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
'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 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.
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,
It also made clear just how interdependent and inter-linked the EU's economies are.
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,
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.
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.
of the era of the Internet and more open societies and economies (varieties of capitalism).
While very different in nature, both models present a unique chance to better understand the principles of knowledge economy
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,
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 operational functionalities and complementarities of these sectors in the context of the knowledge economy.
Policymaking, legislation, steering, coordination and communication are the tools available for influencing the dynamics of a society and economy.
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
and know how in order to utilise resources innovatively for society and the economy in an environmentally conscious manner.
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
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.
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.
)‘ 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.‘
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:
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.
Introduction European union investments in advancing the European Knowledge Economy and Single Digital Market development are by definition longitudinal and accumulative by nature.
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.
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.
In 2009, Chile's economy contracted by 1. 5, %export volume dropped by nearly 20,
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 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,
Because of its high trade and capital market integration, the economy was affected severely by this financial crisis.
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,
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,
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,
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).
Figure 2 shows that Chilean GDP growth plummeted sharply in 2009, with its heavy export-dependent economy.
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.
GDP-NIC Co-development In the current knowledge economy, intangible asset plays an increasingly important role in national development.
and regulatory reforms can be viewed as the necessary restructuring costs for transitioning from the existing economy to an even more robust one.
In an era of knowledge economy with keen global competition the growing importance of intangible assets is recognised a trend.
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
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
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.
Twothirds of that would be in the form of reducing US healthcare expenditure by about 8%.In the developed economies of Europe
we can see the contours of a more expansive and more inclusive co-creative economy and society,
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
At the heart of the co-creation-based view of economies and societies is the impulse for‘becoming'.
co-creation thinking expands existing approaches to creating wealth-welfare-wellbeing in economy and society,
and co-creation experiences (1). In short, individuated co-creation experiences are now the very basis of value creation in the economy
In other words, a co-creation-based view of economy and society is about expanding collective self-interests for you and me,
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.
Co-creation thinking can expand value creation in economy and society by seeing it as a nexus of private, public,
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,
and by volunteers, economists, politicians, and external experts led by Symnetics, a consulting organisation, over multiple phases.
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...
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,
Convergence of value creation based on individuals'experiences in economy and society necessitates that all enterprises, whether private, public,
‘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
and, as such, this fluid and interlinked economy presents a vast pool of enormously valuable resource.
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.
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?
without the necessary compass to navigate the opportunity presented in the new crowd empowered economy?
The Web 2. 0 economy has transformed fundamentally the way people interact and communicate. Geographical boundaries are no longer real constraints for organisations.
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.
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
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.
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 so reinvigorate them for the crowd based economy. Figure 1: Original 7s Model Figure 2:
we contend that the true winners in a crowd empowered economy will be the ones who adopt a more wholesale
'The impact of the crowd economy is, however, so profound, driven as it is by economic, societal and technological factors, that,
a practice we have referred already to as a manifestation of the disruptive possibilities of the crowd asset economy.
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.
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
remembering especially, what happened in the economy when accountants started to be creative; creative accounting was not such a successful social experiment.‘
D.,Docent (Lappeenranta University of Technology) Counsellor, Ministry of Employment and the Economy, Finland mikko. huuskonen@tem. fi Figure 2:
Those who don't may soon find themselves on the outside looking in at a data-centric economy that has moved on without them.
and the increasing contribution of SMES to the global economy in promoting growth and employment opportunities (Bednarzik, 2000;
Micro, small and medium-sized enterprises (SMES) are the engine of the European economy. They are an essential source of jobs,
In the European union 99,8%(20,9 million) of enterprises active within the EU-27's nonfinancial business economy in 2008 were SMES (Eurostat, 2008.
%and for 58.6%value added within the nonfinancial business economy (Eurostat, 2008). SMES play an essential role in economic and technological development (Kaufmann and Tödtling, 2002.
particularly in mature Western economies, encouraging and improving the innovative potential of small and micro firms remains at the heart of policy initiatives that provide a wide range of financial support for innovative projects (Edwards et al.,
How Smaller Companies Can Benefit form Open Innovation, Economy, Culture & History Japan Spotlight, 29 (1), pp. 13-15.
November 2005, Published in Dutch The Creative Economy: challenges and opportunities for the DC-regions, Isabelle De Voldere, Eva Janssens, Jonas Onkelinx and Leo Sleuwaegen, April 2006, Published in English Spelers uit de televisiesector getuigen:
the relevance of the experience economy for innovating SMES...22 2. 4. Different ways SMES can create value...
We also focus on the role of the experience economy as one way to create value.
the relevance of the experience economy for innovating SMES New offerings can create value for customers in different ways.
