markku markkula jade/markkula: aalto university, “theory ... · the regional innovation ecosystem...
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Markku Markkula
• Aalto University, Advisor to the Aalto
Presidents • EU Committee of
the Regions CoR, Chair EPP-CoR Task Force on
Europe 2020, Rapporteur on H2020 • Espoo City Planning
Board, Chair
markku.markkula@aalto.fi
New programme period paints a new landscape with new drivers of change and some new critical success factors: 1. Focus on impact, especially societal impact 2. More innovations out of research 3. User-driven development: citizens and communities of
practice 4. Regional innovation strategies based on Smart
Specialisation RIS3 5. From traditional clusters and triple helix to regional
innovation ecosystems 6. More multi-disciplinary and breaking the boarders 7. Mindset/mentality is the most crucial 8. Use of cohesion funds on innovation and capacity
building 9. Synergy in using Horizon 2020 and Cohesion funds 10. Multi-financing
I will especially review the key issues with respect to your conference objectives: new emerging approaches to networking and cooperation between regions.
JADE/Markkula:
“Theory and Practice to Regional Innovation Ecosystems and Open Innovation 2.0’
Scientific Excellence & Industrial Leadership
Smart Cities & Smart Regions Are Needed to Speed up and Scale up
EU2020 Implementation – New Key Elements Are
Regional Innovation Ecosystems Pioneering
EU2020
Markku Markkula, markku.markkula@aalto.fi Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland
More Societal
Innovations
Urban Design
Solutions
Digitalized Real Life Test-beds
Open Innovation & Smart Specialization
1. Professor C.K. Prahalad gave a clear message also to universities by defining three critical aspects of innovation and value creation (Source Open Innovation Yearbook
2012, DG INSFO):
1) Value will increasingly be co-created with customers.
2) No single firm has the knowledge, skills, and resources it needs to co-create value with customers.
3) The emerging markets can be a source of innovation.
The competitive arena is shifting from a product-centric paradigm of value creation to a personalized experience-centric view of value creation. 2. Professor Erkki Ormala in his presentation EU Regions and Horizon 2020
(Source ManETEI final conference 4 December at Aalto): “From traditional large enterprise to extended enterprise (in which the role of partners is much larger) with orchestration capability”.
Why Regional Innovation Ecosystems?
Critical Aspects of Innovation and Value Creation
Markku Markkula, markku.markkula@aalto.fi Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland
Erkki Ormala, Professor Aalto University,
Former Vice-President, Business Environment, Nokia
Open Innovation
• Access and drive global intellectual vision and insight
• Form strategic collaborations with world-leading institutions to multiply our efforts
• Build global test beds to learn from broader audiences
Engaging the World’s Leading Institutions
Erkki Ormala, Professor Aalto University,
Former Vice-President, Business Environment, Nokia
Identify Societal / Market Needs & define system requirements & barriers
Develop Useful Insights from Fundamental Knowledge
Integrate Fundamental Research & Innovation Knowledge into Enabling Technologies
Universities should analyse the ecosystems through several layers:
Interacting Learning & Research & Innovation Activities
(E O’Sullivan: Adapted from NSF ERC Strategy Framework)
Professor Sir Mike Gregory, 13 Feb 2013
Three Steps to Understand the System:
Business Model Levers Technology Levers
Value Proposition
Value Chain
Target Customer
Product and Service
Process Technology
Enabling Technology
Cultural Levers
Regional Innovation Ecosystem
Space (Ba & Flow)
Design
Mindset
Learning
Transformation: the 3 Types of Innovation (In the past: the focus on innovations has been on business and technology.
Now: also the cultural aspects are the drivers of change)
Incremental innovations
Semi-radical innovations
Radical innovations
Markkula M & Pirttivaara M, (2013). Adding the Cultural Levers. Developed from Davila T, Epstein MJ and Shelton RD, (2013), Making Innovation Work, FT Press, New Jersey.
New Governance
Culture
From Triple Helix to RIE: Using The Hubconcepts™ - Innovation Hub Framework
Company and forum driven activities
Public-private partnerships
Public policy driven activities
“Smart Handover”
National /Regional Innovation Policy
Research & Development Activities
Education (elementary to university)
Physical Infrastructure and Service Structures
Cluster Policies & Programs
Start-ups
Living Labs / Test-Beds
Incubation Environments
Anchors
Growth SMEs
Technology Innovation Area
Biotech & Pharma Phase I
Residential Zone
Semiconductor Phase II
Semiconductor Phase I
Biotech & Pharma Phase II
Scientific Research and
Education Zone
First-class master plans &
Innovation Hub concepts
complete each other
Based on Hubconcepts Inc / Jukka Viitanen: Copyright and all rights reserved.
