a western view of china's internal and external innovation ecosystem - ict sectors

中国2.0内部和外围的创新生态系统网Martha G Russell, Neil Rubens, Camilla Yu

May 10, 2011

Photo: Kaisa Still, 2010

创新生态系统网络（IEN）汇集国际跨学科的团队，旨在发展和传播新型数据和工具，从而了解信息和通信技术在区域内起到的促进作用。

2Innovation Ecosystems Network, 2011

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创新产生于至少两个人之间。团队精神是必须的。总是有赢家和输家。

虽然人们可以随时随地地沟通，但对于复杂的全球性问题，一个人很难在某个时刻具备所有必须的洞察力，从而做出决定。

Strategic Value Creation Networks

• Critically important in technology development and economic growth

• Co-creation relies the relationship infrastructure of people, organizations and policies. – These complex intangible relationship assets can be observed through

network analysis of small, medium and large enterprises. – By identifying relationships through which information and financial

resources flow, visual insights toward a shared vision can be created and strategic network orchestration can be implemented.

– Using social network analysis, these relationship patterns can reveal• competitive forces• gatekeepers • collaboration opportunities • within and across sectors • in internal and external innovation ecosystems • around the world, including China 2.0.

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Models of innovation

Economic Innovation (producer innovation)-Schumpeter 1934

End-user Innovation-von Hippel 1986

Strategic Innovation- Hamel and Prahalad 1994

Open innovation-Chesbrough 2003

Collaborative Innovation Networks- Gloor2005

• Identify and empower influential activatethe evolution of the ecosystem

• Develop and implement programs(meetings, funding, initiatives) to foster co-creator networks

• Communicate complexity to co-create vision

• Measure the transformation of an innovation ecosystem

Innovation Ecosystems & Value Co-Creation

A dynamic innovation ecosystem is characterized by a continual realignment of synergistic relationships of people, knowledge, and resources that promote harmonious growth of the system in agile responsiveness to changing internal and external forces.

Innovation Ecosystems refer to the inter-organizational, political, economic, environmental, and technological systems through which a milieu conducive to business growth is catalyzed, sustained, and supported.

Value is co-created for the innovation ecosystem through events, impacts and coalitions/networks that emerge from a shared vision of the desired transformations. Data-driven metrics measure, track and visualise the transformation, empowering interaction with feedback for the shared vision.

www.innovation-ecosystems.org

Innovation Ecosystems Transformation Framework

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The Way We USED to Think About Organizations New Organizational Chart Based on Relationships

Relationship-Focused Co-Creation Infrastructure

(Visual) Social Network Analysis “. . . allows investigators to gain new insights into the patterning of social connections, and it helps investigators to communicate their results to others.“ (Freeman, 2009)

Infrastructure for Resource Flows- - - Relationships

(Companies are interlocked through key people – information flow, norms, mental models.(Davis,1996)

Relationship Interlocks

• Executives and key employees– Transfer of technologies and knowledge, professional networks, business

culture, value-chain resources

• Directors– US Fortune 500 firms interlocked (shared directors) with average 7 other firms

• Corporate governance embedded and filtered through social structures – Executive compensation, strategies for takeovers, defending against takeovers

• Gerald F. Davis, “The Significance of Board Interlocks for Corporate Governance,” Corporate Governance 4:3, 1996

• Investors and service providers– Awareness of external forces, competitive insights, resource leverage

• Relationship interlocks provide– Social relationship “filter” for governance, information flow & norms– Transfer of implicit and explicit know-how– Mental models

http://fusionenterprises.ca/Business_Training.php

Alumni Form Value Creation Networks

Global Video & Games Sectors

CapDigital membersmanually inflated for emphasis10Preliminary and proprietary for CapDigital

Permission required for sharing© 2010 Innovation Ecosystems Network

From IEN Dataset 2010Global video_games sector

CapDigital members in sector manually enhanced for emphasis

Innovation Ecosystems Network

Networks of Female and Male Executives

in Companies in the Biotech Sector

Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

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Traditional Data Gathering Methods

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“There is no data like more data” (Mercer at Arden. House, 1985)

Easy, fast integration, using APIs and data sources to produce results that were not the original reason for producing the raw source data [wiki].

