The Challenges of New Innovation Paradigms for the Danish ... - CFIR

The Challenges of New Innovation Paradigms for the Danish ... - CFIR

The Challenges of New Innovation Paradigmsfor the Danish Research and Innovation PoliciesMette Præst KnudsenSyddansk UniversitetIntegrative Innovation Management Unit

THE COMPETITION• The free competition: “The Future Innovation Policy in Denmark”• Issued by The Danish Council for Technology and Innovation• Purpose: receive input for new research based knowledge on the effects,importance and application opportunities on innovation policy• Authors:• Tanja Bisgaard•Former Manager of Policy Analysis at FORA, the Ministry of Economics andBusiness Affairs, and founder of Novitas, Copenhagen.• Stoyan Tanev, Associate Professor, University of Southern Denmark• Merethe Stjerne Thomsen, PhD-student on value co-creation practices• Mette Praest Knudsen, Professor and Research managerIntegrative Innovation Management Unit

BACKGROUND Observations successful firms today are forced to deal with new competitive realities by being globally present innovatively resourceful internationally competitive on multiple markets across the world Response opening of firm’s innovation processes emergence of new innovation paradigms such as user-driven innovation, openinnovation and value co-creationIntegrative Innovation Management Unit

THE IDEAQUESTION DRIVING THE PAPERHow do the different new innovation paradigms challengethe existing innovation policies in Denmark?FROM A POLICY PERSPECTIVEHow can firms orchestrate market orientation in innovation processesand how can innovation policies support these processes?Integrative Innovation Management Unit

DANISH INNOVATION POLICY Danish policy has been equivalent to technology policy During the 1980s: national systems of innovation Slow change towards innovation – based on interactions like user-producer New insights -> Creating wealth through innovation based on four maindrivers Information and Communication Technology - using ICT as an enabler ofinnovation Human Resources - developing high quality knowledge workers and companiesability to use their employees creative and innovative skills Knowledge Creation - investments in and the use of new knowledge Entrepreneurship - activities related to starting up new companies and highgrowth entrepreneurs (Nordic Innovation Monitor, 2009)Integrative Innovation Management Unit

DANISH POLICIESIntegrative Innovation Management Unit

THE OECD RECOMMENDATIONS Five areas that governments should prioritise when formulating newinnovation policies Empowering people to innovate - the educational systems need to be rethoughtand more focus should placed on multidisciplinary learning and the adaption ofnew skills Unleashing innovation in firms - regulation must enhance the growth of newfirms and create conditions to ensure they remain competitive Creating and applying knowledge - governments must ensure that knowledgecan be protected, and at the same time ensure that the conditions for sharingknowledge are available Applying innovation to address global and social challenges - a new model for thegovernance of multilateral co-operation should be explored so global challengescan be addressed collectively Improving the governance and measurement of policies for innovation - the focusof innovation policies must be medium and long term, and policy makers needto exhibit leadership and involve all relevant stakeholders in policymaking todevelop a shared vision and make policies more effectiveIntegrative Innovation Management Unit

3 NEW PARADIGMS Change from manufacturer active paradigm to customer-active paradigm toopening of innovation processes User-driven innovation Program for user-driven innovationMid-term evaluation – successful in achieving objectives Most known in Danish companies 62.4% of Danish firms are familiar with UDI and 46,4% work with it 20.4% of Odense firms are familiar with UDI and 6% work with it Open innovation No current initiatives Less known in Danish companies 26.2% of Danish firms are familiar with OI and 15,4% work with it 17% of Odense firms are familiar with OI and 2,7% work with it Value co-creationIntegrative Innovation Management Unit

THE VISIONThe involvement of the entire value-chain in the innovation process contributesto a more holistic, but also cross-disciplinary and participatory perspective on themutually engaging innovation processesThe consequence is that there is an increasing role of each individual in theorganisation in shaping its internal processes, products and services in a waythat will enhance the competitiveness of the single firm and its partnersThis increasing role of individual employees needs to be backed up with theproper socio-technological infrastructures that would make it possibleIt also highlights the importance of the employees’ expertise in using these sociotechnologicalinfrastructures to bring in users, customers and other externalactors into the innovation processIntegrative Innovation Management Unit

RECOMMENDATIONS - 1The overall recommendation is to formulate a Danish Innovation Strategy. OECD Frame of reference for formulating the strategyempowering people to innovateunleashing innovation in firmscreating and applying knowledge based on the perspective of mutually engagingpractices Requirement is the integration of perspectives onbusiness developmenttechnological innovationlarge societal challenges (grand challenges)environmental issues and so forththe strategy be developed as a cross-disciplinary and cross-ministerial activityIntegrative Innovation Management Unit

RECOMMENDATIONS - 21. Create new publicly funded knowledge centres investigating the extentand maturity of existing mutually engaging practices2. Establish an understanding in companies of both, the need and thepotential benefits, of adopting the new paradigms1. In particular, stimulate the development of knowledge sharing mechanismsbetween research institutions and lead implementers of the paradigms in thebusiness community3. Promote and a support a reform in the educational system targeting anenhanced cross-disciplinary education focusing on open, user-driven andparticipatory innovation4. Create infrastructure and platforms that enable small clusters ofcompanies to meet users and innovate together5. Strengthen focus of innovation networks by directing structure andgovernance of the networksIntegrative Innovation Management Unit

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