of Economics and Public Administration Volume 14 Issue 1 (19 2014 38 OPEN INNOVATION †THE GOOD, THE BAD, THE
past decade, an increasing number of firms have started actively to involve customers, suppliers and other parties in product and process innovation;
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 39
management in the open innovation environment Given the overall sparse attention given to the dark side of open innovation form the risk
private venture capital, which has helped to finance new firms and their efforts to commercialize ideas that have spilled outside the silos of corporate research labs (Chesbrough, 2003
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 40
value of external R&d and on building a business model so effective and innovative that it won†t
The drastic shortening of product life cycles, the globalization of competition with the accompanying growth in the number of possible innovators, the interacting influence of products
The main driver of open innovation is inherently communication between stakeholders. In IBM€ s recent CEO study, more than three quarters of the 765 CEOS queried cited collaboration and
contribution to facilitating the new communication and collaboration techniques, especially by the growth of the Internet, through social networking, Web conferencing and instant messaging
market, and the risk involved with the development of new products and services (Chesbrough 2003; Reichwald and Piller 2009
products, and services of relevance to the company; reduced costs associated with moving a larger
reduced risk as others put their human capital to work on risky propositions; and accelerated time-to-market as innovation is freed from the shackles of the
innovate with the aid of customers, suppliers, universities, competitors (Kruse, 2012), public research centres, competitors, groups of product users (Duarte and Sarkar, 2011), development
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 41
knowledge is generated by the employees, business partner, customers, consultants, competitors business associations, internet sales and service units, internal research and development units and
with other enterprises, universities, public research institutes, suppliers, customers and competitors in the EU-27.
followed by customers (respectively, 17%and 14%of innovative firms), while the least common co-operation occurred with universities and research institutions (9%)(Mention, 2011
so-called â€oeconnected customer, †who increasingly expects tailor-made products and services based on individualized and immediate feedback.
Such particular organizational demands are placed on the management of innovation by the Open Innovation paradigm itself (Arnold, 2008
dilute the firm†s focus at the expense of its customers. Increased attention to outbound open
innovation may then have a positive effect on short term profits and a negative effect on long term
profits (Huizingh, 2011 A firm's Innovation outsourcing project needs to seek domestic and/or foreign partners to
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 42
Opening the boundaries of a company by incorporating knowledge generated by customers suppliers, education institutions, consulting agencies leads to intellectual capital development
expanding their investment in external R&d in order to stay alert to new ideas brought to the market instead of investing only in
the time-to-market for new products and services, through shorter development time Partnering in the purpose of innovation is sought also for cost alleviation, during the ever
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 43
bare in the current economic environment, open innovation helps building up the capital positions of firms and making cash infusion easier.
However, there is a scarcity of research regarding the costs and barriers of open innovation A number of both internal factors (within individual companies or single industries) and
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 44
with the lack of trust in the partner and poor communication among collaborators about common
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 45
The constant changing needs of the customers pose a significant challenge on firm in their
the firm†s focus at the expense of its customers. Increased attention to outbound open innovation
may then have a positive effect on short term profits and a negative effect on long term profits
Opportunity risk is another facet of collaboration barriers, since difficulty in finding the right partner to innovate is high and,
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 46
innovation performance of modern enterprises (Lasagni, 2012. Therefore, it can be argued that the ability to access external knowledge resources efficiently and overcoming the risks encountered in
finance, technology advances and demands related to intellectual property rights protection Further streams of research may seek to study
current globalized economy. While awareness on the barriers and drawbacks of open collaboration projects is decisive,
Intellectual Capital, Vol. 13 (2), pp. 178 †195 3. Chesbrough, H. 2003) â€oeopen Innovationâ€, Harvard Business school Press, Boston, pp. 43
http://ec. europa. eu/enterprise/policies/sme/facts-figures-analysis/performance -review/files/countries-sheets/2012/romania en. pdf
The USV Annals of Economics and Public Administration Volume 14, Issue 1 (19), 2014 47
http://ec. europa. eu/enterprise/policies/innovation/files/ius-2011 en. pdf 16. Jarillo, J. C. 1993), †Strategic Networks:
of a theory of value creation and innovation in a global knowledge economy. †International Journal of Information management, vol. 30 issue, p. 502-511
the performance, tenure and communication patterns of 50 R&d project groupsâ€, R&d Management, Vol. 12, No. 1, pp. 7-19
Communications Networks, Contents and Technology O pen Innovation 2. 0 †Yearbook 2014 Open Innovation 2. 0
and is not the official position of the European commission services This work is licensed under a Creative Commons Attribution †Noncommercial †Share Alike 3. 0 Unported licence, available at
the stakeholders are academia, industry and pub -lic sector. Open Innovation 2. 0 however brings us
-less interactivity across all stakeholders, including users, across the whole innovation ecosystems Important is not only the quadruple helix innov
-ation space where all the stakeholders can share their ideas, prototype them and scale up the suc
-cesses rapidly. And, of course all stakeholders should be able to build and contribute to the innov
-ation ecosystems by bringing in their competen -cies, and also their hearts, with growing trust in
stakeholders I believe this edition of the yearbook gives you stimulus and ideas on how you can uptake Open
of Employment and the Economy, Finland mikko. huuskonen@tem. fi LÃ vy SÃ bastien ITEMS International slevy@items-int. eu
-math of the financial crisis, and also youth engage -ment to innovation The third section is highlighting the best practises
logistics, well-being and green services context Sargsyan and Roos argue that hardwired revolu -tion is just behind the corner.
creates entirely new opportunities for configurable user-centric †thingsâ€. The article discusses also the
new business model opportunities in light of a case study from the banking sector Carayannis further elaborates on the quadruple
-ation environments! It is extremely interesting to see the drivers needed for the transformation to
-peans, including new ventures, products, services and processes Turkama and Schaffers elaborate in their article on
-ate, and demand, innovation ecosystem thinking so that environments function properly. As exam -ple, they analyse the Future Internet PPP funded
by the European commission during the period 2011-2016. In this context the governance of open innovation ecosystems is discussed as well as the
done on knowledge capital, structural intellectual capital and the effects on national competitiveness Policy measures from different parts of the world
are set in context of increasing intellectual capital Executive Summary 8 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
In the article there are good references to a wider set of studies targeting the major OECD countries
-opment) regarding intellectual capital and competi -tiveness. Results are just startling Carrol interlinks existing youth unemployment
raw material basis for new enterprises and young people to create their own jobs Ramaswamy highlights in his paper the triple win
all stakeholders. In the paper new value co-creation models are discussed also with examples, from the
to entrepreneurship and growth. The Openeyif Open European Youth Innovation Framework sets a blueprint for an open innovation ecosystem
entrepreneurship and interaction in the open space as well Van Ouden et al elaborate further on the case on
source of innovation and economic growth. Many organisations are aware of this, conceptually but the threshold to move into this in practise is quite
by several examples how crowdfunding and crowd sourcing has worked, and which are the pain points
business models. Examples of implementing new technologies in virgin environments are shown also to highlight the importance of †new†thinking in all
professions As a good and inspiring end for the yearbook we have Roos†article! Innovation capability in organi
-ern enterprises. How to maintain and preferably increase the innovation capability by acting dif -ferently, organising the enterprise differently and
developing values and practises for creativity? How do we transform our organisations from data-to
These challenges provide a significant opportunity to create new shared value through innovation Society†s challenges may well reflect the transition
-tainability needs is creating a unique opportunity to enable an explosive increase in shared value due
stakeholders to take on active roles The adoption of the new OI2 paradigm can be the
with creative commons, shared societal capital and the systematic harvesting of experimental results. Information technology will play a special
There is significant opportunity for growth based on Europe†s strong hubs and regions that garner high scores on measures of innovation
Communication Technology (ICT) maturity indices It is important to note that Europe is traditionally stronger in research output and weaker in innov
but customers adopt -ing. †This statement perfectly characterises the shift in mindset that is a hallmark of OI2.
returns on research investments. Joint Pathfinding occurs where research laboratories and business groups share resources, risks, and decisions jointly
a wider spectrum of stakeholders participates, is heard more frequently from world leaders, as the
make this investment) on its own, but together companies are willing to move forward†(5 •The EU Commissioner for Research, Innovâ
At last, in the Western economies, there is recog -nition that a long-term view is needed. As stated
-can Innovation, †A short-term view of the economy masks under-investments in essential drivers of
sustainable, broadly-shared growth. It promotes temporary fixes over lasting solutions. This is patently clear when looking at how education, infra
sector is to create the environments for OI2 where the mash-up of the needed components can hap
-pen in a frictionless environment. The public sector provides not only the framework but also brings in the fuel for the innovation processes, for example
and legal environments to catalyse innovation and experimentation Open Innovation 2. 0 In detail In the last decade, Henry Chesbrough (7) creatively
-ucts and services that are adopted quickly. Once again we want to stress the importance of the crea
new co-creation processes across all stakeholders The EU€ s Open Innovation Strategy and Policy Group
for larger numbers of stakeholders. In OI2 there is also a cultural shift away from resisting change and
powerful communication networks can be when enabling large groups of individuals to collaborate A second core characteristic of the OI2 paradigm
-tions of existing ideas, products or services which are adopted already and successful in some oth
-al opportunity. Ultimately there is only successful innovation when a user, organisation and society perceives and receives value. †OI2 promotes the
come from business model innovation, ecosys -tem orchestration, user experience innovation, and brand innovation User-driven innovation is a crucial part of the OI2
The growth of the global app. economy is one such example where an industry that did not exist a dec
App. economy were EUR 17.5 billion with contract development work being EUR 11.5 billion of this.
2018 the European app. economy is projected to grow to EUR 63 billion with contract development
of innovative products and services where produc -ers and consumers both participate. An engage -ment platform is the place where people and their
environment join so that co-creation can begin An engagement platform can be as concrete as
OI2 focuses on creating increased social capital enabling broader boundary spanning and the cre -ation of new activation triggers for innovation options
users of the ideation and innovation processes. In this case, users are academics, industrialists, mem
-expectation entrepreneurship occurs when disrup -tive technologies meet high ambition, creativity and hard work. HEE is especially important as according
to a report from the Global Entrepreneurship Moni -tor, HEE€ s contribute about 80%of all new jobs cre
phase is supporting early prototypes and feasibility studies to see whether the idea is worth developing
-force the flow from research and ideation to new products and services Innovation vouchers can be powerful when trans
-forming enterprises more digital which is essen -tial when moving ahead with the digital agenda in
Europe Public procurement is an important bridge between development and take-up. To make this work earlier
looking at future services of public interest becom -ing more user-centric Competitions have been proven to be success
-ful mobilising very large communities to solve the problems published. Example of this is, e g. the
by other actions focusing on web entrepreneurship young innovators and interlinking policy actions with H2020 as well
Innovation 2. 0 paradigm, there is a new opportunity for an entrepreneurial renaissance. To paraphrase Alan Kay, †The best way to predict the future is to
societal capital, creative commons, and communities #3: Innovation Ecosystem Orchestration and Management Innovation has moved out of the lab and into an ecosystem that crosses organizational boundaries.
