, computer hardware, computer software, and per -sonnel)( Krishnan and Sriram 2000. Over time, firms that invest more than their
competitors in IT tend to realize greater returns from the marketplace (Bharadwaj 2000). ) However, there is not a substantial
-lights that due to advances in computer technology, the declining cost of systems and improved software and technologi
-cal sophistication of the workforce, no longer are reserved adaptations for the technologically elite, which results in
and the support of firm core competen -cies (e g.,, Aral and Weill 2007; Oh and
, hardware, software, and person -nel) relative to other competitors within the same industry. Drawing upon a
number of personal computers and ter -minals per employee Firm Performance. The firms partici -pating in this study were SMES that
expand their core capabilities in the areas of products, knowledge, and skills Because investing in capabilities like
this power to support the core compe -tencies of the firm successfully can have a competitive advantage.
-mation Management and Computer Security 7 (1), 5†22 Jà reskog, K. G. 1978. â€oestructural Analy
Enterprises, †Journal of Computer Information systems 45 (3), 88†95 King, S f, . and T. F. Burgess (2006
Government Printing Office Steiger, J. H, . and J. C. Lind (1980). â€oesta -tistically Based Tests of the Number
country displays a fairly even performance across all 12 pillars of competitiveness. Notable strengths include its
to put their short-and medium-term growth outlooks on a â€oeglide path to steady growth. †3 With expected
Despite this rather optimistic outlook, the region may face the interrelated potential headwinds of a less
outlook. Indeed, the region has bounced back rapidly from the global economic crisis, when GDP growth dropped to 2. 8 percent in 2009.
os tr um N ur ey ev S tr au ss an d si lk
os tr um †S S S co nt ai ne r li ne r
os it iv e T he be nc hm ar k sc en ar io
os it iv e im pa ct C O 2 g r /tn k m
 •Marshall plan in Wallonia  †6 core clusters  •Smart grids Flanders
 •Developing and testing hardware and software for an Internet of Energies  •Integrating grid operation and
electronic marketplace  •Gaining knowhow on interoperability, safety and security  •Testing models of added value
os tly o n pr og ra m m es Â'†w eb si
One core document regarding the energy strategy and transition path of the Flemish region: The Flemish climate policy plan (2006-2012;
with outlook to 2025 to integrate a share of 39%renewable energy into the electricity
German electricity supply system 2015-2020 with outlook for 2025 -Estimation of the enhancement needs iof German distribution grids due to
Report compiled by The swiss Federal Energy Research Commission (CORE. The current Federal Energy Research Concept is valid for the period 2008-2011
Within the concept the core focus points of the energy research between 2008 and 2011 are defined.
-Four-year strategy report (by CORE, Swiss Federal Energy Research Commission): ) Federal energy research concept 2008-2011 (in French or
-Four-year strategy report (by CORE, Swiss Federal Energy Research Commission): ) Federal energy research concept 2008-2011 (in French or
Innovation Agenda gives  â€oean outlook on energy-neutral new construction and sustainable existing buildingsâ â€.
Open Hardware Open Networks Open Data and Open Knowledge Open hardware: These projects are inspired by the global do-it-yourself maker movement and the spread of maker spaces
They make digital hardware available for people to adapt, hack and shape into tools for social change
Safecast, a project that enables citizens to capture and share measurement on radiation levels, is one example of the potential
of open hardware. It was founded in March 2011 as a response to the accident at the Fukushima Daiichi nuclear power plant
hardware circuit board with a microprocessor, Safecast built their own Geiger counters. These were given to local volunteers
data, open hardware, open networks, and open knowledge; and they give rise to new DSI areas such as:(
Open Hardware Organisations M or e Fi lt er s Screenshot of the crowdmap www. digitalsocial. eu
Open Hardware Organisations M or e Fi lt er s 1 2 3 WHY IS DIGITAL
-ogies such as open hardware may have positive network externalities. Â This network effect applies in a straight
we stress the potential of collective intel -ligence as a self-sustaining, self-directed inte -grated and distributed cognitive sys
-ent operating systems such as Windows and Android, open standards have fostered innovation by allowing technologies like web browsers to be implemented over dif
-ferent underlying platforms, avoiding pro -prietary systems and vendor lock in on the web. This was a hard
Apple, Amazon and Microsoft control the mobile market and cloud-based services platforms Apple has started a market that was en
open source Android operating system and spawned innovation in applica -tions worldwide; Facebook has enabled the building of thousands of apps and
open hardware, open source software open knowledge, data storage and ana -lytics and are producing valuable data
by US companies such as IBM, Google and Ciscos, partly because of the lack of alternatives Take for example the commercial success
the world†s largest networks of computers and data centres for online-search results and can repurpose their technology in or
networks, open hardware and distributed social networks can potentially serve collective action and awareness. Making data available as part of a
patents, open standards and free software together with the multi-stakeholder governance model Avoiding anti-competitive dynamics and lock in
knowledge, open hardware 4. The area of society the organisa -tions and their activities operate and
Open Knowledge, Open Hardware, Open Data, Open Network. 4 Areas of Society: Health and Wellbeing, Finance and Economy, Energy and
Open sources Foundation that supports projects that offer some kind of collective return, such as the open source DIY shoest
kit8, a project developed with the support of Fablab Barcelona, or http://tuderechoasaber. es, a service that allows citizens to
-cost home 3d manufacturing tools (3d printers, CNC †computer numeric con -trol †machines), free CAD/CAM software, like Blender, 123d or Sketchup, and
open source designs are now giving innovators better access to the enabling infrastructures, products, skills and capabilities they need to enhance collabo
-rative making. â€oereuse, Remix, Recycle†are becoming the keywords of the open hardware and makers movement,
which embodies a combination of different design and technology methods, such as fast prototyping, open design, lean
Open hardware seeks to shift the attention away from consumption and resource ex -ploitation, to the creation of new capacities to build the products that people consume
The open hardware movement in particular is about how people share knowledge, skills and tools,
People working on open source hardware are creat -ing new organisations, such as the Open source Hardware Association, to coordinate
research projects, such as the open source cars Wikispeed, and build farming tools and new fabrication machines like the Reprap and others.
