White Spaces Innovation in Sweden - Innovation policy for ... - Vinnova

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WHITE SPACES INNOVATION IN SWEDENand additionally costly because of pushing the pendulum back to hierarchical control.Thus in early cellular telephony, AT&T spun off Lucent but managed it hierarchically.Ericsson did the same but structured it so that traditional telephone culture dominatedthe „lawless‟ cellular radio engineers, dividing labour into specialised project units.These spawned further specialised units to re-integrate the imposed division of labour ina Byzantine creativity-destroying „hierocracy‟.The group of theorists most closely addressing these analytical-interpretive organisationalissues as well as the main focus of interest in this contribution, which is the studyof regional innovation from a complexity geography perspective, are what might collectivelybe called the „design theorists‟. These are represented in Fig. 4.3; each of them ishighly focused on the rational, individual, creative action process involved in innovation.Importantly, each is interested in design as a communicative process involvinginteraction with external actors not just those inside a particular organisation. Moreover,each departs somewhat from purely analytical or deductive individual reasoning infavour of a more interpretive analysis of collective innovation processes. These areinteresting to the extent they inform and take further in explanatory terms results like„preadaptation‟ or even more interestingly exploitation of the „adjacent possible‟ asidentified in complexity science by the likes of Kauffman (2008).Learning from the FutureWe start from the left side of Fig. 4.3 with Scharmer and his Theory „U‟ perspective.There is an unknown space where, say, an innovation lies – specified in Fig. 3 as the„mystery‟. For Scharmer, getting there is a matter of accessing pre-tacit knowledge, forhim in the form of metaphors or analogies at the hermeneutic level. Stacey (2001) alsoseeks to transcend tacit knowledge as irremediably compromised because of the contradictionthat it involves „expressing the inexpressible‟. Contrariwise, he points out thatPolanyi made no binary distinction between tacit and codified knowledge of the kindoverdone by the likes of Nonaka & Takeuchi (1995). Accordingly, for Stacey knowledgeis continuous, communicative and collective in organisations and elsewhere. Thiswould include clusters, where the hypothesis that tacit learning determines the proximityimperative clearly requires a total re-think. Innovation involves imagining and indeed„learning from the future‟ not simply learning from the past. Such acts of imagination,individually and collectively, involve a process of „presencing‟, meaning being aware ofthe present but sensing the future. This involves giving serious attention to collectivereflections, observing, to check them, opening the mind for sensing and „presencing‟ anemergent future, crystalising the new idea, prototyping it and, finally, performing orimplementing it. This can seem like management mumbo-jumbo, it has to be said.Moreover, as presented, the movement through the seven precepts down the left side ofScharmer‟s „U‟ and up the right side looks to be a remarkably linear, rationalist process.Nevertheless, as we shall see, Scharmer goes a little deeper into more iteratively presentedprocesses aimed at solving the „mystery‟ than the other two authors, contributing86
WHITE SPACES INNOVATION IN SWEDENto the notion of a design process that not only can be but has been deployed successfullyin evolving actual regional development platforms (Harmaakorpi, 2006).In the elaboration of the regional development platform model, in which Harmaakorpiparticipated in Finland, collective thinking about what moves firms and supportagencies could make into the „adjacent possible‟ occurred in diverse entrepreneur panels.These engaged in a resilience discourse process to develop path interdependence,identifying new technological trajectories they could collectively pursue. One of theselected platforms in the Lahti region was clean technology and renewable energy.Entrepreneurs and the regional Lahti Innovation Centre (a branch of Lappeenranta University)then implemented this adjacent possible, creating a new path from furnitureproduction into eco-innovation. Some 10% of Finnish cleantech business is nowadaysbased in the Lahti region, with the focus on optimising material efficiency and energyefficiency. Global leaders in the waste-to-energy concept include Lahti Energia in gasificationpower plants. Supply chain linkage of main equipment involves Metso Power,while Lahti Aqua produces district heat from biogas in its two waste water treatmentplants. Finally, the Energon Clean Energy Centre began operations in 2010, developingequipment for processing biogases, bio-oils, solar energy, solid renewable fuels andhybrid solutions, hiring out its facilities and equipment for research institutes and companies.Thus, starting from 1998, a new approach to regional innovation was heralded,informed by collective assessment of demand profiles and market opportunities. Thiscame from addressing future global „Grand Challenges‟ such as climate change, theenergy crisis, demographics and healthcare megatrends.The Knowledge FunnelAn explicit design theory for innovation at the firm level is advanced by RotmanSchool, Toronto‟s, Roger Martin. Informed by American pragmatist philosophy (Peirce,Dewey, James), Martin first emphasises the inappropriateness of scientific reasoning,based on either inductive or deductive reasoning, for organisational creativity and innovation,advancing Peirce‟s concept of „abductive reasoning‟ in preference. Unlike inductivelogic, that reasons from the specific to the general as with comparative caseanalysis (but beware the „black swan‟ problem), for example, or deductive logic thatreasons from the general to the specific (all crows are black, so the brown one is not acrow), abductive reasoning requires an evolving interaction with the environment andothers until a leap of faith, informed by metaphor or analogy can be executed to producea solution to „the mystery‟. „Abductive logic sits squarely between the past-driven worldof analytical thinking and the knowing-without-reasoning world of intuitive thinking‟(Martin, 2009, 26). This translates into decision cultures in organisations which aredivided into a past-driven „reliability‟ logic of accounting, measuring and predictabilitythat is fatal for innovation and „exploration,‟ and a „validity‟ logic that can be vulnerablebut favours „exploration‟ over „exploitation‟ of knowledge (March, 1991). Thisinclination makes it clear this position is not very far from Scharmer‟s pre-tacit „pre-87
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