Co-creation includes all stakeholders, including citizens, users, or customers, in the development of innovative solu
-tions. An engagement platform provides the necessary environment, including people and resources, for co-creation
#5: User Involvement, User Centricity, User Experience The role of the user has changed from being a research object,
it is customers adopting. †In OI2 there is purposeful effort focused on driving adoption of innovations
Beyond designing for user experience, OI2 defines innovation as co-creation of services and solutions which add value
Business model Innovation Business model innovation is about defining and designing new models for capturing business value.
Osterwalder & Pigneur's (2010) business model canvas is a good tool for visualizing and prototyping business models and incorporates
techniques such as visual thinking, design thinking, patterns, and platforms #12: Intersectional Innovation Breakthrough insights occur at the intersection of fields, disciplines and cultures, according to Frans Johannson.
His book, The Medici Effect, provides numerous examples. 2006) Current activities can be found at www. themedicigroup
com #13: Fullâ Spectrum Innovation Doblin†s taxonomy, the 10 Types of Innovation, is a powerful framework for describing a full spectrum.
research showed that often the highest returns from innovation come from business model innovation, ecosystem orchestration, user experience innovation and brand innovation.
create and act upon business opportunities #17: Management of Innovation as a Process or Capability OI2 recommends explicitly setting up management systems for innovation and systematically improving innovation
capability in individual organizations as well as across members of innovative ecosystems #18: Highâ Expectation Entrepreneurship High-expectation entrepreneurship is the intersection of high ambition
and disruptive technology to create growth businesses. High expectation entrepreneurs (HEE's) expect to employ 20 employees
or more within five years and are a primary source of job creation 18 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
Communications of the ACM 19 (7: 395†405 Mulgan, G.,with Tucker, S.,Ali, R,
Business model Generation: A Handbook for Visionaries, Game Changers and Challengers. Wiley Wilson, E. J. 2012.
environments when we moved from the traditional approaches to the Open Innovation 2. 0 paradigm
the environments have changed all fundamentally It is important to see how these changes in the
approaches by all stakeholders. Also the roles and collaboration of stakeholders is very different from
the past Introduction The traditional innovation approach is based on lin -ear innovation, where there are clear phases from
the ideation leading through research, development and piloting to scaling up of results. Very often this
through new products and services, even in entirely new sectors at the crossroads of old disciplines.
-creation processes across all stakeholders, includ -ing the end-users. Here we need to have a look at one of the most important assets in Europe
and services they need, and the suppliers get scalable products and services. If this co-creativity and prototyping in real world settings
would not take place there would be a real risk that the development work would lead to a win-lose set
The areas of business model innov -ation together with the new markets emergence are clearly dimensions/realms in which, we Europeans
-ments for multi stakeholder trials, including legal and policy elements is the key to root in the Euro
one of the critical elements is the scalability of the work, which naturally results in increased success
real environments we can speed up the successful results and kill the bad ones in time Another dominant element of the open innovation
When products integrate into services and get more complex, we have seen networking between suppliers to be established, e g. in the automotive
when the services were determined by organisa -tional structures. In turn, this also means that the end users will be much more dominant in the innov
-ation process for modern products and services especially on their functional level The innovation process change affects also rad
and prototype. It is the courage to fail and scale And, as a consequence, it builds up a growing spiral
-tive IOT-based services. Finally, the resulting holis -tic UX model, XD process and use cases are briefly
benefits that leverage and benefit all stakeholders He also explains that the most prominent attribute
gies of the great customers and clients of innovation Forget for a while about the Samuel Morses, Thomas
what customers adopt. †Pia Erkinheimo-Mennander, Head of Innovation Crowdsourcing at Nokia, explains (3:
However, it requires all stakeholders, including users to be engaged along the design process for co-cre
risks, as well as decreasing investment needs for SME, micro-organisations and start-ups, since they can share resources without mobilising so much
venture capital; and share access to a broader base of ideas, especially for large companies Since 2006, the LL approach was applied gradually
within EU projects for involving all stakeholders especially users and also policy-makers, at the earl
-ject stakeholders. Furthermore, the XD process con -currently occurs at different granularities, such as the scenario level, the concept level and the service
of innovative scenarios and services including the identification of potential business models as they are expected to consume the resulting services
However, recruited users should fit with the usage context. For example, the Iot based Green Services
use case was launched with the innovative idea of getting real-time air quality that leads to multiple
usage scenarios involving different categories of users, such as: sport practitioners (e g. joggers asthmatic or allergenic people
-ent immersive techniques within a live environment experiment alternative scenarios in prototyping con -crete application/services through the use of a tech
-nological platform within a real-life environment evaluate alternative scenarios on the basis of metrics for measuring both the Quality of Service and the
Quality of Experience that would allow assessing the degree of adoption by user communities All these above described activities form an iter
with all stakeholders of potential refinements in order to prepare the next iteration until it reaches
products/services. XD is the practice of designing with a focus placed on the Quality of Service (Qos
value with a low-cost or luxury business model or technological value with a low or high-tech solution
solving societal issues (e g. smart city services) but merely requires immersive techniques/technologies for engaging all stakeholders, especially users, in
the environment of augmented creativity. There is a strong analogy with †scenario thinking†(19) or †scen
-ario planning†or even †strategic thinking†as earlier expressed by Schoemaker (20 Concept design consists in turning ideas into arte
of Things (Iot) based services, namely: Logistic Ser -vices (LS), Wellbeing Services (WS), Green Services
GS), Retail Services (RS), Environmental Services ES) and Healthcare Services (HS The logistics Use Case
The logistics use-case, set up within the BIBA and Logdynamics Living Lab (LL) environment, follows
an iterative improvement approach in the domain of intra-logistics. From discussion with experts a specific focus on intra-logistics processes has
been derived for ELLIOT. Intra-logistics deal with the logistics processes between companies (e g warehouse logistics, material logistics/production
and encourages stakeholders to freely explore alternatives for increasing safety and Figure 5: The Logistic Use Case
The Wellbeing Services Use Case The City of the Future Living Lab is involved in the ELLIOT Project within several use case scen
ordering, leisure services and gaming to hospital -ised children. The application use has been moni -tored through various types of data logs, making
-opment into prototypes and mock-ups for valid -ation. In continuous exploration of the Living Lab
The Green Services Use Case The Green Services Use case managed by Inria for ICT Usage Lab in Nice aimed at co-creating green
Iot-based services with a set of stakeholders on air quality and noise measurement via citizen
sensing. During the XD process involving 50 active users, a platform called Mygreenservices has been co-designed with respect of data privacy, offering
various green services such as the visualization of environmental data collected by citizen, the alert services via mail or SMS, the ability to download
data, the gamified forum for sharing ideas and best practices in terms of eco-responsible behaviours Each participant can access to more details of his
The Green Services Use Case The Retail Services Use Case The retail use case was organised in one of the
largest bookstores of Budapest. A dedicated area was used for the pilot where all the books were
tagged with RFID smart labels and the customers who volunteered to be participants could use NFC
and use the other services provided by the smart shopping experience. Over 400 persons participated
-tion with mobile communication. Mobile handsets were used, and local proximity communication †NFC †was combined with remote mobile chan
-nels, to identify products and retrieve relevant information from back office servers. NFC †both its reader-writer function and its card emulation
services as well 30 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
The Environmental Services Use Case The Environmental services use case focuses on an application of ambient intelligence methods
and Iot-based technologies, namely the Smart Home approaches and devices, into an office environment.
This use case is based on LL co -design and user experience monitoring for finding a proper balance between the work environment
settings, individual comfort of office employees work efficiency, and reduction of energy consumed by an office during regular work hours.
Office prototype was deployed to the testing office room located in premises of RWE IT Slovakia, an
application partner for the Environmental services use case The pilot was implemented and installed in the
The Control Unit, which hosts services interfacing the installed sensors and devices, is built on the Arduino platform and an embedded
The Environmental Services Use Case The Healthcare Services Use Case The Cardiovascular diseases (CVDS) are globally
number one among those causing death: more people die annually from CVDS than from any other
The Retail Services Use Case 31 collected in it and Medical Doctor had access to
-ian prototype (TEMEO) of the cardio belt monitored online 24 hours per day was developed three years
This prototype became the basis for further development of the SHSB system. The SHCB pilot had been selected
current gaps and lacks of the existing prototype Figure 10: The Healthcare Services Use Case
Figure 11: Instantiation of the Holistic UX Model Instantiation of the Holistic UX Model The Experiential Design process includes the instan
S2. 1 Communication 1 1 1 1 4 S2. 2 Collaboration 1 1 2 S3. 1 Collective Intelligence 1 1
holistic UX model guides project stakeholders in foreseeing the types of value and corresponding user experience they would like to design in their
adoption of the innovative IOT-based services It also worth taking into account that considering
Iot-based products and services where the com -petition relies on the combination of creating new
Environmental Services based on Pollution Citizen Sensing. The Interdisciplinary studies Journal (ISJ Special issue on Smart Cities, Vol. 3, No. 4, pages 331
Wellbeing Services Use Case Sauro Vicini San Raffaele Hospital sauro. vicini@hsr. it 37 Green Services Use Case
Brigitte Trousse INRIA & ICT Usage Lab brigitte. trousse@inria. fr Retail Services Use Case
Andras Vilmos Safepay vilmos@safepaysys. com Environmental Services Use Case Karol Furdik Intersoft karol. furdik@intersoft. sk
Healthcare Services Use Case Roumen Nikolov Virtech roumen@virtech-bg. com 38 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
The next Financial Revolution Is hardwired Introduction The use of mobile phones is growing at a tremen -dous pace,
This article is about the opportunity for (open) hard -ware development in the financial industry inspired
collaborative and participative crowdfunding plat -form, and you will be amazed by the amount of novel emerging technologies.
that demand marketers†attention Lesson? Go mobile or go home. The consumer of the future carries the power
by looking at the opportunities that the phone as tool can provide, looking beyond the software and
Developing a Business model As the current margin for financial institutes is decaying, a new possible business model is very
important. Might the entry into hardware be a good move for financial institutions Selling hardware is totally different from a ser
business model of the economic region: having a hit with the right device could create a new wave
Incubator launched a first financial wearable con -cept car. The tool, Rationalizer was used to enhance
AMRO Dialogues Incubator. In 2010, Dialogues Incubator halted the further development of this accessory. Philips still uses this prototype for fur
-ther studies. For more information, check out: www mirrorofemotions. com Market Success Factors The new paradigm of Open Innovation 2. 0 will cer
-tainly enter the scene in the creation of this market space. Principles of integrated collaboration, co
work environment. As the market further matures companies need to have focused more customer targets and value propositions.
sense to the customers, who will experience this as an extension of the integrated system of a financial
This will also be great source of opportunity to scale and broaden the marketing with lower costs
of investments Figure 1: Rationalizer: emotion awareness for online investors (Phillips and ABN AMRO 2009)( 5
-ent and inter-linked the EU€ s economies are. Greater economic policy coordination (1) across the EU will
help Member States to address these problems and boost growth and job creation in the future The Europe 2020 Strategy (2) is a comprehensive
economic policy agenda focusing on three priori -ties: smart, sustainable, and inclusive growth. This new EU strategy is about delivering growth that is
a) smart, through more effective investments in education, research and innovation;(b) sustainable thanks to a decisive move towards a low-carbon
economy; and (c) inclusive, with a strong empha -sis on job creation and poverty reduction. Based on
-ditions required for a more competitive economy Such an approach aims to help Member States and
policies, as well as public and private investments While some regions are quickly advancing with the development of an original research and innovation
and compete in the global economy in a sustainable financially as well as environmentally and socially manner following the smart, sustainable and inclu
uniting national and regional stakeholders and re -sources around an excellence-driven vision of their
-gional economy via market, network and knowledge spill over effects locally and regionally The Concept of Multi-helix Systems
based society and economy. Here, it is important to differentiate between the actors encompassed by
/technology incubators; financial support insti -tutions for new technology-based firms (public and private venture capital firms, angel net
-works, seed capital funds, etc RELATIONSHIPS: Here we distinguish between two main types of relationships as the social evolution
-ing provision of R & D and consultancy services competence-building, formation of new mar
-tion of goods and services through market or non-market interactions, incubation activ ities financing, negotiation, etc..