These products are open source and free, with a worldwide community of peers contributing to the collective discoveries
A project like openp2pdesign is opening up design processes and tools to enable collaborative communities to undertake large-scale projects that can lead to innovative
Projects like Open source Ecology are promoting a shift towards a more sustainable lifestyle The makers movement is showing how experiments of collaboration and open culture
Interesting trends are emerging at the intersection between open hardware, DIY culture open source software and open data.
Projects and areas of work like Safecast or open source Geiger, the Smart Citizen Kit and open wearables are showing interesting
3d manufactur ing tools, free CAD /CAM software and open source designs are now giving innovators
better access to tools, products skills and capabilities they need to enhance collaborative making 27growing a Digital Social Innovation Ecosystem for Europe
3d printing facilities (maker spaces and hacker spaces. There are now 96 known ac -tive hacker spaces worldwide, with 29 in the United states, Â according to Hackerspaces
WEFAB, a makerspace in Milan with a focus on open source, design, digital fabrication and micro enterprises
-base, create visualisations using the Openspending software and to use the Openspending API. Although the Openspending
collaboration and decision-making and is piloting open source solutions across Europe engaging new political partices, citizen
Safecast is both the name of a Geiger counter built by the open source community as well as a global sensor network where
counter, built on the Arduino open hardware board The team turned to †the crowd†via crowdfunding platform, Kickstarter,
source software for the collection, visualisation and interactive mapping of information. The primary purpose of Crisisnet is
open data, free and open software and open hardware Github, the collaborative service for open software developers, is revolutionising
the way code is built, shared and maintained by a variety of projects around the globe
such as Diaspora, Status. net or easy-to-run servers like arkos †which make it easy
every four years, organised by the Chaos Computer Club (CCC) 11, an informal associa -tion of hackers from across Europe
The Chaos Computer Club (CCC), Europe†s largest network of hackers, is the most prominent example of grassroots commu
the club also fights for free access to computers and technological infrastructure for everybody. The latest gathering of the CCC in 2012 in Hamburg, Germany, brought together
The Chaos Computer Club (CCC) HACKERS NETWORKS 34 Growing a Digital Social Innovation Ecosystem for Europe
to combine open hardware technologies with new learning methods to experiment with new educational practices, enhanced by the way technology is integrated within the
software foundation Wayra Unltd The Accelerator Healthbox London Clearlyso Angels Bethnal Green Ventures Tor Open
-works, and open hardware Through case study analysis we have sought to build up an understanding of
hardware and open knowledge, are be -ing harnessed by digital social innova -tion. Below we provide a more detailed
on open hardware to build the first Geiger counter sensor kit, on Crowdfunding to fund the development of kit, and on open
with sensors that monitor environmental conditions. Pollution, temperature, humidity and light sensors are installed that provide information that could be used to develop
TOR also enables software developers to create new communication tools with built-in privacy features and provides
computer-friendly formats for anyone to download, use, and analyse, as long as the privacy and data protection of all citizens is preserved
of mobile devices. Smartphones, tablets, PDAS and other devices are becoming smaller faster, smarter, more networked and personal.
Dataflows are also burgeoning as the Internet of things integrates a vast universe of network-aware sensors, actuators
-vited programmers and developers to make apps and web services based on the data which to date have resulted in more than 60 applications for citizens.
formats that make it easy for software developers, researchers, journalists and others to analyse, combine or turn into web
open content, open source and open access PUBLIC DOMAIN Communia The contribution of open knowledge covers the variety of ways in
Arduino OPEN HARDWARE OPEN HARDWARE new ways of making and using open hard ware solutions and
moving towards and Open source Internet of Thingst Open-source hardware consists of hardware whose blueprints are made publicly avail
-able so that anyone can study, modify, distribute, make, extend and sell the design or hardware based on that design.
The hardware†s source, the design from which it is made is available in the preferred format for making modifications to it.
