Innovation Ecosystems and Network for Startups, Growth and Globalization, IPRC, Tokyo Japan, December 13, 2012, Martha G Russell and Neil Rubens, IEN,

1. Innova&on
Ecosystems
-­‐
Network
Orchestra&on
for
Startups,
Growth
and
Globaliza&on
Martha
G
Russell,
PhD
MediaX
at
Stanford
University
Neil
Rubens,
PhD
University
of
Electro-­‐CommunicaAons
InnovaAon
Ecosystems
Network

2. Overview
• Ecosystem
PerspecAve
• Data
Driven
VisualizaAons
of
InnovaAon
Ecosystems
• Some
Examples
ECOSYSTEM
Heterogeneous
and
conAnuously
– Silicon
Valley
evolving
set
of
firms
that
are
interconnected
through
a
complex
– Paris
global
network
of
relaAonships.
[Basole
et
al.,
2012]
– Tokyo
• ReflecAons
and
OpportuniAes

3. H-­‐STAR
HUMAN
SCIENCES
AND
TECHNOLOGIES
at S T A N F O R D U N I V E R S I T Y
ADVANCED
RESEARCH
INSTITUTE
RELATIONSHIP
INTERFACES
FOR
DISCOVERY
COLLABORATIONS
Goal:
Do
something
together
neither
of
us
could
do
by
ourselves.
Research
on
people
and
technology
—
how
people
use
technology,
how
to
be[er
design
technology
to
make
it
more
usable,
how
technology
affects
people’s
lives,
and
the
innova&ve
use
of
technologies
in
research,
educaAon,
art,
business,
commerce,
entertainment,
communicaAon,
security,
and
other
walks
of
life.

4. The REAL Issue
at S T A N F O R D U N I V E R S I T Y Deep Knowledge with Wide Applicability
IN
THE
HEART
OF
SILICON
VALLEY
IN
A
CULTURE
OF
RAPID
ITERATION,
WHERE
DISRUPTION
IS
CELEBRATED
WHERE
TALENT,
INFORMATION
AND
CAPITAL
RESOURCES
FLOURISH
THE
ISSUE
IS
NOT
THE
RATE
TECHNOLOGY
TRANSFER
THE
ISSUE
IS
THE
EFFECTIVENESS
OF
INNOVATION
AND
KNOWLEDGE
TRANSFER
WE
CALL
THIS
“COLLABORATIVE
DISCOVERY”
The
Media
X
approach
WORK
ON
BOLD
IDEAS
WITH
BUSINESS,
TEST
SUCCESS/FAILURE
CONDITIONS,
ITERATE
RESULTS
QUICKLY,
TRANSFER
INSIGHTS
AT
EVERY
STAGE

5. Stanford University Medical Media !
& Information Technology !
SUMMIT Distributed Vision Lab !
a t S T A N F O R D U! I V E R S I T Y
N
DVL
Discovery Collaborations !
Electrical Engineering Psychology Span Stanford Labs!
Computer
Science EE Psy Linguistics Communication Between Humans
Philosophy Ling and Interactive Media
CS CHIMe
Phil SHL Stanford Humanities Lab
Graduate School
VHIL GSB Of Business
Virtual Human Stanford Center
Interaction Lab SCIL for Innovations
in Learning
Center for the Study Of
CSLI Language & Information
Art Digital Art
Center
EngineeringEng
& Product
Design School of Education;
Ed Education and
PBLL Law Learning Sciences
Work
Technology & Center for
Organization SSP Legal
Des Stanford Joint
PBLL Program in Design
Project Based Informatics d.school
Learning Symbolic LIFE
Laboratory Systems Program Learning in Informal and
Formal Environments