-vision of public venture capital †a traditional task for the industrial sphere. Similarly, univer -sities, in addition to their teaching and research
ventures, thus enacting some of the traditional role of industry. Industry takes the role of the
societies and economies (varieties of capitalism Over the last twenty years however, globalisation has evolved and morphed into glocalization with
-lenge and an opportunity. While very different in nature, both models present a unique chance to
economy and society learning in various institu -tional and socioeconomic environments. They also allow implementing more effectively innovation
policies and practices and improving the mech -anisms of public engagement and deliberation Given the fluidity and the speed of change in most
-grates and engages all sectors of the economy and society. Such a model is seen as the key for future
processes in the knowledge economy and soci -ety, and provide evidence that further facilitates innovation in a range of trans-disciplinary areas
and regional stakeholders, social partners, and civil society in both policy dialogue and implementation of policies.
to further the knowledge-based economy (13. The established Triple Helix model is a strong environ
-ucts, services and solutions are developed with the involvement of users in their role as lead users, co
connect users with their stakeholders across indus -try, academia, or government (21. In turn, the role
stakeholders would then be able to exploit the innov -ations developed by citizens This user-centred approach requires a further devel
EU investments in the regions and help channel pri -vate capital into regional smart specialisation niches
The RIS3 approach also maintains that through application of horizontal forms of multilevel Figure 2:
regional environments that support and utilise user-centred innovation activities with the aim of securing better conditions to commercialise R & D
of the knowledge economy. The overall RIS3 con -text provides an appropriate operationalisation framework for embedding the concept in both pol
inclusive) growth-driving entrepreneurship and innovation ecosystems (as well as clusters, net -works and other agglomerations) at the regional
such as crowdsourcing and crowdfunding cap -abilities in instruments, and initiatives included in their regional RIS3 strategies.
-lysts and accelerators of exploration and exploita -tion dynamics) that could substantially empower any Quadruple Helix RIS3 strategy (26)( see Figure 3
challenges as well as opportunities. This is not to say that entrepreneurs or other value creators and innovation agents are only found in civil society but
-ment services provided by QH innovation envi -ronments by themselves (as part of the devel -opment of public services
the dynamics of a society and economy. The political system aim at stimulating and coord -inating the performances of the other societal
2. The self-rationale of the economic system The economic system aim at achieving wealth In doing this, the economic system can assess
how to avoid for example inequality or negative environmental impacts 3. The self-rationale of the knowledge system
The knowledge system creates and distributes knowledge. The knowledge system can poten -tially influence the other societal systems by
influence the economic system directly through economic policy, but in many cases, the political system can do this even more efficiently through
innovation policy. Thus, the innovation system con -stitutes an important interface where the politi -cal, economic,
mentioned, the economic system, that is, business and firms, act in accordance with a rationale of profit, and is
This is where the demand for evolving the concept of Triple Helix to Quadruple Helix steps
-ative environment in a specific region and, in turn the innovation system (36. †Creative Knowledge
the fourth Helix highlights a demand for innov -ation policy to †present†itself to the public through
glocal knowledge economy and society requires a substantive supporting of the development and evolution of innovation cultures††(37
Many successful regional economies seem to have one important thing in common †they put innov
a recent Economist report (Economist, 2013 In 2010 a group of students at Aalto University, just outside Helsinki, embarked on the most
The Start-up Sauna †a business accelerator that is still run by young enthusiasts but now funded by government,
It offers a wide range of services: working space, coaching for budding entreâ preneurs, study trips to Silicon valley
and plenty of networking opportunities (including in the Sauna†s many saunas The Saunaâ masters have an understanding of entrepreneurship in advance of their years.
They recognise that there is more to innovation than high tech: the Sauna also has design and knitâ
They realise that promoting entrepreneurship is a matter of changing culture as much as providing money.
system is a collection of business accelerators, partly funded by the government and partly by private enterprise, that operate in every significant area of business
and provide potential highâ growth companies with advice and support from experienced businesspeople and angel
where are looking for new opportunities and bright young things are running companies in conâ
ate startâ ups. They are telling their schools to sing the praises of entrepreneurship Many of the region†s most interesting entrepreneurs operate at the low end of the tech specâ
Hemfrid now has 10 000 regular customers and 1 326 employees, 70%of them born abroad
capital from outside investors such as Microsoft, which chipped in $42m. Rovio now has 500 employees in Finland and had a turnover of $100m in 2011.
In closing, the environment as a major †and per -haps the key (at least in the medium to long term
effective involvement of stakeholders in priority selection •How can the S3 approach or similar, relevant or
-ities of the natural environment and natural resources of the region •With reference to †entrepreneurial discoveryâ€
In a discussion of the role of the environment as a driver and delimiter of smart, sustainable and inclu
is rising demand for †new green†knowledge solutions and know how in order to utilise resources innovatively for society and the
economy in an environmentally conscious manner. Moreover, our present way of life and lifestyle must be scrutinised under a sustain
-ronmental protection, it also demands the protection of biodiversity (see Barth 2011a Bhaskar 2010; Le monde diplomatique 2009
economy and society†(49. It is clear that the challenge of global warming is accompanied with the challenge of sustainability (for the
1.)†Financial/Economic system'(1 2.)†Environmental challenges'(2 3.)†Feed and heal the world challenges'(3
9) The area of †technology, innovation and entrepreneurship as drivers of knowledge societies†emphasises the fact that
when innovations (with a new entrepreneurship) are developed further (see here the idea and concept of the †Academic Firmâ€
-ety, a higher competitiveness of their economies or a better and sustainable quality of life, have to apply
for advancing societies and economies. This pluralism supports processes of a mutual cross-learning from the different knowl
environment or the natural environments represent the fifth helix†(63: †The Quintu -ple Helix can be proposed as a framework
world politics as well as in the world economy is also being determined by the social (societal potential to balance new knowledge, know-how
the knowledge economy. Quadruple Helix already brings in the perspective of the knowledge society and of knowledge democracy.
the knowledge economy and of knowledge society see also Dubina et al. 2012. The Quintuple Helix finally stresses the socio-ecological perspective of
the natural environments of society. Social ecology focuses on the interaction, co-development and co
the knowledge base of an economy in terms of tripleâ helix relations among †technology, organisation, and territory. â€.
Innovation and the Environment relate to each other? A Proposed Framework for a Transâ disciplinary analysis of Sustainable development and
Creativity, Innovation, and Entrepreneurship. New york Springer 14) Etzkowitz, H. 1998. †The norms of entrepreneurial
Innovation and Entrepreneurship, August. Available at: http://www. innovation-entrepreneurship. com /content/1/1/2 9 (further references:(
29)( 30)( 31)( 32)( 33 34)( 36)( 37)( 38)( 40)( 42)( 43)( 54 23) Carayannis, Elias G.,David F. J. Campbell (2012
Innovation, and Entrepreneurship for Development. New York, NY: Springer (further references:(29)( 30)( 31)( 32)( 33
knowledge economy and society. In E g. Carayannis, A Kaloudis, A. Mariussen (Eds. Diversity in the knowledge
economy and society: heterogeneity, innovation (pp 95†116. Cheltenham: Edward Elgar Publishing Limited further references:(
Journal of the Knowledge Economy, June. further references:( (26)( 50 39) Harmaakorpi, V.,Melkas, H..Knowledge management in
Innovation and the Environment relate to each other? A Proposed Framework for a Transâ disciplinary analysis of Sustainable development and
opportunities for theory, policy and practice as well as foundations for establishing good practices from theory and practice
•http://know-hub. eu/blog/involving-enterprises -in-the-design-of-a-ris3-strategy. html
entrepreneurial Europeans, new ventures, new products, and new processes Introduction Humankind is facing increasingly complex societal
novel, and sometimes disruptive, services and prod -ucts return to the people As a result, the public debate regarding the accel
prototypes picked up by industry that markets the product to customers It is believed often that novel products †just pop
out†of laboratories. In reality there are enormous efforts of complex networks needed to secure smart investment, to provide interdisciplinary connection
between academia, research institutes, businesses local and national authorities, nonprofit sector and †to a growing degree †of end users.
-uct may need a private investment that can reach a level of hundreds of EUR millions †as in the
communication between people of different skills and background gives rise to breakthroughs and last but certainly not least, that innovation has to
flow of products and services, capital, talent and knowledge, and its existing tremendous innovation capacity.
