Examining Open Innovation Practices among International Networks of Clusters

Emily Wise, VINNOVA & Lund University, SELise Andersen, Reg-X & Southern Denmark Univ.

Madeline Smith, EKOS Consulting, UK

Presentation Objectives (and Disclaimer)

• Present planned research activities– On topics of open innovation, social capital

development, and value-added of organized cluster efforts in the context of international innovation networks

– Focused on five transnational networks of innovation environments, clusters and SMEs in the Baltic Sea Region

• Get peer input on how other regions are working with these topics (in relation to their cluster activities)

WARNING

WARNING

Outline

• The EU Strategy for the BSR and the BSR Stars Flagship Prog

• Research objective/questions• Discussion

4

The EU Strategy for the Baltic Sea Macro Region

FOUR OVERALL OBJECTIVES:• To make the Baltic Sea region an environmentally CLEAN place

• To make the Baltic Sea region a PROSPEROUS place

• To make the Baltic Sea region an ACCESSIBLE and ATTRACTIVE place

• To make the Baltic Sea region a SAFE and SECURE place

And an action plan with 15 action areas (one of which is research and innovation – co-led by Sweden and Poland)

5

Flagship projects in Chap 7 Research & Innovation

Lead Partner

1Fast T

Innovation, Clusters & SME Networks

Sweden (Vinnova)/ Lithuania

2 Baltic Sea Fund for Innovation & Research

The Skåne Region

3 Services innovation Lithuania/Finland

4 Innovation in Health & Life sciences

Lithuania/Germany

5 Science link for research infrastructure

Sweden (Swedish Research Council)

6

WHY INCREASED TRANSNATIONAL COOPERATION BETWEEN INNOVATIVE

MILIEUS, CLUSTERS AND SME NETWORKS?

• Countries grow with neighbors that grow• Larger Home Market for products, services and knowledge,

110 million people in 10 countries. (especially important for SMEs)• There is potential that BSR can be a global recognized strong

environment in a number of areas • We have Leading companies/universities/ clustersThree logics:

1. A stronger value chain can be offered within the macro region2. A larger critical mass in research and innovation3. Complementary competences creates renewal

BSR Stars/Stardust aims at creating a number of globally-leading research and innovation hubs

-building on existing commercial strengths and specialised competencies around the BSR

-linking these research and innovation nodes through transnational collaboration projects

-developing stronger critical mass, attractiveness and international competitive position

Some of the topics we talk about at TCI conferences

• Globalization of innovation and the importance of international cluster cooperation

• Cluster dynamics and the process of social capital building (within clusters)

• Open innovation• Evaluation of impact from policy investments

in clustering efforts

Objective of the research project

Understand how international innovation processes are facilitated by the network of cluster organizations (and other

actors within regional innovation systems)

within the BSR

• What are cluster actors’ expectations/expected benefits with transnational cluster networks?

• Do cluster organizations facilitate the strengthening of international linkages between company and research actors in the networks?

• Is it important to have strong internal cluster dynamics (i.e. social capital) before pursuing innovation activities internationally?

• Do existing policies support open innovation activities within a cluster and between clusters internationally?

How do knowledge linkages develop internationally (through network nodes)?

ILLUSTRATIVE

Clusters and Social Capital• Previous studies give a snapshot picture

– Show current state– Are relatively static

• Reality is that:– How organisations work together is important– This is poorly captured in evaluation (Social

Capital?)• Cluster dynamics model

– Systems thinking approach– explores dynamic nature of clusters– Shows behaviours and company interaction as

cluster develops – Developed in Scotland, successfully implemented

in Sweden, Denmark, Ireland, Norway, Switzerland, California, Finland

Stimulation andAcquisition of relevant research and development

L5 FUTURE FOCUS LOOP

Performance of individual firms

Overall performance of all firms in the zone

Overall Cluster competitive performance

Motivation for competitive innovation

Degree of enhancement of competitive innovation

Platform for new level of innovation

Sharing of critical sectoral knowledge

Extent of cooperative initiatives

Extent of shared response to common challenges

L1 INTER-FIRM RIVALRY LOOP

L2 INTER-FIRM CO-OPERATIONLOOP

Global competition and external market pressure

Type of cultural context

L3 COLLABORATIVEADVANTAGELOOP L4 VENTURE

ATTRACTIVENESS LOOP

Collection – Cooperation - Collaboration

Competitive power of cluster

Smith and Brown, Local Economy, June 2009

The Cluster Dynamic Loops

Open Innovation – Leveraging Social Capital

Traditional Innovation Open Innovation

Expertise triumphs Diversity trumps expertise

We know what the consumer wants

Consumers are passionate users who innovate – producers follow

What you know matters Who you know matters

Take no risks - copyright, patent & protect

Judge the risk of releasing information against the return of gaining understanding

The goal is to agree The goal is to tap into those who agree and disagree

Improve ideas by applying more resources

Improve ideas by sharing them

Judge ideas by how they fit Judge ideas by how they differ and what they offer

Relationship hierarchies Relationship networks

Innovation management - control Innovation cultivation - evolve

Expertise

Consumer

Knowledge

Intellectual Property

Collaboration vs. competition

Development

Assessment

Relationships

Organising

Clusters are ...

Learning organisations By nature open and collaborative Share knowledge Learn from each other Work in different ways

A Hotbed of Open Innovation?Need better understanding of how clusters can also

work in this way transnationally?

Questions for Discussion

• How can Open Innovation approaches (and mind-sets) help cluster development?– How can we encourage collaboration– Within a cluster, between clusters,

transnationally

• What are the essential pre-requisites for successful transnational cooperation?

• Are there other transnational cluster pilots that we can share learning between?

Contact information

Emily Wiseemily.wise@vinnova.se

Mobile: +46 73 101 1426