Collective Innovation Processes Innovation in Engineering and Technology Set coordinated by Dimitri Uzunidis Volume Collective Innovation Processes Principles and Practices Edited by Dimitri Uzunidis First published 2018 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address: ISTE Ltd 27-37 St George’s Road London SW19 4EU UK John Wiley & Sons, Inc 111 River Street Hoboken, NJ 07030 USA www.iste.co.uk www.wiley.com © ISTE Ltd 2018 The rights of Dimitri Uzunidis to be identified as the author of this work have been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 Library of Congress Control Number: 2018948320 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 978-1-78630-377-6 Contents Introduction ix Dimitri UZUNIDIS Chapter Enterprise Knowledge Capital and Innovation: Definition, Roles and Challenges Blandine LAPERCHE 1.1 Knowledge capital: definition and roles 1.1.1 Information and knowledge 1.1.2 Definition of knowledge capital 1.1.3 Knowledge capital and managing knowledge 1.2 Productive use of knowledge capital 1.2.1 Knowledge capital and the production of new goods and services 1.2.2 Knowledge capital and the cohesiveness of work collectives 1.2.3 The use of knowledge capital in the digital era: reduction of the production process completion time 1.3 Conclusion 1.4 Bibliography 3 11 12 16 17 21 22 Chapter The Non-economic Values of Innovation 27 Edouard LE MARÉCHAL 2.1 Introduction 2.2 The development of business models caused by digitization 2.3 Extending the notion of value generation to include non-economic values 27 29 32 vi Collective Innovation Processes 2.4 Putting forward a value system to be considered when creating innovation business models 2.5 How values can be used in a systemic representation of innovation 2.6 Conclusion 2.7 Bibliography 35 39 41 43 Chapter Long-term Survival of Innovative Organizations 47 Sophie MIGNON 3.1 Long-term survival: finding a balance between change and continuity 48 3.2 Multiple possibilities between change and continuity 50 3.2.1 A balance resulting from a structural, spatial and architectural separation of opposite forces: the theory of structural ambidexterity 50 3.2.2 Reaching an equilibrium by temporally alternating between the two dynamics: punctuated equilibrium theory 51 3.2.3 Finding a balance through ambidexterity in individuals and more generally in the organizational context: the contextual ambidexterity approach 52 3.3 Which innovation strategy should companies aiming for long-term survival adopt? The concept of prudent innovation 54 3.4 Conclusion 58 3.5 Bibliography 59 Chapter The Resources Potential of the Innovative Entrepreneur 63 Sophie BOUTILLIER 4.1 The resources potential of innovative entrepreneurs 4.1.1 Defining innovative entrepreneurs 4.1.2 The resources potential of innovative entrepreneurs 4.2 The innovative entrepreneur’s resources: knowledge, finance and social networks 4.2.1 Knowledge and financial means, the indispensable resources for innovative entrepreneurs… 4.2.2 Mobility thanks to the networks of social relationships 4.3 Conclusion 4.4 Bibliography 64 64 69 72 72 76 81 82 Contents Chapter Innovation Spaces: New Places for Collective Intelligence? vii 87 Laure MOREL, Laurent DUPONT and Marie-Reine BOUDAREL 5.1 Introduction 5.2 Innovation spaces: the spaces where all the new innovation trends coexist 5.3 Which types of spaces, to what innovating or innovative ends? 5.4 The innovation space: a design issue approached in the wrong way 5.5 Places in the service of collective intelligence? 5.6 Conclusion 5.7 Bibliography 87 89 91 94 97 102 103 Chapter The Innovative Territory 109 Corinne TANGUY 6.1 Territory and innovation: a collective process of co-construction 6.2 Territorial proximities and cooperation networks 6.2.1 Challenging the predominant role of geographic proximity 6.2.2 Different forms of proximity 6.3 The complementary nature of local and distant collaborations 6.4 Conclusion: project territories and new governance systems 6.5 Bibliography 110 114 114 115 118 120 122 Chapter The “Eco-innovative” Milieu: Industrial Ecology and Diversification of Territorial Economy 131 Fedoua KASMI 7.1 Industrial