Transcript Innovation policy and Global High Tech sectors

Towards a broad based regional innovation
policy: Combining knowledge bases,
modes of innovation and regional
innovation systems
Professor Bjørn Asheim, Deputy Director,
CIRCLE (Centre for Innovation, Research and
Competence in the Learning Economy),
Lund University, Sweden.
Keynote lecture at the 4th International Seminar on
Regional Innovation Policies, Edinburgh, 2009
CIRCLE (Centre for Innovation, Research and
Competence in the Learning Economy)
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New multidisciplinary centre of excellence in research on
innovation and entrepreneurship at Lund University
(established in July 2004)
CIRCLE is financed by the Swedish Agency for Innovation
Systems (VINNOVA), Lund University and Blekinge Technical
University 2004-2010, and from 2006 for 10 years by the
Swedish Research Council (Linnaeus grant)
In autumn 2007 co-location of research and teaching in
innovation and entrepreneurship together with LUIS (Lund
University Innovation System) at LUCIE (Lund University Centre
for Innovation and Entrepreneurship)
Becoming one of the largest centres in Europe of its kind with 35
researchers employed
http://www.circle.lu.se/
Bjørn Asheim, 2009
Origins of the innovation system
approach
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Freeman, SPRU, University of Sussex:
OECD work in 1982 (’Science, Technology and
Competitiveness’) developing an alternative to
mainstream, static economic’s view on international
competitiveness as based on ’relative wages’.
Instead a dynamic perspective on innovation and
learning in the promotion of economic growth with
an active role of government was proposed.
Book on Japan (1987): Technology policy and
Economic Performance: Lessons from Japan.
Bjørn Asheim, 2009
Origins of the innovation system
approach
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Lundvall, Aalborg university: Work during the last part
of 1980s (also with Freeman). Edited book from 1992
on ’National Systems of Innovation: Towards a theory
of innovation and interactive learning’
Nelson, Colombia university. Edited book from 1993
on ’National Innovation Systems: A Comparative
Analysis’
Edquist: Edited book from 1997 on ’Systems of
Innovation: Technologies, Institutions and
Organizations’
Bjørn Asheim, 2009
Positive impacts of the innovation
system approach
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New view on what constitutes ’international
competitiveness’ from relative wages (low
road or weak competition) to non-price
competitiveness national policies of promoting
innovation and learning (high road or strong
competition)
The ’system’ dimension of the IS concept
moved attention from linear to interactive
thinking of innovation (from science and
technology policies to innovation policy)
Bjørn Asheim, 2009
Definitions of innovation and
system
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Innovation: Invention based on new
combinations (and new knowledge) brought to
the market + process of diffusion and use
Product, process, organisational, market and
raw materials. Making a distinction between
technical (product and process) and
organisational innovations important
System: Innovation networks involving an
intricate interplay between micro and macro
Bjørn Asheim, 2009
Different modes of innovation
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’How Europe’s Economies Learn. Coordinating
Competing Models’ : Different modes of innovation
and forms of work organisation (Lorenz and
Lundvall, 2006)
STI (Science, Technology, Innovation) – high-tech
(science push/supply driven)
DUI (Doing, Using, Interacting) – Competence
building and organisational innovations (learning
work organisation) market/demand/user driven
Bjørn Asheim, 2009
Differentiated knowledge bases
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Characterise the nature of the critical knowledge which
the innovation activity cannot do without (hence the term
’knowledge base’ understood as an ideal type)
Makes it less relevant to classify some types of
knowledge as more advanced, complex, and
sophisticated than other knowledge (e.g. to consider
science based (analytical knowledge) as more important
for innovation and competitiveness of firms and regions
than engineering based (synthetic) knowledge or artistic
based (symbolic) knowledge). Different knowledge
bases should rather be looked upon as complementary
assets
Bjørn Asheim, 2009
Differentiated knowledge bases: A typology
Analytical (science
based)
Synthetic (engineering
based)
Symbolic (artistic based)
Developing new knowledge about natural
systems by applying
scientific laws; know why
Applying or combining
existing knowledge in new
ways; know how
Creating meaning, desire,
aesthetic qualities, affect,
intangibles, symbols,
images; know who
Scientific knowledge,
models, deductive
Problem-solving, custom
production, inductive
Creative process
Collaboration within and
between research units
Interactive learning with
customers and suppliers
Learning-by-doing, in
studio, project teams
Strong codified
knowledge content,
highly abstract, universal
Partially codified knowledge,
strong tacit component, more
context-specific
Importance of interpretation,
creativity, cultural
knowledge, sign values,
implies strong context
specificity
Meaning relatively
constant between places
Meaning varies substantially
between places
Meaning highly variable
between place, class and
gender
Drug development
Mechanical engineering
Cultural production, design,
brands
Bjørn Asheim, 2009
Some empirical observations I
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Economic performance: Global
