Senior Expert (Advisor) Digital Social Innovation 4 Growing a Digital Social Innovation Ecosystem for Europe
accountability and transparency by supporting journalists and other experts to access information and report key stories
-titioners, researchers, experts, and poliy makers from different European coun -tries, as it was very important for the DSI
employees etc What they were trying to achieve with their service, including any evidence they have
-ment policy experts Engaging citizens and nonprofits to find new ideas These labs focus on opening up government to voices and ideas from outside the sys
key stakeholders, such as domain experts and possible purchasers of the service to establish what social challenges need to be addressed and how
Gohar Sargsyan Adviser and founding member, OISPG; Consultant Logica Daniel Kaplan Founder and CEO, The next-Generation Internet Foundation
Simona Levi Founder, Forum for the Access to Culture and Knowledge Markkula Markku Committee of the Regions, Rapporteur Europe 2020
We would also like to thank the experts from around Europe who attended our DSI policy workshop in Brussels on
numerous experts in the Europe and internationally, some of them are researchers or commentators, others are
development and IT experts, met fortnightly for planning and monitoring, and communication with the team and project reference group was enhanced with the creation of a bimonthly bulletin.
experts, and location of best practice exemplars in HE •Preliminary planning of workshops •Preparation and
problem rather than draw on outside experts to advise on †correct†procedures Each teacher used one or more mobile devices in depth,
consultation services and employee and management training to enhance ICT and managerial skills Policies have shifted over time as firms
most small firms, including micro-enterprises with fewer than ten employees, now have at least one
customer databases with a history of client-specific correspondence help managers and employees to respond more effectively to customers.
3. In this document, small and medium-sized enterprises (SMES) are firms with fewer than 250 employees unless
Micro firms are usually those with fewer than ten employees 4. In this document, unless otherwise indicated, the terms â€oeelectronic commerceâ€
employees and among employees in part because the personnel†s daily routine tends to be extremely busy
A Japanese company with 40 employees, which previously recorded sales representatives†field experience in written reports, has developed a marketing database,
Another firm with 40 employees, has established a company-wide intranet with an on-line BBS (bulletin
board system) which all employees can access and in which customers†claims and inquiries are
and employees for responding to customer inquiries, but also make business processes and knowledge accumulation more efficient.
Canadian manufacturing establishments (plants) with ten or more employees (excluding food processing establishments) drawn from Statistics Canada†s Business Register, shows that those with high productivity
countries, Internet penetration rates for medium-sized firms (50-249 employees) are the same and
sometimes higher than for larger firms (more than 250 employees), with penetration rates of over 80
Small firms (10-49 employees) have a slightly lower penetration rate between 60%and 90%(Figure 1). Even in micro-enterprises, the penetration rate is nearly 60%in most
500 employees, suggests that firm performance, as measured by profit or sales, is associated not with computer
Note 2. For Canada, 50-299 employees instead of 50-249 and 300 or more instead of 250 or more.
100 or more employees. For The netherlands, 50-199 employees instead of 50-249. For Switzerland, 5-49 employees
instead of 10-49 and 5 or more employees instead of 10 or more. For Mexico, Businesses with 21 or more employees, 21
-100 employees instead of 10-49,101-250 instead of 50-249,151-1000 instead of 250 or more Note 3. Internet and other computer-mediated networks
Source: OECD, ICT database and Eurostat, Community Survey on ICT usage in enterprises 2002, May 2003
Data available from surveys in some countries indicate that SMES use the Internet (and e-mail
for better external communications and as a means of obtaining business information. In Japan, the most
fewer than 250 employees in Lanarkshire (Scotland) shows a similar pattern of Internet use. Around 60
Percentage of responses of 1 700 SMES with 300 or fewer employees using the Internet as of August 2001
Percentage of businesses with ten or more employees 0 20 40 60 80 100 De
2. All businesses with 50 and more employees 3. Use, orders received and placed refer to Internet and other computer-mediated networks
70%of firms with 250 or more employees reported on-line purchases, as compared to about 30%of small