Ideally, open-source hardware uses readily available components and materials, standard processes, open infrastructure, unrestricted content and open-source design tools to maximise the ability
of individuals to make and use hardware. Open-source hardware gives people the free -dom to control their technology while sharing knowledge and encouraging commerce
through the open exchange of designs The work by organisations like Raspberry Pi and Arduino illustrates the
potential in open hardware The core to Arduino is a simple, ultra low-cost circuit board, based on an open-source design, armed with a microproces
-sor which can be programmed with open-source software tools by the user. The idea is that anyone should be able to turn
an Arduino into a simple electronic device such as a light switch and sensor. In 2005, Massimo Banzi, an Italian engineer
and designer, started the Arduino project to enable students at the Interaction Design Institute Ivrea (IDII) to build electronic
devices using an open-source hardware board. Arduino has grown to become popular, selling more than one million units to
international maker movement of D. I. Y. hardware hobbyists, such as makerspaces and Fab Labs This makes Arduino a key building block of many digital social innovation initiatives
relying on open hardware, such as Safecastâ and theâ Smart Citizen Kit. The Smart 47growing a Digital Social Innovation Ecosystem for Europe
Smart Citizen Kit OPEN HARDWARE Citizen Kit is based an Arduino sensor kit that provides sophisticated sensor network tools to citizens,
The Smart Citizen Kit is based on two core components; the †kit †itself and the platform used to share data between people operating a kit.
UK and Amsterdam in The netherlands, have shown an interest in supporting citizens to monitor environmental data and have
Another big trend related to open hardware is the evolution of the Internet of things Iot). ) People, places,
from open sources and the best possible alignments of my local providers with the global potential of wider communities†(Van Kranenburg 2014
Open Hardware Open Networks Open Knowledge Open Data Arduino Avaaz Avoin Ministeriã Bethnal Green Ventures
Open Hardware Open Networks Open Knowledge Open Data Arduino Avaaz Avoin Ministeriã Bethnal Green Ventures
software foundation Wayra Unltd Bethnal Green Ventures Tor Guifi. net Confine Smart Santander Makerfaire The different methods by which these organisations are supporting DSI
-essary to harness the collective intel -ligence of DSI organisations to solve large-scale European social problems
around open hardware and open net -works and includes organisations such as iminds, Fairphone, the City of Amsterdam
hardware network is the smallest overall it is the most highly interconnected and intermixed with open networks.
-edge, open hardware and open networks Even if an organisation is not central and so has only a few links,
-bining open hardware, open data, open knowledge and open networks 56 Growing a Digital Social Innovation Ecosystem for Europe
FB, Apple, Android Federated Social networks Diaspora Crowdsourcing Social web entrepreneurs Startup Europe Smart Cities Internet of
FB, Apple, Android Federated Social networks Diaspora Crowdsourcing Social web entrepreneurs Startup Europe Smart Cities Internet of
metaphor of emergent collective intel -ligence, and combines the informal na -ture of social networks with a methodo
networks based on open source code and open standards to promote open democracy collective debate, deliberation and voting.
software patents Banning software patents and defending Network Neutrality will keep bottom-up innovation feasible and affordable
Software packages that are patented can be expensive and less accessible to potential individual innovators. Also the
Internet needs to continue to be a neutral space where creativity can continue to flourish
They combine investments in new hardware and software with experi -ments to discover better ways of delivering healthcare or reducing carbon emissions
open source software) can be obtained at a lower cost with a better quality from reliable suppliers, and that open standards and interoperability are implemented.
source software should be easy to acquire from government at all levels Open source procurement As an example, in 2004, the UK government launched
(and reviewed in 2009 and 2010) its policy on ICT32 where special at -tention was paid to open source procurement.
In this respect, a toolkit was used to ensure that there is a level playing field for open source and that some of the myths associated with open source are dispelled.
Participating in open procurement calls should be made easy Public procurement of innovative solutions Commissioning tools could also be set up to see if the deployment of the DSI strategy
standards should be at the core of the technical infrastructure. Open standards should have an adequate legal and governance backing,
funding and all public-funded software should use open standards. For a definition of open standards, see Openstand Principles48
Today mobile devices with always-on Internetâ connectivity are becoming widespread 74 Growing a Digital Social Innovation Ecosystem for Europe
It can also include the development of open source mobile phone alternatives such as Fairphone69 on top of which a whole
new open ecosystem of services and applications could flourish, based on open-source and open-hardware developments
and Makerspaces with free software and open hardware training, or by the Open Data Institute (ODI) and Open Knowledge
analytics software to test demand Fi na n -ci al V al ue There has to be a market for
cohort/panel study, regular interval surveying Level 3 You can demonstrate that your product/service
and proliferation of open source projects or creative commons licenses Building on the above discussion, this table outlines the measures that a framework for
In general, European funding has invested heavily in core European institutions in terms of digital innovation, in particular the formerly nationalised telecommunications companies,
Interoperable, customised and modular services and applications based on open source, open access and open hardware can then be built on top of a public federated platform in a dynamic and flexible way,
plugging into existing and future Internet infrastructures At regulatory level, The Digital agenda emphasises the need to adopt open standards and interoperable solutions to
become public policy guidelines at the core of the technical infrastructure Technical solutions do not work by themselves,
Big OTT are Google, Skype, Youtube Netflix, Facebook, Amazon and EBAY 4 Sestini, Fabrizio.``Collective awareness
/outlook/e-outlook/stipolicyprofiles /competencestoinnovate /taxincentivesforrdandinnovation. htm 39 http://crowdingin. com 40 http://www. lanzanos. com
-outlook-19991428. htm 85 https://www innovationpolicyplatform. org Figures Page 25 Natalie Ortiz (2012) â€oeouishare Summit
-computer-clubs-ccc/2872403-1-ger-DE /Teilnehmer-des-29. -Jahreskongresses -29c3-des-Chaos-Computer-Clubs-CCC
jpg Accessed 29th january 2015 Page 34 http://www. e-living. net/sites/default /files/field/image/internet-of-things-2. jpg
Hd Desktop 10†online Audphoto. com Available from: http://aduphoto. com /earth-from-space-at-night-wallpaper-hd
the best known being expert panels and multi-round Delphi surveys. They differ in their expected benefits, conditions of use, time
Expert panels XX X X X X X Delphi survey X X X X X X XX X
Cohesion Policy adopted by the international panel of experts advising the EU Commissioner for Regional Policy
Regional Innovation Monitor, 32 based on Benneworth and Dassen 201133 An element closely intertwined to formulating an effective vision is RIS3 communication.
