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Creative Regions in Central and Eastern Europe:
                                    Challenges and Opportunities




                     Serempathy: A new approach to
                  innovation. An application to forty-six
                     regions of Atlantic Arc countries

                                                                                  Miguel Ángel Pesquera
                                                                                  Pablo Coto-Millán
                                                                                  Pedro Casares Hontañón
                                                                                  Pablo de Castro

Poznan, 22 september2011




                     UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Index of contents


01   The open context

02   Globalization: From Complexity to Serempathy concept

03   Model of application to forty-six regions of Atlantic Arc countries

04   Serempathy Index for regions of Atlantic Arc countries
     in Europe.

05   Conclusions




            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Complexity: unexpected scenarios
                    Borders closed. San Francisco, 30 march 2011




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Complexity: unexpected scenarios
                                             Paris, 11 august 2011




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Complexity: unexpected scenarios
      The hurricane Irene, New York august 27th 2011




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
CRISIS Today: The Great Reset
                                                    Richard Florida




“The First Great Reset occurred
   in the 1870's, the second
 in the 1930's, and the third is
   now under development”




          UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
CRISIS Today: MACROWIKINOMICS
                                      Don Tapscott and Anthony Williams




    “The world has reached a
critical turning point: reboot all
the old models ….Society has at
 its disposal the most powerful
    platform ever for bringing
 together the people, skills, and
            knowledge”



            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Index of contents


01   The open context

02   Globalization: From Complexity to Serempathy concept

03   Model of application to forty-six regions of Atlantic Arc countries

04   Serempathy Index for regions of Atlantic Arc countries
     in Europe.

05   Conclusions




            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Embrancing Complexity
                                                       HBR September 2011
A Complex Adaptative System
1. Heterogeneous Agents :
   makes decisions about
   how to behave that will
   evolve over time.
2. The agents interact with
   one another.
3. EMERGENCE: The whole
   becomes greater than the
   sum of the parts.
The system can´t really
understand the whole by
simply looking at its individual
parts.
             UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Learning To Live Complexity
                          Harvard Business Review september 2011




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Learning To Live Complexity
                                          Managers must learn to

   Limit or even eliminate the need for accurate predictions.

   Use decoupling and redundancy.

   Draw on storytelling and counterfactuals.

   TRIANGULATE: means attacking a problem from various
    angles
      Using different methodologies
      Making different assumtions
      Collecting different data
      Looking at the same data in different ways

           UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
WHERE IDEAS COME FROM
                                   Kevin Kelly and Steven Johnson




 “Why the best
environments for
  creativity are
     diverse,
colaborative and
  tolerence of
     failure.
WIRED Oct 2010”


           UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
WHERE IDEAS COME FROM
                                  Kevin Kelly and Steven Johnson




   We should think of IDEAS as connections, in our
    brain and among people.

   Ideas aren’ t self-contained things; they’ re more
    like ecologies and networks.

   Ideas travel in clusters.




          UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Coral reef as a model of innovation
                                             Steven Johnson


   Ecosystems that form in the
    portion near the coast that is
    under a shallow depth water.

   Often called “rainforests of the
    sea”, coral reefs form some of
    the most diverse ecosystems
    on earth.

   Vulnerable to certain natural
    events, pollution,
    sedimentation.

                UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SEREMPATHY: New theoretical approach to
                                  innovation




   It is the combination of serendipity (which is achieved by
    chance) and empathy (putting yourself in the other).

   Is "contact with luck, " the use of empathy for what
    we want to randomly.




            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
CONNECTED: The Surprising Power of Our Social
                    Networks and How They Shape Our Lives



 «Sensitive, aware
people perceive on a
   daily basis that
 actions, behaviors
and emotions impact
  the lives of those
    around us.»


       UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
EMPATHY : MIRROR NEURONS (G. Rizzolatti)


   We are social creatures. Our survival depends on
    understanding the actions, intentions and emotions
    of others.

   A mirror system in people forms the basis for
    social behavior, for our ability to imitate, acquire
    language, and show empathy and understanding.

   Mirror neurons allow us to understand the mind of
    others, not only through conceptual reasoning but
    through direct simulation. Feeling, not thinking.



          UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SERENDIPITY

   Is the faculty of finding
    things we did not know we
    were looking for. It also
    means finding people,and
    the knowledge they carry
    with them.

   Serendipitous encounters
    offers privileged access to
    tacit knowledge and rare
    insight into new
    opportunities


                UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SEREMPATHY: encounters not so casual




   Serendipity choices easier, creating an energy field that
    increases our ability to attract people and resources we
    did not know of its existence.