firms (10-49 employees) and 50%of medium-sized firms (50-249 employees. In other OECD countries
1. All businesses with 50 or more employees 2. Orders received or placed over the Internet and other computer-mediated networks
2001, selling over the Internet by micro-enterprises with 5-9 employees declined from 16%to 13%and by
firms with 10-49 employees from 21%to 18, %while the number of firms with 50-249 employees selling
on line rose from 17%to 20%.%In Norway, only 12%of micro-enterprises with 5-9 employees engaged in
on-line sales in 2001, down from 21%in 1999, while 28%of firms with 50-249 employees and one-third
of firms with 250 or more employees had on-line sales in 2001, and shares for larger firms are increasing
OECD, 2002c Most Internet e-commerce transactions are domestic rather than cross-border transactions Figure 6). The Eurostat†s E-commerce Pilot Survey indicates that European companies mainly sell over
Businesses with more than 250 employees 0 5 10 15 20 25 >1%>2%>5%>10%>25%>50
Businesses with 10-49 employees 0 5 10 15 20 25 >1%>2%>5%>10%>25%>50
A recent survey of SMES with fewer than 250 employees in 19 European countries shows that around 40%do not use the Internet for selling
Micro f irms w ith 0-9 employees Small f irms w ith 10-49 employees
Medium firms w ith 50-249 employees Note: Percentage of 1 427 firms with fewer than 250 employees not using the Internet in 19 countries (15 EU member
states plus Iceland, Liechtenstein, Norway and Switzerland Source: European commission (2002a In sectors such as construction and among some small retailers, the view that Internet
e-commerce is unsuitable for their business is relatively strong. A study of 20 small construction
contractors in Australia with 2-45 employees suggests that small firms in this industry have been not only
firm with 90 employees and an emphasis on personal contact with clients decided not to adopt the Internet
A study of small ICT companies with 3-80 employees suggests that the Internet was adopted by
Ni-roku is a Japanese magnet manufacturer with 12 employees, which was established in 1940 In September 1997, an employee created the company†s Web site (www. 26magnet. co. jp.
By 2000, annual e-commerce sales of magnet products via the site had reached already more than USD 700 000, and the site
In 1996 a company employee bought a personal computer at his own expense to use the Internet
The professional advice of IT and e-business consultants can help them, but SMES may not easily have access to them because of relatively high cost
1-9 employees or the self-employed, may adopt a simple Web site without any e-commerce function if the
SMES with 10-249 employees in Austria, Greece, Italy, Luxembourg, Spain, Portugal and the United
Percentage of businesses with ten or more employees using the Internet 0 10 20 30
study of 12 Canadian high-technology SMES, most with fewer than 90 employees, showed that these firms
Percentage of businesses using a computer with ten or more employees 0 5 10 15
SMES are those with 25-250 employees, large are those with more than 250 employees. The survey sample sizes are:
Singapore 105 establishments classified as SME and 97 as large firms Brazil, 98 SMES and 102 large firms;
firms with 10-49 employees indicated national differences in consumer protection as the most important
firms (small defined as less than 250 employees. Small firms were less positive about confidence factors
Percentage of responses of firms with fewer than 250 employees using the Internet in 19 countries (15 EU
an average of six employees per agency. On the other hand, the number of potential customers, some of
) Another textile producer with 300 employees does not use the Web for buying and selling because
West country Violins, with three employees in East Devon (United kingdom), is run by a husband and wife, Brian and Felicity Ward-Smith, who purchase, restore
employees. Prize and award programmes may give high visibility and publicity to the best users but may
next steps, offers access to experts and encourages implementation of e-business strategies The SME E-business Information Toolkit provides step-by-step guidance.
Private consultants analyse participants†companies and develop an action plan for them. Each company is allowed 2-5 consultation days
consultant fees Ireland PRISM initiative Using the positive experiences of local SMES as a catalyst for further e-business adoption, the
National branches and 250 consultants help SMES and entrepreneurs prepare and implement their ICT action plan.
Kingdom, e-business advisers have provided small firms with free advice and assistance on the effective use of ICT in 70 centres across 12 regions designated for the UK Online for Business programme.