6. Stanford
spin-­‐offs
Over
2000
companies
started
by
faculty
students
and
alumni
• Abrizio
• NVIDIA
• ASK
Computer
systems
• Orbitz
• Cisco
Systems,
Inc.
• Octel
Communica&ons
Corp.
• Dolby
Systems
• Odwalla
• eBay
• ONI
Systems
• E*Trade
• PayPal
• Electronic
Arts
• Pure
SoWware,
Inc.
• Excite,
Inc.
• Rambus,
Inc.
• Gap
• Ra&onal
SoWware
• Google
• Silicon
Graphics,
Inc.
• HewleT-­‐Packard
• Sun
Microsystems
• IDEO
• Tandem
Computers,
Inc.
• Intuit,
Inc.
• Taiwan
Semiconductor
• Learning
Company
• Tensillica
• Linked-­‐In
• Tesla
Motors
• Logitech
• Trilogy
• Mathworks
• Varian
Associates,
Inc.
• MIPS
Technologies,
Inc.
• Vmware
• Nike
• Whole
Earth
Catalog
• NeVlix
• Yahoo!
Inc.

7. Many Stakeholders in Innovation Ecosystem
Startups
UAliAes,
Angels,
Industry
VC
firms,
AssociaAons
Incubators
Ecosystem
Banks
and
Law
Firms,
Financial
AccounAng
InsAtuAons
Firms
UniversiAes

8. InnovaAon
Ecosystems
Approach
• Networked
systems
perspecAve
to
examine
why,
when,
and
how
interfirm
networks
and
alliances
form
and
change
(GulaA
et
al.,
2000)
• Co-­‐creaAon
creates
value
(Ramaswamy
&
Guillart,
2004)
• Value
creaAon
requires
orchestraAon
among
firms
across
segments
(Basole
&
Karla,
2012;
Dhanaraj
&
Parkhe,
2006)
• Responsiveness
to
changing
internal
and
external
forces
(Rubens
et
al.,
2011)
• Shared
Vision
guides
and
accelerates
transformaAon
(Russell
et
al.,
2011)

9. Shared Vision Transforms
Iterative
Impact Alignment
Co-Create
Value
Shared
Vision
TransformaAon
Event
Coalition
Interact &
Feedback
Martha G. Russell, Kaisa Still, Jukka Huhtamaki, and Neil Rubens, “Transforming innovation ecosystems through shared vision
and network orchestration,” Triple Helix IX Conference, Stanford University, July 13, 2011.

10. “There
is
no
data
like
more
data”
(Mercer
at
Arden.
House,
1985)
500
Points
2,000
points
8,000
points

11. More
Data
/
More
Dimensions
h[p://wissrech.ins.uni-­‐bonn.de/research/projects/engel/
engelpr2/pr2_thumb.jpg
h[p://www.iro.umontreal.ca/~bengioy/yoshua_en/research_files/CurseDimensionality.jpg
Could
be
easier
to
find
paTerns

12. TradiAonal
Data
Gathering
Methods
h[p://www.flickr.com/photos/tomatoskin/1339929731/

13. Have
to
react
QUICKLY
h[p://www.flickr.com/photos/clydeorama/3495284608/

14. OrganizaKons
News
Social
Data Source/ Organization News Social
Characteristics
Accuracy high average low
Coverage low average high
Timeliness low high high
Richness low average high

15. Infrastructure
for
Resource
Flows
-­‐
-­‐
-­‐
RelaAonships
The Way We USED to Think About Organizations New
OrganizaAonal
Chart
Based
on
RelaAonships
Relationship-Focused Co-Creation Infrastructure
(Companies
are
interlocked
through
key
people
–
informaKon
flow,
norms,
mental
models.(Davis,1996)

16. Growing
Importance
of
Networks
for
Business
Now
Geo-­‐dependence
is
rapidly
decreasing.
Importance
of
connecAons
Before
and
networks
is
increasing
Business
networks
are
highly
geo-­‐dependent.
16

17. We
know
well
how
to
interpret:
How
do
we
interpret
this?
No a O
Nokia Oyj
Figure 1. Nokia & Microsoft -- Cumulative Network using SDC Alliance Data
nok a
Figure 1. Nokia & Microsoft -- Cumulative Network using SDC Alliance Data
nokia
h[p://networkx.lanl.gov/
17