On the same day, the renowned investment bank Lehman brothers, went into bankruptcy. Meeting for the first time, the founding Governing board
opportunity in the crisis and the will to not imple -ment †more-of-the-same†regarding innovation
cofounders of renowned high tech enterprises presidents and vice-presidents of modern and first -class universities, representatives of well-backed
communication society. The KICS and their impact on Europe†s competitiveness are discussed below Before reaching this first milestone,
innovation to happen, communication across dis -ciplines is key. Based on the advice of Gottfried Schatz, the former president of The swiss Research
-disciplinary and game-changing environment (5 Everybody felt there was a missing link and it was
and customers with their needs and aspirations need to be integrated by entrepreneurs who are able to create value
European VC investment continues to lag the US Share of GDP Source: Marston L.,Collins, L.,Bravo-Biosca, A. Lane, H
2013), Unchaining Investment. Barriers to US venture investment in UK Internet and digital businesses, Nesta
Report, June 2013 Some of the questions raised in the debate were as follows: Could entrepreneurship be an integra
-tive force for the Knowledge Triangle components Could it act as a facilitator and accelerator of dif
-ferent kinds of flows across the Triangle? What could entrepreneurship mean in the specific context
of the EIT and its KICS? For example, how would this concept materialise in a new funding model
and trust-driven governance by the EIT towards its KICS? How would it create value for large industry
through entrepreneurship, open innovation learning environments, or corporate venturing? What would be the right model for entrepreneurial education for
engineers and scientists? How to shorten the time from labs to markets and society The concept of value creation brought a vivid dis
-angle which is different for diverse stakeholders collaborating in such an open innovation envi -ronment.
role of entrepreneurship as the very process during which innovation is brought to markets and society
not necessarily built on revenues and profits. In the case of the biotech industry, approximately 90
profits, do not even have a product on the market but they still convey very important economic value as
well as social value developing knowledge, educat -ing employees and tackling public health challenges Not welcomed by all members and initially with some
-vation strategy of the EIT on entrepreneurship could be its unique selling proposition and the best chance
-plex reality of an open innovation environment in which all stakeholders have their own interests and
goals and they all contribute to value creation The EIT and its KICS †State of
-ation investment institute. This novel entrepreneur -ial Institute is seed to trans-European ecosystems 65 where research, business and higher education
from venture capital and other investors (6 In 2009, only one year after its setup, the EIT was
information and communication society and KIC Innoenergy focused on sustainable energy. Each of the KICS defines its own legal structure and gov
and instilling entrepreneurship in this process Their goal is to educate generations of entrepreneur -ial Europeans, breed new high-growth com panies
-ney, a summer †crash course†in entrepreneurship Climate-KIC offers EIT-labelled degrees, including
-mation and communication society. It has devel -oped a †catalyst-carrier model†that is based on
them come together in a neutral environment and better understand emerging trends in technology Figure 3:
Investment Fund. It manages a number of business networking events and has an in-house soft-landing
The KIC€ s shareholders agreed on a business model that will hopefully lead it to finan
-cial sustainability. The KIC expects to own a port -folio of shares in companies that enter its flagship
EIT ICT Labs Entrepreneurial Talent and Venture Development Model Business Ideation Talent Identiï¿cation STRATEGIC COACHING ACCESS TO FINANCE
TECH TRANSFER Innovation Radar high selective phase) INNOVATION RADAR TECHNOLOGY SCOUTING BUSINESS MODELLING TALENT DEVELOPMENT
or business opportunities NO-GO NO-GO OUT Idea Visibility/Opportunity Assessment O nl in e fo
rm Opportunity Development Business Launching Commercialization Consolidation Business plan Project Research Studies ongoing Contests Business Ideas Forums, etcâ€
Ideas Management Pre-Incubation Stage Incubation Stage Post-Incubation License Spin-oï For future development Start-up
Creation Commercialization Products/Services in the market +ACTORS •Senior Entrepreneur Expert board internal+external
•Knowledge & Innovation Mkt •Business Incubator Network •SW for idea management •Observatory
•Expert entrepreneurs •Lead customers •Expert professors •Mixed team (technicians+MBA /entrepreneurs
•Coaches •Business/Management frameworks •Entrepreneurs courses •Equity/Management team/Company •Marketing/consulting experts
the appropriate Business model • Training •Competence development • Protection of IPR+Patents
•Business plan •Coaching/Team creation •Assess the attractiveness and the potential of the idea
KIC Services Tools & mechanisms related •Novelty •Market demand •Competence •Economic viability
•Technological valorization •Team competences & skills assessment •IP conflicts 67 is a pan-European incubation/acceleration network
houses the ventures for a limited period of time dur -ing which it provides coaching and helps with market
It is a long investment and there needs to be at least some warranty to the investors.
competition and somebody may pick up an idea before it is protected formally. The KICS have indi
internship opportunities within the KIC€ s network They perform an important function as outreach arms of the KIC.
†core assets in an open innovation environment EIT ICT Labs has extended to seven co-location
KIC€ s incubator is hosted by †Creapolisâ€, the ESADE Business school innovation centre in Sant Cugat
co-location leverages preexisting large investments to develop national industrial clusters such as Capen -ergies and Tenerrdis
-ation environment needs to have an inroad for ideas from the peripheries To this end, the concept of competitive and collab
business plans. The latter was introduced in 2012 in order to stimulate development of a cross-KIC agenda. Ultimately, this means that a KIC€ s open
nature of the open innovation environment which is competition and collaboration, creative ways of finding synergies, to accelerate the flow of people
knowledge, and capital between the networks and to interlink them will exponentially enrich each and
every player including those at the very peripheries Early Learning, Next Steps & Future Perspectives of the EIT and its KICS
-work enterprises, with their co-location nodes becom -ing switching points in the European scheme of over
vision and a viable business model. They are man -aged by CEOS, follow business plans and are governed
by their respective Governing or Supervisory Boards Ownership, accountability and personal risk taking are positioned at the centre of the innovation process (10
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.
An entrepreneur, he claimed succeeds by combining new or existing technolo -gies, capital, equipment manufactured by other
entrepreneurship awards. The winners of the 2012 and 2013 competitions were Christopher Williams Naked Energy) and Dominik Peus (Antaco) from
Climate-KIC; Rosa Vilarasau (Noem) and Lionel Chaverot (Enerstone) from KIC Innoenergy; and Patrick Duessel and partners (Trifense) and David
processes on entrepreneurship and this has already brought and will bring far-fetching results in terms
of growth, development of human and social capital and quality jobs. There are early successes to cherish
needs a business plan that outlines its expected tra -jectory towards creating value for its stakeholders
Its stakeholders include the EIT but also industry and academia. The grants administered by the EIT
are not to become another state subsidy but a seed investment and therefore the EIT as an †invest
-or†has to accept the logic of private sector to the extent possible for a European body.
value for their shareholders and stakeholders. Some KIC partners express a real concern on how to define
the business model of a KIC. In most cases, they expect the KIC to educate a new type of engineers
opportunities and took risks. They created busi -ness ventures but also democratic civil society institutions. This entrepreneurial talent should be
integrated within the most advanced KICS to bring fresh blood, a different sort of thinking and a †hun
-preneurial talent is given opportunities to flourish and to make a difference Post Scriptum In Horizon 2020, the EIT is recognized for its achieve
Business models, Warsaw University of Technology Publishing house 2) Dufour, A.,Carroll, S b. 2013), †Great myths die hardâ€
2013), Unchaining Investment. Barriers to US venture investment in UK Internet and digital businesses, Nesta
Report, June 2013 8) EIT Call for KICS (2009 9) Taleb, N.,(2010), The Black swan: The Impact of
the Highly Improbable, ed. 2.,Random House Trade Paperback Edition 10) European commission (2011. Commission Opinion
and Competition in Silicon valley and Route 128 Boston †Cambridge †London: Harvard Business School Press
exploitation opportunity. In examining this case we discuss the evolving characteristics of the FI -PPP ecosystem,
European union investments in advancing the Euro -pean Knowledge Economy and Single Digital Mar -ket development are by definition longitudinal and
accumulative by nature. The European commission continuously monitors and adjusts its instruments for addressing the identified grand challenges
emphasizes the investments not only in corporate R & D and science and technology driven research
-ket environments with public sector participation in a co-creation process Over the years, discussions evolved to shift the
-ponents and services, thereby enabling developers across Europe and globally to build, prototype and test their own applications in a range of business
and societal sectors, for example within smart city environments The term †innovation ecosystemâ€, although it has
clear roots in innovation systems thinking, has emerged relatively recently, emphasising the dynamics and complexity of actor relations and
global competition. Other major drivers for the programme on political level were the European 72 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
opportunities for standardisation, policy contribu -tions and emerging business opportunities from cross-industry collaboration The experimental programme structure has been
developed based on experiences from earlier framework programmes and PPPS, and advocates increased transparency, openness and collaboration
-cation environment, e g. a smart city, application developers will be able to use FI-WARE technology
to an environment of open innovation (2 So far, the FI-PPP programme can be considered
major stakeholders in Europe and attract interest among new stakeholder groups and communities The current programme beneficiaries include all
major European ICT companies, including Deutsche Telecom, Orange, Atos, Telefã nica and Nokia Solu -tions and Networks,
in an environment which fosters collaboration, in principle represents an excellent point of departure for disruptive innovation.
-oration and competition, often enabled by provision of a platform which also facilitates the governance
an environment for experimentation resulting into successes or failures through natural selection Some of these aspects have,
-senting both demand and supply side, the creation of †use case†projects piloting Future Internet tech
the creation of an open lab environment. However the dynamic evolution and sustainability of this
-plementary products and services in †multi-sided markets†(5, 6, 7). Such multi-sided markets act as
platform ownership business model and govern -ance. Given the desire to create open ecosystems that foster collaborative innovation and business
external market forces, such as industrial demand and venture capital, and to open up the ecosystem for developer communities based on free access to
developed technologies and know-how. Probably we need to think more in terms of risk and rewards sharing than in conditions for access
the participation, competition, conflicting cultures and norms, and various levels or risk bearing abil -ities.