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Mashup

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Could be easier to find patterns

More Data is Need

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Higher Dimensions: Double Edged Sword

Data for Visualization & Shared Vision

Accessing Data Streams about Innovation Building a Dataset on Innovation

Crystallisation Through Visualisation The Card-Mackinlay-Shneiderman visualisation reference model:(Card et al., 1999; Miksch, 2005)

Place of innovation

Localized concentrations -Marshall 1890

Menlo Park (Research Park) 1948, Stanford Industrial Park 1951, Research Triangle Park 1959

Clusters- Porter 1998, Saxenian 1994

Regional Innovation Systems-Metcalfe 1995

Innovation Cluster- Yim2008, 2002

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Number of US Technology-based companiesBy sector, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

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Number of US Technology-based companiesAdvertising & Web, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Behind the Innovation Curtain: Mobile Players and Their Moves.” Submitted to the International Conference on Mobile Business,” Intl Conf on Mobile Business.Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves” Technical Report. Media X, Stanford University, Feb.2010.

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Number of US Technology-based companiesBiotech & Cleantech, Dec 2009

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Behind the Innovation Curtain: Mobile Players and Their Moves.” Submitted to the International Conference on Mobile Business,” Intl Conf on Mobile Business.Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves”

Technical Report. Media X, Stanford University, Feb.2010.

Distance

Old

New

The new maps may be based on the connections - rather than on distance.

Global Perspectives - Three Examples

• Parisian Innovation Ecosystem: Digital Media

• Norwegian ICT Innovation Ecosystem

• China ICT – Western view

– Internal Ecosystems

– External Ecosystems

Case Study - CapDigital

Vision

To catalyze the new digital infrastructure in France with global connections

To create an ecosystem to facilitate the relationship between France and global market

Enable Paris to become global region of the market for digital services

Conducted stakeholder interviews to understand shared vision, tap knowledge in practice, identify transformational metrics

•CapDigital staff

•CapDigital members:

– Small startup

– Large company

– Collaboration

25Innovation Ecosystems Network November

2010

Network GraphParisian Innovation Ecosystem

Pale Red: French companyDark Red: CapDigital member

Light Green: Foreign Venture/ firmDark Green: French venture firm

Blue: Foreign company

From IEN Dataset 2010Selected Paris companiesLinked people & venture/financing entitiesLinked companies, people & v/f entities

1 degree2 degree

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Parisian Innovation EcosystemCapDigital – France - Global

Pale Red: French companyDark Red: CapDigital member

Light Green: Foreign Venture/ firmDark Green: French venture firm

Blue: Foreign company

From IEN Dataset 2010Selected Paris companiesLinked people & venture/financing entitiesLinked companies, people & v/f entities

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Zone 1 OpportunityVC Community

In Zone 1, most of the companies are highly connected with VC or other companies.

VCs are making investments actively - many high potential opportunities to funding.

Venture & financing provides local relationships

Alto-invest

Funds 6 French media companies, none are CapDigital members

Some funded by other VCs also

Some VCs and companies provide global relationships– Unruly Media (headquartered in London)

– Unruly Media helps agencies and marketers distribute branded content on the social web.

– Using a cost-per-engagement pricing model and non-interruptive advertising formats, Unruly Media’s global network of influential blogs, cult web properties, video sites, and social media applications brings scale, targeting, and safety to a fragmented and chaotic long-tail media landscape.

– Founded in 2006 by Scott Button, Matt Cooke and Sarah Wood, Unruly is headquartered in London, UK.

29Innovation Ecosystems Network

Zone 2 OpportunityPotential New Members for

Cap Digital

In zone 2, most of the companies have fewer connections

There are many French based companies, to which CapDigital reach out

Some zone 2 companies already have global connections to be leveraged.

• Webwag publishes Mobile and Web widget convergent solutions, helps users create a personalized home page with data feeds and web 2.0 services that are always accessible from any computer or mobile. Its technologies are made available in white brand to its customers that include Network Operators, handset and connected devices manufacturers, service owners and media publishers.


Zone 3 OpportunityExpand Global Network

Many foreign companies in Zone 3 - opportunities for CapDigital to seek international partnerships.

Wellington Partners

• A venture capital firm that invests in French and intl firms in Digital Media and Software

• Offices in Munich, London, Palo Alto, Zuirch.

• Co-invests with a French VC.


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The Norwegian Puzzle

• Norway is a wealthy country with high standard of living and almost NO unemployment

• Yet, low rate of technology-based innovation

• What is the future of Norway after oil reserves have been extracted?

• Given technology targets:

– How can innovation be catalyzed?

– How can establishing global relationships be accelerated?

Norwegian Tech-based CompaniesTheir Branch Offices and Their Financial Orgs

Links show relationships

Example view to IEN dataset in Gephi. Companies are selected with keyword search “Norway + Norwegian;” the funding organizations associated with those companies are added Nodes represent companies and their investors; edges indicate resource flows. The network layout is created with Yifan Hu Multilevel algorithm and nodes are inflated according to their indegree, i.e. the number of the connected investors.

Advisors & Investors Expand AccessInvestors leverage co-creation opportunities with investments in multiple companies. Intl companies not shown.

