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Identifying and utilizing innovations

Identifying and utilizing innovations. Vesa Harmaakorpi Professor Innovation Systems Lappeenranta University of Technology Lahti School of Innovation. Vesa Harmaakorpi. Origins of innovation?. Science-based Science, technology, innovation (STI) Practice-based

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Identifying and utilizing innovations

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  1. Identifying and utilizing innovations Vesa Harmaakorpi Professor Innovation Systems Lappeenranta University of Technology Lahti School of Innovation Vesa Harmaakorpi

  2. Origins of innovation? • Science-based • Science, technology, innovation (STI) • Practice-based • Doing, using, interacting (DUI) Vesa Harmaakorpi

  3. Finnish policy framework • Cluster-based economic development policy • Science-based innovation policy • But, only 4 % of innovation is triggered by science (CIS) • And, only 1 % of scientific knowledge production in Finland, what next? • User-driven innovation? • System innovation? • Open innovation? • Practice-based innovation? • Platform-based economic development policy? Vesa Harmaakorpi

  4. ”Theses” of New Innovation Paradigm • Organisations have to adapt to open innovation; • Innovations are developed in value networks; • Vast majority of innovation are born in practise-based contexts; • The role of client is changing from object to subject in innovation prosesses; • The biggest innovation potential is in the structural holes between different fields of knowledge; • Absortion of future-oriented knowledge needs new methods; • In the employees of an organsiation is a vast innovation potential; • The organisations lack often innovative structures; people departments are often disconnected • The black box in measurement of innovative capability has to be broken • Sustainable innovation is emphasised Vesa Harmaakorpi

  5. Looking for structural holes… Information technology research Biotechnology research Nanotechnology reserach . Metal industry Clients Vesa Harmaakorpi

  6. Innovation System Autio, 1998 Vesa Harmaakorpi

  7. Absorptive capacity in innovation systems Autio, 1998; Zahra & George, 2002 Vesa Harmaakorpi

  8. Third generation regional innovation systems Innovation system Constructed competitiveness Knowledge exploitation subsystem Economic Development Policy Science and Technology Policy Changing Techno- Economic Paradigm Related variety platforms Innovation policy Innovation intermediary tools Innovation culture Knowledge generation subsystem Cross-disciplinarity Vesa Harmaakorpi

  9. Finnish Innovation Policy • STI-model innovation has been quite succesful and it is continued by SHOK-program (Strategic Centres of World Class Knowledge) • DUI-model needs to be promoted by ”IHAK-progam” (Regional Innovation Platform Program) Vesa Harmaakorpi

  10. SHOK Nation level Agglomerations - Clusters Radical innovation Expertise- and science-based innovation World class science institutions Homogenous knowledge production in the chosen field Transfer of the developed knowledge and technology to the firms of the cluster Big firms Universities SHOK vs. IHAK • IHAK • Region level • Related variety – Innovation platforms • Incremental innovation • User- and practice-based innovation • Brokerage – General ability to build possible worlds • Development of the working life • Scanning of technology and market signals and absorption to the firms • Heterogenous knowledge production • SME’s • Polytechnics Vesa Harmaakorpi

  11. Resources, comptences and capabilities to be promoted by IHAK-program Dynamic Capability: Especially leadership, networking, learning, visionary nad innovative capablities and their simutaneous management in the development process – managing complexity. Core capability: Combining knowledge and skills – general ability to build possible words. Core competence: Brokerage - ability to span structural holes Intangible resource: Creative social capital – amalgam of bonding social capital, bridging social capital and creative tension Resources: The product factors in regional development platforms fueld by related variety Vesa Harmaakorpi

  12. Regional Development Platform Method and Network-facilitating Innovation Pollicy in the Lahti Region (IHAK-type policy) • Application on Regional Development Platform Method (RDPM) 2003 • Network-facilitating innovation policy 2004 • Aim: The best region in Finland in practice-based innovation activities • Aim: The leading region in Finland in clean tech business Vesa Harmaakorpi

  13. Why Practice-based and Network-facilitating? Vesa Harmaakorpi

  14. Innovation policy tool box for NFIP • Innovation system development • Changing the strategy environment • Innovation research • Innovation club (companies, KIBS) • Inno Network (network of developers) • Reputation building • Proactive reformation of the private, public and third sector • Innovation front-end • Innovation sessions • Innovation catchers • Innovation links • Innovation capability diagnosis • FutureLabs • UserLabs • Etc. • Establishing new companies • Resource-based futures research • Mentor professor and innovation promotor system • A new evaluation system Vesa Harmaakorpi