In today's service economy, many SMES wrap additional services around their products to increase customer value in exchange for a premium price.
and scope economies become the dominant driver to gain and sustain competitive advantages. As the next examples will show,
First, SMES create the majority of the jobs in these industries in Western economies. Moreover, globalization and commoditization threaten many jobs
A discovery driven approach, Long Range Planning, 43,247-261.20 Pine, B. G. and Gilmore, J. H. 2011), The experience economy, Harvard Business Review
Pine, B. G. and Gilmore, J. H. 1998), Welcome to the experience economy, Harvard Business Review, July-August, 97-105;
Kenniseneconomie (Knowledgeand Economy. Statisticsnetherlands, Voorburg, Thenetherlands. Teece, D.,1986. Profitingfromtechnologicalinnovation: Implicationsfor integration, collaboration, licensingandpublicpolicy. Researchpolicy 15,285 305.
Regional Innovation Systems and Clusters in the Asymmetric Knowledge Economy. In: Breschi, S.,Malerba, F. eds..
EU Economy H200626 19-12-2006 Export Orientation among New Ventures and Economic growth H200625 18-12-2006 Institutionele voorwaarden voor zelfstandig ondernemerschap
Kenniseneconomie (Knowledgeand Economy. Statisticsnetherlands, Voorburg, Thenetherlands. Teece, D.,1986. Profitingfromtechnologicalinnovation: Implicationsfor integration, collaboration, licensingandpublicpolicy. Researchpolicy 15,285 305.
November 2005, Published in Dutch The Creative Economy: challenges and opportunities for the DC-regions, Isabelle De Voldere, Eva Janssens, Jonas Onkelinx and Leo Sleuwaegen, April 2006, Published in English Spelers uit de televisiesector getuigen:
the relevance of the experience economy for innovating SMES...22 2. 4. Different ways SMES can create value...
We also focus on the role of the experience economy as one way to create value.
the relevance of the experience economy for innovating SMES New offerings can create value for customers in different ways.
In today's service economy, many SMES wrap additional services around their products to increase customer value in exchange for a premium price.
and scope economies become the dominant driver to gain and sustain competitive advantages. As the next examples will show,
First, SMES create the majority of the jobs in these industries in Western economies. Moreover, globalization and commoditization threaten many jobs
A discovery driven approach, Long Range Planning, 43,247-261.20 Pine, B. G. and Gilmore, J. H. 2011), The experience economy, Harvard Business Review
Pine, B. G. and Gilmore, J. H. 1998), Welcome to the experience economy, Harvard Business Review, July-August, 97-105;
or in the small group of successful startups, such as Google, e-Bay or Amazon, surviving the new economy bubble,
the slowdown in productivity in the European economy since the mid-1990s and the opening of a wide productivity gap with the USA since then.
In turn, the productivity gap is considered to be the main source of the gap in rates of growth between the two economies.
and communications technology in the second half of the 1990s, followed by rapid productivity growth in the market services sector of the economy in the first half of the 2000s.
whose impact on the economy is pervasive, transversal, and deep (Bresnahan and Trajtenberg, 1995). Ten Raa and Wolff (2000) identified the sectors that are most responsible for the growth in total factor productivity in the period 1958 1997 in the USA,
But why did the US economy adopt ICT earlier and more productively, first in the manufacturing sector, then in the market service sector?
External economies and economic progress. The case of microcomputer industry. Business History Review, 66,1 50.
In Research and Innovation Policies in the New Global economy. An International Comparative Analysis, P Larédo and P Mustar (eds..
Engines of growth in the US economy. Structural Change and Economic Dynamics, 11 (4), 473 489.
One further feature of Hungary's development goals is its shift to a low carbon economy,
competitiveness of enterprises (TO3) and low carbon economy (TO4) in relation to allocation account for 58.9%at national level.
TO4) the country will spend 13.25%of the ERDF allocation to promote the low carbon economy further to the EUR 845 M dedicated from the Cohesion Fund.
and environmental related actions planned under TO4 (low carbon economy), TO5 (climate change) and TO6 (environment protection and resource efficiency),
-carbon economy in all sectors; 1 425 387 797 0 845 597 151 532 278 345 5 000 000 2 808 263 293 (5) promoting climate change adaptation,
compared to the US and also to some Asian economies. For example, while the US are home to companies such as Google, Microsoft and Amazon
since the definition of gazelles includes for example new companies that grow from ten to 18 employees within three years reaching a size that does still not make much difference from a regional or national economy point of view.
or economy outside the government. 13 Policies include, but are limited not to, taxation, regulation, expenditures, legal requirements and prohibitions,
One with OECD economist Jonathan Potter, one with US venture capital and innovation policy advisor Burton Lee,
Unfortunately this picture is only a fragment as four of the six largest European economies (Germany, France, UK,
A study by the Finnish Ministry of the Economy published in 2011 found that in the period 2006-2009,691 newly founded companies fulfilled the OECD criteria for high growth,
for high-growth innovative SMES v1. 6 27 A Kauffmann Institute study of the US economy in 2010 with data for 2007 contained 5. 5 million firms.
and only in large diversified metropolitan regions. 42 Several studies by the Finnish economist Erkko Autio published in 2007 substantiated the importance of a small share of high-growth enterprises for overall
some argue that governmental policy for promoting technological entrepreneurship can contribute to the vitalisation of the national economy through the generation of new jobs
and implementation in order for economies to take full advantage of their entrepreneurial potential. 54 The study
connecting 37 national and international financiers with 25 Finnish growth companies. 75 At the beginning of 2008 the innovation department of the Ministry of Employment and the Economy established a division for growth ventures.
