ERRIN - RIMKeynote 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

Closing the Innovation Divide

1. CoR statements: What are the basic realities?2. From “Triple Helix” to “RIE Regional Innovation Ecosystems”: How to address new innovative solutions on major societal challenges3. CoR draft opinion focusing on mindset: What are the preconditions for necessary changes?4. A Circular Economy – Re-using knowledge: How to develop regional innovation ecosystems to become laboratories for entrepreneurial discovery?5. Smart cities and smart regions – need for deeper understanding the innovation: What are the processes and concepts for implementation?6. Smart specialisation: What does that mean in practice?7. 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

Development of National or Regional Innovation System

Public support

Stage 1: Creating pre-conditions

Stage 2: Initiating transformation towards RIE

Stage 3: Orchestration for global business

The Development Path of the Regional Innovation Ecosystem (RIE)

Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013

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&D2. Joint innovation capacity3. Joint commercialization4. Joint platforms

Stage 3 Orchestrating RIE:•Mindset change•Implementing Knowledge Triangle 1.Integrating innovation activities with research programs

The Development Path in More Detail

Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013

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

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

Identify Societal / Market Needs & define system requirements & barriers

Develop Useful Insights from Fundamental Knowledge

Integrate Fundamental Research & Innovation Knowledge into Enabling Technologies

Applying Experiences from Industrial Systems Interacting Learning & Research & Innovation Activities

(E O’Sullivan: Adapted from NSF ERC Strategy Framework)

Professor Sir Mike Gregory, 13 Feb 2013

Three Steps to Understand the System:

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.

Closing the Innovation Divide Action Points

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

• 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

• 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.

Closing the Innovation Divide Action Points

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

Business Model Levers Technology Levers

Value Proposition

Value Chain

Target Customer

Product and Service

Process Technology

Enabling Technology

Cultural Levers

Regional InnovationEcosystem

Space (Ba & Flow)

Design

Mindset

Learning

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.

Incremental innovations

Semi-radical innovations

Radical innovations

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.

Picture: The three levers for the three types on innovation

• 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.

Closing the Innovation Divide Action Points

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. research2. concept/invention

3. early stage technologydevelopment

4. product development

5. production/ marketing

Proof of concept Proof of principle Demonstration

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

22-04-23

NEW JOINT ARENAS for Co-creation Competence

Development

LifelongLearners

Dynamic Interaction between University and Society

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”.

ScientificKnowledgeResearch

Focus Areas asDrivers of

Development

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• 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.

Closing the Innovation Divide Action Points

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

Industry and other

Organi-zations

Society:Innovations

and Well-being (Products, Processes, Services…)

Produces

Educates

LifelongLearning

Inventingthe Future

NEW JOINT ARENAS for Integration, Collaboration, and Co-

creation; Access to Global Resources and Talent

Aalto Living Labs

Mega-Endeavours

Aalto Factory Park CompetenceDevelopment

CompetentPeople

Dynamic Interaction between University and Society

Students

Faculty and other Staff

Knowledge

MINDSET CHANGEAalto Values and Aalto Working Culture Development Processes

Markkula, M., Pirttivaara, M. & Miikki, L., 2009. Developed by using ideas of Lester & Sotarauta, Tekes report 2007 ”Innovation, Universities, and the Competitiveness of Regions”.

Other Impacts

Other Impacts

ScientificKnowledge

Aalto Research, Education

and Innovation

Areas

Aalto Research Focus Areas as

Drivers of Development

Le

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Source: Markku Markkula, article in the Knowledge Triangle book, 2013

The Frame for Implementing Knowledge Triangle (Synergy between Research, Education and Innovation)

• 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”.

Closing the Innovation Divide Action Points

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

Regional Innovation EcosystemAalto University Campus 2020

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…

NokiaNokia

Aalto Aalto UniversityUniversity

RovioRovioTapiola Tapiola

Garden Garden CityCity

EIT ICT LabEIT ICT Lab

Young entrepreneurial mindset

LaureaLaurea

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)

• 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.

Closing the Innovation Divide Action Points

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