  15. LSI Toolbox VALUE NETWORKS MEASURING FORESIGHT INFORMATION NBIC FUTLAB JAZZ EXPERTS ORGANISAATIO CLIENTS INNOSESSION INNOLINK USERLAB REGIONS RDPM NFIP LIVING LAB INNOCATCHER Vesa Harmaakorpi

  16. (Geels & Schot, 2007) Vesa Harmaakorpi

  17. Innovation Club • Comprises regional key companies • Benchmarking between companies • Strategic partner in developing regional innovation system • Spokesman of the • Open innovation and C&D philosophy • Practice-based innovation philosophy • Cornerstone of regional reputation building Vesa Harmaakorpi

  18. Innovation Sessions • Development sessions in companies with the necessary top expertise outside the company • The obstacles of creativeness are removed with the guidance of the qualified session leader and facilitators • The objective is to seek innovation ideas • The goal is permanent innovation networks! • Sessions aim at the continuous growth of innovative capability Vesa Harmaakorpi

  19. Potential megatrends and technology signals Innovation session scientific experts company experts 3. FURTHER STEPS Possible new trajectories promoted in the region Innovation sessions as an innovation tool 2.INNOVATION SESSION The use of creative working methods to find out possible future trajectories In co-operation with the company and scientific experts Innovation session 2 Pre-surveys Case 1 1. PREPARATION Selection of the group of companies for the innovation session R&D projects Commercial innovation Case 2 Development projects New concept Companies’ future development needs Case 3 Ideas for business incubator

  20. Greenvironment Ltd Session • The session was held twhree years ago. • CEO two weeks after the session: ”Three ideas created in the session were applied immediately. In all ten ideas will be applied in the next two-three years. We would most propably not have found these without the session”. • CEO 18 months after the session: “Innovation session and the technological innovations achieved in the session greatly influenced the 16 ME order from Germany.” • The company won the EBN EuroLeaders Award 2006 with an innovation created in the innovation session. • Two further orders received during the last six months. 52 ongoing negotiations for an agreement. Vesa Harmaakorpi

  21. Fazer Mill and Mixes Session • The comments of the mill director • The staff learned a new way of innovation in the session • The innovation culture has changed radically after the session (also in Fazer Bakeries Finland) • The company founded an innovation centre in order to use innovation session methodology in everyday work, in particular sessions are organised with customers • The system has created remarkable growth in sales and profit of the company Vesa Harmaakorpi

  22. Innovation Catchers • Will be developed to promote the shop-floor level innovations in organisations • A systematic way to sift the innovation ideas arising in the ”normal” everyday activities in organisations • The competences existing in the innovation system are combined in the evaluation and development of the innovation ideas • Supports the establishment an innovative organisation culture aside the hard work Vesa Harmaakorpi

  23. Ideas Innolink . Theatre methods Ideas • Plugs • knowledge • resources • co-operation Ideas Innovation Links Vesa Harmaakorpi

  24. Resource-based Futures Research • Part of the implementation of the innovation strategy in the region is to regularly carry out a technology and environment change foresight as follows: • The megatrends and technology essential to the region are selected for inspection • Delphi method and specialists are used to find the weak signals essential to the region • The weak signals are injected into companies’ innovation processes through the sessions. Vesa Harmaakorpi

  25. Effects - Beneficial to the success and well-being of the region? 2. Grade results - New companies, strengthened clusters, reformed public sector? 1. Grade results - Permanent innovation networks and processes? • Organising innovation networks, roles of the actors • Many actors and fields of know-how • - Networked activities – giving coincidence a chance • Internal dynamics of an innovation environment • Building social capital • - Enhancing collective learning • - Hindering lock-ups and bottlenecks Regional and superregional development resources - Regional competence capital - Targeting development inputs - Superregional networking A New Evaluation System Vesa Harmaakorpi

  26. Some indicators from the Lahti Region • Venture Cup national busines idea competition: • 1. Helsinki Metropolitan Area, 2. Lahti Region. 3. Turku Region • Lahti Business Incubator the second biggest in Finland • The director of regional affairs of TEKES Antti Heiskanen 5.12.2006: ”The Lahti Region has invented something really new, since it can produce similar amount of business ideas as the Metropolitan Area, altough it is much smaller ”. • Professor Philip Cooke 30.11.2006: ”You are the leading region in the world in third generation innovation system models.” • Membership in European Network of Living labs 2007 Vesa Harmaakorpi

  27. Important questions in the new environment • The concept of innovation policy has to be rethought • The innovation policy needs a systematic toolbox • The innovation culture of companies has to be directed towards open innovation philosophy and C&D activities • The role of intermediator organisations is crucial in increasing absorptive capacity between the actors of innovation system • There is an enormous innovation potential between practical contexts and already available scientific knowledge • New kind of creativity is needed to enable the exploitation of the innovation potential Vesa Harmaakorpi

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