builds and reinforces the regional identity and puts innovation at its core; attractive and dynamic web pages, including parts in English for wider dissemination;
Open source-Open science Markets for knowledge Regional industrial policy Innovation-oriented public procurement Source: OECD 2011
os ys te m s tr at eg y 'M ed iu m -te ch
long-term, the programmer may use intermediate result indicators to measure the progress towards the objective.
If the programmers use the latter, they should be aware that these statistics also cover non-beneficiaries
Regional Innovation Monitor OECD 2011 â€oeregions and Innovation Policy†IRE-RIS Guide Directory â€oeno-Nonsense†to build S3
SMES are thus at the core of Cohesion Policy For the period 2007-2013, the Community Strategic Guidelines on Cohesion
44 See for example the Regional Innovation Monitor initiative at: http://www. rim-europa. eu /45 http://www. eif. org/what we do/jeremie/index. htm
computing resources, software and data repositories) for research and education and any other entity of a unique nature essential to achieving or enabling
their core business and on research for the development of innovations in science parks. They are associated usually with strong networking effects and high levels
nanoelectronics, photonics, embedded systems, smart integrated systems and complex systems engineering, next generation computing and future Internet
•are catalysts for structural change and diversification in many industrial zones and rural areas with the potential to rejuvenate economies,
•funding for international core, close to-market and supporting R&d In some cases bold regional outsourcing or offshoring support policies should be
in core European transport projects can be challenging due to the relatively high levels of revenue volatility in the projects'early operating stages.
Among the core measures that should be encouraged are 109 •Commissioning a strategic analysis and approach on the region's own
authorities are encouraged to put eco-innovations at the core of their innovation 161 http://ec. europa. eu/energy/technology/set plan/set plan en. htm
Therefore, innovative methods need to be taken into account to monitor and manage nature in broad partnerships that include the business community, the
in the outlook of actors. This can lead to increased efficiency and the delivery of
Horizon 2020 †Innovation in SMES€ is a bridge between the core of the framework
Where appropriate, a Panel Review will be organised remotely Applicants can provide during the electronic proposal submission up to
The core of the IMP rove platform is a benchmarking database for †innovation management performance†with more than 3500 quality checked
monitors 0. 92 of which 0. 10 from 02.040203 and 0. 82 1. 14 of which 0. 20
most peripheral and deprived areas Food and feed security and safety, the competitiveness of the
research is at the core of developing innovative technologies and ways of working that will make the changes required to preserve
affordable devices, such as smartphones and tablets. The Commissions is investing â 4. 4 million to support 12 different
well this new software works. Researchers in the TABULA RASA project are looking into the growing phenomenon
Tim Dubel, Microsoft Corporation James Farrar, SAP AG Marzyeh Ghassemi, Intel Corporation Carla Hartwig, Microsoft Corporation
Genelle King Heim, Cisco systems Jonas Moberg, Extractive Industries Transparency Initiative My Luu, IBM Corporation Diana Pallais, Microsoft Corporation
Fred Tipson, Microsoft Corporation Fay Hanleybrown and Adeeb Mahmud of FSG Social Impact Advisors and Jennifer Nash of the CSR Initiative also provided
thoughtful and useful comments on various drafts of this report Rights and Permissions The material in this publication is copyrighted.
Quoting copying, and/or otherwise reproducing portions or all of this work is permissible using the following citation
Kramer, William J.,Beth Jenkins, and Robert S. Katz. 2007 The Role of the Information and Communications technology
5. 4 IBM and IFC€ s SME Toolkit 5. 5 Cisco Networking Academies†Least-Developed Country Initiative
The research that has gone into this series also suggests that company efforts to expand economic opportunity can draw upon core
Today, the sector includes hardware, software, the Internet, telephony, and content, application, and support service, provided by entities ranging from corporate giants to garage entrepreneurs to individual
As Microsoft has pointed out, â€oein order to realize their potential, these technologies must be part of a mix of sound government policies
generate new demand for hardware, software, and services Mobile telecommunications took 20 years to reach one billion users,
If the purchase in question is a physical product such as a computer or mobile phone, it must not only be affordable, reliable,
The One Laptop Per Child project, for example, is considering all of these factors in developing a computer that is â€oeultra low-cost. †20
Second, as local ICT ecosystems develop, local equipment manufacturers, software developers, content and service providers, and others †including users themselves †can also be sources of innovation,
either adding value to the technologies large companies are offering or informing innovation by those companies themselves
its powerful search engine to functions and capabilities many of which the company itself had imagined never Rather than threatening Google, this external activity has made its product more essential and the company
as manufacturers, software developers, or retailers Large ICT companies are also engaging in human capital development on a significant scale.
