R&D in the ICT industry Innovation, information and interaction

Transcription

1 European ICT Poles of Excellence Debating Concepts and Methodologies IPTS, Seville, November 2010 R&D in the ICT industry Innovation, information and interaction Martti Mäkimattila Lappeenranta University of Technology Lahti School of Innovation For IPTS internal use only, not to be published

2 R&D in ICT industry The complex nature and rapid change of modern technology in turbulent and dynamic environment requires multiple actors participating in development activities, seldom individual can develop new products or services alone in today s business. Large inter- and intra-organizational teams performing collaborative systemic tasks meet the challenge of communicating and organizing integrated assignments. Traditional thinking towards innovation process is very linear and R&D oriented. The main task is use scientific engineering knowledge to find answers for technical problems and optimize those solutions within the technological, economical, environmental, legal, political and user related limitations. The engineering perspective, that process has to be broken down into phases and distinct stages into comprehensible extent has led to very linear and analytical models. (Like Cooper Stage-Gate, Waterfall etc.) This is also essential to synchronizing multiple simultaneous projects. Anyhow seems, that linear models need interpretative models to aid, support and even replace. R&D performance is often measured with tools coming from production process aspects. This leads R&D teams focusing to issues that are characteristic to executing linear straight forward tasks rather than supporting innovation actions, like exploring potential information and idea evaluations.

3 Challenge of communicating and synchronizing tasks over unit and firm boundaries in collaborative R&D in ICT Mechanics, electronics, software, services etc Picture from Apilo & Taskinen Interacting, systemic loops - variation in level of openness and co-operation: Field related, firm related, phase related etc.

4 Systemic Innovations and Systemic Innovation Processes Systemic innovations has been defined as innovations whose benefits can be realized only in conjunction with related complementary innovations. Chesbrough and Teece 2006 In systemic innovation processes firms need to coordinate as well with producers of complementary products and in many cases even with direct competitors to ensure the viability of the innovation, rather than coordinating solely with the suppliers and customers as in frequently the case in closed innovation models. While systemic innovation processes are widely practiced in industries such as telecommunications or information technology, the processes how incumbents and new entrants achieve this coordination and ultimately how they jointly create systemic innovation Keil, Salmenkaita and Salo 2006; Open Innovation in Systemic Innovation Context Systemic nature of ICTechnology innovations, service and social innovations, regulation (formal norms etc.) and customer informal norms and habits We are living in dynamic world, page of change is accelerating and systems are more complex => R&D is aiming to moving target in changing environment, especially in ICT

5 Typology of sociotechnical transition pathways Frank W. Geels & Johan Schot Multi-level perspective on transitions F.W. Geels, J. Schot Research Policy 36 (2007) (adapted from Geels, 2002, p. 1263).

6 Social capital and trust The most important resource for innovation systems and the most central target of an innovation policy that serves networking is social capital. When social capital is discussed from the perspective of the innovation system, it is not only one resource among others, but is also at the very core of competence in innovation. It enables networks to use tangible, financial and intellectual resources in each regional system and between regional systems. Professor Vesa Harmaakorpi Future of innovation is in trusting networks of knowledgeable individuals coming from different professional backgrounds, organizations and cultures. Trust makes it possible to share and create knowledge and simultaneously build norms and contracts that make fair value creation possible. Professor Kirsimarja Blomqvist The open innovation model highlights the importance of using a wide range of sources of knowledge for a company s innovation activities, including customers, collaborative firms, rivals and academics. Research stresses the significance of balancing the use of internal and external knowledge in R&D-processes, because critical knowledge can come from different sources. Professor Marko Torkkeli

7 Networks and Structural Holes, Burt 2004 Weak links, Granovetter 1973 (Burt 2004)

8 Table. Distances of innovation networks Harmaakorpi et al (2006); Parjanen et al. (forthcoming).

9 Networks - social capital and trust: Access to information, capability to use it FIRM A FIRM B => = A U B Open information sharing Filter: Reasons to prevent and hinder information exchange and utilization: Laws, Contracts, Norms, IPR s and other reasons Universities and Research institutions = A U B Limited result

10 STI - DUI Science, Technology and Innovation (STI) mode, is based on the production and use of codified scientific and technical knowledge. Doing, Using and Interacting (DUI) mode, relies on informal processes of learning and experience-based know-how At the level of the whole economy, the tension between the STI and DUI modes corresponds to a need to reconcile and combine approaches to national innovation systems focusing on the role of formal processes of R&D in order to produce explicit and codified knowledge with those focusing on the learning from informal interaction within and between organizations resulting in competence-building often with tacit elements. At the level of the firm, this tension may be seen in the need to reconcile knowledge management strategies prescribing the use of ICT as tools for codifying and sharing knowledge with strategies emphasizing the role played by informal communication and communities of practice in mobilizing tacit knowledge for problem-solving and learning. Morten Berg Jensen, Björn Johnson, Edward Lorenz, Bengt Ake Lundvall

