitality of the area to attract people and to make them stay in the square for leisure activities.
Technically, the system needed to create these light-on-demand settings involves just lights, people count sensors and an application to design
When looking further in the needs identified by the stakeholders, an opportunity was found in using the same technical system to increase a‘virtual stage'.
'Dedicated spot lights can create a stage for (music) performers and local talents. People can book airtime on the stage through an app. or portal.
thereby creating a revenue model to earn back the investments for the development of the app. and for new investments in the smart lighting system and related apps in the area.
This case shows that the technical system enables the creation of various services for different stakeholder needs.
but more in the development of meaningful services that make sense in this specific area. The type of people needed to perform such projects is not the traditional lighting designers that are used to make a lighting plan based on uniform distribution of a sufficient lighting level.
In this case the challenge is to creatively design services using the available technology and integrate the different needs into one solution.
This involves the setup of various living labs in the city to explore the opportunities of innovative lighting solutions to increase the quality of life in the city.
Also in this case the technological infrastructure provides opportunities to address also other needs An example here is that
New Professions Looking at the two cases presented above we can see a shift in the type of skills required from the more hardware related to new ones that focus more on the ICT and services part.
Dynamic lighting service designers These designers need to be able to empathise with the different stakeholders.
they need to extend their scope and research the needs of a wider range of stakeholders.
and provide new services for the different stakeholders. Next to these skills, they also need to understand the impact of lighting on people's mood
Also the renewal rate of services will be relatively high. New applications will give rise to the need for new lighting scenarios.
'Introduction The crowd-based asset is the new source of innovation and economic growth. Organisations that embrace this new industrial paradigm will prosper.
In a super social world of ubiquitous, always on, low friction communication, the boundaries between the worlds we all inhabit individually
and, as such, this fluid and interlinked economy presents a vast pool of enormously valuable resource.
the opportunities to innovate are boundless. Crowd assets are the new source of innovation and economic growth.
As the digital world witnesses both declining transaction costs and the emergence of the so called‘grown up digital'demographic as active agents in a commercial setting new models of business,
and create new opportunities without boundaries in a way previously unthinkable. Organisations that embrace this new industrial paradigm will prosper.
In 2013, the world witnessed the continued rise of highly-efficient, disruptive shared economy models whereby crowdsourced innovation, drawing on mobile and remote expertise, financed $5 billion of democratised crowdfunding.
While the breadth of investment is certainly impressive, the real power of crowdfunding comes from harnessing the wisdom of the crowd
and creating a community of individuals emotionally and intrinsically motivated to spark real change. When compared to traditional commercial thinking
crowdfunding underscores a paradigm shift towards progressive funding that will transform global funding models. While crowdfunding is a powerful mechanism for entrepreneurs to raise capital to finance their idea or project
crowdfunding espouses many nonmonetary benefits. When entrepreneurs tap into larger social networks to pitch an idea,
they begin to create mindshare and market share within a virtual community. The virtual community then becomes a critical resource for the entrepreneurs,
For entrepreneurs, being in direct contact with potential customers is of tremendous value, as it allows market value, size assessment and direct product feedback.
the entrepreneurs must be comfortable and familiar with the notion that‘customers'can inhabit many roles as co-creators,
In parallel with the emerging class of entrepreneur and small business, incumbent organisations which were founded neither nor shaped in this connected world still have opportunity to create value in this new economy
because they appear to be inherently redundant and of little value in the crowd empowered economy?
Do we lack the frameworks to assist us in uncovering crowd based opportunity within our firm?
without the necessary compass to navigate the opportunity presented in the new crowd empowered economy?
many of our more trusted models can assist us in making sense of the opportunities available by providing us with a new crowd aware set of lenses to analyse
The Web 2. 0 economy has transformed fundamentally the way people interact and communicate. Geographical boundaries are no longer real constraints for organisations.
With these technological advances and new levels of access to people, firms are presented with a plethora of opportunities for collaboration, co-creation,
and a sharing economy. Different players in the value chain come together to create, improve, and deliver new product and service offerings.
Through additional partnerships with The Economist Nature Publishing Group and Popular Science, the network of experts with access to the challenge spans 12 million people.