perennial cash flow problems smaller firms face. 29 Other companies, such as IBM in Argentina and HP in
supplies computers and connectivity to village-elected farmers who access market prices locally and around the
Technology Access initiative, Microsoft was able to construct a multi-party deal that offers entrepreneurs and small business
owner-operators training, software, and connectivity to the e-procurement portal, which increases their willingness to invest in PCS,
networks or ecosystems, spanning from component and equipment manufacturers to independent software developers and vendors to distributors and retailers to systems architects to technical support services.
its revenues. 38 SAP, the world leader in collaborative enterprise software with 50%of the market, employs
Intel, for example, uses more than 2, 000 small-and medium-sized suppliers in Malaysia alone. 40 Cisco has partnered with Citigroup, GE Capital Solutions, and Standard chartered Bank
•Microsoft Innovation Centers: Through 110 Innovation Centers in 60 countries, Microsoft works with local
universities, industry associations, government agencies, and NGOS to offer training, mentoring, and incubation services to help individuals
and entrepreneurs establish careers and businesses in the software industry †at the same time laying critical foundations for its own future growth
opportunity, leveraging the core competencies their parent companies to invest in SMES, spin off new ventures serving low-income individuals
Intel, for example, has established four Platform Definition Centers in major developing world cities staffed with ethnographers, designers, engineers,
computers and other devices in one place, provide a bit of preliminary training, and wait for demand to
and Microsoft Corporation jointly fund telecentre. org, a network facility linking and supporting telecenters around the world. 55 There are now at
corporate leaders including Cisco, HP, IBM Intel, Microsoft, and others have created robust education initiatives designed to contribute to a steady
pipeline of potential employees and business partners BOX 4 HUMAN CAPITAL DEVELOPMENT EFFORTS IN THE ICT SECTOR
combinations of funding, curricula, hardware and software donations, employee volunteer time, and other resources according to local needs and goals.
In South africa, for example, Microsoft has partnered with the forest products company Sappi to THE ROLE OF THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR in Expanding Economic Opportunity 19
Intel Teach to the Future Initiative Intel Science & Engineering Fairs Microsoft Partners in Learning
Microsoft Math and Science Education Technology Training and Entrepreneurship Support Cisco Networking Academies Microsoft Innovation Centers
Intel Higher education Program Intel Emerging Markets Development Group IBM-IFC SME Toolkit EO ICT GREY:
Layout 1 14/3/08 15:13 Page 19 train community members in Kwa-Dukuza. 75%of the program†s graduates go on to further education or
employment, mostly with Sappi. 56 3. 3 Building Institutional Capacity ICTS fundamentally create institutional capabilities.
Within companies, government agencies, and civil society organizations alike, they help â€oereorganize and speed up administrative procedures,
increase the volume and speed of information †and permit greater collaboration and sharing of experience. †57 These functions are
critical in the context of expanding opportunity because â€oethere is increasing evidence that a dense and complex
equipment or software donations and training or support services in the form of pro bono time.
example, the Chinese hardware company Lenovo, through its Hope through Entrepreneurship Program supports microfinance institutions such as peer-to-peer lender Kiva. org with donations of laptops and other
hardware that allow these institutions to function more effectively in the office and in the field
•Enabling collaborative governance: Expanding economic opportunity requires collaborative action among the different stakeholders involved.
SAP AG, the market leader in collaborative enterprise software, is leveraging its core competence to help build the capacity for good governance in resource-rich developing
countries through the Extractives Industry Transparency Initiative. The company will be developing software solutions enabling mutual transparency and accountability among the companies and
governments involved THE ROLE OF THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR in Expanding Economic Opportunity20 EO ICT GREY:
pushback, as evidenced by the growing open-source software movement, Creative Commons licensing regimes, and †less constructively †blatant flouting of IP controls
5. 4 IBM AND IFC€ S SME TOOLKIT 35 5. 5 CISCO NETWORKING ACADEMIES€ LEAST-DEVELOPED COUNTRY INITIATIVE 37
and industry associations, Microsoft is helping to catalyze the growth of local software economies through a network of 110 Innovation Centers in 60 countries †helping individuals and entrepreneurs
establish careers and businesses in the software industry and laying critical foundations for its own future growth
Drivers Microsoft sells platform technologies †the Windows operating system, the Office suite, MSN, and others. Its
model is to build 80-90%of the platform itself, and leave the rest †especially in enterprise computing †to a
software vendors (ISVS) to distributors to retail stores Microsoft occupies a unique position in its partner ecosystem.
On the one hand, its continued growth and success depend on the willingness of these and future partners to design products and services for its platforms
On the other hand, while Microsoft is highly dependent upon its partner ecosystem, it also plays an important enabling role within it.
