local innovation for a global economy - fapesp · local innovation for a global economy professor...
TRANSCRIPT
![Page 1: Local Innovation for a Global Economy - Fapesp · Local Innovation for a Global Economy Professor AnnaLee Saxenian University of California, Berkeley Sao Paulo, Brazil June 16 2016](https://reader030.vdocuments.site/reader030/viewer/2022041109/5f0da7f27e708231d43b6ed8/html5/thumbnails/1.jpg)
Local Innovation
for a Global Economy
Professor AnnaLee Saxenian
University of California, BerkeleySao Paulo, Brazil June 16 2016
IPEA and FPESP
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The puzzle: from Taiwan
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to Bangalore
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Global value chains and
innovation in the “periphery”
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Fragmentation and reintegration
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Growth through innovative recombination
19601950 1970 1980 20001990
Internet, Ecommerce
Personal computer
Integrated Circuit
Military
Value
added
2010
Cloud, Web & Mobile, Data
Silicon Valley --technology evolution
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Innovation as recombination
Information technology creates a proliferation of potential solutions and new pathways
Unpredictability of innovation: multiple solutions with different strengths in different contexts
Boundaries between sectors becoming indistinct:key is the capacity to search effectively and recombine changing capacities rather than dominate a fixed subset of technology
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Is it a car . . . or a computer?
Is it a phone or a camera? Is it a car or a computer?
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Diasporas and development
• Standard view: Diaspora increases
intellectual capital via scientific
collaboration, knowledge flows, reduced
reputational/informational barriers to trade.
• Alternative: Diasporas contribute
importantly to design and construction of
new institutions—like financial rules to
support venture capital
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Silicon Valley’s foreign co-inventors
Foreign co-inventors listed on patents with Silicon Valley inventors
0
100
200
300
400
500
600
700
Taiwan Israel Japan Singapore South
Korea
Germany China India Finland
No
of p
aten
ts
2000-05
1995-99
1990-94
Source: Analysis of data from Tracey Grose, Collaborative Economics Inc., Palo Alto, 2007.
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Search and the new
Argonuats
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Brain circulation: Taiwan case
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External search networks
• Embedded (social) networks: tacit knowledge
• Modular networks: explicit knowledge
• External (open) search networks: partial
formalization via information pooling that
supports collaboration and joint problem
solving (e.g. quality standards)
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Taiwan: from imitator to partner for SV
10,000 electronics-related firms
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iPhone 6: global supply chain
Top suppliers
CHINA 349 *
USA 149
JAPAN 60
TAIWAN 42
KOREA 32
* Over 50% Taiwanese
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Venture capital as search network
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Open (global) search networks
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Taiwan: Diaspora & institutional reform
Diaspora collaborates with govt. to design institutions to support entrepreneurship and innovative search
• Venture capital is a powerful search network to identify and (re) combine parts of firms—financial, technical or marketing expertise, managerial talent, IP—to form ventures that in turn become nodes in networks for co-designing and building new products
• Public-private research labs (ITRI) for joint research , improvement of designs and/or processes, standard setting (SEMI: Flat Panel Displays, Photo Voltaics)
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Taiwan: Diaspora, clusters and co-design
Entrepreneurship, vertical decomposition and clustering of IC & electronic system production: Deepening specialization and co-design of components, subsystems, and periodic re-integration
Diaspora instrumental in collaborative exploration and innovative recombination
1980-90s: Silicon Valley-Taiwan cross-regional collaboration, mutual upgrading
Post 2000s: Taiwan-China-Silicon Valley cross-cluster linkages
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SV-Taiwan-China network
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Beyond Diaspora
• Growing importance of external networks that firms and other actors rely on to locate collaborators to solve problem or provide solution
• Search networks as alternative to hierarchical decomposition of tasks as means of overcoming bounded rationality
• Information “pooling” across firms (in region, across supply chain) allows joint learning and adaptation
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Lessons: Don’t try to replicate SV
The recipe still doesn’t work . . .
Ingredients:
• Technology park
• University research
• Engineers
• Venture capital
• Incubator
• etc.
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Lessons: Open organizational boundaries
• Connect to (not replicate) successful regions
• Search for collaborators
• Partner across boundaries: geographic, organizational, sector
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Lesson: Differentiate and collaborate
Define ad invest in dindtinct capacities
Search for local and global partners
Collaborate to
• Identify and compete in new markets
• Jointly solve problems and adapt
University-industryPublic-private Across sector, domains
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Lesson 2. Specialize and collaborate
Define and invest in distinct capacities
Open boundaries of firm, institutions
Partner locally and globally to:
• Identify new markets – ”self discovery”
• Experiment and iterate to solve problems
• Monitor and adapt
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Thank you!