Closing the Innovation Divide

1
Closing the Innovation Divide

• ERRIN - RIM
• Keynote 17 April 2013
• Markku Markkula
• EU Committee of the Regions CoR, Rapporteur on
  Closing the Innovation Divide, Rapporteur on
  Horizon 2020, Chair EPP-CoR Task Force
• on Europe 2020

• 1. CoR statements What are the basic realities?
• From Triple Helix to RIE Regional Innovation
  Ecosystems How to address new innovative
  solutions on major societal challenges
• CoR draft opinion focusing on mindset What are
  the preconditions for necessary changes?
• A Circular Economy Re-using knowledge How to
  develop regional innovation ecosystems to become
  laboratories for entrepreneurial discovery?
• Smart cities and smart regions need for deeper
  understanding the innovation What are the
  processes and concepts for implementation?
• Smart specialisation What does that mean in
  practice?
• We are facing the challenge What are the
  different activities needed in organizing
  synergistic cooperation for the new programming
  period 2014-2020?

2
Committee of the Regions Towards Smart Regions
and Cities What Are the Basic Obligatory
Realities?

• 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
• Europe needs pioneering regions to be forerunners
  in implementing the EU2020 and through that to
  invent the desired future.
• Lifelong learning and the full use of ICT are
  cornerstones for this change of mindset towards
  entrepreneurship and innovation.
• We need the dynamic understanding of regional
  innovation ecosystems where public, private and
  third sector learn to operate together. Modernize
  Triple Helix.
• We need methodologies to mobilize public private
  partnerships and encourage especially people
  participations user-driven open innovation
  living labs.
• We need to speed up the change by scalability
  implementation.
• Source CoR Opinions 2011-2012

3
The Development Path of the Regional Innovation
Ecosystem (RIE)
Stage 3 Orchestration for global business
Stage 2 Initiating transformation towards RIE
Stage 1 Creating pre-conditions
Source Jukka Viitanen Markku Markkula Carlos
Ripoll, article in the Knowledge Triangle book,
2013
4
The Development Path in More Detail

• Stage 1 Regional pre-conditions
• Potential of existing regional/international
  innovation system (audits)
• 2. Willingness to utilise this potential (active
  participation)
• Stage 2 Creating the innovation hub
• 1. Joint RD
• 2. Joint innovation capacity
• 3. Joint commercialization
• 4. Joint platforms
• Stage 3 Orchestrating RIE
• Mindset change
• Implementing Knowledge Triangle
• Integrating innovation activities with research
  programs

Source Jukka Viitanen Markku Markkula Carlos
Ripoll, article in the Knowledge Triangle book,
2013
5
How to Create Preconditions for Necessary Changes?

1. supporting the targets to be achieved on
   competitiveness and innovation by 2020,
   especially through continued investment in
   education and training
2. stressing the importance of balancing
   technological, design and social innovation in
   both the public and private sectors, all of which
   are influenced by far-reaching digitisation
3. striving for societal innovation, with living
   labs, testbeds and open innovation methods in
   regional innovation policy-making, while getting
   citizens on board
4. highlighting the role of a local and regional
   environment that supports the integration of
   higher education, research and business
5. implementing the Knowledge Triangle as a key
   principle in European university reform (greater
   synergies between research, education and
   innovation)
6. underlining the key role of research
   infrastructure in knowledge-based innovation
   systems
7. focusing more on the active use of innovative
   public procurement, combined with simplification
   of procedures
8. stressing the importance of Europe-wide
   collaboration and transnational cooperation
   projects between regions, building on innovation
   support and smart specialisation strategies
9. highlighting the potential of cross-border
   cooperation, including inward investment to and
   outward investment from the EU
10. improving competences for innovation and
    fostering a new innovation mind-set built on
    dialogue, collaboration and co-creativity to
    learn from best practice.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
6
Closing the Innovation Divide ? Action Points

• In moving towards a circular economy for
  knowledge, national funding bodies like Tekes in
  Finland and Vinnova in Sweden could revisit and
  explore the results of projects completed during
  the last 5-10 years, and unlock their treasures
  for reuse in new regional and national contexts.
• Directorates-General in the Commission could do
  the same, making results accessible more broadly
  across different domains, in order to address
  societal challenges. University research could be
  made more directly relevant to policy-makers and
  project teams.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
7
Applying Experiences from Industrial Systems
? Interacting Learning Research Innovation
Activities
Three Steps to Understand the System
Identify Societal / Market Needs define
system requirements barriers
Integrate Fundamental Research Innovation
Knowledge into Enabling Technologies
Develop Useful Insights from Fundamental Knowledge
Professor Sir Mike Gregory, 13 Feb 2013
(E OSullivan Adapted from NSF ERC Strategy
Framework)
8
Closing the Innovation Divide ? Action Points

• There are many research and innovation focus
  areas to support the drivers of change urgently
  needed during the 2014-2020 programming period.
  The CoR highlights the following ones as the
  success factors in inventing the future
• Innovation communities operate as ecosystems
  through systemic value networking in a world
  without borders.
• Innovation processes are strongly based on demand
  and user orientation and customers as crucial
  players in innovations.
• Innovation strategies focus on catalysing open
  innovation and encouraging individuals and
  communities towards an entrepreneurial mindset
  and effective use and creation of new digitalised
  services.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
9
Globalisation ? Need for Smart Specialisation

• Understanding the dynamics of global industries
• Mapping and managing global value chains
• Configuring production and supply
• Understanding national industrial policies
• Making the right things in the right places

Professor Sir Mike Gregory, 13 Feb 2013
10
Closing the Innovation Divide ? Action Points