Working with Microsoft technologies partners generate revenues, skills, jobs, and new business opportunities, all of which remain
For every dollar Microsoft generates, its partners generate $9-18, depending on the country. 70 In this context, Microsoft maintains
and strengthens its strategic advantage by driving the evolution of its partner ecosystem in ways that benefit it and the entire system at the same time †as business strategist Jim Moore put
As a producer of platform technologies, Microsoft has a vested interest in the development and success of all
Local Software Economy Group supports the development of new partners by fostering the growth of healthy
software ecosystems around the world. While the Enterprise Partner Group is a critical part of the company†s
near-term business strategy, the Local Software Economy (LSE) Group is part of a cluster of initiatives that helps
lay the foundations for longer-term success. In contrast with other Microsoft programs targeting individuals and
Microsoft subsidiaries build their own LSE strategies based on their particular contexts and needs Microsoft Innovation Centers (MICS) are becoming increasingly common features of subsidiaries†LSE strategies
These centers â€oeconnect people and organizations in the innovation ecosystem and give them access to
plan, research and develop new software products and services, †enabling them to start and grow businesses of
Microsoft then equips the facilities and runs their activities, usually in partnership with business or computer science professors who can ensure
utilities and Microsoft pays for everything â€oefrom the walls in. †Often Microsoft will obtain hardware donations from
other large firms, such as Dell or Hewlett-packard, and sometimes international donors, such as the US Agency
MIC staff usually include Microsoft employees responsible for management and program development, along with student interns or other employees †which Microsoft can co-fund †responsible for administrative support
However, Microsoft†s local subsidiaries make staffing decisions according to their own opportunities and needs and so configurations vary
Microsoft Innovation Centers (MICS) help extend the edges of an already inclusive business model by developing
At the corporate level, Microsoft packages a wide range of activities in three areas †jobs enablement, innovation,
In mature countries, where local software economies already exist, MICS incubate start-ups and broker relationships between entrepreneurs and potential financial backers.
and Mexico, software ecosystems exist but often struggle with quality or limited local market size.
Soviet republics, for example, development skills are generally quite strong and fledgling software economies exist, but Microsoft has little on-the-ground presence †so the company has organized developers into
â€oecommunities of interest†around certain technologies, which work together for eight weeks. Along the way
they receive mentoring from Microsoft employees at headquarters and some of the larger subsidiaries 70%of the MICS are in emerging market countries.
and then post their resumes to business jobs portals where Microsoft partners pay to access them.
or wanting to kick-start local software economies will often pay internship wages or first year salaries for graduates that obtain jobs.
users don†t have to be Microsoft developers It is important to emphasize that, even in emerging market countries such as Nigeria, South africa, and Rwanda
Other Microsoft initiatives, such as the 29,000 center-strong Community Technology Skills Program, provide basic computer literacy training to individuals and communities as part of a longer-term strategy to broaden
digital inclusion MICS concentrate on early-stage partner development. Entrepreneurs who have established themselves with applications, customers,
its network of Microsoft Technology Centers (MTCS), which will help take them the rest of the way.
involves selling a license for platform software. The MICS, while considered business investments, do not
generate direct revenues for Microsoft Results There are currently 110 Microsoft Innovation Centers in 60 countries worldwide. 75 The company aims to open an
additional 200 centers in 25 more countries by 2009 Microsoft measures its success with the MICS according to a number of metrics,
including government perceptions; numbers of users and the activities they engage in; whether they get jobs or start their own
Microsoft generally considers its work done and does not track that person further Alternatively, if a user starts his or her own business,
Microsoft moves that person as quickly as possible to the Enterprise Partner Program, which grows them from there.
Microsoft is creating market opportunity catalyzing â€oevirtuous cycles†in which ecitizens and egovernments interact to drive
Microsoft can Provide for Microsoft, egovernment is a sizeable business, and one the company would like to
a personal computer (PC) will be a significant purchase even at cost. That person will need financing options and
most importantly, a reason to make the financial sacrifice a PC purchase entails. He or she must see a clear
Microsoft has turned this classic â€oechicken and egg†scenario into a business opportunity through an operating
software, hardware, training, government services and technology support. In addition to Microsoft itself â€oetypical†partners include government agencies, financial institutions, independent software vendors, hardware
providers, and Internet service providers. Non-governmental organizations are often part of the PPPS as well Eight business development managers worldwide are responsible for identifying and building PTAS.
They are based in Beijing, Cairo, Johannesburg, Singapore, Mexico city, SãO Paulo, and Buenos aires and Moscow, with
and identify opportunities where Microsoft†s core competencies and technologies could be applied, in partnership with others,
leadership are perhaps the most valuable contributions that Microsoft makes. 77 Each PTA deal must meet three criteria
Microsoft believes this makes them more sustainable, such that the â€oevirtuous circle†they create can continue even after Microsoft has exited from a
formal role. For Microsoft, the â€oewin†is the ability to tap new markets. For governments, it is the ability to provide
public services more efficiently and effectively, hopefully translating into political gains. Nongovernmental organizations typically have based mission incentives to participate.
Activities Government partnerships are at the core of the PTA model. Often the government partner is already
including within Microsoft, PTAS aim to place PCS into homes and small businesses. By the same token,
while many PC donation programs exist, PTAS involve citizens as paying customers. Embeddedness within a public policy objective helps to increase the relevance and value proposition
but for whom a PC purchase would nevertheless be out of reach without financing. Many have no credit histories or even bank accounts.
To secure financing for them, Microsoft has worked with public and private partners on a number of options to reduce risk, such as payment by payroll
value chain linkages with local hardware and software vendors and distributors. PTAS expand these partnersâ€
Microsoft invests in computer literacy and training, which are provided through an 33the ROLE OF THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR in Expanding Economic Opportunity
particular, small and medium enterprises lacking access to computers or the Internet were locked out of the
entrepreneurs and small business owner-operators training, software, and connectivity to the e-procurement portal, which increases their willingness to invest in PCS,
Results PTA deals do not follow a typical Microsoft sales cycle; according to Pallais, they take a lot of time and a lot of
For Microsoft, the number one indicator of success for the Partnerships for Technology Access †as for the
By June 30, 2007, Microsoft had sold 500,000 PCS with genuine Windows operating systems through PTAS worldwide. 80 Microsoft expects to approach one million PC sales in fiscal year
2008 alone. PTAS are measured also according to conventional business metrics such as return on investment ROI) and revenues.