There are empirical indications that a well-functioning venture capital market is conducive to growth not only of single companies but also of national economies:
So the general lesson is that policies for high-growth of SMES may seek to diversify a national economy's key sectors.
Some economists take the opinion that only the market can determine what the optimal amount of entrepreneurship is.
This position is supported by US economist Scott Shane: Getting economic growth and jobs creation from entrepreneurs is not a numbers game.
These countries are however very different in terms of population, economy and the prime criterion here SME policies:
has been a major policy player in promoting growth of SMES and the Korean economy at large. SMBA applies more than 100 SME promotion measures.
Korea's overseas market development policy has transformed the country from being poverty-stricken into the world's 15th largest economy.
The new focus is on the promotion of Global Star SMES as the backbone of the economy.
The introduction of policy schemes for supporting this group of enterprises will probably impact the Korean economy dramatically in the coming years.
References This case study has been conducted by Yoo Soo Hong, Director of the Institute for Global Innovation Economy (IGIE),
These employ 60%of Singapore's workforce and contribute an approximate value-added of 40%to the local economy.
of the local economy. Consequently, investments by Singapore's government are expected to rise steadily. However, as there are no evaluations of government support available,
/Singapore Budget 2010-Towards An Advanced Economy: Superior skills, Quality Jobs, Higher Incomes<http://www. mof. gov. sg/budget 2010/download/FY2010 FLYERS FOR BUSINESSES. pdf>Singapore's National Day Rally 2010, Part 2:
Why Venture capital is Essential to the Canadian Economy-The Impact of Venture capital on the Canadian Economy.
The Economic Importance of Venture capital Backed Companies to the U s. Economy, 2008, June at http://www. asiaing. com/venture-impact-the-economic-importance-of-venture-capital-backedcompanies-to-the-u-s-ec
(i e. corporate groupings) in stimulating the domestic economy. The new concept guiding SME policies became to develop
revised in July 2010, specifically identifying SMES as one of the main drivers of the economy.
Second, they should pioneer new frontiers, especially in the areas of inbound tourism and local economy revitalisation.
Ministry of Economy, Trade and Industry (www. meti. go. jp) White paper on Small and Medium Enterprises in Japan:
Ministry of Economy, Trade and Industry (www. meti. go. jp)( p40 70 in 2009wp) Ministry of Education, Culture, Sports, Science and Technology (MEXT.
the consulting branch of the Institut der deutschen Wirtschaft (IW, Institute for the German Economy).
which was established in 2005 with the objective of identifying trends and challenges of structural changes of the economy.
Policies for high-growth innovative SMES v1. 6 88 tribute the bulk of new jobs in a national economy, it would be a waste of resources to foster specifically those companies that would grow anyway.
Economists suggest that policy should not principally favour SMES. Which type of enterprise generates most innovations
Since there are empirical findings supporting the importance of high-growth SMES for employment in developed national economies,
Ministry of Education and the Ministry of Employment and the Economy: Evaluation of the Finnish National Innovation System Full Report.
Ministry of Employment and the Economy (2011: Growth Enterprise Review 2011. Finnish: Kasvuyrityskatsaus 2011. Available at http://www. tem. fi/files/29659/TEM KASVUYRITYSKATSAUS 2011. pdf. Policies for high-growth innovative SMES v1. 6 100 Moore, Geoffrey (1998:
High-growth firms and the future of the American economy. Kauffman Foundation Research Series: Firm Formation and Economic growth.
Ministry of Employment and the Economy of Finland, http://www. tem. fi/?/l=en&s=2383, last accessed May 2011.
Interviews Jonathan Potter, OECD, Senior Economist, Local Economic and Employment Development. 1 june 2010. Burton Lee, Innovarium Ventures, 17 august 2010.
and immigrants provided by the Ministry of Employment and the Economy. http://www. yrityssuom i. fi***Vigo,
by Finnish Ministry of Employment and Economy The programme bridges the gap between early stage technology firms
The Finnish Ministry of Employment and Economy launched the Vigo Programme in 2009. PROFICT Partners Oy manages the execution of the program.
that have a disproportionately higher impact on the metro area economy. East asia China Zhongguancun Science Park (ZSP) Gazelles Plan The Zhongguancun Science Park (ZSP) in Beijing initiated a Gazelles Plan in July 2003 to subsidise qualified high
Overtext Web Module V3.0 Alpha
Copyright Semantic-Knowledge, 1994-2011