Transcript Closing the Innovation Divide CoR Opinion on the Request

ERRIN - RIM
Closing the Innovation Divide
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
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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?
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:
1. Europe needs pioneering regions to be forerunners in implementing the
EU2020 and through that to invent the desired future.
2. Lifelong learning and the full use of ICT are cornerstones for this change of
mindset towards entrepreneurship and innovation.
3. We need the dynamic understanding of regional innovation ecosystems
where public, private and third sector learn to operate together. Modernize
Triple Helix.
4. We need methodologies to mobilize public private partnerships and
encourage especially people participations: user-driven open innovation &
living labs.
5. We need to speed up the change by scalability & implementation.
Source: CoR Opinions 2011-2012
The Development Path of
the Regional Innovation Ecosystem (RIE)
Public
support
Stage 1: Creating
pre-conditions
Stage 2: Initiating
transformation
towards RIE
Stage 3: Orchestration
for global business
Development of National or Regional Innovation System
Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013
The Development Path in More Detail
Stage 1 Regional pre-conditions:
1. Potential of existing regional/international innovation system (=audits)
2. Willingness to utilise this potential (=active participation)
Stage 2 Creating the innovation hub:
1. Joint R&D
2. Joint innovation capacity
3. Joint commercialization
4. Joint platforms
Stage 3 Orchestrating RIE:
1. Mindset change
2. Implementing Knowledge Triangle
3. Integrating innovation activities with research programs
Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013
How to Create Preconditions for Necessary Changes?
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supporting the targets to be achieved on competitiveness and innovation by 2020,
especially through continued investment in education and training;
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;
striving for societal innovation, with living labs, testbeds and open innovation methods in
regional innovation policy-making, while getting citizens on board;
highlighting the role of a local and regional environment that supports the integration of
higher education, research and business;
implementing the Knowledge Triangle as a key principle in European university reform
(greater synergies between research, education and innovation);
underlining the key role of research infrastructure in knowledge-based innovation systems;
focusing more on the active use of innovative public procurement, combined with
simplification of procedures;
stressing the importance of Europe-wide collaboration and transnational cooperation
projects between regions, building on innovation support and smart specialisation
strategies;
highlighting the potential of cross-border cooperation, including inward investment to and
outward investment from the EU;
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
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 policymakers and project teams.
CoR Draft Opinion “Closing the Innovation Divide”: Based on the
request of the Irish EU Presidency, Rapporteur Markku Markkula
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 O’Sullivan: Adapted from NSF ERC Strategy Framework)
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
Globalisation  Need for Smart Specialisation
Understanding the dynamics of global industries
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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
Closing the Innovation Divide  Action Points
• Regions and cities should create pioneering initiatives that
are genuinely European in nature: multicultural, humancentred, 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
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
Value
Value
Proposition Chain
Target
Customer
Technology Levers
Product
Process
and Service Technology
Enabling
Technology
Cultural
Levers
Regional
Innovation
Ecosystem
Space
(Ba & Flow)
Design
Incremental innovations
Semi-radical innovations
Radical innovations
Mindset
Learning
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.
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
New Elements & Model for Research
1. research
2. concept/
invention
Proof of concept
3. early stage
technology
development
Proof of principle
4. product
development
Demonstration
5. production/
marketing
Shared R&D&I
programs
between mutually
committed:
- Universities
- Research
Institutes
- Industry
- ….
Jos Leijten, 11 Feb 2013
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
CoR Conference Plenary 10 April 2013 Conclusion
Prof. Debackere, KU Leuven
Country or regional (baseline)
profile:
- Indicators
- Priorities
- Clusters
- Institutions
Entrepreneurial
discovery processes by
lead actors and lead
institutions supporting
country/regional
presence in global
economic value chains
22-7-2015
3S Portfolio:
- Modernization
- Transition
- Diversification
- Foundation
Country or regional
governance mechanisms for:
- Priority-setting
- Clustering
Triple Helix interactive process of
policy action & policy learning to
support, stimulate, select clusters of
smart specialization activity built on
the knowledge and innovation
resources present in country or region
Research
Focus Areas as
Drivers of
Development
Competence
Development
Scientific
Knowledge
Society
NEW
JOINT ARENAS
for Co-creation
Industry
Research, Education and Innovation
Dynamic Interaction between University and 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”.
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
Dynamic Interaction between University and Society
Inventing
the Future
Lifelong
Learning
NEW JOINT ARENAS for
Integration, Collaboration, and Cocreation; Access to Global
Resources and Talent
Aalto Factory Park
Other Impacts
Competence
Development
Mega-Endeavours
Aalto Living Labs
Produces
Educates
Aalto Research
Focus Areas as
Drivers of
Development
Collaborative
Knowledge Creation
Learning
by RDI
Aalto
Research,
Education
and
Innovation
Areas
MINDSET CHANGE
Aalto Values and Aalto Working
Culture Development Processes
Knowledge
Scientific
Knowledge
Industry
and
other
Organizations
Competent
People
Society:
Innovations
and
Well-being
(Products,
Processes,
Services…)
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”.
The Frame for Implementing Knowledge Triangle
(Synergy between Research, Education and Innovation)
Source: Markku Markkula, article in the Knowledge Triangle book, 2013
Closing the Innovation Divide  Action Points
• The CoR strongly supports the following proposal of the
European Parliament’s 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
Nokia
Regional Innovation Ecosystem
Aalto University Campus 2020
Young entrepreneurial mindset
Rovio
Aalto
University
Tapiola
Garden
City
Laurea
EIT ICT Lab
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…
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.
Otaniemi based on Prof. Nonaka: Ba & Flow
(our “Idea Space” developments)
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