Even more important, Microsoft tries to ascertain whether each PTA succeeds in catalyzing the kind of â€oevirtuous
All else constant, Microsoft has found that the success of a PTA in catalyzing â€oevirtuous circles†of egovernment
adjustments in standard operations. 81 Microsoft bears an often disproportionate share of the difference, including
Through the SME Toolkit, IFC and IBM are helping to address critical barriers facing key players in their business strategies
In 2006 IBM and the IFC signed a formal agreement to co-develop the website.
IBM re-engineered the toolkit with innovative technology that made the platform more flexible and stable.
IBM is also contributing its marketing expertise to enhance the impact of the toolkit launches.
IBM has a comprehensive strategy for the SME marketplace encompassing specially designed offerings, Business Partner programs, financing options,
for IBM to engage the SME marketplace at large and develop potential future customers via IBMERS€ core values of
â€oeinnovation that matters †for our company and the world†and â€oededication to every client†s successâ€.
•Free website design and management software •Downloadable business forms 5. 4 IFC AND IBM€ S SME TOOLKIT
•Survey and quiz-building software •Business directories Entrepreneurs have very little time; the Toolkit is designed to allow them to access the resources they need with
Building upon initial investment by IFC, IBM has invested nearly $2 million in rebuilding the SME Toolkit
IFC and IBM aim to launch the Toolkit in additional countries and increase usage steadily over time.
made a donation of computers and networking equipment to a school near its corporate offices.
advanced skills, covering subjects such as UNIX, Java, security, wireless, PC hardware and software, and networking operating systems.
It offers the possibility of obtaining industry-standard certifications, e g. Cisco Certified Network Associate (CCNA¢)and Cisco Certified Network Professional (CCNPÂ
and even prisons †provide classroom space, computers and other equipment, instructors, and students, often in partnership with other organizations, including funders
First, the core component of the model †the curriculum †is standardized. It can be
leverages the most valuable resource the company has †computer networking expertise. 99 Second, the model is rooted fundamentally in partnership.
SAP, the global leader in collaborative enterprise software, is leveraging its expertise in business network transformation to
Founded in 1972 by a number of ex-IBM employees, SAP AG has become the world†s largest business software
company, with over 50%market share worldwide. The company specializes in software solutions that enable
customers to improve their business performance †in particular, identifying and responding to risk and opportunity throughout the extended enterprise
With EITI, SAP€ s core contribution will be to connect participating companies and governments for transparency and mutual accountability,
Governments could also see value in adopting more SAP software. Further adoption would go beyond
The company†s core business approach is to work with thousands of small programmers and consultants around the world to spur â€oeinnovation via
ecosystem. †Now â€oeeiti is part of the ecosystem from which innovation can arise, †Farrar says
enabling companies such as Cisco, Intel, Google, Microsoft, and Visa to help shape policy environments that strengthen the
The second is a 12-member Steering committee chaired by Craig Barrett, Chairman of Intel, which
including Cisco, Intel, and Talal Abu-Ghazaleh International GAID serve as a platform, a â€oenetwork of networks, †with no financial or operational role in on-the-ground projects
Intel), enhancing and scaling the telecenter movement (led by Microsoft, the International Development Research center, and The swiss Agency for Development and Cooperation),
and Expanding Financial services to the Un-Banked (Intel Corporation, Visa Microsoft, WRI, CGAP, Grameen Foundation, Mercy Corps
Expanding Financial services to the Un-Banked is one of the primary company-driven Coes to be established in
Intel, Visa, Microsoft, and their civil society partners are addressing this barrier through an initial two-year
6. Microsoft. n d. Developing Knowledge Economies: A Microsoft Perspective on †ICT for Development. â€
7. Hammond et al 2007, p. 3. This figure is in current US dollars. In purchasing power parity terms,
One Laptop Per Child. n d. One Laptop Per Child Website. http://laptop. org /accessed September 16, 2007
Tipson, Frederick, Senior Policy Counsel, Microsoft Corporation. 2007 Personal communication (telephone interview), July 2 28. For more on the Grameen Phone model, see Sullivan, Nicholas. 2007.
Microsoft. 2007b. Microsoft†s Public-Private Partnerships Empower Underserved People Around the World. Press release dated March 20
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Ghassemi, Marzyeh, Intel Corporation. 2007. Personal communication telephone interview), August 13, 2007 44. Beshouri, Christopher P. 2006. â€oea Grassroots Approach to Emerging
IBM Corporation (IBM. 2006. Expanding the Innovation Horizon: The Global CEO Study 2006. Somers, NY:
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Changing World. Time, Fortune, CNN, and Shell http://www. principalvoices. com/business. html (accessed September 17
Microsoft. n d. Community Opportunity: A Digital Village in South africa is making a difference for local residents and area schools.
Microsoft 57. Mcnamara, Kerry S. 2003. Information and Communication Technologies Poverty and Development: Learning from Experience.