Read the arcticle by Jukka Viitanen &
Markku Markkula & Carlos Ripoll in
the Knoewledge Triangle Book 2013.
The Changing Realities in the Systemic Development of Regional Innovation Ecosystems “From Triple Helix to RIE”
Jukka Viitanen, Markku Markkula, Carlos Ripoll Soler (the article, 16 pages, gives a clear process guidelines from the city governance perspective):
1. Introduction
2. The Triple Helix Model Extended to the National and Global Contexts
3. New Foundations for the Regional Innovation Policy and the Development of Specialization Capacity
4. The Interplay and Matching of Parallel Interests in the Regional Innovation Ecosystems
5. The Comprehensive Bench-Learning Approach for the Functional RIEs 5.1. Grand Master Planning 5.2. Coordinating Service Provision 5.3. Smart Orchestration 5.4. Channeling Ecosystem Resources
6. Conclusions
Development of National or Regional Innovation System
Public support
Stage 1: Creating pre-conditions
Stage 2: Initiating transformation towards RIE
Stage 3: Orchestration for global business
The Development Path of
the Regional Innovation Ecosystem (RIE)
Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013
This is the process we are applying in practice in the Espoo Innovation
Garden regional ecosystem through the research program “Energizing
Urban Ecosystems” (20 million euros in 4 years: industry driven 50%
funding from industry, 50% from Finnish public funding) .
Stage 1 Regional pre-conditions: 1. Potential of existing regional/international innovation system (=audits) 2. Willingness to utilise this potential (=active participation) Stage 2 Creating the innovation hub: 1. Joint R&D 2. Joint innovation capacity 3. Joint commercialization 4. Joint platforms Stage 3 Orchestrating RIE: 1. Mindset change 2. Implementing Knowledge Triangle 3. Integrating innovation activities with research programs
The Development Path in More Detail
Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013
Starting Points for Regional Level RIS3 Governance
• Our CoR experiences coming from many regions give a strong support on the following Smart Specialisation Platform statements: “RIS3 is an economic transformation agenda. RIS3 is a dynamic and evolutionary process (not a structure) deeply grounded in an entrepreneurial discovery process (not a one-off action) where governments are rather facilitators than in a position of command and control. RIS3 is for innovation leaders and for those lagging behind.”
• This means that Smart Specialization is above all a process strengthening regional co-creation and business collaboration through stakeholder involvement and shared ownership, not an issue of traditional governance structures: RIS3 is a process a) to foster stakeholder engagement under a shared vision, b) to link small innovative firms and also large companies on value networking, c) to commit the main actors in operating through the orchestrated multi-level governance, and d) to help build creative and social capital and thus increase the renewal capital at the local and regional level in different communities of practice.
Markku Markkula
Horizon and Cohesion Funds Go Hand-in-Hand
In addition to Scientific Excellence, H2020 will focus on industrial leadership and societal challenges, maximizing the competitiveness impact of R&I, as well as raising and spreading levels of excellence.
Besides improving the innovation ecosystems, Cohesion policy will partly increase the capacity of regions to participate in H2020 and partly fund R&D&I activities in a region that can build on H2020.
Both should have a strong base on European Partnerships
Guidelines for Combined Funding
Within a programme, a project or a group of projects, the use of different EU funding sources with many types of local funding is encouraged. RIS3 seeks to exploit complementarities and synergies, however avoiding overlaps and excluding double-financing.
Examples:
• Joint use of H2020 and ESIF funds to cover different cost items in a single project.
• Separate (not legally linked) projects financed through H2020 and ESIF and orchestrated to have synergic collaboration and stronger impact.
• ESIF funding is not legally linked to H2020 project, but a regional authority decides to fund beneficiaries to enhance the H2020 project in the region.
• ESIF to be used (with very little administration) to finance a project proposal which had a positive evaluation under H2020, but could not be funded due to a lack of H2020 funds under the call.
Regions to apply these and other policy guidelines in their use and in partnering RIS3 process on a continuous basis.
Smart Specialisation Strategies as Iterative, Tailor-made Policy Processes
The S3 design process can be described through “six steps”, each of which relates to the process rather than a theory or even any specific policy objective:
Step 1: Analyse the regional context and potential for innovation;
Step 2: Ensure participation and ownership;
Step 3: Elaborate an overall vision for the future of the region;
Step 4: Identify priorities;
Step 5: Define a coherent policy mix and action plan;
Step 6: Integrate monitoring and evaluation mechanisms.