   Unexpected encounters with people, which correspond
    to similar memes* are more based on behaviors that in
    your plan or program of rationality.

   The behaviors that feed on common memes generate
    Serempathy.


            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SEREMPATHY: key Concepts




   Meme*                                                                                  The Field

   Connectors. Supernodes.

   Strong and weak links.                                                                      Overlap

   Vortex

   Digital Footprint                                                                         Ubicuity

         *an idea, behaviour or style that spreads from person to person within a culture



         UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SEREMPATHY for COMPLEX SYSTEM




COMPLEX SYSTEM                                                                                BEHAVE
     PARTS                                                                                    EMPATHY

   INTEGRATION                                                                              SERENDIPITY


  EMERGENCE                                                                            SEREMPATHY




       UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
EMERGENCE: PULL PLATFORMS




 Mobilize a wide variety of resources that on hand to
  help whoever comes in with a problem.

 Are designed to flexibly accommodate diverse
  providers and users of resources.

 These platforms rapidly evolve in unexpected
  directions and end up serving a broad range of
  needs.




         UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Platforms for Managing Complexity




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Pull Economy: The Power of Pull
                                          John Hagel III, John Seely Brown

“The book's central premise is
that institutions will be
shaped to provide platforms to
help individuals achieve their
full potential by connecting
with others and better address
challenging performance needs.
This is greatly possible thanks to
the use of technology and
digital media.”


            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SEREMPATHY: The Power of Pull
                                   Three principles



 Access people and resources where you need
  them (Empathy).
 Attract people and resources you didn’t even
  know existed (Serendipity).
 Achieve potential with less time and more
  impact than you imagined possible
  (Serempathy).



      UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Index of contents


01   The open context

02   Globalization: From Complexity to Serempathy concept

03   Model of application to forty-six regions of Atlantic Arc countries

04   Serempathy Index for regions of Atlantic Arc countries
     in Europe.

05   Conclusions




            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Knetworks Atlantic Area Project
   Creation of European Knowledge Center (EKC)




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Creation of European Knowledge Center (EKC)
                    From Stars




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Creation of European Knowledge Center (EKC)
                  To Hibrid Model




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
The Data

 The European Commission in order to
  track innovation in European regions
  has made a recent report (2009) which
  includes lots of indicators for the years
  2004 and 2006 made with the same
  definitions and methodology.
   Human Capital
   Technological Capital
   Relational Capital



       UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
HUMAN CAPITAL INDEXES FOR THE REGIONS OF THE
                                ATLANTIC ARC
                                               Human
                                                                    Tertiary education Life-long learning
           REGION                         Capital Index
Galicia                                          4.65                                  5                                       4.3
Principado de Asturias                           4.24                               4.34                                      4.14
Cantabria                                        3.53                               3.71                                      3.35
Pais Vasco                                       5.16                                4.1                                      6.22
Comunidad de Navarra                             5.77                               5.39                                      6.14
La Rioja                                         3.93                               3.35                                      4.51
Aragón                                           4.36                               4.16                                      4.55
Comunidad de Madrid                              6.15                               6.27                                      6.03
Castilla y León                                  4.61                               4.52                                      4.71
Castilla-la Mancha                               3.39                               3.43                                      3.35
Extremadura                                      4.19                               5.15                                      3.22
Cataluña                                         5.34                               5.05                                      5.62
Comunidad Valenciana                             4.92                               5.58                                      4.26
          UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
TECHNOLOGICAL CAPITAL INDEXES FOR THE
                                 REGIONS OF THE ATLANTIC ARC

                                                        Technological Capital                     Public R&D Business R&D
                REGION                                                Index
                                                                                                expenditures expenditures


Galicia                                                               4.65                                 5                         4.3
Principado de Asturias                                                4.24                               4.34                       4.14
Cantabria                                                             3.53                               3.71                       3.35
Pais Vasco                                                            5.16                                4.1                       6.22
Comunidad Foral de Navarra                                            5.77                               5.39                       6.14
La Rioja                                                              3.93                               3.35                       4.51
Aragón                                                                4.36                               4.16                       4.55
Comunidad de Madrid                                                   6.15                               6.27                       6.03
Castilla y León                                                       4.61                               4.52                       4.71
Castilla-la Mancha                                                    3.39                               3.43                       3.35
Extremadura                                                           4.19                               5.15                       3.22
           UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
RELATIONAL CAPITAL INDEXES FOR THE REGIONS
                                 OF THE COUNTRIES OF THE ATLANTIC ARC