new business opportunities for their company. Also differences have become clear between indus -try participants†and European commission view
stakeholders, drafted a contract and collected feed -back from all participants in two rounds of iter
for interactions and communications. Also the horizontal programme level working groups on Figure 2: FI-PPP Programme governance architecture (situation by end of 2013
dissemination, exploitation and business models policy and regulation, and standardisation were established. Given this strong internal focus on
and business model development and validation Emergent questions included also issues related to more detailed definitions of the access rights
stakeholder engagement. This included establishing linkages to other related initiatives in technical and policy domains for leverage, as well as for reaching
FI-PPP programme among external stakeholders This new role simplified the communications and representation of the FI-PPP programme towards
the broader stakeholder audiences Programme and Project Level The FI-PPP programme structure brought together
a set of projects that together constituted the holistic programme whereby technology platforms are developed and validated with a variety of dif
Prototypes were built by some projects but not all. Programme level focus was lower due to prior
Complexity in FI-PPP€ s environment and in the programme itself combined with a high level of
environment Setting up and institu -tionalising processes and subgroups Pressures to achieve results competitive set up
communication patterns Relations management with key stakeholders Increased networking with stakeholder communities Process based management
FI-PPP as programme organization Standard management rules and procedures Governance based on roles rules and debate
Programme management more networked Vision and mission discussions Opening up for dialogue and collaboration within the wider
communications Limited to debates regarding effective governance Cross-programme dialogues in working groups Dialogues including external
communication and collaboration. However, the ambition to become a sustainable ecosystem after lifetime will require the programme organisation
adapt to the changing environment. We propose an explicit transition process from the Phase 3 situ
Communications of the ACM, Vol. 54 No 10, pp. 21†24 7) Eisenmann, T.,Parker, G.,Van alstyne, M. 2006
†The Economics of Two-sided Marketsâ€. Journal of Economic Perspectives, Vol. 23, Nr 3, pp. 125†143
innovative investment on physical properties, the Chilean government†s innovation centred on intan -gible process improvement, including transparent
many economists to be the worst since the Great Depression of the 1930s. The initial US subprime
-rency crisis. During this period, economies world -wide slowed, credits tightened, international trade declined, and business and consumer confidence
crunch, currency crash, high inflation, high un -employment, undulations in housing and equity prices and government defaults on international and do
national intellectual capital, albeit intan gible, can provide valuable insights for searching a national benchmark as well as for future risk control
This paper aims to report two innovative govern -ments †Australia and Chile, which the author
intellectual capital (NIC) and tangible GDP per cap -ita (ppp) of these two countries are explored also
the real economy thus developed into the deepest and most synchronised global crisis in the last eight
-ened, and direct foreign investments were swiftly withdrawn. As a result, a domino effect was trig
In 2009, Chile†s economy contracted by 1. 5%,export volume dropped by nearly 20
with focuses on services, technologies, and high -value-added manufactured goods. However, its exports remain heavily on mining and agriculture
The Australian economy grew for 17 consecutive years before the 2008 global financial crisis, mainly due to economic reforms adopted in the 1980s (5
Overall, the Australian economy entered the global financial crisis with a strong base. Gross domestic product (GDP) grew by 3. 7%in the 2007†2008
Chile has oriented a market economy character -ised by high levels of foreign trade, a reputation
crisis due to its export-oriented economy. In the last quarter of 2008, businesses ran down their stocks
-ing over 60%of the Australian economy) and to be quick acting with significant cash bonuses paid
return of normal labor market demand. An add -itional US$14. 2 billion (A$22 billion) budget for large-scale infrastructure was announced also
from the centre of the world economic activities Chile enhanced its longstanding commitment to trade liberalisation with the signing of 57 free
economy was affected severely by this financial cri -sis. As a result, its unemployment rate grew from
of 2009 (3). Inflation rose from an average of 2. 6 %in 2006 to 7. 8%in 2008, with a peak of 9. 9%in
investment, expanding credit access for compan -ies, support to largely low-income people, and employment protection and incentives for worker
training (3). In addition to provide liquidity to the market, the government launched its major fiscal stimulus package of US$4 billion (2. 8%of its GDP
households (US$1. 1 billion), investment (US$1. 7 bil -lion), and tax cuts (3). In addition, a law was enacted
a rule-based countercyclical fiscal policy, accu -mulating surpluses in sovereign wealth funds during periods of high copper prices and eco
focus on direct government investment, are amongst the most effective of all OECD fiscal pack -ages in stimulating activity and supporting employ
was one of the first advanced economies to recover from the financial crisis and to raise interest rates
and economic growth. With strong prudential and corporate reporting framework, Australia coped well with the financial turmoil, leading to a very low
qualifications for future labour market demand The first two programmes were by far the most effi -cient, widespread,
opportunities. These smart stimulus designs and efficient execution will leave legacy to the benefited schools, families,
advanced economies (Debelle, 2009; OECD, 2010 Its GDP started to grow in the first quarter of 2009
trade rose by 2. 9%.The Australian economy grew by 1. 2%during 2009 †the best perform ance in
From January to August 2012, resource investment in Australia has continued to expand rapidly. Work continued on very large projects, capital imports
As a result of an improved economy, the government expected to return to budget surpluses as early as
to impose sanctions (3). Pension fund investments are ruled also by risk criteria and are supervised by a third regulatory body (3). The soundness of the Chil
economy started to show signs of a rebound in the fourth quarter of 2009, with GDP increasing more
marks from economists and its citizens for its coun -tercyclical spending in 2009 (financed largely from
global economic crisis (16 Particularly, Chile achieved such growth despite the magnitude 8. 8 earthquake that struck the nation on
2011, the economy had recovered from the effects of the earthquake, which caused only a temporary
disruption in Chile†s economic activity (17. Although Chile†s economic rebound was owed partly to the
training opportunities for the young unemployed Different from Australia†s innovative investment on physical properties, Chilean government†s
innov ativeness was manifested through its intan -gible process improvement, including transparent stimulus information sharing to facilitate consen
and consumer price inflation (CPI In addition, tangible (GDP per capita ppp) and intan -gible (national intellectual capital, NIC) co-develop
-ment also provide some clues for future national development Four Macroeconomic Indicators Figure 1 and Figure 2 compare and contrast gen
economy. However, it bounced fast in 2010 to over 4%and continued its growth to almost 10%in
amid the crisis due to booming demand for its raw materials from industrialising Asia, especially China. However, China†s recent economic slowdown
economy, such as retail and housing construction by boosting consumer spending (18 For Chile, its goal is to become the first Latin
services (off shoring) as a new source of exports (3 An Innovation Council is in charge of identifying and
In the current knowledge economy, intangible asset plays an increasingly important role in national development. This section presents the co-devel
NIC is represented by national human capital NHC), market capital (NMC), process capital (NPC renewal capital (NRC),
and financial capital (19). NIC is the sum of the above capitals. National human capital is the competencies of individuals in real
-ising national goals, market capital represents a country†s capabilities to meet the needs of its
international clients, process capital comprises mainly a country†s infrastructure, and renewal capital refers to a nation†s capability for innovation
that sustains a nation†s competitive advantage (19 Figure 3 to Figure 7 show the co-development path
of GDP-NIC,-NHC,-NMC,-NPC, and-NRC of Aus -tralia and Chile from 1995 to 2010.
For example, Chile has better market capital than Australia. Figure 6 is the co-development of GDP
renewal capital, despite some backward develop -ment, whereas Chile was stagnant in renewal cap -ital over the long period from 1995 to 2010
the existing economy to an even more robust one This paper reports two countries †Australia and
to remember and for other countries to benchmark Although the two innovative governments success -fully implemented their respective stimulus meas
demand from China and its resources industry has shed thousands of workers as a result.
declining process capital in recent years (Figure 6) is another sign for attention For Chile, the 59-country background landscape of
reform to increase human capital and reduce pov -erty, special attention needs to be paid to its low
renewal capital. Figure 7 shows that Chile remained stagnant in terms of renewal capital development Figure 7) over 16 years.
of national renewal capital in order to achieve its goal of having per capita income of the OECD aver
economy with keen global competition, the grow -ing importance of intangible assets is recognised a trend. It is our hope that the reported two inno
provided liquidity to the market in January 2009 -A mixture of new fiscal spending, targeted
investment (US$ 1. 7 billion) and tax cuts -Injected US$ 500 million in fresh capital into
the state bank to provide credit to small and medium-sized companies Stimulus pack -age (1
economic growth by about 0. 5%and 0. 75†1%of its GDP in 2008†09 and 2009†10, including
investment through a business investment tax break -US$ 970 million (A$ 1. 5 billion) to guarantee a train
Capital: A comparison of 40 countries. NY: Springer Publishing Co 3) Briones, I. 2010) Chile country report, in
14 economies. GÃ tersloh: Bertelsmann Stiftung, 2010 Retrieved from http://www. bertelsmann-transformation -index. de/pdf/Chile. pdf
7) Gregorio, J. 2008) The Chilean economy in the current global financial crisis, Central bank of Chile
=11) Access Economics (November 2008) The impact of the global financial crisis on social services in Australia
Retrieved from http://www. oecd. org/economy /economicsurveysandcountrysurveillance/46467368. pdf 16) US State department (December 16, 2011
17) Woods, R. September 29, 2010) Chile†s economy is †back on track, †set for 5%growth this year, IMF says
/news/2010-09-29/chile-s-economy-is-back-on-track -set-for-5-growth-this-year-imf-says. html
Capital in Israel and Financial crisis Impact, International Journal of Knowledge Based Development, 4 (3 245†273
The economic downturn hit young people especially hard, limiting their opportunities to success. High unemployment, job insecurity, strong competition
and a rapidly changing environment requires a new approach that ensures our youth competitiveness More than ever, it is important to focus on the con
-tinued growth of students and teachers, integral education and especially in the development of their talent
European young privileged situation has changed due to increased access to education and labour costs emerging countries Access to knowledge it is democratised now.
-ket environments. The culture of the †entitlement†should finish and today†s college students should
In a work environment as competitive as described before, the only factor that can lead to success
to prepare for the new economy that will dominate the world and †hone the skills, capabilities, and atti
-tudes that will help economy remain prosperous and competitive†(4 Clearly the scheme where pupils sit for hours
entrepreneurship and foster taking risks. It is known only a small percentage of all startups will succeed
Entrepreneurship and imple -mentation of innovation may be less risk if rely on theories and systematic approaches
Enterprises Enterprises need closest approaches to innovation and change corporate culture to measure success with different formulas than the short-term †Return
of Inversionâ€. They also need to soak up new busi -ness models more in line with today†s society.
 Services offered by the companies approach closer to the actual user demand  Virtual companies will be considered by their own
and not like a reflection of physical businesses. In fact there are plenty of data-driven companies
reflect these new business models and a new philosophy where Internet is the nat ural environ
better services demand. We have to be convinced that services can and must grow to meet our needs
We live in a highly competitive environment where we cannot compete in production of products Europe is positioned better to compete in advanced
services: there are many areas in our welfare soci -ety where we are ahead of many other countries
like health, tourism, social policies, luxury products care for the elderly, etc Data as Raw material Innovation models and paradigms exist to help in
seen as a commodity very capable of generating wealth and under the new †Big data†phenomenon
lays an opportunity to create value and benefits for society, business and citizens According to an IDC study only 1%of the world†s
skills and consequently there is a clear opportunity for employment This opportunity is tailored to our society:
we have the people, the data and the academic strength to provide analytical skills to fill the gap between offer
and demand taking advantage of a new economic asset comparable to gold in words of the Word Eco
This opportunity also have to question us with a lit -tle bit of self-criticism and analyse reasons why we
have not taken measures to anticipate demand and prepare our students to be the best in data analysis
solutions and improve access to services such as health education etc. Otherwise the particularities are buried within the global population data
meet a growing demand for an aging society with great expectations in the care of older people is
More precise mapping of needs and services Mckinsey Global Institute says (10) that if US health
-oped economies of Europe, government administra -tors could save more than â 100 billion ($149 billion
frontier for innovation, competition, and productivity Mckinsey Global Institute; 2011. Available from: http //www. mckinsey. com/insights/business technology
expansive and more inclusive co-creative economy and society, as shown in Figure 1 †one that is
-holding individuals and enterprises (1 Wealth-Welfare-Wellbeing as the Basis of Joint Creation and Evolution Of value
In the typical value creation process, enterprises and stakeholders had distinct roles. Stakehold -ers had a stake in value creation, but enterprises
viewed stakeholders as being largely passive and docile recipients of value creation. Stakeholding individuals now expect to have a more active role
contributing through their differences in views of value and their agency in creating value. Individ -uals as stakeholders,
whether inside the enterprise network or outside as part of the enterprise eco -system, are integral to this differential process of
jointly defining and creating value. A key point to CHAPTER III Open Innovation 2. 0
in a Real-world Setting Figure 1: Contours of a Co-Creative Economy and Society Expanding
Joint Interests Humanization Of value as Individuated Co-Creation Experiences Economies and Societies as a Nexus of
Ecosystems of Capabilities Jointly Building Co-Creative Capacities of Ecosystems Maximizing Individual Self-interest Value as
Relational Property Supply and Demand of Goods and Services Unilateral Capacity Building Wealth Welfare and Wellbeing
as the basis of Joint Creation and Evolution Of value Source: Adapted from Venkat Ramaswamy and Kerimcan Ozcan, The Co-Creation Paradigm (2014
*This article is based on the new book by Venkat Ramaswamy and Kerimcan Ozcan, The Co-Creation Paradigm (2004), Stanford
primacy of different stakeholders may vary depend -ing on the particular framing of an economic sys
-tem, stakeholders must be recognised as human beings in all their complexity, whose ideas about value can go beyond just narrow conceptions of
The notion that individuals as stakeholders matter and must be conceptualised as being an integral part of the value creation process has gained hold
Stakeholders are seen increasingly as contributing intrinsically to value creation rather than as entities to be managed merely by an enter
beyond the one-dimensional view of shareholder value (profit) maximisation and seeing management as beholden to shareholders, a †homo economicusâ€
view of stakeholders still lingers. Stakeholder theory has evolved to a more human-oriented †homo sapi
-ens†view. The enterprise is seen now as not just an economic but also a moral and human institution
where businesses are populated by and have con -sequences for human beings in all their complexity this opens up the enterprise†s purpose to a plural
-ity of values and a social view of value as much as an economic one: †businesses should be the
game, and of competition being emergent and value expanding, rather than being determined by indus -try structures and mere appropriation of value.