Markku Markkula CoR Innovation Union keynote on 27 Nov 2013, based on “The role of clusters in smart specialisation strategies”, DG Research and Innovation
CHALLENGE 1: The “prioritization” challenge: how to select (and justify) priority intervention domains for S3? CHALLENGE 2: The “integrated policy” challenge: what are the adequate policies for S3? CHALLENGE 3: The “smart policy-making” challenge: what tools for evidence-based policy (measuring, assessing and learning in S3)? CHALLENGE 4: The “multi-level governance” challenge: how to align policies from national, regional, EU levels? CHALLENGE 5: The “cross-border collaboration” challenge: what is the appropriate territory to conduct a S3 and how to conduct polices that conform to it? CHALLENGE 6: The “stakeholders engagement” challenge: how to promote participation, engagement and commitment of the variety of stakeholders?
The RIS3 Process: Six Challenges to Implement Smart Specialisation Strategies in Practice
Markku Markkula CoR Innovation Union keynote on 27 Nov 2013, based on “The role of clusters in smart specialisation strategies”, DG Research and Innovation
Aalto frame for
the EU Horizon
Mega-Endeavour
(orchestrating a
project portfolio)
Project 1
Project 2
Project 3
Project 4
Project 5 Ou
tco
me
s o
f th
e p
roje
cts
Added value for these
projects
Additional added value for the
partners and stakeholders
Creating
enablers
for this
project
portfolio.
Some
projects are
coordinated
by Aalto and
some by the
others.
Other
impacts
Knowledge Triangle implementation
Education Research Innovation
Markku Markkula
Aalto University
Include flexibility through experimenting and spin-offs & spin-inns
How to make all this a reality?
Methodological RDI (integrated with the university’s focus areas and the regional strategy)
A. New concepts and activities need to be linked with RDI. B. Open Innovation integrates research, teaching, learning and different collaborative developments. It is a feature characterizing all these activities. C. In each topic the RDI areas in the picture can be different depending on the existing strengths of the faculty. D. Orchestration also for European partnerships based on RIS3. This means that each region should locally organise the settings in a similar documented way.
18
Societal Challenges
Industrial Renewal
Working Life Practices
Individual innovativeness
© Markku Markkula
5. Leadership
and Management
3. Human Capital
2. ICT
4. Living Environment
6. Innovation
Process
1.
Science & Society
Interaction
Orchestration of the specific projects and general open innovation activities focusing on the regional spearhead topic.
University’s
Focus Areas
The String Region
12,4 Million
Copenhagen Malmö
Hamburg
Kiel
Lübeck Rostock
- Open Innovation Arenas -
Fast international key players
Food
solutions
Mobile
solutions
Sustainable
solutions
Media
solutions
Flow
solutions
Packaging
solutions
Food
Academy
Mobile
Heights
Sustainable
Business
HUB
Media
Evolution
Training
Regions
Pack-
bridge
Danish-
Swedish
Cluster
Danish-
Swedish
Cluster
Smart
Materials
Smart
Sustainable
Cities
Personal
Health
Areas of innovation (smart specialisation)
Skåne
Local Digital Agenda for the Helsinki Region based on Smart Specialisation – Draft (the process goes on)
We will pioneer solutions to tackle Grand Societal Challenges. We will focus on:
1. Smart Urban Design, especially Open Data 2. Active and Healthy Ageing 3. Low Carbon Economy, especially Cleantech & Smart Traffic This means especially fueling Industrial Leadership by focusing on:
1. Regional Service Architecture and Modeling 2. Digitalization of System Processes, especially Services 3. Mindset and Other Enablers for Start-up and Growth Companies And this means scientific excellence focusing on:
1. Open Innovation Interlinked Ecosystems 2. Human Centered Living Environments: Integrating Real and Virtual
Reality 3. Key Enabling Technologies and their multidisciplinary applications Draft by Markku Markkula Fall 2013: based on the CoR Horizon 2020 opinion,
European collaboration on LDA activities, the EUE/RIE plans, the EU Smart Specialisation Mirror Group and Helsinki Region policy programmes.
SMART HOUSE
SMART CITY
Region SKÅNE with its partners: Road to Strategic Initiatives
e Health
Helsinki Region & Espoo City:
Practical Testing through
Strategic Cases
Establishing Nordic Challenge Platform to initiating and rapid prototyping societal innovations
Creating a joint portfolio of projects, including also the
existing ones, such as from the Helsinki Region side EUE,
ACSI, AppCampus, Digile SHOK, Active Life Village.