ecology and the “eco-innovative” milieu 7.1.1 Industrial ecology and industrial regions 7.1.2 Industrial ecology as an “eco-innovative” milieu 7.2 From specialization to “smart” diversification: altering the economic trajectory of a region 7.2.1 Specialization versus diversification 7.2.2 “Smart” diversification and a new territorial path 7.3 Conclusion 7.4 Bibliography 132 132 134 138 138 143 150 150 Chapter Responsible Innovation 159 Leïla TEMRI 8.1 Foundations 160 viii Collective Innovation Processes 8.1.1 Responsibility in science and technology 8.1.2 Technology assessment 8.2 Responsible research and innovation in European policies 8.3 Responsible innovation and companies 8.4 Conclusion 8.5 Bibliography 160 161 163 166 173 174 Chapter Innovation Capacities as a Prerequisite for Forming a National Innovation System 177 Vanessa CASADELLA and Dimitri UZUNIDIS 9.1 Institutions and innovation capacities 9.1.1 Taking institutions into consideration in economic theory 9.1.2 Institutions and innovation capacities 9.2 Innovation capacities and national innovation systems 9.2.1 National innovation systems and their heterogeneity 9.2.2 Innovation capacities, the inseparable pillars of NIS 9.3 Conclusion 9.4 Bibliography 179 179 182 185 186 191 194 195 List of Authors 201 Index 203 Introduction Collectives of Innovation and Collective Innovation In the context of global competition based on innovation, business sectors and the companies that they include develop according to the interplay of opposite forces On the one hand, gains in efficiency as well as in economies of scale and scope lead to an increase in the size of companies and the creation of oligopolistic market structures, dominated by firms focusing on technological and financial power On the other hand, competition, the diffusion of new ways of producing, organizing the innovation process, marketing or consuming, as well as public policies, favor the creation of new actors, upsetting the existing rules These changes, which affect both sides of the market, contribute to the transformation of established structures and the institution of new entities and activities Innovation is now central to the analysis linking market structures, the actors’ strategies and performances However, innovation strategies refer to a broad environment that incorporates the market structure (the level of concentration of sellers and buyers, the degree of product differentiation, market entry conditions) and includes human, financial, material or immaterial resources that businesses can make use of to innovate and transform market structures with their strategies and performances Institutional characteristics (laws, rules, norms, conventions) also help structure the framework within which companies act Alteration of these structures may result from technological progress, the behaviors and strategies employed by companies, and the action of public policies on national, regional and even global levels Studying market structures then becomes pertinent only if the analysis of innovation strategies Introduction written by Dimitri UZUNIDIS x Collective Innovation Processes is associated with the use of performance criteria beyond merely their economic aspect The innovation process is causally related to a problem – technological, economic or social – facing the market economy and consciously or unconsciously identified by its actors Thus, innovation is related to finding the best solution to this problem This implies the use of knowledge and information coming from practice, experience and science Innovation itself is a collective, cumulative and historical process defined by the following seven main characteristics: (1) the effects of innovation are difficult to predict; (2) the scale of the dissemination of innovation is difficult to calculate; (3) innovative activities are asymmetrical and evolve at different paces over time; (4) learning, execution and diffusion time plays a major part in the innovative act; (5) the business environment affects the time, scale, nature and effects of innovation; (6) the implementation space, in other words, the geographic and communication