competitiveness
2004 2005 2006-7
Finland:
Sweden:
Denmark:
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3
5
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3
4
Bjørn Asheim, 2009
2
3
4
2007-8
6
4
3
Some empirical observations II
Promoting Innovation Systems approach:
- Finland: Science and Technology Policy
Council and TEKES
- Sweden: VINNOVA (Swedish Governmental
Agency for Innovation Systems)
 Share of R&D:
- Finland: 3.7%
- Sweden: 4.0%
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Bjørn Asheim, 2009
Nordic innovation strategies
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Finland: Science-driven high tech strategy focusing
on radical product innovations, with NOKIA as the
champion (STI mode of innovation)
Sweden: Technology-based strategy of process
innovations and complex product improvements,
through R&D investments in large industries
(STI mode of innovation)
Denmark: Market (user)-driven entrepreneurialism
characterized by non-R&D based, incremental
product innovations especially within consumer goods
sectors (DUI mode of innovation)
Bjørn Asheim, 2009
Finland’s National Innovation
Strategy: New proposal
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In order to meet global challenges, innovation policy
must be broad-based and comprehensive:
Innovation activity in a world without borders
Demand and user-driven innovation policy (DUI mode
of innovation) to complement the
Systemic approach of science and technology policy
(STI mode of innovation)
Innovative individuals and communities (creative
class/talents)
Bjørn Asheim, 2009
Key governance policy measures
The central government’s corporate steering renewed
for the purpose of becoming a worldwide pioneer of
systemic reforms:
The Science and Technology Policy Council to
become a wider Research and Innovation Council
(STI & DUI)
 Content-oriented (strategic centres of science,
technology and innovation) and regional centres of
innovation (strategic strenghts of regions) driving
renewal is to be formed (top down/bottom-up)
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Bjørn Asheim, 2009
TYPOLOGY OF POLICIES
Principles of
policies
Types of
Policy
Indirect,
general
Direct,
general
(framework cond.)
Science policy
Basic research in
universities and
research institutes/
(T-H) - IPR policy
Technology
policy
Specific ‘strategic’
technologies and
sectors - public
procurement policy
Innovation
policy
Direct,
specific
Tax relief policy Norway
Bjørn Asheim, 2009
Finland’s new
innovation policy
Policy challenges: Institutionally thin
(peripheral) and old industrial (lock-in)
regions
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Institutionally thin regions
Less innovative in
comparison to more
agglomerated regions
Less R&D intensity and
innovation
A less developed knowledge
infrastructure (universities
and R&D institutions)
Suffering from institutional
thinness
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Lock-in regions
Overspecialised in mature
industries experiencing
decline (negative lock-in in
specialised localisation
economies)
Few R&D activities, mature
technological trajectories,
cognitive lock-in
University and public
research oriented at
traditional industries /
technologies
Bjørn Asheim, 2009
Source: Tödtling & Trippl (2005)
Policy challenges: Fragmented
metropolitan and networked regions
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Fragmented regions
Many and diverse industries/
business services
Lack of dynamic clusters of
(local) innovative firms and
knowledge spill-overs
(unrelated variety of
urbanisation economies)
R&D departments and
headquarters of large firms
Many and high quality
universities and public
research organisation but
weak industry-university links
(weak connectivity in RIS)
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Networked regions
Regions with cutting edge
technologies and a high level
of R&D as well as high
connectivity in RIS)
Exposed to new challenges
and competition from
emergent economies
Diversify into new but related
industries (related
variety/differentiated
knowledge bases)
New ways of continuous
innovation support
Bjørn Asheim, 2009
Source: Tödtling & Trippl (2005)
Regional Innovation Policies: A
Classification of Policy Instruments
Support: Financial
and technical
Behavioural
change: Learning
to innovate
Financial support
Mobility schemes
Firm-focused
System-focused
Brokers
Technology
Regional
centres
innovation
systems
Bjørn Asheim, 2009
What is Regional Innovation
Systems (RIS) – narrow definition:
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A RIS is constituted by two sub-systems and the
systemic interaction between them (and with nonlocal actors and agencies):
The knowledge exploration and diffusing sub-system
(universities, technical colleges, R&D institutes,
corporate R&D, technology transfer agencies)
The knowledge exploitation sub-system (firms in
regional clusters as well as their support industries)
STI (Science, Technology, Innovation) mode of
innovation – science driven; radical innovations
Bjørn Asheim, 2009
What is a RIS - broad defintion :
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A wider system of organisations and
institutions supporting learning and
innovation, and their interactions with local
firms
Developmental (creative) learning: learning
work organisations, interactive learning (userproducer relationships), inter-firm networks
DUI (Doing, Using, Interacting) mode of
innovation – market/demand/user driven;
incremental innovations
Bjørn Asheim, 2009
Varieties of Regional Innovation
Systems (RIS)
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Territorially embedded RIS (’grassroots RIS’) – demand/user
