of Economics and Public Administration Volume 14 Issue 1 (19 2014 38 OPEN INNOVATION †THE GOOD, THE BAD, THE
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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
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current globalized economy. While awareness on the barriers and drawbacks of open collaboration projects is decisive,
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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 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
And, of course all stakeholders should be able to build and contribute to the innov -ation ecosystems by bringing in their competen
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
all stakeholders. In the paper new value co-creation models are discussed also with examples, from the
source of innovation and economic growth. Many organisations are aware of this, conceptually but the threshold to move into this in practise is quite
stakeholders to take on active roles The adoption of the new OI2 paradigm can be the
a wider spectrum of stakeholders participates, is heard more frequently from world leaders, as the
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
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
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
Co-creation includes all stakeholders, including citizens, users, or customers, in the development of innovative solu
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
-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
-ments for multi stakeholder trials, including legal and policy elements is the key to root in the Euro
benefits that leverage and benefit all stakeholders He also explains that the most prominent attribute
However, it requires all stakeholders, including users to be engaged along the design process for co-cre
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
with all stakeholders of potential refinements in order to prepare the next iteration until it reaches
for engaging all stakeholders, especially users, in the environment of augmented creativity. There is a strong analogy with †scenario thinking†(19) or †scen
and encourages stakeholders to freely explore alternatives for increasing safety and Figure 5: The Logistic Use Case
Iot-based services with a set of stakeholders on air quality and noise measurement via citizen
holistic UX model guides project stakeholders in foreseeing the types of value and corresponding user experience they would like to design in their
-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
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
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
societies and economies (varieties of capitalism Over the last twenty years however, globalisation has evolved and morphed into glocalization with
economy and society learning in various institu -tional and socioeconomic environments. They also allow implementing more effectively innovation
-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
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
of the knowledge economy. The overall RIS3 con -text provides an appropriate operationalisation framework for embedding the concept in both pol
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
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
effective involvement of stakeholders in priority selection •How can the S3 approach or similar, relevant or
economy in an environmentally conscious manner. Moreover, our present way of life and lifestyle must be scrutinised under a sustain
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
-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
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 knowledge base of an economy in terms of tripleâ helix relations among †technology, organisation, and territory. â€.
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
-angle which is different for diverse stakeholders collaborating in such an open innovation envi -ronment.
they still convey very important economic value as well as social value developing knowledge, educat -ing employees and tackling public health challenges
which all stakeholders have their own interests and goals and they all contribute to value creation
The KIC€ s shareholders agreed on a business model that will hopefully lead it to finan
referred to an entrepreneur as a driver of economy who by combining assets (including technologies) in
new economic values and effectively new demand and supply curves. An entrepreneur, he claimed succeeds by combining new or existing technolo
-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
value for their shareholders and stakeholders. Some KIC partners express a real concern on how to define
-pean Knowledge Economy and Single Digital Mar -ket development are by definition longitudinal and accumulative by nature.
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,
stakeholders, drafted a contract and collected feed -back from all participants in two rounds of iter
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
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
†The Economics of Two-sided Marketsâ€. Journal of Economic Perspectives, Vol. 23, Nr 3, pp. 125†143
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
the real economy thus developed into the deepest and most synchronised global crisis in the last eight
In 2009, Chile†s economy contracted by 1. 5%,export volume dropped by nearly 20
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
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
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
a rule-based countercyclical fiscal policy, accu -mulating surpluses in sovereign wealth funds during periods of high copper prices and eco
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
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
As a result of an improved economy, the government expected to return to budget surpluses as early as
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
and consumer price inflation (CPI In addition, tangible (GDP per capita ppp) and intan -gible (national intellectual capital, NIC) co-develop
economy. However, it bounced fast in 2010 to over 4%and continued its growth to almost 10%in
economy, such as retail and housing construction by boosting consumer spending (18 For Chile, its goal is to become the first Latin
In the current knowledge economy, intangible asset plays an increasingly important role in national development. This section presents the co-devel
the existing economy to an even more robust one This paper reports two countries †Australia and
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
economic growth by about 0. 5%and 0. 75†1%of its GDP in 2008†09 and 2009†10, including
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
The economic downturn hit young people especially hard, limiting their opportunities to success. High unemployment, job insecurity, strong competition