Finland, the easkel programme covers 85%of direct consultant fees for SMES participating in management training that allows two to five expert consulting days to develop an e-business action plan
Training Competence factors including internal ICT knowledge and e-business management capabilities are crucial for successful adoption,
recognition of the importance for small business managers and employees of ICT applications and required
Spain A programme is designed for micro-enterprises (fewer than 20 employees) in small towns with a special emphasis on training in the use of the Internet, e-mail and new management
and employees to tailor their learning according to their immediate needs. Service users can contact the trained staff in local Learndirect centre for
•Training programmes for SME managers and employees focusing on both technical and managerial skills need to be provided in cooperation with business and sector organisations
managers and employees are focused increasingly on both technical (ICT) and managerial â€oee-businessâ€) skills designed to improve abilities to benefit from e-business strategies
In 2005, the Commission established an expert group on electronic commerce. 80 The expert group is composed of representatives of the Member States, in principle the national points of
Commission services consider the expert group a good forum for the exchange of views experiences and best practices amongst the Member States and between them and the
and the e-commerce expert group has led not to a well-functioning system of notifications of national administrative and judicial decisions
policy makers, stakeholders and experts to carefully analyse the implementation process for setting up the EU trustmark scheme. 149
consultant, regarding the cross-border provision of parcel delivery services, with a specific focus on the alleged price differences between cross-border and domestic parcel services.
that, when employees change jobs, they take their knowledge with them, resulting in knowledge flows between firms (Chesbrough, 2003.
knowledge is generated by the employees, business partner, customers, consultants, competitors business associations, internet sales and service units, internal research and development units and
The literature is rich in providing evidence on customer and employees driven knowledge but proof of enhancing knowledge raised by universities and research laboratories in the
Later on, a firm must carefully maintain its employee relation and The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014
Adviser for Innovation Systems Directorate General for Communications networks Content and Technology DG CONNECT European commission Introduction
Humor from employees stimulates readiness for change and is extremely important in the trans -formation processes of any organisation
High expectation entrepreneurs (HEE's) expect to employ 20 employees or more within five years and are a
Adviser, Innovation Systems EC Directorate General CONNECT Board member Open Innovation Strategy and Policy Group bror. salmelin@ec. europa. eu
Adviser for Innovation Systems European commission, Directorate General for Communications networks, Content and Technology (DG CONNECT bror. salmelin@ec. europa. eu
From discussion with experts a specific focus on intra-logistics processes has been derived for ELLIOT. Intra-logistics deal with
-icians, employees and others. Users are involved in an indirect way here: UX model analyses have been
settings, individual comfort of office employees work efficiency, and reduction of energy consumed by an office during regular work hours.
employees, was equipped by sensors for moni -toring the energy consumption (Plugwise Circle indoor/outdoor temperature, humidity, and light
expert can react when critical events appear These were the main considerations, which gave the impetus for development of the Bulgarian
•People do not trust advisers anymore •New technological ways to measure stress and
Partner, Senior Business Consultant CGI Group Inc gohar. sargsyan@cgi. com Jaspar Roos Chief Inspiration Officer
This principle was outlined initially by the Expert Group †Knowledge for Growth†in 2008. The point
of departure for the Knowledge for Growth Expert Group was the innovation system research and the
duced an impressive number of startâ ups, including 300 founded by former Nokia employees Microtask outsources office work.
Supercell†s employees are what you would expect: men with beards and ponytails who take time out from their comâ
companies that this is a great way to reward their employees and free them from domestic
Hemfrid now has 10 000 regular customers and 1 326 employees, 70%of them born abroad
employees in Finland and had a turnover of $100m in 2011. Michael Hed, the company†s CEO
-ing employees and tackling public health challenges Not welcomed by all members and initially with some
•Marketing/consulting experts •Access to Finance • Legal & administrative support •IP rightsâ€
•Marketing/consulting experts •Finance & debt management • Internationalization support •Business Development
of 30.11.2011 on the independent expert evaluation on the EIT. COM (2011) 816 final 11) Schumpeter, J. 1934), The Theory of Economic
occurs when employees are engaged in what they like or think they are trained specially. †It is likely
Employees who are motivated at work are more likely to be persistent, creative and productive They will also be much more permeable to learn
of common goals with employees that the old model based on performance metrics in monetary terms
and adaptability by employees in order to be executed smoothly inside the organisation. We all know there is usually an innate resistance in humans and only
Motivation and Performance of Employees. International Journal of Business and Management. 2013. Available from http://dx. doi. org/10.5539/ijbm. v8n14p80
Whether as customers, employees, managers financiers, partners, or citizens in communities every stakeholding individual can bring capital to
and external experts led by Symnetics, a consult -ing organisation, over multiple phases. In the first
-pendent expert group concerning European Inno -vation Partnerships (EIPS) as a Tool for Systemic Change (2
Independent Expert Group, Publications Office of the European union, Luxembourg,(Online), Available at http://ec. europa. eu/research/innovation-union/pdf
employees around the world. They are able to design and manufacture electronic components devices or systems.