driven (less systemic university-industry relations) – broad
definition of IS (learning regions) mainly doing incremental
innovations (knowledge exploitation)
Regionalised national innovation systems
(’dirigiste RIS’) – science/supply driven – narrow definition of IS
(technopolis, science parks) mainly focusing on generating
radical innovations (knowledge exploration)
Regional networked innovation systems (’network RIS’) – mixed
supply/demand interaction (combined narrow and broad
definition) carrying out a combination of radical and incremental
innovation (knowledge exploration as well as exploitation)
Bjørn Asheim, 2009
RIS TYPOLOGY
Type of
knowledge
Type of RIS
Analytical/
science based
Territorially
embedded
(grassroots RIS)
Synthetic/
engineering based
Symbolic/
artistic based
IDs in EmiliaRomagna
(machinery)
’Advertising
village’ – Soho
(London)
Networked
(network RIS)
Regional clusters –
Regional clusters –
regional university
regional technical
(wireless in Aalborg) university
(mechanical in
Baden-Württemberg)
Regionalised
national
(dirigiste RIS)
Science parks/
technopolis
(biotech, IT)
Bjørn Asheim, 2009
Large industrial
complex
(Norwegian oil and
gas related industry)
Barcelona as the
design city
Modes of innovation and
knowledge bases
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Lundvall argues that the STI mode of
innovation could be associated with the
analytical knowledge base, while
The DUI mode of innovation could be related
to the synthetic (and symbolic) knowledge
base(s)
However, is this dichotomisation to simplistic?
Bjørn Asheim, 2009
Modes of innovation and
knowledge bases
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The STI mode of innovation does not only represent
basic research based on analytical (scientific)
knowledge but also
Applied research based on synthetic, engineering
(and symbolic) knowledge base(s) as is carried out at
technical universities. Engineering firms needs to do
systematic knowledge creation and innovation in
collaboration with universities and R&D institutes
(technological development), and cannot only rely on
interactive learning in user-producer relationships with
customers and suppliers as part of the DUI mode of
innovation (application development)
Bjørn Asheim, 2009
Different forms of learning (DUI
mode of innovation)
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Also the DUI mode of innovation is broader than
normally understood as learning can be divided into:
Developmental (creative) learning – the ’logic’ of
knowledge exploration – learning work organisation
Reproductive (adaptive) learning – the ’logic’ of
knowledge exploitation
DUI mode also found in analytical knowledge based
industries (e.g. Biotech) making use of synthetic
knowledge and interactive learning in specific phases
of their innovation processes
Bjørn Asheim, 2009
The combination of STI and DUI
modes of innovation
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Research has shown that a combination of
the two modes of innovation improve the
performance of firms (Berg Jensen et al.
2007)
Research has also shown that broad sourcing
for knowledge for innovation (i.e. not only
collaborating with R&D institutions or basing
innovation only on experience based
knowledge) makes firms more innovative
(Laursen and Salter, 2006)
Bjørn Asheim, 2009
The combination of STI and DUI
modes of innovation
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Cognitive distance has to be reduced and absorptive
capacity increased to achieve such a combination
The STI mode including synthetic and symbolic
knowledge bases as well as the DUI mode also
present in the STI mode represent bridging
mechanism reducing the cognitive distance
Internal competence building through developmental
learning in learning work organisations and
organisational changes increase absorptive capacity
Needs both narrow and broad RIS to be implemented
Bjørn Asheim, 2009
What can be achieved at the regional
level – the role of RIS narrowly defined
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Competitive research and innovation
environments can only be established in a
limited number of regions
Such regions must have strong research
universities, competitive industries and proactive
regional governments building RIS
These regions will be able to serve R&D
intensive domestic industry as well as to attract
R&D units from MNCs
Bjørn Asheim, 2009
What about the ordinary industries in the
ordinary regions – the role of RIS broadly
defined
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RIS have other tasks than only supporting R&D
intensive industries, as regions have other types of
industries that are in need of innovation support from
RIS (firms based on the DUI mode of innovation)
Knowledge creation and innovation in all types of
industries with different knowledge bases
Easier to achieve optimal combinations of science
and user driven innovation (STI and DUI mode of
innovations) on the regional level due to spatial and
social proximity especially favouring the DUI mode of
innovation (interactive learning)
Bjørn Asheim, 2009
Summing up: Broad-based
innovation policy
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User-driven innovation in addition to science and
technology driven (DUI+STI) – ‘Combined and
complex mode of innovation’ (Isaksen and Karlsen)
Exploitation of different modes of innovation and
forms of learning
Knowledge creation and innovation in all types of
industries with different knowledge bases
Resolve the potential contradiction between
competition and social and regional cohesion
Bjørn Asheim, 2009