                                                                     Relational                                                 Innovative SMEs
                                                                                               SMEs innovating
                    REGION                                        Capital Index                                               collaborating with
                                                                                                     in-house
                                                                                                                                        others

Galicia                                                                   2.88                           2.87                             2.89
Principado de Asturias                                                    3.21                            3.8                             2.62
Cantabria                                                                 3.43                           4.14                             2.71
Pais Vasco                                                                4.79                           5.06                             4.53
Comunidad Foral de Navarra                                                4.81                            5.1                             4.53
La Rioja                                                                  3.53                           3.77                              3.3
Aragón                                                                    3.97                           4.32                             3.62
Comunidad de Madrid                                                       3.31                           4.28                             2.35
Castilla y León                                                           3.28                           3.71                             2.85
Castilla-la Mancha                                                        2.51                           3.82                              1.2
Extremadura                                                               2.37                           2.34                              2.4
Cataluña                                                                  4.12                           5.25                               3
                  UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Structure of the relationships between Human,
         Technological and Relational Capital with Innovation and
                                  Output




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
The Model: the case of Atlantic Arc




  f  y , y , y   I 
    
     1 2 3
                                           y11 y22 y33 ;   0,i  0
                                                             
                                                             
                                                                          
                                                                          
                                                                                                                                    (1.1)




Log I  γ     α    Log y  α    Log y  α    Log y  ε                                                                             (1.2)
     i, t 1,0   1,1      1,t 1,2      2,t 1,3      3,t 1




          UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
The Variables


1. Dependent Variable: Innovation
   (Patents)
2. Independent Variables are the
   following:
   Indexes of Human Capital
   Indexes of Technological Capital
   Indexes of Relational Capital



    UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Results, equation 1.2
                                       Equation (1.2.a)                     Equation (1.2.b)                   Equation (1.2,c)
                                        LnThroughput                         LnThroughput                       LnThroughput

Independent Variables                       (Patents)                           (Patents)                          (Patents)

                                             -0.3856                              -0.3311                            -0.3463
        Intercept                           (-2.9521)                            (-2.5634)                          (-2.7225)
                                              0.4387                              0.2449                                 -

  LnHuman Capital                            (3.3746)                            (1.9361)

        LnHuman                                                                                                      0.2027

Capital (Tertiary Studi)                         -                                    -                             (2.2990)

   LnThecnological                            1.1589                              0.8662                             0.2396

          Capital                            (5.9310)                            (3.5927)                           (3.4127)

                                              0.2952                                  -                                  -

 LnRelationalCapital                         (2.2830)

 LnRelationalCapital                                                              0.2539                             0,3504

     (Colaborat. in                                                              (1.8913)                           (2,7813)

       innovation
  with enterprises)
     Observations                      N               38                            38                                 38

      Estatisticals                    R2            0.6671                       0.6802                             0.6927


  UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Results, equation 1.2



 The ratio between the Human Capital and
  innovation is significant. Technology Capital has
  a direct effect on the innovation.

 Relational Capital of the innovative
  collaborations between companies is also
  significantly related with the innovation.

 Innovation is explained reasonably well by the
  three key variables Human, Technological and
  Relational Capital.


         UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Index of contents


01   The open context

02   Globalization: From Complexity to Serempathy concept

03   Model of application to forty-six regions of Atlantic Arc countries

04   Serempathy Index for regions of Atlantic Arc countries
     in Europe.

05   Conclusions




            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Serempathy Index



 From equation 1.2.a the results obtained for the
  countries of the Atlantic Arc in relation to the so-called
  Serempathy Indicator of the regions of the countries
  studied.

                                        St =  1 – (Ît – It)
 Where St is Serempathy in period t, Ît is estimated
  innovation in equation 1.2.a and period t , and It is
  innovation in period t.



           UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Serempathy Index Atlantic Arc 2011




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Serempathy Index

 The Atlantic Arc regions, particularly the English seem to have a
  significant Serempathy indicator. In France, Spain, and Portugal
  are the leading regions in Serempathy indicator Bassins
  Parissin, Ile de France, Nord-Pas de Calais, Rioja, Castilla La
  Mancha, Navarra, Cataluña, Valencia and Illes Ballears, Norte
  and Centro.
 The rest of English regions together, and some of the regions of
  other countries, also get average scores. This is the case of
  Lisbon, Wales, Yorkshire and the Humber, País Vasco, Galicia,
  Asturias, Castilla-León, Aragón, Cantabria and Madrid.
 The remaining regions are facing significant competitive
  challenges in aspects of Serempathy.



             UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Index of contents


01   The open context

02   Globalization: From Complexity to Serempathy concept

03   Model of application to forty-six regions of Atlantic Arc countries

04   Serempathy Index for regions of Atlantic Arc countries
     in Europe.

05   Conclusions




            UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Conclusions (1)
 Human Capital operates as a crucial intermediate variable in the
  process of economic growth which connects the factors outside
  the market or related to technological innovation.

 Technological Capital or the technological platform has an
  important role in generating innovation.

 It is surprising the high explanatory power of the new Relational
  Capital, defined here. It seems that collaborative relations
  between       universities,  private   companies     and     public
  administrations, this is, the Relational Capital, are significantly
  associated with the generation of Innovation.




              UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Conclusions (2)


 The relational factors (outside the market) have positive and
  relevant role in the production of Technological Capital and
  Innovation.

 The three factors of Human, Technological and Relational
  Capital do not operate in competition with each other, but they
  tend to act playing complementary roles in the process of
  generating innovation.

 However, there is something more, is what we call Relational
  Capital, not reflected so far in the economic literature, which is
  what in our opinion stimulates the impulse of the
  implementation of innovation.

              UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
HOMO IMITANS: We are because we copy
                The art of social infection: Viral Change™ in action


   The fundamental
  proposition of the
book is that “the only
 change is behaviour
change” and that this
   is brought about
   primarily through
  people copying the
behaviours of others.


       UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Contrasting ‘worlds’ of organizational change
                           From cogito ergo sum to copy ergo sum
                                                                    Leandro Herrro



   “World I” is ruled by Homo Sapiens. It is the “world of
    communication”, in which messages are sent in a range
    of sophisticated ways, to “push” people towards the
    desired changes

    “World II” is ruled by Homo Imitians. It is the “world of
    behaviours”, in which the Viral Change can be applied to
    “pull” people towards the desired goal through the
    dynamics of social infection.




           UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
PUSH to PULL
                                                 Leandro Herrero




UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
From Traditional Change to Viral Change
                                                                Leandro Herrero




Traditional change = Big initiative X all management
layers X communication channels



Viral change = Small set of behaviours X small number
of people X networks of influence




        UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
SEREMPATHY: from Homo Sapiens to Homo Imitans



         Homo Sapiens                                                Homo Imitans
Awareness and sensitization                                         Behavioural change

Stimulation, Motivation                                                           Ways of doing

Education                                                                    Culture building

Rational/emotional appeal                                                New social norms

Training                                                                        Culture change

Fuente: Homo Imitans. Leandro Herrero, 2011



                     UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Thinking, FAST and SLOW
                                    Daniel KAHNEMAN. October 2011


«Two systems drive the
way we think and make
       choices:

   System One is fast,
intuitive, and emotional

System Two is slower,
more deliberative, and
    more logical.»

         UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
Product Innovation
                                        Harvard Business Review June 2011




    New product
development involves
       some:

   Art
   Science
   Serendipity


          UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN

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Serempathy a new approach to innovation. an application to forty six regions of atlantic arc countries