stakeholder in value creation also changes from passive to active, affecting enterprises and being affected by them, opening up various kinds of caus
-alities in the value creation process Co-Creation thinking evolves stakeholder capital -ism even further with its individuated agency and
experience-centric view of joint value creation wherein agency presupposes and entails value (s is co-creative,
with stakeholders and enterprises still †owning†particular key resources. So when an engagement platform†based offering entails multiple enter
economies and societies is the impulse for †becom -ingâ€. Whether as customers, employees, managers
financiers, partners, or citizens in communities every stakeholding individual can bring capital to the value creation process through their †value cre
-ative capacities†and, in doing so, become a co-cre -ator. As individuals†and enterprises†joint interests
enterprises intensify co-creators†acts of value cre -ation in terms of wealth-welfare-wellbeing. As all enterprising entities and people attempt to change
economy and society, by expanding our perspective on ecosystem innovation and value creation along each of the four dimensions,
A traditional conception of an economic system encompasses organisations and institutions that 97 specify †property relations†regulating production
-ation in the economy and society as it is becoming taking our conception of value beyond the trad
-itional goods and services based view to a more humanised view Consider the field of telematics †the provision
of mobile information and services to automobile drivers and passengers. As an example, Take on -Star, which was launched by General motors (GM
-vices to their customers. Over time, Onstar has evolved as GM has learned more about the broader
-tomers as stakeholders in experience-based value creation. Instead of merely asking, †How can we use
which customers can enjoy personalised co-creation experiences that make driving more entertaining, informative, con
-sumers in their vehicles, which demands wireless connections via satellite and telecommunication networks to common monitoring stations.
communication, vehicle integration systems, and internal sensors, as well as the technologies needed to integrate the vehicle diagnostics into public net
-works, call centre operations, and external services such as 911 emergency networks. The hardware and software requirements and the quality levels
cloud platform that enables Onstar-based services to developers. To illustrate its potential, consider a peer-to-peer car sharing service, Relayrides â€
support services, and technicians could respond more rapidly and schedule their visits to accommo -date patient requests in real time
-quire the efforts of nodal enterprises that can con -nect together a variety of services, partners, and
collaborative communities as part of the enterpris -ing network. The enhanced competence base of such a network becomes an integral part of an indi
Nodal enterprises like GM Onstar recognise the need for collaborative innovation across the private-public-social sectors
enterprises to enable and connect with the co-cre -ation experiences of individuals, as discussed next
-ation-based view of economy and society is about expanding collective self-interests for you and me
The notion of enterprises in the private sector leading initiatives for the greater good has become familiar thanks to the spread of
enterprises are creating shared value together with the public and social sectors, and likewise, social
and ecologically oriented) enterprises are benefit -ing from working with the private sector (6),(7). The
finding its way, highlights both the opportunities for generating †win more †win more†co-created out
poor migrant workers who are denied services and benefits when they move. With high levels of cor
ecosystems for all enterprises in the economic and social system, whether private, social, or public. This
sector enterprises can build services and applica -tions that benefit residents across India. Enterprises that become part of the UID applications ecosystem
get an authentication service via UIDAI confirming almost immediately the identity of any individual through an advanced technology infrastructure
of services and systems, it does eliminate redun -dant systems and processes that duplicate work
The scale of the Aadhaar initiative demands a deeper level of engagement with its myriad
stakeholders for it to be successful in the longer term. Although it was set up with a public-private
social sector stakeholders from the start appears to have contributed to social discontents. Public initiatives are as much a social as a technical chal
sector stakeholders in order to nurture public trust Traditional communications efforts to educate the public of the benefits of the initiative are not suf
-ficient anymore in an age where the influences of conventional and social media can take on a life of
this platform together with stakeholders both in the communities in which applications are designed and in the communities in which the applications
and served customers, there are other key stakeholders such as public/private sector banks, non-banking finance corporations
microfinance institutions, National Payments Cor -poration of India (enables interoperability between banks), Reserve bank of India (the banking regu
-lator creating the regulatory environment promot -ing financial inclusion), and state governments and departments that enact policies
the capabilities of these stakeholders to support the strategic architecture of multiple engagement platforms in the financial inclusion application eco
bring together the various stakeholders to engage in multifaceted dialogue aimed at generating new ideas in the ecosystem;
stakeholders, all to enable significant co-creation of expanded value in the ecosystem. Further, con
-tinuous stakeholder engagement with the various users of applications service platforms would allow the ecosystem to evolve based on feedback from
stakeholder experience domains, to minimise con -flicts, and to lead the design of platforms toward
enterprises. Continuing with the UIDAI example consider the real-life applications UIDAI is piloting as part of Aadhaar†s application ecosystem.
services, and insurance and investment products Only about half of Indian households have a bank
an instance where open ideation of the design chal -lenge can generate new potential solutions
everything in the built environment that is distinct from natural environments. The foundational pri -macy of physical infrastructure affords it a rather
unique status. For instance, a city†s bridges, roads and water system are described not simply as important physical artifacts but as investments in
the city building process. The history of successful infrastructure investment is less about the direct
impact of technology and more about the inter -action between technology and society. The returns
on investments are measured in terms of a soci -ety†s economy, health, and social wellbeing. Infra -structure is thus a critical determinant of co-cre
-ative capacities of an ecosystem of capabilities With over 50%of the world†s population now liv
technology to adapt to their environment, and it plays a central role in the competitiveness of cit
and social sector enterprises. On their part, enterprises are learning how to engage external and internal stakeholders and to harness
their personal, peer-to-peer, and collective know -ledge, creativity, and expertise for the purpose of engendering development together.
Development as Nobel laureate Amartya Sen has argued, is about capabilities to engage with freedom†s pro
-cesses and opportunities (2). This requires under -standing the direct relevance of human capabilities to people†s wellbeing and freedom and its role in
as well as opportunities to lever -age ideas and solutions from communities outside the local. Note that community capacity is rooted in
the meshwork of human capital, social capital, and organisational resources that is resident within and outside of that community,
economy and society by seeing it as a nexus of pri -vate, public, and social ecosystems of capabilities
of †production†of goods and services and †relations of production. †Further, expanding joint interests
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 eco -systems of capabilities centred on productive and
economy and society as a whole. Consider the case of Rio grande do Sul, one of Brazil†s richest states
investment reached its lowest level in 35 years Since 1970, one government after another had
commodity export-oriented states like Rio grande do suffered Sul not only from the negative impact of the overvalued national currency but also from
-ceived for engaging different stakeholders, building political consensus, and co-coordinating lobbying activities. The goal of this platform was to co-create
-tion of diverse stakeholders collectively representing the interests of the public. It was coordinated and
facilitated by volunteers, economists, politicians and external experts led by Symnetics, a consult -ing organisation, over multiple phases.
of it by a coalition of stakeholders. In fact, in October 2006, the strategic agenda was presented to the two
communication efforts and campaigns all over the state, on another level, there have been public dis -cussions with newly elected government officials and
nodal enterprise in the ecosystem, whether private public or social, as shown in Figure 2
details on co-creative enterprise transformation Briefly, co-creative enterprise transformation can be broken down into the following components
1. Jointly creating and evolving value with stake -holding individuals 2. Purposefully designing platforms of en
-action environments 4. Meshing together ecosystems of capabilities 5. Augmenting creative capacities of enterprise architectures and management systems
6. Enabling and supporting individuated value cre -ation, personally and in the social, business, civic
knowledge to co-evolve human stakeholder ex -periences of value 9. Building new strategic capital for enterprises;
and 10. Expanding wealth-welfare-wellbeing Figure 2: Co-Creative Enterprise Transformation Who: Enterprises Whence:
Goods and Services How: Activities Who: Stakeholders and Enterprises Whence: Individual Human Experiences How: Platforms of Engagements
From: To Who: Stakeholding Individuals and Enterprises Whence: Co-Creation Experiences How: Co-Creative Engagement Platforms
Stakeholding Individuals as Co-Creators Enterprises as a Nexus of Engagement Platforms Source: Adapted from Venkat Ramaswamy and Kerimcan Ozcan, The Co-Creation Paradigm (2014
104 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
The late Nobel laureate Ronald Coase, who at age 101 (in 2012) witnessed more structural changes in
economy than most of us, called for reconnecting †Man and Economyâ€, thus: †It†s time to reestablish
the connection between economics and the ordinary business of life...Knowledge will come only if eco
-nomics can be reoriented to the study of man as he is and the economic system as it actually exists†(15
Co-creation thinking bridges †human experience and economy†as it were, providing a way to put back
human experiences into the economy in central fashion, and beyond to †individuated co-creation
Enterprises must fundamentally stop thinking of individuals as passive and docile recipients of their offerings but must
stakeholders in the act of creating value (through engagement platforms), the better the results Value is subjective
-riences, and products and services are a means to this human experience-based embodiment of value
-uals must be engaged as stakeholders in value cre -ation on the same level as enterprises.
Convergence of value creation based on individuals†experiences in economy and society necessitates that all enter -prises, whether private, public,
or social sector, must engage people both individually and collectively Private, public, and social enterprises must build
innovation ecosystems of capabilities centred on the wealth-welfare-wellbeing of all individuals Building such innovation ecosystems requires going
with stakeholder expectations of more responsible responsive, and effective enterprises, and coevolving better states of governance, infrastructure, devel
-opment, and sustainability. Ultimately, co-creative innovation ecosystems have the power to transform our reality of the world.
Stakeholder Theory: The State of the Art. Cambridge: Cambridge university Press 4) Pryor, F. L. 2005.
Economic systems of Foraging Agricultural, and Industrial Societies. Cambridge Cambridge university Press 5) Curley, M.,Salmelin, B. 2013.
