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WHITE SPACES INNOVATION IN SWEDENwith system change. Roberto Verganti talks about innovation of meaning (Verganti,2009). Including new types of instruments that affect the policy mix like demand sideprograms may influence the conditional probabilities establishing new pathways betweenregimes – path interdependence – which by stimulating demand can influencewhat turns out to be the adjacent possible .Figure 5.4 System innovation and system optimizationSource: Rotmans J, from presentation to the OECD on Transitions & Transition Management for sustainabledevelopment, 2002In making the level of integration a distinguishing aspect of the innovation responseRotmans also points to the importance of governance or orchestration in addressinggrand challenges. What kind of governance and who has the authority to perform it areissues here. In governance terms the previous arguments point to governance of businesstransactions as well as governance of relational issues associated with interactionand connectivity exemplified with framing of issues and mobilizing a diverse set ofstakeholders for visioning activities. Grand challenges include specific governanceissues concerning thin markets and market shaping. It is obvious that companies play acrucial role in this together with policy as regulator, risk taker and market shaperthrough innovative procurement and being first user in some areas (e.g. societal demanddriven innovation).The major implications of what has been said from an innovation perspective is firstthat one might assume that wicked issues present potential business cases but that theapproach to define them and develop them requires an experimental approach and involvementof many stakeholders. These are requirements for collaborative governance.From a governance point of view this analysis leads to the conclusion that forms of104
WHITE SPACES INNOVATION IN SWEDENgovernance are dependent on the rationale for intervention/action. If the focus is ontransactions and exploitation then companies are well positioned to be orchestrators.Those forms of governance that strive to shape and “co-ordinate” frames and lead toinnovation of meaning require more of public/civic governance and/or self-organisationresponsive to external constraints.A process model for making Grand Challenges actionableCollaborative governance in this particular context is about aligning issues, actors, (includingusers), processes and assets to develop and deliver products. Figure 5-5 illustratesthe “content” of orchestration. The basic premise is that a grand challenge has tobe interpreted and framed in a collaborative process to be made actionable. The eventlogic illustrated there is that the Grand Challenges are defined at a societal level. Theway they are framed in that perspective is most often not a framing that is actionable.There is a need for issues to be interpreted and translated by constellations of stakeholders.Because they are so complex or wicked the process of making them actionable in ameaningful way must meet certain requirements in terms of how the process of interpretationis orchestrated and who should be involved in the process. This is captured by thedesign arrow between issues and actors. We saw in chapter 4 that design thinking isemerging as a fruitful approach to cope with complexity in such a way that differinginterpretations and intentions can be represented and lead to a shared interpretation thatis meaningful and actionable. The typical feature of applying design thinking is to workwith visualisation of ideas and concepts and use prototypes that are provisional but“testable”. This means that many views, perspectives and constraints are shaped into a“totality” and iteratively given more precise and detailed features. Using a concept fromcommunications theory these prototypes can function as boundary objects that allowconversation and sense-making between actors with very diverse backgrounds. As weshowed in chapter 4 theatre may also be used to open for interaction and sense-making.However, this initial shared interpretation defines a community of stakeholders withdifferent concrete meaning for different subgroups, individual companies, businessnetworks, clusters or business ecosystems. So design thinking is given more precisecontent in various contexts because different types of users may be involved as oneexample or that business models differ (e.g. sustainable cities versus personalisedhealthcare). The term interaction fields is being used to label these different contextsand is shown by the vertical arrow linking actors to products in Fig 5-5. The word isselected to stress that in situations where there are shared problems and where thereexist interdependencies between actors, interaction is a key for coordinated action (coaction)to deliver solutions that may be innovations. From an orchestration or governanceperspective interaction can be based on self-organisation, network managementor contractual relationships as in a strategic alliance. It may also be so that this type ofdealing with complexity could be useful for designing a relevant policy mix instead ofhoping for ministries/governments to sort this out in administrative fashion. Having this105
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