Håkan YlinenpääEntrepreneurship & Innovation/CiiR

Luleå University of Technology

Nairn, Scotland, Feb 27th, 2013

Innovation and Entrepreneurship

Five megatrends affecting both metropolitan and non-metropolitan areas:

1) Service and knowledge-based society2) Globalisation of our economy

3) An aging population4) New migration patterns

5) Global warming

Non-metropolitan areas – some characteristics

• Sparsely populated – higher transaction costs and lack of critical mass

• Insufficient infra structure• ‘Brain drain’ – need for

external impulses • Cyclic industries • …

• Few but obvious/distinct entrepreneurs

• Well developed local networks

• Living conditions attracting people

• Natural resources• …..

?? !!

Some challenges for non-metropolitan areas

1. Develop entrepreneurship and innovation based on

ICT and digital innovation2. Exploit the dynamics inherent in ”locomotives and

wagons”. 3. Develop regional leadership and collaboration4. Glocalisation strategies combining local buzz and

global pipelines5. Develop regional strategies – innovation and/or

arbitrage?

1. Develop entrepreneurship and innovation based on ICT and digital innovation

2. Exploit the dynamics inherent in ”locomotives and wagons”.

3. Develop regional leadership and collaboration4. Glocalisation strategies combining local buzz and

global pipelines5. Develop regional strategies – innovation and/or

arbitrage?

Develop entrepreneurship and innovation based on ICT and digital innovation

Exploit the dynamics inherent in ”locomotives and wagons”.

Effectiveness (”to dothe right things”)

Many structural holes+ “weak ties”

Few/no structural holesNo ”weak ties”

Loose structure, Tight structure,low contact high contact frequency frequency

Efficiency (“to do things right”)

Selecting partners…

Develop regional leadership and collaboration

Industry & business

(Large & small companies)

Academia

(Universities, research institutes)

(Local, regional, national, & supra-

national)

Government

Recognition of differences across sectors

Sector Contribution (Expected) reward

Industry Commercial competence Competitive advantage on the - focusing profitability market- focusing utility New business contacts and- focusing (short) pay-off agreements

Government Public economy compe- Competitive advantage fortence focusing the region (nation)- long-term goals New jobs, higher tax reve-- overview and systems nues, etc.perspective- ‘lubricants’/resources

University Research competence Academic competitive- focus on development advantageof academic knowledge Image and reputation- analytical skills Funding

Source: Ylinenpää 2004

Time

Commercial firms

Public sector

Research

CP1 CP2

Commitment

Initiation Scientific development

Commercialization

Tid

Kommersiella företag

Offentlig sektor

Forskning

CP1 CP2

Förpliktelser

CP3

Inite-ring

Vetenskaplig utveckling

Kommersia-lisering

Right actors?

-Heterogenity/ homogeneity

-Bridges-Weak ties

Right actors?

-Heterogenity/ homogeneity

-Bridges-Weak ties

Have we plans for market

launch?

Have we plans for market

launch?

Trust or contract?Trust or

contract?

Do we offer “low hanging

fruits”?

Do we offer “low hanging

fruits”?

Have we established structures for

commercialization?

Have we established structures for

commercialization?

Counteracting tunnel vision?

-Benchmarking- Lead user innovation

- Open innovation- Brainstorming

Counteracting tunnel vision?

-Benchmarking- Lead user innovation

- Open innovation- Brainstorming

IPR, licenses, exploitation

contracts etc?

IPR, licenses, exploitation

contracts etc?

Radical or incremental innovation/copy-cat

strategy?

Radical or incremental innovation/copy-cat

strategy?

Companies involved?

Companies involved?

Have we prepared shifts in leadership?

Have we prepared shifts in leadership?

Have we secured ”life after death/

project end?

Have we secured ”life after death/

project end?

Clarified contributions &

rewards?

Clarified contributions &

rewards?

Glocalisation strategies combining local buzz and global pipelines

CLOSED INNOVATION PRINCIPLES OPEN INNOVATION PRINCIPLES

The smart people in our field work for us.

Not all the smart people work for us. We need to work with smart people inside and outside our company.

To profit from R&D, we must discover it, develop it, and ship it ourselves.

External R&D can create significant value; internal R&D is needed to claim some portion of that value.

If we discover it ourselves, we will get it to market first.

We don’t have to originate the research to profit from it.

The company that gets an innovation to market first will win.

Building a better business model is better than getting to market first.

If we create the most and the best ideas in the industry, we will win.

If we make the best use of internal and external ideas, we will win.

We should control our IP, so that our competitors don’t profit from our ideas.

We should profit from others’ use of our IP, and we should buy others’ IP whenever it advances our own business model.

Develop regional strategies – innovation and/or arbitrage?