Nature of New Venture Creation: Capitalising on Open Innovation 2. 0, Innovation, Technology, and Knowledge
†Saving Economics from the Economists. †Harvard Business Review 90 (12): 36 Contact Dr Venkat Ramaswamy
Professor Ross School of business www. venkatramaswamy. com venkatr@umich. edu 105 Oulu Innovation Alliance †an Open Innovation Ecosystem
which is regarded also as the Capital of Northern Scandinavia, is located in Northern Fin -land (Figure 3). This article presents the Oulu open
Energy and Environment (www. cee. fi), Centre for Health Technologies (cht. oulu. fi), as well as the
appliances and services (7). CIE aims to capture and create Internet-driven growth opportunities and value by combining cutting-edge research
innov ations with agile new business creation processes. Focus is in new technology of Future
OULLABS provides ideation, development and test -ing services for companies and organisations on one-stop shop principle
OULLABS consists of a unique set of test environ -ments, such as •PATIO forum †Online forum for collecting
real healthcare environment •Converging Networks Laboratory †Wireless network testing From the city perspective the user†s involvement
provides excellent possibility to develop the services with the real users of the services; and not just for
the users of the services. In this context OULLABS has been used to test the services before actually
launching them for good. The user†s involvement has also been used in the procurement processes Living Lab services have been used as part of the
procurement process to test service options from different bidders. The people who are supposed to use the equipment/services under procurement pro
-cess have been able to test all the possibilities and give their comments. These comments have then
been taking into account when selecting the winner of the procurement process City of Oulu has opened also its databases in the
-tual environment under development †Oulu 3d model †which can be used as a platform for
services One example of the city†s activities in the field of open innovation and user involvement is the devel
it as a Living Lab environment where people and businesses are taken along already from the very
company can test their product/prototype/idea with real users at any phase of the innovation process
many stakeholders to put sit around the table and it can take time and resources.
rifts options and choices, design of services to users partners, business plans. After first contacts with
OSEO that was The french public fund devoted to finance Innovation, we decided to change the scale
themselves fit With growing demand from users sports and wellness products are now available in
-erable demand for using sportswear for sports as well as casual purposes. Continuously evolving and
-able services to users. By the end of the decade the worldwide mobile health market is expected to
of technology and services would come from data analytics such as •How to combine data from different sources
prove that customers will make them a reality. This is a challenge which Cityzen Sciences and Cityzen
It could give us new opportunities to develop new innovations that could strengthen our position on the market.
so many potential opportunities on the market in Europe, Asia and the US, including offers to pur
regarding international competition in these sectors and the potential of the markets in question. Even with our objective to develop the company from our
-vant opportunities 114 O P E N I N N O V A t I O N y E A r B o O k 2 0 1 4
-able sensor based digital services to support home care, professional care and operational care in
services/proof of concepts for personal health and wellbeing, 5) Business models & ecosystem for the
digital service creation in health domain The novel Careware ecosystem will provide new solutions for digital service innovation bridging
-tion of unobtrusive digital services for monitoring and advancing personal health and wellbeing. For the healthcare system and society Careware will
projects into innovative products and services in areas of vital socioeconomic importance for the future of the European project,
Data, Smart Cities, Space enabled Services and Digital Social Innovation Background, Concept and Objectives EYIF€ s Openeyifâ¢leverages Open Innovation pro
concrete projects, products and services makes the following essential observation about the core idea that is the basis for the Openeyifâ¢concept
actual take-up of innovative services and applica -tions, it is not enough simply to open calls for par
embedding in an Open Innovation environment for those selected through such calls, to build a sus
Smart Cities, Space enabled Services and Digital Social Innovation The best ideas and early-stage projects will be
incubators and their ecosystems, offering new opportunities and creating new, positive and mar -ketable opportunities for the new young innovators
The Goals of the Openeyifâ¢are •To bring to the marketplace innovative, com -mercially viable applications that will contribute
to the development of the areas of vital socio -economic importance for the future of Europe
enabled Services and Digital Social Innovation •using a three-stage integrated framework approach based on Open Innovation mechan
a cross-stage communication and dissemination process •A European network of business incubators and
their ecosystems qualified to host early-stage pre-seed start-ups, offering a choice of geo
and support for business plan -ning and development •Full commercialisation support for grantees who successfully graduate from the programme
product and services that can evolve into seed -type activities generating actual take-up of products, services and applications
will be engaged and mobilised through a distributed pan-European communication campaign at the tar -get communities,
to apply to the Openeyifâ¢open calls for ideas and participation Stage 2: Build & Try (ideas are selected and turned
-vate funded nonprofit business incubator net -work across Europe as well as virtual incubation and embedding in the innovation ecosystems
these incubators are a part of •provision of training, mentoring and experts support on necessary technologies, tools
Cross-Stage Communication and Dissemination The Framework foresees a 360 degree integrated approach for communication of the open call for
ideas and participation as well as the dissemination of results, which will engage and mobilise different pan European communities,
website and websites of the incubators and their ecosystem actors, social media networks blogs, specialised discussion forums, technology
participating incubators and ecosystems as well as road shows and external events: conferences, ex -hibitions, hackathons, etc Open Incubation for Success
incubators, with technical training and support Figure 2: The Cross-Stage Communication and Dissemination of the Openeyif
119 entrepreneurial training, workshops, seminars business networking, and one-on-one mentoring by experts. Grantees who successfully graduate from
receive support for access to finance (accelerator business angel and venture capital investment) and access to international markets
The Incubator network†s dual missions will be •To facilitate and accelerate the development of
the early-stage pre-seed ventures, by enabling young Europeans to technically skill-up and
validate their innovative idea, as well as acquire basic entrepreneurial skills and an European market perspective, and secure the capacity
The network of business incubators across Europe will provide the grantees their choice of geographic
by the incubators will consist of several topics like Needs Filtering and Business plans, Brainstorm -ing and Prototyping, Business models and Finance
Concept Development & Implementation, how to build a robust business plan around the developed prototype, Intellectual Property and Regulatory
Affairs, Reimbursement Strategy, Sales, Marketing Pitching and Business Sustainability Post-Incubation Support Post Incubation Support will consist of assisting
successfully incubated grantees after the incuba -tion period for a six-month period (three months
of intense support and three months of support based on request. The grantees will continue to
receive tech support while the entrepreneurship ecosystem they will become part of will support them with access to finance (introduction to VCS
business angels, crowdfunding platforms, poten -tial corporate sponsors/partners), markets, policy & decision-makers, business leaders & mentors and
Data, Smart Cities, Space enabled Services and Digital Social Innovation. The Openeyifâ¢foresees a cross-border, European approach that brings
longer-term environment for Open Innovation in Europe Contact Kumardev Chatterjee Founder and President European Young Innovators Forum (EYIF
-ware only industry to a full solution and services industry. With the growing availability of all kinds of
many opportunities for new business with services in lighting. It also creates opportunities for new pro
-fessions, such as in the design of lighting services and in the development of software applications for smart solutions:
professions that are new and require different skills than the traditional ones in the hardware related industry
solutions provide and seek for meaningful services In these projects various public and private organi
•Services At this level meaningful services are developed that provide value for the relevant stakehold
-ers. In urban lighting there are often different stakeholders that use the area, with different needs and wishes.
The ultimate goal of urban lighting solutions is to create value for societal stakeholders by creating a healthy and liveable
city. Smart lighting can offer valuable services for different stakeholders using the ICT based lighting platform
In this four level model, technology is considered an enabler. Technological developments create new opportunities for applications.
These applications become meaningful when they address relevant societal needs In the coming years innovation will take place at
all four levels. Businesses will drive technology developments, securing intellectual property and providing hardware to the market.
more opportunities for new jobs, especially in the domain of developing new services with lighting
The type of jobs is shifting from hardware related jobs towards the design of lighting services as well
is to the development of software applications for smart lighting solutions: jobs that are new and
emerging patterns and spot new opportunities It also enables to determine the impact of solu
active involvement of all stakeholders to find solutions that cater for their different needs Stakeholders turn from objects to active par
-ticipants, being involved in all stages, including very early ideation and prototyping. The active involvement of stakeholders is needed also to
develop new revenue models that enable the continuous innovation and further development of the services.
Municipalities may be able to provide basic infrastructures in public lighting but due to budget restrictions it is not realistic
to expect that all investments will be done from the public domain. By understanding the poten -tial value of innovations for the different stake
-holders, also opportunities for co-investment arise A Changing Business Environment Meaningful applications in public lighting are based
on societal needs and use the enabling technol -ogy in lighting and ICT to provide solutions that
address the needs of the stakeholders. Different areas in cities have different stakeholders with dif
-ferent needs. The solutions will need tailoring to the specific situation. For example, an entertainment district in a city has different stakeholders with
different needs than a residential area or an area around a school. For each project it is therefore
important to start with an inventory of the specific stakeholders of the area and their needs. Based
on these needs a creative process starts to define a proposition for an urban lighting solution.
the main stakeholders in the area and their needs These needs were defined as •Sustainability
Various stakeholders wish to improve the hospi -tality of the area to attract people and to make
light-on-demand settings involves just lights people count sensors and an application to design
-ther in the needs identified by the stakeholders an opportunity was found in using the same tech
-nical system to increase a †virtual stageâ€. Dedicated spot lights can create a stage for (music) perform
back the investments for the development of the app. and for new investments in the smart lighting
system and related apps in the area This case shows that the technical system en
-ables the creation of various services for different stakeholder needs. The challenge lies not so much
in the technology (although a good system integra -tion of various existing building blocks can still be
of meaningful services that make sense in this spe -cific area. The type of people needed to perform
the opportunities of innovative lighting solutions to increase the quality of life in the city. One of the
provides opportunities to address also other needs An example here is that when the 3d sound sensors
more on the ICT and services part. We would espe -cially want to highlight two professions that are
the different stakeholders. In comparison with trad -itional designers, who focus mainly on users, they
of a wider range of stakeholders. This will provide them with insights as input for various use scen
and provide new services for the different stakeholders. Next to these skills, they also need to understand the impact of lighting on
people†s mood and behaviour to be able to create desired atmospheres and experiences. In compari
rate of services will be relatively high. New applica -tions will give rise to the need for new lighting scen
-novation and economic growth. Organisations that embrace this new industrial paradigm will prosper Yet, despite our awareness of the core assertion of
on, low friction communication, the boundaries between the worlds we all inhabit individually and collectively are blurred progressively and indis
and, as such, this fluid and interlinked economy presents a vast pool of enormously valuable resource.
-tions in our cloud of crowds, the opportunities to innovate are boundless Crowd assets are the new source of innovation and
economic growth. As the digital world witnesses both declining transaction costs and the emergence of the so called †grown up digital†demographic as
and create new opportunities without boundaries in a way previously unthinkable. Organ isations that embrace this new industrial paradigm will prosper
economy models whereby crowdsourced innovation drawing on mobile and remote expertise, financed $5 billion of democratised crowdfunding.