distances, favor or, on the contrary, hinder access to the information and strategic knowledge of the innovation process and (7) innovations are interconnected; due to the risk associated with cost and time, innovation is at times a collective act and at other times – or simultaneously – the result of the collectivization of its inputs In new approaches to innovation, entrepreneurs and companies are understood in relation to their skills and their function in the creation of resources Whether gradual or radical, innovation therefore becomes endogenous and it is incorporated in a complex process characterized by several types of feedback and interactions An innovative organization is presented as a dynamic system that includes specific and diversified skills An innovative agent (entrepreneur, company, group or, in general, organization), by acquiring, combining and making use of these skills, can create technological resources and develop its relationship with its environment This accounts for the importance of managing design, application and development in the implementation of an innovation process An innovation system mobilizes a set of bodies of knowledge and skills resulting from learning processes and that are incorporated in its memory These bodies of knowledge must be enriched to be developed by technological, organizational and business innovation The survival of the system depends on its ability to innovate, which allows it to face external attacks, evolve and persist External stimuli (competition, product substitutability, innovation policies, etc.) are generated by the economic Introduction xi environment and affect entrepreneurs and companies as a means of selection Selection procedures are shaped by the business climate: the nature of the product market, availability of capital and work, innovation pace, effects of public policies, etc Consequently, they can create alternatives to the way in which a given company (an organization or, more generally, a specific innovation system) works, manages and produces The strategy of an innovative organization is therefore based on the three-“A” model: analyze one’s own strengths and weaknesses and those of the technological, economic and social environment in order to anticipate change and act to adapt to or, on the contrary, drive progress [BOU 13] The methods employed for managing innovation have radically evolved in the last two decades The progress observed in digital technologies and the increase in the pressure of competition have led companies to open up their research and development (R&D) activities, employing strategies that rely more and more on the combination of their internal capacities with a range of external resources [UZU 12] Decision and power are the two key words in business management The decision-making system of a company ensures the regulation of its activities It is built on the game for power and control of its owners and contributes to the establishment of the decision-making authority of its “technostructure” A company is forced to grow in size and strengthen its power on the market to avoid disappearing In order to so, it must reduce the uncertainty that characterizes how the market works by acquiring all means necessary to capture, sort, process and use the largest number of economic, technological, financial, business and political pieces of information A more changeable environment is associated with a more rapid capital turnover, leading to a faster innovation pace and higher business risks The constant expansion, integration and renewal of the market increases business and financial risks Therefore, a company must invest in the creation of a partnership network and/or in the involvement with existing innovation networks to ward off these risks thanks to access to rare skills and knowledge, the profit made from intra-network externalities or closer relationships with its customers and providers The theoretical models that focus on opening the borders of a company include the open innovation paradigm, the user-led innovation theory, approaches to innovation such as the community of communities, or the approach