  • 1. Creative Regions in Central and Eastern Europe: Challenges and Opportunities Serempathy: A new approach to innovation. An application to forty-six regions of Atlantic Arc countries Miguel Ángel Pesquera Pablo Coto-Millán Pedro Casares Hontañón Pablo de Castro Poznan, 22 september2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 2. Index of contents 01 The open context 02 Globalization: From Complexity to Serempathy concept 03 Model of application to forty-six regions of Atlantic Arc countries 04 Serempathy Index for regions of Atlantic Arc countries in Europe. 05 Conclusions UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 3. Complexity: unexpected scenarios Borders closed. San Francisco, 30 march 2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 4. Complexity: unexpected scenarios Paris, 11 august 2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 5. Complexity: unexpected scenarios The hurricane Irene, New York august 27th 2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 6. CRISIS Today: The Great Reset Richard Florida “The First Great Reset occurred in the 1870's, the second in the 1930's, and the third is now under development” UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 7. CRISIS Today: MACROWIKINOMICS Don Tapscott and Anthony Williams “The world has reached a critical turning point: reboot all the old models ….Society has at its disposal the most powerful platform ever for bringing together the people, skills, and knowledge” UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 8. Index of contents 01 The open context 02 Globalization: From Complexity to Serempathy concept 03 Model of application to forty-six regions of Atlantic Arc countries 04 Serempathy Index for regions of Atlantic Arc countries in Europe. 05 Conclusions UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 9. Embrancing Complexity HBR September 2011 A Complex Adaptative System 1. Heterogeneous Agents : makes decisions about how to behave that will evolve over time. 2. The agents interact with one another. 3. EMERGENCE: The whole becomes greater than the sum of the parts. The system can´t really understand the whole by simply looking at its individual parts. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 10. Learning To Live Complexity Harvard Business Review september 2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 11. Learning To Live Complexity Managers must learn to  Limit or even eliminate the need for accurate predictions.  Use decoupling and redundancy.  Draw on storytelling and counterfactuals.  TRIANGULATE: means attacking a problem from various angles  Using different methodologies  Making different assumtions  Collecting different data  Looking at the same data in different ways UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 12. WHERE IDEAS COME FROM Kevin Kelly and Steven Johnson “Why the best environments for creativity are diverse, colaborative and tolerence of failure. WIRED Oct 2010” UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 13. WHERE IDEAS COME FROM Kevin Kelly and Steven Johnson  We should think of IDEAS as connections, in our brain and among people.  Ideas aren’ t self-contained things; they’ re more like ecologies and networks.  Ideas travel in clusters. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 14. Coral reef as a model of innovation Steven Johnson  Ecosystems that form in the portion near the coast that is under a shallow depth water.  Often called “rainforests of the sea”, coral reefs form some of the most diverse ecosystems on earth.  Vulnerable to certain natural events, pollution, sedimentation. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 15. SEREMPATHY: New theoretical approach to innovation  It is the combination of serendipity (which is achieved by chance) and empathy (putting yourself in the other).  Is "contact with luck, " the use of empathy for what we want to randomly. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 16. CONNECTED: The Surprising Power of Our Social Networks and How They Shape Our Lives «Sensitive, aware people perceive on a daily basis that actions, behaviors and emotions impact the lives of those around us.» UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 17. EMPATHY : MIRROR NEURONS (G. Rizzolatti)  We are social creatures. Our survival depends on understanding the actions, intentions and emotions of others.  A mirror system in people forms the basis for social behavior, for our ability to imitate, acquire language, and show empathy and understanding.  Mirror neurons allow us to understand the mind of others, not only through conceptual reasoning but through direct simulation. Feeling, not thinking. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 18. SERENDIPITY  Is the faculty of finding things we did not know we were looking for. It also means finding people,and the knowledge they carry with them.  Serendipitous encounters offers privileged access to tacit knowledge and rare insight into new opportunities UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 19. SEREMPATHY: encounters not so casual  Serendipity choices easier, creating an energy field that increases our ability to attract people and resources we did not know of its existence.  Unexpected encounters with people, which correspond to similar memes* are more based on behaviors that in your plan or program of rationality.  The behaviors that feed on common memes generate Serempathy. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 20. SEREMPATHY: key Concepts  Meme* The Field  Connectors. Supernodes.  