System Type of system Entrepreneurial regional Institutional regional level innovation system (ERIS) innovation system (IRIS) Image of the market Ambiguous, potential Uncertain, risky collaborative space competitive space

Type of innovation Action-oriented: based Planning-oriented: based process on experimental learning on the need for overview,

control and risk minimizing

Strategies Emergent Planned

Time perspective Emergence; fuzzy Present and future; more vision combined with clear vision combined with step-by-step action long-term planning

Organizational Organic (loosely Mechanistic; to a large structure coupled); to a large extent based on contrac- extent based on trust tual ties

Critical resources Entrepreneurial skills Management skills Venture capital Institutional capital Decision logic Effectuation: Taking ac- Causation: Planning for and tion based on available/ controlling the future accessible resources Cooperation Ad hoc-based, inter- Planned and long- mittent and often termed short-termed Critical performers Actors: Individuals who Agents: Representatives Actor form teams of comple- of different sectors of level mentary competences society

Ylinenpää 2012. In Johannisson, B. & Lindholm Dahlstrand Å. (Eds.), Enacting Regional Dynamics and Entrepreneurship. Rutledge.

Centre for Interorganisational

Innovation Research (CiiR)

Research areas• Exploring and exploiting digital innovation and ICT (WP1)• Utilizing the dynamic interaction between ”locomotives and

wagons” (WP2)• Using knowledge/technology as a base for regional

development and cooperation (WP3)• Capitalizing on opportunities for innovation and business

through international links and ICT (WP4)• Measuring and tailoring regional dynamics in innovation

systems (WP5)

WP1: Exploring and exploiting digital

innovation and ICT

• RQ1: What are the impacts of digital innovation on regional and national inter-organizational innovation networks, and what are the implications to policy-making?

• RQ2: How can IT-related inter-organizational innovation networks be designed and managed in order to open up to organizations with different geographic scopes, organizational sizes and value chain positions?

• RQ3: How can policy making in a more effective and conscious way understand and take care of the implications of digital innovation?

• RQ4: How can innovation and arbitrage opportunities be pursued in the context of digital innovations?

WP2: Utilizing the dynamic interaction between “locomotives and wagons”

• RQ1: How could systematic linkages between 'locomotives' and 'wagons' be understood in regional networks and innovation systems?

• RQ2: How can the interaction between 'locomotives' and 'wagons' be understood?

• RQ3: If and how can important outcomes be linked to 'locomotives' and 'wagons'?

• RQ4: To what extent is it possible to characterize larger firms (or organizations) as the natural 'locomotives' and smaller firms represent the 'wagons'?

WP3: Using knowledge/technology as a base for regional development and cooperation

• RQ1: What kinds of conditions can be found in different types of innovation systems?

• RQ2: What conditions must be in place for knowledge sharing in innovation systems to contribute to regional development, e.g. as product-service innovations?

• RQ3: What are the conditions of different cross-sector university centres as nodes for collaboration in innovation systems?

WP4: Capitalizing on opportunities for innovation and business through international links and ICT

• RQ1: What practise can we learn from successful international innovation systems?

• RQ2: What can be the strategic roles of business networks and knowledge hubs in innovation processes?

• RQ3: What is characterizing innovation processes

• RQ4: What are relevant criteria for the assessment of successful international innovation processes?

• WP5: Measuring innovation system potential and outcomes

• RQ1: If and how can actual and potential opportunities for innovation and arbitrage be measured and analyzed at the organizational, regional and national level?

• RQ2: What are the similarities and differences between different Swedish regions and Swedish innovation systems for innovation and renewal?

• RQ3: How can policy in a more effective and conscious way use regional variance referring to innovation and arbitrage opportunities to facilitate regional development?

• RQ4: How can policy use sectoral and regional variance to initiate more effective policy interventions?

Partners• Entrepreneurship & Innovation (LTU),

• Product Innovation (LTU)• Informatics (UmU)

• Umeå Business School (UmU)• CERUM (UmU)

• EISLAB/ESIS (LTU)• ProcessIT Innovations (LTU, UmU)

• CDT (LTU)

BOARD OF DIRECTORS

• Per-Erik Sandlund, GD Foreign Ministry Sweden (chair)

• Sara Öhrvall, R&D Dir. Bonniers• Johan Sterte, Vice-chancellor LTU• Lars Hassel, Vice-chancellor USBE • Henry Tham, Ledningskonsulterna• Magnus Lagerholm, VINNOVA/Swe-

den’s Innovation Agency (assoc.)

ADVISORY BOARD

• Professor Erkko Autio, Imperial College, London, UK

• Prof. Nicola Bellini, Director IRPET, Italy

• Professor Kalle Lyytinen, Case Western Reserve University, US

• Professor Pontus Braunerhielm, CEO Entrepreneurship Forum, Stockholm, Sweden

• Professor Anders Lundström, The Swedish Agency for Growth Policy Analysis/PEER, Stockholm

• Professor Ewa Gunnarsson, Luleå University of Technology, Luleå

More information:Centre for Inter-organisational Innovation Research (CiiR)

Håkan Ylinenpää; professorJoakim Wincent, professor

ETS, Luleå University of TechnologySE 971 87 LULEÅ, Sweden

www.ciir.se