involving business ecosystems and models All of these 198 Collective Innovation Processes [MAS 98] MASINDA M., National Systems of Innovation: implications of Science and Technology Policies in Sub-Saharan Africa, CPROST Report, 1998 [MAT 99] MATHEWS J.A, “From national innovation systems to national system of economic learning: the case of technology diffusion management in east Asia”, DRUID Conference, Aalborg School, Denmark, 23 p., 1999 [MUC 03] MUCHIE M., “Re-thinking Africa’s development through the National Innovation System”, in MUCHIE M., GAMMERLTOFT P., LUNDVALL B (eds), Putting Africa First: the making of African Innovation Systems, Aalborg University Press, Denmark, 2003 [MUC 16] MUCHIE M., DESTA A., MENGESHA M., Science, Technology and Innovation: for a Sustainable Future in the Global South, Africa World Press, 2016 [MYT 01] MYTELKA L, SMITH K., “Innovation theory and innovation policy: bridging the gap”, DRUID Conference, Aalborg School, Denmark, 2001 [NEL 88] NELSON R., “Institutions supporting technical change in the United States”, in DOSI G et al (eds), Technical Change and Economic Theory, Pinter, London, 1988 [NEL 93] NELSON R.R., National Innovation Systems: a Comparative Analysis, Oxford University Press, 1993 [NOR 90] NORTH D., Institutions, Institutional Change and Economic Performance, Cambridge University Press, New York, NY, 1990 [OGB 95] OGBU O.M, OYEYINKA-OYELARAN B., MLAWA H., “Understanding deindustrialization and technological stagnation in Sub-Saharan Africa: a framework”, in Technology Policy and Practice in Africa, IDRC, Canada, 1995 [SCO 04] SCOTCHMER, S., Innovation and Incentives, MIT Press, Cambridge, 2004 [SEN 00] SEN A, Development as Freedom, Anchor Books, New York, 2000 [UZU 03] UZUNIDIS D., Les facteurs actuels qui font de la Science une force productive au service du capital, Innovations, Cahiers d’économie de l’innovation, vol 17, pp 51–78, 2003 [UZU 04] UZUNIDIS D., LAPERCHE B., “Power of the firm and new mercantilism: an analysis based on Joan Robinson’s thought”, in FORSTATER M., WRAY L.R (eds), Contemporary Post Keynesian Analysis, Edward Elgar, Cheltenham, 2004 Innovation Capacities as a Prerequisite for Forming a NIS 199 [VIO 02] VIOTTI E., “National learning systems A new approach on technological change in late industrializing economies and evidences from the cases of Brazil and, South Korea”, Technological Forecasting and Social Change, vol 69, no 7, pp 653–680, 2002 [VIO 03] VIOTTI E., “Technological learning systems, competitiveness and development”, The First Globelics Conference: Innovation Systems and Development Strategies for the Third Millennium, Rio de Janeiro, Brazil, 2003 [WIL 94] WILLIAMSON O.E., Les institutions de l’économie, InterEditions, 1994 List of Authors Marie-Reine BOUDAREL Laboratoire ERPI University of Lorraine Nancy France Sophie BOUTILLIER Laboratoire CLERSÉ University of the Littoral Opal Coast Dunkirk France Vanessa CASADELLA Laboratoire CRIISEA University of Picardie Jules Verne Amiens France Laurent DUPONT Laboratoire ERPI University of Lorraine Nancy France Fedoua KASMI Laboratoire CLERSÉ University of the Littoral Opal Coast Dunkirk France Blandine LAPERCHE Laboratoire CLERSÉ University of the Littoral Opal Coast Dunkirk France Edouard LE MARÉCHAL Tangenciels Consulting Agency Paris France Sophie MIGNON Montpellier Research in Management University of Montpellier France Laure MOREL Laboratoire ERPI University of Lorraine Nancy France Corinne TANGUY Laboratoire CESAER AgroSup Dijon, INRA University of Burgundy Franche-Comté France Collective Innovation Processes: Principles and Practices, First Edition Edited by Dimitri Uzunidis © ISTE Ltd 2018 Published by ISTE Ltd and John Wiley & Sons, Inc 202 Collective Innovation Processes Leïla TEMRI MOISA, Montpellier SupAgro INRA, CIRAD, IAMM University of Montpellier France Dimitri UZUNIDIS Laboratoire CLERSÉ University of the Littoral Opal Coast Dunkirk France Index A, B, C D, E, F absorptive capability, 12 agile innovation, 97, 98 organization, 146 business innovation, 9, 30 capabilities, 4, 11, 15, 53, 102, 118, 119, 146, 190, 192, 193 cluster, 109–113, 120, 145, 147, 