While the breadth of investment is certainly impressive, the real power of crowdfunding comes from harness
-ing the wisdom of the crowd and creating a com -munity of individuals emotionally and intrinsically
motivated to spark real change. When compared to traditional commercial thinking and financing mechanisms, crowdfunding underscores a para
-digm shift towards progressive funding that will transform global funding models While crowdfunding is a powerful mechanism for
entrepreneurs to raise capital to finance their idea or project, crowdfunding espouses many non -monetary benefits.
When entrepreneurs tap into larger social networks to pitch an idea, they be -gin to create mindshare
and market share within a virtual community. The virtual community then becomes a critical resource for the entrepreneurs
-tial customers is of tremendous value, as it allows market value, size assessment and direct product
world still have opportunity to create value in this new economy if they can innovate through embrac
-ing crowd based models The innovation imperative is undeniable. Research from Bain and Company (1) indicates that com
of little value in the crowd empowered economy? The seminal ideas of Abernathy (3) were rooted in the
in uncovering crowd based opportunity within our firm Are we therefore left rudderless, without the ne cessary compass to navigate the
opportunity presented in the new crowd empowered economy If this is indeed the case, help is at hand.
In this paper, we assert that, with some minor adjustment many of our more trusted models can assist us in
making sense of the opportunities available by pro -viding us with a new crowd aware set of lenses to
The Web 2. 0 economy has fundamentally trans -formed the way people interact and communicate
opportunities for collaboration, co-creation, and a sharing economy. Different players in the value chain come together to create, improve, and deliver
new product and service offerings For businesses, the crowd has become the source of efficient solutions, shared assets, deep insight, co
with The Economist, Nature Publishing Group and Popular Science, the network of experts with ac
the open business models and harness crowd-assets, why aren†t there more organisations doing so
The crowd asset economy challenges traditional business concepts and theory. In the world of the
collaborative and shared economy, with its free -mium revenue models where social applications with no revenue can go from launch to being valued
an online platform to permit its customers to sell their used Patagonia products to those who might
identify the opportunity. Does this perhaps leave us without analytical models and method to act upon
embrace the opportunity of the crowd empowered business, we must transform the current frame -works to reflect the current landscape
in the sharing economy is defined their strongly traditional and inflexible definition of business model and organisational boundaries.
value creation opportunities which are novel or where traditionally we would have thought that only cost or threats might be found
collaborative economy, we cannot take such a rigid and firm view. Instead, we propose a move from
-trial 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 in order to
guides into an otherwise obscure environment As an example, let us consider the Mckinsey 7s
opportunities that might exist to innovate within the business model and across products and ser -vices.
We need to move the model into a 3 dimen -sional plane to unlock its renewed value.
there exists an opportunity to innovate amend -ing and/or enhancing through the crowd. This will
crowd based economy Figure 1: Original 7s Model Figure 2: Updated 7s Model 129 Porter†s Value Chain is a value analysis tool that helps
crowd based models into an existing business model Yet we would like to take that a step further to re
and that whilst a crowd empowered environment requires us to open our thinking, we have need no
the true winners in a crowd empowered economy will be the ones who adopt a more wholesale and
demonstrate the opportunity created by the intro -duction of new and disruptive technology and it
their readiness to embrace the opportunity. Some are more iterative and cautious, and seek to utilise
the opportunity to enhance what they already do The more ambitious ones employ the opportunity
in a more transformational manner and see it as a chance to reinvent, transform and create entirely
new opportunity. This same reference can describe the opportunity presented by crowd assets This illustration has a tremendous familiarity and
simple, but practical application to us, as we can all plot the location of our own organisations on it
The impact of the crowd economy is, however, so profound, driven as it is by economic, societal and
us consider some of the generic opportunities that present themselves As demonstrated in our examples, one obvious
opportunity is crowdsourcing. If Henry Chesbrough coined the term †open innovation, †Jeff Howe coined
crowdfunding, a practice we have referred already to as a manifestation of the disruptive possibilities of the crowd asset economy.
It is one of the most promising resources for restoring capital to busi -nesses, defined as the collective effort of individ
-uals who network and pool their resources, usually via the Internet, to support efforts initiated by other
capital from investors, using social networks and crowdfunding platforms to finance their businesses and projects. By doing so, individual entrepreneurs
and early growth companies can solicit donations from individual stakeholders (including friends family, colleagues, other business owners, etc.
by appealing to their intrinsic, emotional, and social motivations. Not only does crowdfunding solve the challenges of early-stage financing for the business
owner or entrepreneur, it also establishes a strong communication link between the funders and the
company, whereby the funders can offer feedback and suggestions for the product Crowdfunding enables enterprises to validate prod
-ucts by gathering a critical mass of funding (and customers) before the venture even goes to market
and in some cases, before the product even goes into production! ultimately mitigating the risk
of customers already exist. This new mix of the col -lective creative with productive capacity and execu
-tion enables enterprises to identify, collaborate, and produce in an entirely unprecedented manner Establishing a strong communication link between
the business owner and the crowd paves the way for open business models. According to Henry Ches
-brough, †Open business models enable an organisa -tion to be more effective in creating as well as cap
-turing value. They help to create value by leveraging many more ideas because of their inclusion of a var
Open business models can help businesses from a revenue perspective by licensing its own tech -nologies to other companies and by using outside
-tally innovating existing products and services Continual product innovation is essential for busi -nesses to remain competitive and profitable
and active customers to share, combine and renew each other†s resources and capabilities to create
with customers when Intuit customer service teams began experimenting with online support forums moderated by enthusiast employees.
ideas of the shared or collaborative economy. Often seen as being a P2p phenomenon, it has valuable
economy to all? Porter†s model demonstrates how the existing Value Chain might be extended to take
empowered enterprise. As alluded to earlier, the char -acteristics and approaches to unlock these opportun
diverse spectrum of opportunity we are presenting an analysis tool that sets out the key crowd asset
include crowdfunding, campaigning, brand value development and viral marketing, or micro commerce transactions D. In section D we find the crowd connected infra
brought together as an operational services or collaboration. So each act has limited value in itself but when coordinated they provide a valu
activity to a business model It is possible for us to map onto the matrix value
-scape and includes opportunities to reduce trans -actional costs by harnessing external resources to transact process,
At the same time we can identify opportunity to re-focus or adjust our position in the value chain by
a crowd enabled environment It is important to recognise that the model does not provide an optimum solution or configuration and
consider the value creation opportunities available by letting us locate value creation opportunity by crowd based and open models
Let†s Consider this via a couple of Practical Examples GE and Quirky have applied multiple crowd-based
new products and services to market on its own Yet recently, in an effort to expand its product port
innovation ecosystem, beginning with ideation and ending with sales. Through distribution agreements with companies Like home Depot, Target, and Best
-oration, customers are able to purchase innovative products from a household brand †and with that
Local Motors also works with large enterprises through hosted challenges, whereby the enter -prise may outsource a design task to the Local
phase is centred on ideation, where Army Cocre -ate users brainstorm and submit ideas about the
Army will prototype the products using 3d print -ing and other technologies within the REF exped
infrastructure and operational services. By part -nering with the RAF and engaging the Local Motors
The crowd asset economy is the natural extension of the open innovation principles and we are still
drive our new economy. These models and frame -works go some way to help in that process but the
environment? If we can clarify these skills can we then develop them and, in so doing, move amongst
embrace the opportunities offered To this end we plan to create a community of crowd
the opportunity opened up by the crowd. We can then develop novel applications of the framework
The economics of organisation the transaction cost approach. American Journal of Sociology 87 (3: 548†577
Productivity, and Profits Free Press (October 5, 2010 p. 108†111 9) Mark S. Granovetter. The Strength of Weak Ties
Thought leader in the Crowdfunding field me@danmarom. com 137 Lawyers and Innovations †Do They Mix
services to suit the tastes of the Finnish customers and negotiating on the terms of the how it could be
economy when accountants started to be cre -ative; creative accounting was not such a success
the environment is complicated and uncertain The innovative lawyer looks at other sources of law besides the national.
successful international services, like social media or search engines, you realise that somehow these services have managed to go passed and beyond
these problems. Someone in the organisation car -ried out the analysis and took the company boldly
of customers in a market that was claimed to be impossible †mostly by the traditional, nationally
and appealing to the customers. To continue with the solution however required consents from sev
R & D related investment and the eventual can -cellation of the development of the said technol
As the issue is related to Internet services, it looks rather evident, that there†s no way to gain back
momentum, as the competition takes all the time big leaps in the development From legal perspective, this case (of which I am not
they have structured their services, composed their terms, rights and obligations †learn how the trick
relations between the company, its customers and advertisers, and all their internal relations, rights and obligations.
and the Economy, Finland mikko. huuskonen@tem. fi Figure 2 Â is to ck 141
to access capital or to gain access to knowledge and skills. And they are operating within fast
-mentation will become a key driver of competition underpinning new waves of productivity growth and data-driven innovation.
difference between enterprises that are native to data and others is how they approach strategy.
sales, all in real life and with real customers. Based upon quantified results, the experiments determine what the strategy will be
You then prototype and test multiple ideas quickly with your users, meanwhile building a high class solution that incorporates your findings from
each prototype. At every stage, you loop back to make sure that what you are doing is consistent
environments, because the user does not know where to go to. Experiments show what people use, but, before getting there you might want
in at a data-centric economy that has moved on without them. Our data is hot property and
Scalability used to be a plus, a scar -city only possible for the big companies.
online worlds, scalability is a non-issue. This creates copycatting behaviour and continuous attacks on the business profit.
If you want to stand out in the crowd you need to connect to local cultures. This involves additional thinking
for products and services. †If citizens are involved not we enter up to the old linear paradigm
-ation among all the stakeholders in the innovation ecosystem, sharing ideas, results of intellectual creativity and co-creation among all involved.
-ical decisions or creation of services for the market The citizen/user is now an integral part of the innov
There are many opportunities once the worlds of information, monitoring and communication have been brought together. Sharing content and creativ
-ity through the Internet will create new and better work/life balances for citizens: wherever and when
controlled through communication as needed. Sus -tainable energy, sustainable water and sustainable material use will become essential part of citizens
-mation and communication technologies, the pro -cesses and practices of creating innovative product or service are evolving at an increasingly rapid pace
possible anymore to create new services alone isolated from the rest of the world and â€oeforce†the
or buy these created services. Oth -erwise, it will result waste of time and resources as the buyers will not be interested in using these
services. As a part of the Open Innov ation 2. 0 eco -system, industry/business/service providers become
the co-creation of services. The users can be both consumers and innovators/participants, given all
all the stakeholders involved in Open Innovation 2. 0 ecosystem. Collaborative skills, shares ideas values and processes need to be in place to make
and communication technology In the past years considerable attention is drawn to this topic trying to solve the issue of the effect
***Failure should be seen as opportunity for getting stronger, creating better solutions, better lifestyle and better governments.
more opportunities for wellbeing. To paraphrase Nelson Mandela: â€oeit always seems impossible until it†s done†(4). Urgent actions are needed to move
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