Companies leverage value co-creation opportunities through relationships with multiple investors. Some investors are international.

Timeline analysis of investment events reveals patterns of co-investment – an indication of intention to co-create value and, perhaps, stimulus programs.

IEN Dataset, July 2010

International Relationships for Value Co-Creation

Huge opportunities for international relationships lie 2 & 3 degrees out from Norwegian companies

Example view to IEN dataset for keyword search. Nodes represent companies and their previous and current employees. The network layout is created with Fruchterman Reingold algorithm and nodes are inflated according to their outdegree. Protocols for anonymity are evolving.


Globalization of Norwegian ICT


Norwegian tech-based companies with financing are more likely to have networked relationships.

Norwegian tech-based companies have access to global relationships through current board members, investors, and key personnel.

Insights About Norway

• Dual offices: regional and Oslo

• In sectors we studied– Business locations parallel technical university programs

– Investor relationships have strong local links • Some investing organizations are governmental programs

• Expands to Oslo when offices are in Oslo

• International relationships linked to small set of personal relationships at executive level

– International investors drawn through executive relationships• Relationships through execs at Google and AOL provide channels

for global network expansion

Context of Investments into/from China

Insights into Innovation

Social Network Analysis

Socially Constructed

Data

Socially constructed dataset, in English, openly available– all challenges in China

Innovation Ecosystems Dataset:

•323 technology-based companies with one or more locations in China•42 Chinese, 77 foreign investment firm•Investment into China US$ 5.4 B•Investment originating from ChinaUS$ 3.1 B

Insights explored:

The flow of financial resources into and out of China

More illustrative than descriptive/prescriptive results

Innovation Ecosystem NetworkNeil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.

Initial Data Analysis:53% (113) of the Chinese companies from eCIS business sector

50 % (66) of the foreign companies are from the eCIS business sector

Toward Insights about:

Patterns and differences in the characteristics of investment flows

into and from China

More Specific: Context of eCIS sectoreCommerce and electronic security=

eCommerce, software search, network hosting, mobile, games &video, enterprise

Insights into Innovation

Social Network Analysis

Socially Constructed

Data


CULTIVATIONInvestments into China

(receiving investments)

Innovation Ecosystem Network

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.

Emerging Chinese business clusters linked by firms’ relationships

Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.

HARVESTInvestments from Chinese

(making investments)


• Modes of value co-creation• Cultivation • Harvesting

• Chinese interlocks at the investment firm level– Government-led investment firms– Knowledge of government guarantees– Investments in firms that return benefits to China

• Global interlocks at both investment firm and enterprise levels

• Opportunity network & value co-creation

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Topline Findings

A Western View: China’s Internal Innovation Ecosystem

Chinese investment organizations,companies,branch offices

A Western View of China’s External Innovation Ecosystem

Intl investments into Chinese companies

Chinese investments into Intl. companies

Event

Impact

Coalition

Shared Vision

Transformation

Measure & Track

Interact & Feedback

Co-Create Value

Innovation Ecosystem Networks Action ModelTranslate, measure and transform an innovation ecosystem

50Innovation Ecosystems Network 2011

SourceAbsorbExchangeIsolates

GatekeepersStars

• Martha G Russell, PhD, [email protected]

– Sr. Research Scholar, HSTAR Institute

– Associate Director, Media X at Stanford University

• Neil Rubens, PhD, [email protected]

– Assistant Professor, Graduate School of Information Systems

– University of Electro-Communications, Tokyo

• Jukka Huhtamäki, [email protected]

– Researcher, Lecturer

– Hypermedia Laboratory (HLab) of Tampere University of Technology (TUT).

• Kaisa Still, PhD, [email protected]

– Knowledge Management Specialist

– Beijing DT Electronic Technology Co., Ltd

http://www.innovation-ecosystems.org


• Ben LeNail

• [email protected]

• Media X Visiting Researcher

• Mergers & Acquisitions

• Mario Gastel, [email protected]

– Graduate student, Texas Advertising, UT Austin

– Fulbright Scholar (2009-11)

• Jiafeng (Camilla) Yu, [email protected]

– M.A. in Advertising in Planning Track

– The University of Texas at Austin

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http://www.facebook.com/jukka.huhtamaki?ref=fs

mailto:[email protected]

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Questions?

[email protected]@hsrtc.org

[email protected]

THANK YOU!

Innovation Ecosystem Network

对于创新的洞察

社交网络分析

社交架构的数据

www.innovation-ecosystems.org

a western view of china's internal and external innovation ecosystem - ict sectors

Business

dec 2009neil

russella network

chinese innovation

social network

norwegian

stanford university

network analysis

network layout