178 co-design, 88, 90, 95 collaborative innovation, 15, 88, 91 spaces, 91 collective intelligence, 88, 97–101 community, 4, 16, 17, 31, 79, 80, 88, 90–92, 94–97, 99–102, 111, 115, 119, 135, 167, 190, 194 contextual ambidexterity, 52, 53 corporate responsibility, 168, 169 creation of knowledge, 11, 13, 14, 21, 182 creative destruction, 28, 66, 81, 87, 89 creativity, 11, 18, 52, 53, 59, 88, 90, 93, 96, 101, 109, 112, 177 digitization, 19, 22, 29, 30 diversification dynamics, 146 dynamic capabilities, 11, 53 externalities, 131, 141, 149 eco-industrial synergies, 134, 136, 146, 148–150 eco-innovation, 135, 137, 150, 170, 172 eco-innovative milieu, 134, 135, 138, 146, 148–150 ecosystem, 20, 22, 37, 39–43, 95, 131, 132 engineer, 3, 5, 13, 50, 87, 114, 132, 148, 160, 161, 186 entrepreneurship, 40, 57, 63, 64, 67, 73, 75, 78, 81 FabLab, 87, 91–93, 96 family business, 54, 55, 57 G, H, I globalization, 20, 28, 113, 178 Hacker Space, 92 human capital, 10, 20, 64, 70, 75, 81, 190 Collective Innovation Processes: Principles and Practices, First Edition Edited by Dimitri Uzunidis © ISTE Ltd 2018 Published by ISTE Ltd and John Wiley & Sons, Inc 204 Collective Innovation Processes industrial districts, 111, 147 ecology, 131–138, 146, 148–150 innovation, 29, 32 symbiosis, 131, 133–137, 149, 150 innovation capabilities, 111, 145, 192 capacities, 177–179, 181–185, 187, 191, 193 culture, 55, 56 networks, 112, 117, 118 permanent, 69, 99 project, 27, 28, 32, 39, 40, 97, 98, 102 prudent, 48, 54–57 responsible, 160, 162, 165, 166, 169–173 space, 87–91, 93, 95, 96, 102 system, 92, 111–113, 177, 178, 185–187, 189, 191–195 innovative environments, 109–113 milieu, 135, 137, 147, 150 product, 39, 50, 55, 92, 137, 194 innovator, 29, 63, 65, 69, 90, 92, 162, 163, 165, 168 institutional framework, 79, 131, 181 invention, 6, 14, 27–29, 33, 36, 42, 43 K, L, M knowledge -based capital, 10 capital scheme, 16 communities, 17 production, 3, 4, 17, 65, 75, 100 spillovers, 139, 142, 143, 145, 149 learning process, 5, 6, 9, 13, 17, 76, 77, 111, 145, 147, 148, 177, 182, 183, 187, 188, 193, 194 Living Lab, 91, 92 Maker Space, 92 N, O, P non-economic values, 28, 29, 32, 34, 35 open innovation model, 14, 15 power stability, 48 productive combinations, 187 project stability, 48 proximity cognitive, 76, 117, 136, 143 geographic, 109, 110, 112–115, 117, 120 institutional, 116, 117 organizational, 116, 117, 136 R, S, T researcher, 3, 5, 13, 114, 135, 160–163, 165, 191 resources potential of innovative entrepreneurs, 64, 69, 71, 72, 81 responsible research, 159, 160, 163–166, 173 scientific and technological information, 6, 7, 13, 16–21 shareholder, 31, 48, 169 social desirability, 173 networks, 34, 70, 72, 76, 80, 81, 91, 97, 114 relationships, 70, 71, 76, 79–81, 170 stakeholder, 28, 29, 32–34, 36, 37, 39, 40, 43, 88, 103, 110 sustainable development, 120, 162, 167–169, 171–173 Index Tech Shop, 91, 92 technological progress, 1, 140, 160, 162, 187, 188 technostructure, 67 territory, 87, 88, 90, 92, 102, 109–115, 118–121, 131, 132, 134–136, 138, 139, 141–144 205 V, W value generation, 8–10, 28, 29, 31, 32, 34, 35, 37, 38, 41–43 work collective, 9, 17, 18, 20, 21 Other titles from in Innovation, Entrepreneurship and Management 2018 CALLENS Stéphane Creative Globalization (Smart Innovation Set – Volume 16) CASADELLA Vanessa Innovation Systems in Emerging Economies: MINT – Mexico, Indonesia, Nigeria, Turkey (Smart Innovation Set – Volume 18) CORLOSQUET-HABART Marine, JANSSEN Jacques Big Data for Insurance Companies (Big Data, Artificial Intelligence and Data Analysis Set Volume 1) CROS Franỗoise Innovation and Society (Smart Innovation Set – Volume 15) DEBREF Romain Environmental Innovation and Ecodesign: Certainties and Controversies (Smart Innovation 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Institutions and innovation capacities 9.2 Innovation capacities and national innovation systems 9.2.1 National innovation systems and their heterogeneity 9.2.2 Innovation. .. 203 Introduction Collectives of Innovation and Collective Innovation In the context of global competition based on innovation, business sectors and the companies that they include