If we accept that it is indeed more reasonable and beneficial to embrace the open business models
The crowd asset economy challenges traditional business concepts and theory. In the world of the collaborative and shared economy, with its freemium revenue models where social applications with no revenue can go from launch to being valued in billions of dollars at the time of IPO,
the boundaries of the organisation seem relentlessly transient and value creation models out of step with
To traditional business thinking, the idea that Patagonia, the outdoor clothing firm, should set up an online platform to permit its customers to sell their used Patagonia products to those who might want them
helpfully, provides further insight to the customers'perception and assessment of their product throughout its lifecycle.
and we are left struggling to identify the opportunity. Does this perhaps leave us without analytical models
in order for your organisation to embrace the opportunity of the crowd empowered business, we must transform the current frameworks to reflect the current landscape.
One of the main challenges businesses are facing in the sharing economy is defined their strongly traditional and inflexible definition of business model and organisational boundaries.
It also prevents the adoption of innovation within the traditional notion of the value chain to find value creation opportunities which are novel
open and collaborative economy, we cannot take such a rigid and firm view. Instead, we propose a move from this somewhat 2d monochrome world of the industrial economy to a multi coloured 3d perspective in the crowd asset economy.
While the crowd based view may appear challenging it is possible to adapt some more familiar models to showcase the scope of the changes
and for those common tools to act as guides into an otherwise obscure environment. As an example, let us consider the Mckinsey 7s framework.
and is therefore unable to embrace the opportunities that might exist to innovate within the business model and across products and services.
there exists an opportunity to innovate amending and/or enhancing through the crowd. This will allow businesses to look beyond traditional business models
and constrictions and instead utilise and leverage crowd wisdom both internally and externally. This simple adjustment can free our thinking to explore novel configurations of these elements into a more fluid idea of the organisation.
and so reinvigorate them for the crowd based economy. Figure 1: Original 7s Model Figure 2:
The model has been adapted elsewhere to expand our understanding of how we can adopt more open crowd based models into an existing business model.
and that whilst a crowd empowered environment requires us to open our thinking, we have need no to entirely abandon many of the good management practices we are familiar with,
we contend that the true winners in a crowd empowered economy will be the ones who adopt a more wholesale
I O N y E A r B o O k 2 0 1 4 Value Analysis. This figure is employed typically to demonstrate the opportunity created by the introduction of new and disruptive technology and it shows, in a simple
the breadth of response available to organisations in their readiness to embrace the opportunity. Some are more iterative and cautious,
and seek to utilise the opportunity to enhance what they already do. The more ambitious ones employ the opportunity in a more transformational manner
and see it as a chance to reinvent, transform and create entirely new opportunity. This same reference can describe the opportunity presented by crowd assets.
This illustration has a tremendous familiarity and simple, but practical application to us, as we can all plot the location of our own organisations on it.
In reality most will have two plots the‘as is'and the‘aspirational'.'The impact of the crowd economy is,
however, so profound, driven as it is by economic, societal and technological factors, that, in order to prosper, a firm should move to the disruptive end of the graph,
Let us consider some of the generic opportunities that present themselves. As demonstrated in our examples,
one obvious opportunity is crowdsourcing. If Henry Chesbrough coined the term‘open innovation, 'Jeff Howe coined crowdsourcing
small businesses and entrepreneurs can look to these activities as means of incrementally improving their products and services with other companies as partners or through crowd feedback.
A subset of crowdsourcing contains the concept of crowdfunding, a practice we have referred already to as a manifestation of the disruptive possibilities of the crowd asset economy.
It is one of the most promising resources for restoring capital to businesses, defined as the collective effort of individuals who network and pool their resources, usually via the Internet,
to support efforts initiated by other people or organisations. In its various forms, crowdfunding allows entrepreneurs
and SME's to solicit capital from investors, using social networks and crowdfunding platforms to finance their businesses and projects.
By doing so individual entrepreneurs and early growth companies can solicit donations from individual stakeholders (including friends, family, colleagues, other business owners, etc.
by appealing to their intrinsic, emotional, and social motivations. Not only does crowdfunding solve the challenges of early-stage financing for the business owner or entrepreneur,
it also establishes a strong communication link between the funders and the company, whereby the funders can offer feedback and suggestions for the product.
Crowdfunding enables enterprises to validate products by gathering a critical mass of funding (and customers) before the venture even goes to market (and in some cases,
before the product even goes into production!),ultimately mitigating the risk associated with a new product
because the mass of customers already exist. This new mix of the collective creative with productive capacity and execution enables enterprises to identify,
collaborate, and produce in an entirely unprecedented manner. Establishing a strong communication link between the business owner
and the crowd paves the way for open business models. According to Henry Chesbrough,‘Open business models enable an organisation to be more effective in creating as well as capturing value.
They help to create value by leveraging many more ideas because of their inclusion of a variety of external concepts.