-nies, electronic textile (12) experts, platform pro -viders and service application developers working together in the business ecosystem (as described
-inars, individual mentoring by experts, organ -ised networking, and support for business plan -ning and development
•provision of training, mentoring and experts support on necessary technologies, tools business and entrepreneurial skills to build
-ing experts and practitioners on market access, risk finance Stage 3: Adopt & Promote projects, products
experts. Grantees who successfully graduate from the programme with a marketable application will receive support for access to finance (accelerator
impossible by many experts, John Harrison, the son of a carpenter, invented the first †marine chronom
Popular Science, the network of experts with ac -cess to the challenge spans 12 million people.
-ard tool for consultants and practitioners alike. How -ever, its linear and process orien ted model, separat
performed by employees and outsourcing it to an undefined (and generally large) network of people
moderated by enthusiast employees. He asked the question †how might we leverage user contribution
At the same time, the expert -ise in this case had already been lost and there remained no possibilities to gain back the loss of
Then strategy consultants spend months interpreting the data, decide what it means and suggest a course of action
Humor from employees stimulates readiness for change, thus the organisation should foster inter -nal approval of positive humor and the expression
Partner, Senior Business Consultant CGI Group Inc gohar. sargsyan@cgi. com Foreword Introduction Acknowledgements Executive Summary
customers and external experts into their innovation processes (Mckinsey, 2008. It has been suggested that this open innovation approach, especially
individuals, designers, retired employees, scientists suppliers, or other enterprises for new ways to generate idea,
employees when selecting our interview partners Five of our selected companies represent micro firms with less than 10 employees, while ten of
them employ between 10 and 50 employees. The sample of interviewees was selected in a way to provide a broad range of work fields in the area of
craftsmen businesses including carpenters mechanical engineers, metal workers, footwear producers, sports equipment technicians, electrical engineers, bricklayers and manufacturers of
an expert in open innovation studies. To ensure that the insider†s perspective did not bias the results, the
Also, internal sources such as employees are still considered important sources of innovation Interviewee 8: â€oeyou have to consider that the
employees, who are working on the front line and who have gathered a tremendous amount of experience within their specific area of expertise
our employees are actively involved in the development process of new ideas. I am the one responsible for condensing and
are made in collaboration with our employees because without their involvement it is difficult to consequently succeed. â€
customers, employees and other corporations are accepted as sources for invention. This study supports theoretical assumptions, which point out
that large firms(>250 employees) are collaborating on average with more external partners than small firms.
innovation experts. Some cases where not useful to illustrate open innovation in SMES. Other companies were acquired just
should have less than 500 employees. The companies are active in a wide range of industries.
and have 500 employees; other companies are just a few years old and have less than five employees.
The reader should thus not be surprised by the heterogeneity 13 of the cases. The diversity of the themes we will discuss illustrates how open innovation can take
learning process led by sleep experts. The QOD case illustrates that developing a successful business model that ultimately changes the industry starts with nothing more than the conviction of a well
less than 20 employees) that is active in the bicycle accessory market. It is a third-generation, family
and material experts. The third step is promotion. In this step, Curana organized information sessions to promote its new ideas among potential customers.
collaboration with external production partners, mold makers, and material experts Using the so-called Original Strategic Management (OSM) model, Curana and its innovation partners
After consulting with an examination board of sleep experts, QOD decided to produce a functional quilt that would reduce the temperature variation under the quilt to
It combined valuable insights from sleep experts with the PCM technology, which has required the characteristics to improve sleep.