18. Alumni Entrepreneurial
Leadership Networks
The unique culture at Stanford:
Is strongly oriented toward world-class research
Expects socially-conscious, business-relevant intellectual leadership
- at every level of its research, education, and service
Facilitates frequent and fluid interaction with the business community
Respects contributions from non-academic colleagues
Fosters expectation that alumni will become innovators

19. Stanford
University
in
Silicon
Valley
Depth
2

20. Two
Pizza
Rule
Five
Tips
for
Startups
in
Agile
Ecosystem
1. Fail
forward:
Always
ready-­‐for–feedback
If
something
doesn’t
work,
change
it
–
ASAP
2. Take
personal
responsibility
Don’t
blame
anyone
3. Create
success
from
failure
by
sharing
what
you
learned
Each
failure
includes
lessons
for
success
–
share
them!
4. Start
again
Immediately
5. Don’t
do
it
alone
Know,
culAvate
and
orchestrate
your
network

21. Play
(and
listen)
like
a
Jazz
Band

22. CapDigital
-­‐
Regional
Sector
Catalyst
Shared
Vision
To
catalyze
the
new
digital
infrastructure
in
France
with
global
connecAons
To
create
an
ecosystem
to
facilitate
the
relaAonship
between
France
and
global
market
Enable
Paris
to
become
global
region
of
the
market
for
digital
services
How
do
you
spend
money
locally
to
enhance
global
parAcipaAon
in
a
way
that
returns
the
benefit
back
home?
22

23. Ecosystem
View
of
IntervenAon
OpportuniAes
A
Regional
Case
Study
–
Digital
Media
in
France
Zone
1:
VC
Community
Zone
3
of
Parisian
Two-­‐Level
InnovaAon
Ecosystem
Zone
2:
New
CapDigital
Members
Pale Red: French company
IEN
2010
Dark Red: CapDigital member
Selected
Paris
&
French
companies
Linked
people
&
venture/financing
enAAes
Light Green: Foreign Venture/ firm
Linked
companies,
people
&
v/f
enAAes
Dark Green: French venture firm
Zone
4:
Lifestyle
Businesses
1
degree
2
degree
Blue: Foreign company

25. Startup
Tokyo
Tokyo
ICT
Startup
companies
&
people
w/
intl
orientaAon
for
growth
&
funding
(preliminary)
Nodes Edges
company employment
people founder
investment

26. Startup
Tokyo
Tokyo
ICT
Startup
companies
&
people
w/
intl
orientaAon
for
growth
&
funding
(preliminary)
Expanding
the
network
one
step
brings
in
internaAonal
enAAes
Nodes Edges
company employment
people founder
investment

27. Network
Expansion
Startup
Tokyo
Depth:
1
Tokyo
ICT
Startup
companies
&
people
Nodes:
245
(0.01%
Visible)
w/
intl
orientaAon
Edges:
55
(0.01%
Visible)
for
growth
&
funding
Total
Depth:
2
Nodes:
221,686
Expanding
the
network
Edges:
324,396
two
steps
brings
in
21%
of
global
enAAes
100
percentage
of
total
network
edges
Depth:
3
75
nodes
50
Depth:
max
25
0
1 2 3 max
network
depth

28. ReflecAons
Free
exchange
of
informaAon
and
respect
for
uncertainAes
and
serendipity
RelaAonships
provide
access
to
informaAon,
financial
resources,
talent
Skill
of
the
21st
Century
=
Network
OrchestraAon
28

29. What Can We Do Together
That Neither of Us Could Do Alone?
Thank You
at S T A N F O R D U N I V E R S I T Y www.innovation-ecosystems.co
Martha.Russell@stanford.ed
http://mediax.stanford.edu
neil@activeintelligence.org
• Innovation Ecosystems Require Network Orchestration
– Know
– Cultivate
– Orchestrate