IBM 2006, p. 23 64. IBM 2006, p. 23 65. Wishart 2006, p. 24 66.
Hughes, Nick, and Susan Lonie. 2007. â€oem-PESA: Mobile Money for the †Unbankedâ€: Turning Cellphones into 24-Hour Tellers in Kenya. â€
Affairs, Microsoft Corporation. 2007. Personal communication (telephone interview), August 3 71. Moore 1996, p. 12 72.
Microsoft. n d. Local software economy case study: Microsoft Innovation Centers. http://download. microsoft. com/download/6/9/f/69f8c76b-198e
-4114-9c12-f0b13e4d7e4e/innovation center. pdf (accessed May 15 2007). ) Page 1 73. Microsoft. 2007c. Microsoft Unlimited Potential:
Enabling Sustained Social and Economic Opportunity for The next Five Billion People. Company White Paper. Page 6
EO ICT GREY: Layout 1 14/3/08 15:13 Page 45 THE ROLE OF THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR in Expanding Economic Opportunity
74. Harting, Carla, Microsoft Innovation Centers, Microsoft Corporation. 2007 Personal communication (telephone interview), August 10 75. Microsoft. 2007a.
Microsoft Announces Commitment to Promote Sustained Social and Economic Opportunity for The next 5 Billion People.
Press release, April 19 http://www. microsoft. com/presspass/press/2007/apr07/04 -19uplaunchpr. mspx? pf=true (accessed May 15, 2007
76. Pallais, Diana, Managing director, Partnerships for Technology Access Microsoft Corporation. 2007. Personal communication (telephone interview), August 21
77. Ibid 78. Microsoft 2007b 79. Pallais 2007 80. Microsoft 2007b 81. Pallais 2007 82.
Singh, Karamjit. 2006. â€oesmes Going Global: Need for SME strategic partnerships. †The Edge Financial Daily, December 18.
Data from AMI Partners Research 83. International finance corporation (IFC. n d. SME Toolkit http://www. smetoolkit. org (accessed September 27, 2007
84. ICICI Bank. 2007. ICICI Bank, IFC and IBM launch SME Toolkit in India Press release dated August 7
85. IFC. 2007. IBM and IFC Launch a Small Business Toolkit to Create Jobs and Fuel Growth in Underserved and Emerging Markets.
Press release dated July 26 http://www. smetoolkit. org/smetoolkit/en/content/en/1189/IBM-and-IFC
-Launch-a-Small-Business-Toolkit-to-Create-Jobs-and-Fuel-Growth-in -Underserved-and-Emerging-Markets (accessed September 27, 2007
IBM goes for growth Economist Intelligence Unit, Country Monitor, August 7 Extractive Industries Transparency Initiative (EITI.
2006. Report of the International Advisory Group http://www. eitransparency. org/files/document/eiti iag report english. pdf
IBM Corporation (IBM. 2006. Expanding the Innovation Horizon: The Global CEO Study 2006. Somers, NY:
IBM http://www. ibm. com/ibm/ideasfromibm/us/enterprise/mar27/ceo study. ht ml (September 15, 2007
ICICI Bank. 2007. ICICI Bank, IFC and IBM launch SME Toolkit in India. Press release dated August 7
Indian Business Insight. 2007. â€oereliance Communications, Cisco launch services for SMES (at Rs1, 200-10,000 per month on a pay-peruse
IBM and IFC Launch a Small Business Toolkit to Create Jobs and Fuel Growth in Underserved and
http://www. smetoolkit. org/smetoolkit/en/content/en/1189/IBM-and-IFC -Launch-a-Small-Business-Toolkit-to-Create-Jobs-and-Fuel-Growth-in
Le Gras, Gilbert. 2006. â€oeworld Bank, IBM draft Web tipsheet for small firms. †Reuters News, September 27
Microsoft. 2007a. Microsoft Announces Commitment to Promote Sustained Social and Economic Opportunity for The next 5 Billion People.
Press release, April 19 http://www. microsoft. com/presspass/press/2007/apr07/04 -19uplaunchpr. mspx? pf=true (accessed May 15, 2007
2007b. Microsoft†s Public-Private Partnerships Empower Underserved People Around the World. Press release dated March 20
http://www. microsoft. com/presspass/features/2007/mar07/03 -20glfamericas. mspx (accessed May 15, 2007 2007c.
Microsoft Unlimited Potential: Enabling Sustained Social and Economic Opportunity for The next Five Billion People. Company White
A Microsoft Perspective on †ICT for Development. †n d. Local software economy case study: Microsoft Innovation Centers
http://download. microsoft. com/download/6/9/f/69f8c76b-198e-4114 -9c12-f0b13e4d7e4e/innovation center. pdf (accessed May 15, 2007
Mobileactive. org. n d. Mobileactive. org: A Resource for Activists using Mobile Technology Worldwide. http://www. mobileactive. org (accessed September
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Tipson, Frederick, Senior Policy Counsel, Microsoft Corporation. 2007. Personal communication (telephone interview), July 2 United nations Development Programme (UNDP.
IBM expands footprints in India for more SMB clients. Xinhua News agency, September 6 EO ICT GREY:
The program encourages the private sector to incorporate environmental and social opportunities into core business
Systems, Inc.,Inbev, Intercontinental Hotels Group, Microsoft Corporation, Pfizer, Shell Exploration and Production, and the United nations
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