More about regions: www.cor.europa.eu
http://cor.europa.eu/en/events/Pages/eu2020-innovation-union.aspx
Find synergies and create strong partnerships
CoR Innovation Union Flagship Conference 27 Nov 2013 / Some Conclusions: 1. Innovation communities operate as ecosystems through systemic value networking in a
world without borders. INNOVATION IS NOT ANY MORE A LINEAR PROCESS 2. Innovation processes are strongly based on demand-driven user orientation and
customers as crucial players in innovations. OPEN INNOVATION 2.0 MEANS PUBLIC&PRIVATE&PEOPLE PARTNERSHIPS
3. Innovation strategies focus on catalysing open innovation and encouraging individuals
and communities towards discovery and effective use digitalised services. CREATING FAVOURABLE CONDITIONS FOR CREATIVITY AND INNOVATION
4. Innovation is often based on experimenting and implementing demonstration projects by partnerships, using the best international knowledge and creating new innovative
concepts. EXPERIMENTING & RAPID PROTOTYPING
http://cor.europa.eu/en/events/Pages/eu2020-innovation-union.aspx
Markku Markkula Chair CoR-EPP Task Force on Europe 2020
My material is based on the research & innovation development of the following persons: Matti Hämäläinen, Timo Itälä, Marko Nieminen and Panu Harmo, Aalto University Olli Nuuttila, Pia Kiviharju and Raimo Miettinen, Active Life Village Ltd Katariina Raij, Paula Lehto and Tuija Hirvikoski, Laurea University of Applied Sciences
CoR Seminar in Ancona
CoR ECOS Study visit in Espoo in 2010
Active Life Village Ltd
We reviewed new opportunities to create new wellbeing
service innovations and business opportunities
Industry
Public sector
Academia
Active Life Village, Espoo Aalto University
Laurea University of Applied Sciences
Triple helix
Users
Extracted from: Miettinen, R. Innovation and Research Environment for Welfare Service Innovations. Active Life Village Ltd. . Presentation held on the 6th September 2010 at CoR / ECOS Commission study visit to Helsinki-Uusimaa Region.
CoR Study Visit to Active Life Village & Caring TV September 2010 Foto by Tuula Palaste-Eerola
The Concept of Active Life Home: Integrated data collection and presentation for elderly care
For this change we need to implement the Knowledge Triangle:
Create Synergy between Research, Education and Innovation and Experiment All through Real Life Cases
Innovation
Education Research
Platform for Blended Learning
Orchestration
Special need to focus on: A. Value creation based on better use of intangible assets B. New processes and methods for university-industry collaboration C. Systemic change and societal innovations
Benefits are evident: For students For teaching staff For researchers For working life professionals
© Markku Markkula
On-going joint process for
defining and co-creating joint action themes
and vision
BA & Flow, demo days & social media, other
forms of effective communication,
virtual reality
Physical space of real hectic action for research with
experiments, demos and prototypes
Passionate key persons,
networking, processes, platforms,
focus on boundary objects
Mental entrepreneurial mindset with joint collaboration spaces and activities Aalto Design Factory & Startup Sauna & Urban Mill Aalto Innovation
Garden (three old buildings) Implementing Knowledge Triangle
Bottom-up activities
Summary:
Towards Smart Regions and Cities
There is a huge gap between the latest research knowledge and real life practice. What do we need to do to fill it? CoR has defined the following guidelines:
1. Europe needs pioneering regions to be forerunners in implementing the EU2020 and through that to invent the desired future.
2. Lifelong learning and the full use of ICT are cornerstones for this change of mindset towards entrepreneurship and innovation.
3. We need the dynamic understanding of regional innovation ecosystems where public, private and third sector learn to operate together. Modernize Triple Helix.
4. We need methodologies to mobilize public private partnerships and encourage especially people participations: user-driven open innovation & living labs.
5. We need to speed up the change by scalability & implementation.
Source: CoR Opinions 2011-2013
Martin Curley, Vice-President INTEL, CoR IU 27 Nov 2013:
Cities and Regional Ecosystems will be key drivers of 21st century growth
Open Innovation 2.0: Twenty Snapshots Discovery Mindset & Experimenting Societal Innovations
Source: Open Innovation Strategy and Policy Group, DG Connect
What new is needed?
EU Programme Period 2014-2020
I will in my presentation focus on what is the European frame for universities to tackle the challenges of the Europe 2020 Strategy (smart, sustainable and inclusive growth). I will start with defining in brief what new is needed?
1. Europe needs more piloting and experimenting: This can be done by increasing testing and implementing demonstration projects related to smart and sustainable development: studying, piloting, demonstrating and verifying new models.
2. Europe needs mindset change towards entrepreneurial discovery: This means creating innovation gardens and challenge platforms for collaboration with the businesses, universities and research institutions within the region: to create a working together culture, innovative concepts and methods for partnerships.
3. Europe needs more societal innovation: This can be achieved by developing the decision making processes needed to address societal challenges: using the best international knowledge and collaboration expertise, developing the required competencies and methods to support decision makers.
4. Universities and other knowledge actors need more synergy within their activities: This means orchestrating project portfolios and megaendeavours, as well as implementing the Knowledge Triangle principle in universities.
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