and tested with the help of medical experts. QOD€ s first functional quilt†branded as Temprakon†was the result of linking PCM technology with insights about sleep comfort
Jaga also explored initiatives to spur the creativity of employees and external partners by setting up
of Saflot Creative Consultants) added: â€oeour antennas are open to society and technologies, and we record a lot.
employees, for instance, did not understand why management was preoccupied with managing the network of partners while internal management problems also had to be solved.
firm in the case inventors are companies doing contract research, external designers, or employees Several firms we interviewed chose not to co-patent an invention that was developed co with their
Universities, research labs, crowds of experts, lead users, and knowledge brokers are just a few examples of potential external sources of kn owledge.
packaged with an inspiring recipe booklet, written by a culinary expert, which contains 30 easy-to
consultants develop. In contrast, they are spurred to take action when they are confronted with the testimonials of entrepreneurs who are using open innovation successfully to develop new businesses
SMES are companies with less than 250 employees (N=792; lager companies (â ¥ 250 employees;
N=175 The calculation covers the period 2002-2004 Open innovation can be measured in different ways.
labs, private R&d organizations, and consultants (iv; institutional sources (universities and university colleges (v), government and public research organizations (vi)),
reflects external R&d per employee Collaborative innovation indicates whether innovating firms engage in collaborative innovation activities with
consultants and private R&d organizations iv); ) universities (v; and public research organizations (vi. Collaborative innovation is captured by calculating
collaboration per employee Variable Small and medium-sized enterprises N-SME=792 Large firms N-large=175
Moreover, small contests can be held among employees, suppliers, and local communities of designers, engineers, and so on
Customers, employees and other firms are the most common sources of new ideas, but the use of venture capital, outsourcing of R&d and
Not only customers but also firms'employees can contribute to a firm's overall innovative performance. Both in closed and open innovation paradigms, individual
employees play a crucial but different role. Thus, a firm should foster a culture in
-organizational networking between employees of different firms. Several case studies illustrate that informal ties of employees with employees of other organizations or
institutions are crucial to understand how new products are created and commercialized (Chesbrough et al. 2006). ) Morgan (1993) observed in the early
processes had diminished a role in favor of informal networks of employees. These networks were in many cases cross-boundary linking employees of (locally bounded
10 networks of firms. The strength and dynamics of these connected groups of employees has a significant impact on firms'knowledge creating capability.
1 Another important dimension of technology exploration is inter-organizational networking. For instance, R&d alliances between noncompeting firms have become
to how informal networks of employees in networked organizations may facilitate (or hamper knowledge creating and integration
provides evidence that small firms (firms with less than 1000 employees) continually increased their share of total industrial R&d spending in the US during the last two
employees were still responsible for 38%of total industry R&d spending in 2005 compared to 71%in 1981 (National Science Foundation, 2006.
inclined to use networks and customer and employee involvement in the innovation process, we expect to find that in general manufacturing firms are involved more in
SMES are defined as firms with up to 500 employees. However there is still great difference in the innovation strategies of small firms (up to 100
employees) and medium sized enterprises (100-499 employees. The innovation processes of larger firms are structured typically more and professionalized, and
-organizational networks, the involvement of employees and that of customers in the innovation processes seems to be equally feasible for both small and large SMES, the
Netherlands, defined as all firms with no more than 500 employees. Firms with less than 10 employees (i e. micro-firms) were excluded from the sample, because in
general they have no or very limited in-house R&d activities. Besides, the population of micro-firms contains a relatively high share of start-ups.
Type of industry 10-99 employees 100-499 employees total Manufacturing †food and beverages (NACE codes 15-16) 40 21
To measure the role of employees, respondents had to indicate to which degree employees were stimulated to contribute to innovation processes, e g. by investing in
employees†ideas and initiatives, creating autonomous teams with own budgets to carry out innovations, or stimulating employees†external work contacts in order to
employees that belong to the R&d department and those that are coming from other organizational parts of the company
%Employee involvement 93%42%57%1 %Network usage in innovation processes 94%29%67%4
of network partners, customers and employees in innovation processes is fairly 21 common among Dutch SMES.