They also allow greater value capture by utilising a firm's key asset resource or position not only in that organisation's own operations but also in other businesses.
Open business models can help businesses from a revenue perspective by licensing its own technologies to other companies
and by using outside resources for internal innovation, research and development initiatives. This saves the small business both time and money,
in addition to incrementally innovating existing products and services. Continual product innovation is essential for businesses to remain competitive and profitable.
Crowd-empowered mechanisms like co-creation and open innovation are central to this process. Cocreation is defined as form of marketing strategy or business strategy which emphasises the generation and ongoing realisation of mutual firm-customer value.
and active customers to share combine and renew each other's resources and capabilities to create value through new forms of interaction,
In 2005 the CEO of Intuit recognised the impact of co-creation with customers when Intuit customer service teams began experimenting with online support forums moderated by enthusiast employees.
For Intuit, the company learned about the kinds of tax preparation questions that professional customers have
The organisation is rolling this insight out into new products (8). The concept of collaboration is exemplified in the ideas of the shared or collaborative economy.
What more can be done to unlock this crowd asset economy to all? Porter's model demonstrates how the existing Value Chain might be extended to take recognised functions and offer a crowd based twist.
and to be able to apply this analysis from the business unit level to a fully crowd empowered enterprise.
the characteristics and approaches to unlock these opportunities vary by the nature of the location of the value,
To help make sense of this diverse spectrum of opportunity we are presenting an analysis tool that sets out the key crowd asset classes
This might include crowdfunding, campaigning, brand value development and viral marketing, or micro commerce transactions.
when brought together as an operational services or collaboration. So each act has limited value in itself
and integrating crowd based activity to a business model. It is possible for us to map onto the matrix value creation activities that currently happen within an existing organisation
and includes opportunities to reduce transactional costs by harnessing external resources to transact process, deliver deep insight otherwise not available,
At the same time we can identify opportunity to re-focus or adjust our position in the value chain by applying specific competencies
or facilities within a crowd enabled environment. It is important to recognise that the model does not provide an optimum solution
either a temporary or permanent basis. The crowd asset model allows us to consider the value creation opportunities available by letting us locate value creation opportunity by crowd based and open models.
and services to market on its own. Yet recently, in an effort to expand its product portfolio
covering all parts of the innovation ecosystem, beginning with ideation and ending with sales. Through distribution agreements with companies Like home Depot, Target,
Through this collaboration, customers are able to purchase innovative products from a household brand and with that brand trust comes the confidence in its functionality.
a type of business model that would prevent unbought cars from rusting over in dealership parking lots.
Local Motors also has partnerships in place with large enterprises including Siemens, Shell, and BMW. As part of their partnership with Siemens, Local Motors uses their computer-aided design (CAD) software
Local Motors also works with large enterprises through hosted challenges, whereby the enterprise may outsource a design task to the Local Motors community of designers in exchange for cash prizes.
For example, in 2012, the BMW Group challenged the community to define the future‘premium vehicle'in exchange for a cash prize.
The first phase is centred on ideation, where Army Cocreate users brainstorm and submit ideas about the main challenges.
In the final stage, the Army will prototype the products using 3d printing and other technologies within the REF expeditionary laboratory.
and connected infrastructure and operational services. By partnering with the RAF and engaging the Local Motors community of users,
The crowd asset economy is the natural extension of the open innovation principles and we are still at the early stages of this new and exciting period.
and accelerate the adoption of the openness that will drive our new economy. These models and frameworks go some way to help in that process
simultaneously might have a significant strength and competitive advantage in a crowd empowered environment? If we can clarify these skills can we then develop them and,
by extension, embrace the opportunities offered? To this end we plan to create a community of crowd asset exponents who can progressively develop the crowd asset model.
which‘does'the business of harnessing the opportunity opened up by the crowd. We can then develop novel applications of the framework to unlock greater value,
The economics of organisation: the transaction cost approach. American Journal of Sociology 87 (3): 548 577.5) Howe, Jeff (June 2, 2006.
and Profits Free Press (October 5, 2010), p. 108 111 (9) Mark S. Granovetter. The Strength of Weak Ties.
Cofounder and Director Twintangibles tim@twintangibles. co. uk Dan Marom, Thought leader in the Crowdfunding field me@danmarom. com 137 Lawyers
We were buying satellite programme services from the US or the UK, in some cases France,
and the cable TV companies were packaging these services to suit the tastes of the Finnish customers
remembering especially, what happened in the economy when accountants started to be creative; creative accounting was not such a successful social experiment.‘
as the environment is complicated and uncertain. The innovative lawyer looks at other sources of law besides the national.
if you look at the successful international services, like social media or search engines, you realise that somehow these services have managed to go passed and beyond these problems.