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
seen as a commodity very capable of generating wealth and under the new †Big data†phenomenon
-oped economies of Europe, government administra -tors could save more than â 100 billion ($149 billion
expansive and more inclusive co-creative economy and society, as shown in Figure 1 †one that is
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
-uals as stakeholders, whether inside the enterprise network or outside as part of the enterprise eco
Contours of a Co-Creative Economy and Society Expanding Joint Interests Humanization Of value as Individuated
Economies and Societies as a Nexus of Ecosystems of Capabilities Jointly Building Co-Creative Capacities
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
stakeholder in value creation also changes from passive to active, affecting enterprises and being affected by them, opening up various kinds of caus
Co-Creation thinking evolves stakeholder capital -ism even further with its individuated agency and experience-centric view of joint value creation
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
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
-tomers as stakeholders in experience-based value creation. Instead of merely asking, †How can we use
-ation-based view of economy and society is about expanding collective self-interests for you and me
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
this platform together with stakeholders both in the communities in which applications are designed and in the communities in which the applications
are other key stakeholders such as public/private sector banks, non-banking finance corporations microfinance institutions, National Payments Cor
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
-ety†s economy, health, and social wellbeing. Infra -structure is thus a critical determinant of co-cre
external and internal stakeholders and to harness their personal, peer-to-peer, and collective know -ledge, creativity,
economy and society by seeing it as a nexus of pri -vate, public, and social ecosystems of capabilities
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
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
knowledge to co-evolve human stakeholder ex -periences of value 9. Building new strategic capital for enterprises;
Stakeholders and Enterprises Whence: Individual Human Experiences How: Platforms of Engagements From: To Who: Stakeholding Individuals and Enterprises
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
is and the economic system as it actually exists†(15 Co-creation thinking bridges †human experience and
human experiences into the economy in central fashion, and beyond to †individuated co-creation
stakeholders in the act of creating value (through engagement platforms), the better the results Value is subjective
-uals must be engaged as stakeholders in value cre -ation on the same level as enterprises.
in economy and society necessitates that all enter -prises, whether private, public, or social sector, must
with stakeholder expectations of more responsible responsive, and effective enterprises, and coevolving better states of governance, infrastructure, devel
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.
†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
many stakeholders to put sit around the table and it can take time and resources.
stakeholders that use the area, with different needs and wishes. The ultimate goal of urban
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.
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.
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
stakeholders of the area and their needs. Based on these needs a creative process starts to define
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
-ther in the needs identified by the stakeholders an opportunity was found in using the same tech
stakeholder needs. The challenge lies not so much in the technology (although a good system integra
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
the different stakeholders. Next to these skills, they also need to understand the impact of lighting on
-novation and economic growth. Organisations that embrace this new industrial paradigm will prosper Yet, despite our awareness of the core assertion of
and, as such, this fluid and interlinked economy presents a vast pool of enormously valuable resource.
economic growth. As the digital world witnesses both declining transaction costs and the emergence of the so called †grown up digital†demographic as
economy models whereby crowdsourced innovation drawing on mobile and remote expertise, financed $5 billion of democratised crowdfunding.
new economy if they can innovate through embrac -ing crowd based models The innovation imperative is undeniable.
of little value in the crowd empowered economy? The seminal ideas of Abernathy (3) were rooted in the
empowered economy If this is indeed the case, help is at hand. In this paper, we assert that, with some minor adjustment
The Web 2. 0 economy has fundamentally trans -formed the way people interact and communicate
a sharing economy. Different players in the value chain come together to create, improve, and deliver
with The Economist, Nature Publishing Group and Popular Science, the network of experts with ac
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
in the sharing economy is defined their strongly traditional and inflexible definition of business model and organisational boundaries.
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
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
the true winners in a crowd empowered economy will be the ones who adopt a more wholesale and
The impact of the crowd economy is, however, so profound, driven as it is by economic, societal and
of the crowd asset economy. It is one of the most promising resources for restoring capital to busi
from individual stakeholders (including friends family, colleagues, other business owners, etc. by appealing to their intrinsic, emotional, and social
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
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
The economics of organisation the transaction cost approach. American Journal of Sociology 87 (3: 548†577
economy when accountants started to be cre -ative; creative accounting was not such a success
and the Economy, Finland mikko. huuskonen@tem. fi Figure 2 Â is to ck 141
in at a data-centric economy that has moved on without them. Our data is hot property and
-ation among all the stakeholders in the innovation ecosystem, sharing ideas, results of intellectual creativity and co-creation among all involved.
all the stakeholders involved in Open Innovation 2. 0 ecosystem. Collaborative skills, shares ideas values and processes need to be in place to make
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