11 Collaborative innovation activities 5 th Generation of Innovation Process (Rothewell) STI DUI (Science, Technology, Innovation Doing, Using, Interacting, Jensen et al.) R&D to C&D (Research & Development Connect & Develop, P&G) Closed to Open Innovation (Chesbrough) Innovation activities are increasingly based on sharing information and interaction Roles of networks in every level, like communities of practice etc., Social capital, trust and contracts are important for collaboration Informal norms shifting to formal standards, diffusion of innovations Managing IP in Collaborative innovation activities plays key role: IPR who owns what, laws and contracts The role of different IPR s, like patents and copyrights, in global activities (Software and IT-systems linked to HW and content production) Short term employment and collaboration, free-lancers etc. working in several projects and firms, simultaneously or short term contracts in various firms, internationally Laws opening new innovation windows, but also causing inertia (institutions protecting their assets) IP protection mechanisms has been discussed widely, but not the accelerative effects of IP management as information sharing catalyst

12 Open Innovation, Chesbrough From Closed: Do-it-all-yourself approach and NIH (Not Invented Here) attitude To Open: - Identify, understand, select from, and connect to available external knowledge - Fill in the missing pieces of knowledge - Integrate internal and external knowledge to form more complex combinations of knowledge, to create new systems and architectures - Generate additional revenues and profits from selling research outputs to others Main issues: - Benefitting available external knowledge, both free and contract based - New business models - Using IP lever, Intellectual Property Rights - Co-operation Outbound and Inbound The role of core technologies Like Connect and Develop, Open Innovation solution from Procter & Gamble Research portfolio surplus, spin offs etc. from Nokia and other ICT firms R D VTT - Intellectual Property in Open Business Models, Paasi et al. VTT Technical Research Centre of Finland is a globally networked multitechnological contract research organization.

13 Exploration, Exploitation (March) Absorptive Capacity (Cohen & Levinthal) Insight Inertia and Action Inertia (Godkin) Zahra & George (2000) Traditional model of absorptive capacity: Potential acap Realized acap Acquisition Assimilation Transformation Exploitation Todorova & Durisin (2007) Revised model of absorptive capacity Assimilation AAE -learning Value recognition Acquisition Alternative modes of learning, not consecutive ATE -learning Transformation T. Uotila

14 Information Partners participating in networked innovation processes on different sides of structural holes have different knowledge interests. They also have information of different quality and achieved for their own purposes (Melkas & Harmaakorpi, 2008). Information not fitting in existing systems or otherwise considered negligible induces no actions for refine it to knowledge or used as catalyst in information processing. Developing daily operational routines and systems some important aspects can be lost while focusing only in efficiency. (Private and public organizations and their co-operation) Organizational routines that have proven successful in the past in terms of exploration and exploitation of information may today be inadequate for transferring foresight information to innovation knowledge. Understanding how translation and interpretation are linked and how inertia forms, it allows us to generate information paths suitable for transferring foresight information to innovation knowledge. Just speeding up information transition processes is not enough, intervention to add and combine complementary information is crucial as well as synchronization of these processes.

15 Challenges of ICT R&D Regulation and Science have an important role. Both should support innovation activities and learning by doing interaction for business and general welfare. How to ensure fast and efficient information refinement in current and future pace of change. Foresight and innovation knowledge exploring and exploitation in networks. Time to market is not from the concept to launch, it should be thought as recognized first signal of opportunity and capability of transfer it to business diffused to users / customers. Natural nodes of inbound and outbound information in business activities? The deep level of involvement there exists Asian firms that can benchmark all major global firms in their own facilities, combine and learn, and are supported by very high level of scientific knowledge. What laws and norms have the risk of hindering collaborative innovation activities or utilization of innovations? IPR as a catalyst not as inertial force.

16 ICT Poles of world-class Excellence? What can be defined as ICT Poles of world-class Excellence, in particular in Europe? What are the necessary theoretical frameworks for studying the emergence and dynamics of such ICT Poles of world-class Excellence? What are the necessary methodological tools for studying ICT poles? What are the necessary data sources allowing for long-term tracking of the emergence and dynamics of such ICT poles?