Especially employee involvement, customer involvement, the use of network partners and (to a lesser extent) outsourcing of R&d have experienced a substantial increase in
Customer involvement, employee involvement, and the usage of networks in the innovation process appear to be the main types of open innovation practices
Employee involvement 94%93%0, 4 0. 41 0. 41 0, 1 Network usage in innovation processes 95%94%0, 3 0. 24 0. 26 0, 3
Table 4 shows that larger SMES (100-499 employees) are on average much stronger involved in outsourcing R&d, participation in other firms and in-and out
-licensing, as compared to the small SMES(<100 employees. Both size categories show no significant differences with respect to customer and employee involvement
networking with partners because these are practices that have no discriminating power since all firms are involved actively in them.
employees n=376 100-499 employees n=229 F-value 10-99 employees n=376
100-499 employees n=229 F-value Technology exploitation Venturing 27%32%1, 9 0. 11 0. 14 1, 5
License IP to other firms 6%16%18,9**0. 01 0. 04 2, 1 Technology exploration
Customer involvement 97%98%1, 2 0. 30 0. 50 22,8 **Employee involvement 92%96%3, 0 0. 37 0. 48 7, 5
*Network usage in innovation processes 94%95%0, 2 0. 20 0. 33 8, 8
**Employee involvement 98%99%38%388,9 **Network usage in innovation processes 99%100%44%317,7
the involvement of network partners, customers and employees in their innovation processes. Some of them also rely on outsourcing of R&d,
customer involvement and to a minor extent on employee involvement and network partners. This is, of course, a (too) narrow interpretation of open innovation
**Employee involvement 0. 53 0. 43 0. 07 18,2 **Network usage in innovation processes 0. 29 0. 27 0. 05 5, 1
Share of firms with 100-499 employees (vs. 10-99 empl. 55%34%25%12,0
non-R&d employees in the innovation process The different answers of the respondents to the question what drives them to get
and ideas of current employees Policy*Organization principles, management conviction that involvement of employees is desirable
Motivation*Involvement of employees in the innovation process increases their motivation and commitment *Only used for coding motives related to employee-involvement
Table 8 below shows that for almost all open innovation practices pursued by SMES the most important motives are market-related ones.
For the majority of respondents using new innovation methods is regarded as a way to keep up with market
involvement of non-R&d employees in the innovation process: this innovation practice is related to three motives that are clearly different from the other motives
Employee involvement n=256 Control%1 1 3 1 1 9 Focus%3 8 0 1 0
Employee involvement is the only type of innovation in which the respondents do not mention the objectives listed in the other types of innovation.
respondents that involve non-R&d employees in their innovation process do so because they feel that the skills of their employees can be utilized in a more efficient
way, and that they can complement the innovation initiatives of the management and/or R&d department.
In addition, many companies involve employees for motivational reasons. Up to 15%of the respondents is convinced of the added value
of employee involvement for innovation; often this is part of the firm's policy in this case. Another 22%sees the involvement of employees mainly as a way to motivate
them. The direct impact on the bottom-line in that case is less important as employees are engaged primarily in the innovation process to increase their overall performance
on the job. Finally, market considerations are also important: after all, employees may be closely related to the market
and therefore have a better idea than managers or engineers about the potential success of products and the problems they experience
In this case, employee involvement is a valuable source of knowledge in the innovation process Finally, there are also motives that are primarily related to specific types of
Competent employees Employees lack knowledge/competences, not enough labor flexibility Commitment Lack of employee commitment, resistance to change
Idea management Employees have too many ideas, no management support Table 10 shows the extent to which the barriers mentioned above matter for each of
the different types of open innovation activities. Organization and corporate culture -related issues that typically emerge
or, in the case of venturing, employees who leave the organization. These inter-organizational relationships frequently lead to
Employee involvement n=88 Administration%28 13 10 --Finance%10 0 5 --Knowledge%5 5
employees %--24 Commitment%--51 Idea management%--8 Other%8 3-8 -Total%100 100 100 100 100
When involving employees, it often turns out that they do not have required the 35 capabilities or skills to make a valuable contribution to innovation,
up any of the ideas provided by employees or that the number of ideas coming from
individual employees just gets too large to handle in an efficient way. This, in turn poses new challenges to managers when they want to get the most out the creativity of
Conceptualizing entrepreneurial employee behaviour H200801 12-11-2008 Investigating Blue Ocean v. Competitive Strategy: A Statistical
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