Someone in the organisation carried out the analysis and took the company boldly over and beyond the problems emerging from 28 different legislations.
a piece of cake for the Palo alto college boys who soon gathered hundreds of millions of customers in a market that was claimed to be impossible mostly by the traditional, nationally inclined lawyers.
The Innovative Lawyer Hemera 139 interesting technological innovation that was new and appealing to the customers.
& D related investment and the eventual cancellation of the development of the said technology.
when the technology and services really took off. Secondly on the right-holders'side things were not any better, either.
As the issue is related to Internet services, it looks rather evident, that there's no way to gain back momentum,
as the competition takes all the time big leaps in the development. From legal perspective, this case (of which I am not at liberty to speak more openly),
learn from them how they have structured their services, composed their terms, rights and obligations learn how the trick was done.
the company has managed to display the complex relations between the company, its customers and advertisers,
D.,Docent (Lappeenranta University of Technology) Counsellor, Ministry of Employment and the Economy, Finland mikko. huuskonen@tem. fi Figure 2:
to access capital or to gain access to knowledge and skills. And they are operating within fastresponding supply networks to deliver customer value.
and cutting-edge experimentation will become a key driver of competition underpinning new waves of productivity growth and data-driven innovation.
Probably the biggest difference between enterprises that are native to data and others is how they approach strategy.
From colours used on a button to different websites to see which site will increase sales, all in real life and with real customers.
You then prototype and test multiple ideas quickly with your users meanwhile building a high class solution that incorporates your findings from each prototype.
At every stage, you loop back to make sure that what you are doing is consistent with your POV,
and design-driven processes does not always work in radical changing environments, because the user does not know where to go to.
Those who don't may soon find themselves on the outside looking in at a data-centric economy that has moved on without them.
Scalability used to be a plus, a scarcity only possible for the big companies. In online worlds, scalability is a non-issue.
This creates copycatting behaviour and continuous attacks on the business profit. If you want to stand out in the crowd you need to connect to local cultures.
This involves additional thinking. Provocations. Provocations are deliberately unreasonable ideas that would be vetoed immediately by those who are not in the process.
to create the new markets for products and services.‘‘If citizens are involved not we enter up to the old linear paradigm
Open Innovation 2. 0 is about extensive collaboration among all the stakeholders in the innovation ecosystem, sharing ideas, results of intellectual creativity and co-creation among all involved.
or services considering the users'needs; and 3. for the policy makers in creating new policies for citizens'and businesses'welfare,
while they can influence in political decisions or creation of services for the market. The citizen/user is now an integral part of the innovation process,
There are many opportunities once the worlds of information, monitoring and communication have been brought together. Sharing content and creativity through the Internet will create new and better work/life balances for citizens:
wherever and whenever. Wearable technologies supported by Internet coaching will create well-being lifestyles for young people and the elderly.
The healthcare costs will be controlled through communication as needed. Sustainable energy, sustainable water and sustainable material use will become essential part of citizens daily practices.
With advances of the global information and communication technologies, the processes and practices of creating innovative product
or services that are valued less by the current or future market. Industry/market is well aware that it is not possible anymore to create new services alone,
isolated from the rest of the world and force the users to adopt or buy these created services.
Otherwise, it will result waste of time and resources, as the buyers will not be interested in using these services.
As a part of the Open Innovation 2. 0 ecosystem, industry/business/service providers become more open engaging the buyers or users in the co-creation of services.
The users can be both consumers and innovators/participants given all of the supporting conditions. At the same time market operates within the boundaries of regulations created by the governments.
when a wider spectrum stakeholders participates, thus applying Open Innovation 2. 0 approach, therefore creating better value for the wellbeing of the citizens and businesses.
in order to secure maximum economic and social impact for all the stakeholders involved in Open Innovation 2. 0 ecosystem.
information and communication technology. In the past years considerable attention is drawn to this topic trying to solve the issue of the effective (Open) Innovation (2. 0) ecosystem to reach maximum societal impact.
***Failure should be seen as opportunity for getting stronger, creating better solutions, better lifestyle and better governments.
that one can discover more opportunities for wellbeing. To paraphrase Nelson Mandela: It always seems impossible until it's done (4). Urgent actions are needed to move from vision into action.
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