• Regions and cities should create pioneering
  initiatives that are genuinely European in
  nature multicultural, human-centred, focused on
  societal innovations and capabilities to create
  better structures for the welfare society and lay
  the groundwork for developing the digital single
  market.
• Showcases for practical examples of successful
  initiatives should be created and made widely
  accessible, so other regions and cities can learn
  from the practical results and effective
  processes of past and on-going programmes.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
11
Deeper Understanding of the Innovation ? The
focus on innovations has been on business models
and technology. Now the cultural levers are the
drivers of change.
Business Model Levers Business Model Levers Business Model Levers Technology Levers Technology 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
Incremental innovations Semi-radical
innovations Radical innovations
Picture The three levers for the three types on
innovation
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.
12
Closing the Innovation Divide ? Action Points

• The CoR stresses that smart specialisation is a
  regional policy framework for innovation-driven
  growth. What distinguishes smart specialisation
  from traditional industrial and innovation
  policies is mainly the process defined as
  entrepreneurial discovery - an interactive
  process in which market forces and the private
  sector discover and produce information about new
  activities and government assesses the outcomes
  and empowers those players most capable of
  realising the potential. Smart specialisation
  strategies are much more bottom-up than
  traditional industrial policies.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
13
New Elements Model for Research
3. early stage technology development
4. product development
2. concept/ invention
5. production/ marketing
1. research

• Shared RDI programs between mutually committed
• Universities
• Research Institutes
• Industry
• .

Proof of concept
Proof of principle
Demonstration
Jos Leijten, 11 Feb 2013
14
Closing the Innovation Divide ? Action Points

• Europe must make major cultural changes and
  re-focus funding to ensure active application of
  the latest research knowledge at local and
  regional level.
• The focused translation of research into practice
  requires good mutual understanding of what
  research there is, what issues there are, and how
  relevant research can impact local and regional
  issues. A new kind of knowledge triangle is
  needed for this, linking the world of research
  and science with the world of business and
  government through a kind of interactive
  translation service.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
15
CoR Conference Plenary 10 April 2013 Conclusion
Prof. Debackere, KU Leuven
16
Dynamic Interaction between University and Society
NEW JOINT ARENAS for Co-creation
Competence Development
Scientific Knowledge
Research Focus Areas as Drivers of Development
Industry
Research, Education and Innovation
Society
Lifelong Learners
MINDSET CHANGE
Markkula, M., Pirttivaara, M. Miikki, L., 2009.
Developed by using ideas of Lester Sotarauta,
Tekes report 2007 Innovation, Universities, and
the Competitiveness of Regions.
17
Closing the Innovation Divide ? Action Points

• The new innovation institutes focus on the new
  mind-set and environment required for
  user-centric design, co-creation and rapid
  piloting. 
• These are flexible entities with a collaborative
  approach. Examples include Incubators and
  Accelerators, Living Labs, Entrepreneurial Hubs,
  Development Labs, Social Innovation Labs, Fab
  Labs, Societal Innovation Learning Camps and
  Future Centers. They usually operate as
  associated entities of universities,
  municipalities and businesses.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
18
Dynamic Interaction between University and Society
Society Innovations and Well-being (Products,
Processes, Services)
Aalto Research, Education and Innovation Areas
NEW JOINT ARENAS for Integration, Collaboration,
and Co-creation Access to Global Resources and
Talent
Inventingthe Future
Other Impacts
Aalto Factory Park
Lifelong Learning
Competence Development
Mega-Endeavours
Industry and other Organi-zations
Aalto Living Labs
Scientific Knowledge
Aalto Research Focus Areas as Drivers of
Development


Learning by RDI
Collaborative Knowledge Creation
Competent People
MINDSET CHANGE Aalto Values and Aalto Working
Culture Development Processes
Produces
Knowledge
Educates
Other Impacts
Faculty and other Staff
Students
Markkula, M., Pirttivaara, M. Miikki, L., 2009.
Developed by using ideas of Lester Sotarauta,
Tekes report 2007 Innovation, Universities, and
the Competitiveness of Regions.
19
The Frame for Implementing Knowledge Triangle
(Synergy between Research, Education and
Innovation)
Source Markku Markkula, article in the Knowledge
Triangle book, 2013
20
Closing the Innovation Divide ? Action Points

• The CoR strongly supports the following proposal
  of the European Parliaments ITRE Committee on
  the Horizon 2020 regulations Instruments for
  the connection between Research, Innovation and
  the Smart Specialisation Strategies shall be
  implemented both in Horizon 2020 and the
  Structural Funds in order to create objective
  indicators for the stairway of excellence and
  building the ERA.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula
21
Regional Innovation Ecosystem Aalto University
Campus 2020
Laurea
According to the plans, by 2020, there will be
new investments of 4-5 billion metro, tunnel
construction of ring road, other infra, housing,
office and business buildings, public services,
university buildings, sports and cultural
facilities
22
Aalto City Integrating Real and Virtual Worlds
Aalto University campus with its surrounding
business and residence areas is the innovation
hub of the Helsinki Region. This picture is based
on the Energizing Urban Ecosystems research
program. The program with its 20
million multidisciplinary research integrates new
science, art and business developments to working
 in a virtual environment. Regional Information
Modeling is the breakthrough dimension in this
research. 
23
Otaniemi based on Prof. Nonaka Ba Flow (our
Idea Space developments)
24
Closing the Innovation Divide ? Action Points

• The CoR strongly believes that the process of
  defining how the many suggestions and
  recommendations in this Opinion can be realized
  in practice, and collaboratively exploring
  promising approaches for implementing them within
  and across regional boundaries, is the most
  effective way to turn excellent intentions into
  real results with powerful impact on the streets
  of Europe. This is key to closing the innovation
  divide.

CoR Draft Opinion Closing the Innovation
Divide Based on the request of the Irish EU
Presidency, Rapporteur Markku Markkula