Strong and weak links. Overlap  Vortex  Digital Footprint Ubicuity *an idea, behaviour or style that spreads from person to person within a culture UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 21. SEREMPATHY for COMPLEX SYSTEM COMPLEX SYSTEM BEHAVE PARTS EMPATHY INTEGRATION SERENDIPITY EMERGENCE SEREMPATHY UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 22. EMERGENCE: PULL PLATFORMS  Mobilize a wide variety of resources that on hand to help whoever comes in with a problem.  Are designed to flexibly accommodate diverse providers and users of resources.  These platforms rapidly evolve in unexpected directions and end up serving a broad range of needs. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 23. Platforms for Managing Complexity UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 24. Pull Economy: The Power of Pull John Hagel III, John Seely Brown “The book's central premise is that institutions will be shaped to provide platforms to help individuals achieve their full potential by connecting with others and better address challenging performance needs. This is greatly possible thanks to the use of technology and digital media.” UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 25. SEREMPATHY: The Power of Pull Three principles  Access people and resources where you need them (Empathy).  Attract people and resources you didn’t even know existed (Serendipity).  Achieve potential with less time and more impact than you imagined possible (Serempathy). UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 26. Index of contents 01 The open context 02 Globalization: From Complexity to Serempathy concept 03 Model of application to forty-six regions of Atlantic Arc countries 04 Serempathy Index for regions of Atlantic Arc countries in Europe. 05 Conclusions UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 27. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 28. Knetworks Atlantic Area Project Creation of European Knowledge Center (EKC) UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 29. Creation of European Knowledge Center (EKC) From Stars UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 30. Creation of European Knowledge Center (EKC) To Hibrid Model UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 31. The Data  The European Commission in order to track innovation in European regions has made a recent report (2009) which includes lots of indicators for the years 2004 and 2006 made with the same definitions and methodology.  Human Capital  Technological Capital  Relational Capital UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 32. HUMAN CAPITAL INDEXES FOR THE REGIONS OF THE ATLANTIC ARC Human Tertiary education Life-long learning REGION Capital Index Galicia 4.65 5 4.3 Principado de Asturias 4.24 4.34 4.14 Cantabria 3.53 3.71 3.35 Pais Vasco 5.16 4.1 6.22 Comunidad de Navarra 5.77 5.39 6.14 La Rioja 3.93 3.35 4.51 Aragón 4.36 4.16 4.55 Comunidad de Madrid 6.15 6.27 6.03 Castilla y León 4.61 4.52 4.71 Castilla-la Mancha 3.39 3.43 3.35 Extremadura 4.19 5.15 3.22 Cataluña 5.34 5.05 5.62 Comunidad Valenciana 4.92 5.58 4.26 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 33. TECHNOLOGICAL CAPITAL INDEXES FOR THE REGIONS OF THE ATLANTIC ARC Technological Capital Public R&D Business R&D REGION Index expenditures expenditures Galicia 4.65 5 4.3 Principado de Asturias 4.24 4.34 4.14 Cantabria 3.53 3.71 3.35 Pais Vasco 5.16 4.1 6.22 Comunidad Foral de Navarra 5.77 5.39 6.14 La Rioja 3.93 3.35 4.51 Aragón 4.36 4.16 4.55 Comunidad de Madrid 6.15 6.27 6.03 Castilla y León 4.61 4.52 4.71 Castilla-la Mancha 3.39 3.43 3.35 Extremadura 4.19 5.15 3.22 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 34. RELATIONAL CAPITAL INDEXES FOR THE REGIONS OF THE COUNTRIES OF THE ATLANTIC ARC Relational Innovative SMEs SMEs innovating REGION Capital Index collaborating with in-house others Galicia 2.88 2.87 2.89 Principado de Asturias 3.21 3.8 2.62 Cantabria 3.43 4.14 2.71 Pais Vasco 4.79 5.06 4.53 Comunidad Foral de Navarra 4.81 5.1 4.53 La Rioja 3.53 3.77 3.3 Aragón 3.97 4.32 3.62 Comunidad de Madrid 3.31 4.28 2.35 Castilla y León 3.28 3.71 2.85 Castilla-la Mancha 2.51 3.82 1.2 Extremadura 2.37 2.34 2.4 Cataluña 4.12 5.25 3 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 35. Structure of the relationships between Human, Technological and Relational Capital with Innovation and Output UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 36. The Model: the case of Atlantic Arc f  y , y , y   I    1 2 3  y11 y22 y33 ;   0,i  0     (1.1) Log I  γ α Log y  α Log y  α Log y  ε (1.2) i, t 1,0 1,1 1,t 1,2 2,t 1,3 3,t 1 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 37. The Variables 1. Dependent Variable: Innovation (Patents) 2. Independent Variables are the following:  Indexes of Human Capital  Indexes of Technological Capital  Indexes of Relational Capital UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 38. Results, equation 1.2 Equation (1.2.a) Equation (1.2.b) Equation (1.2,c) LnThroughput LnThroughput LnThroughput Independent Variables (Patents) (Patents) (Patents) -0.3856 -0.3311 -0.3463 Intercept (-2.9521) (-2.5634) (-2.7225) 0.4387 0.2449 - LnHuman Capital (3.3746) (1.9361) LnHuman 0.2027 Capital (Tertiary Studi) - - (2.2990) LnThecnological 1.1589 0.8662 0.2396 Capital (5.9310) (3.5927) (3.4127) 0.2952 - - LnRelationalCapital (2.2830) LnRelationalCapital 0.2539 0,3504 (Colaborat. in (1.8913) (2,7813) innovation with enterprises) Observations N 38 38 38 Estatisticals R2 0.6671 0.6802 0.6927 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 39. Results, equation 1.2  The ratio between the Human Capital and innovation is significant. Technology Capital has a direct effect on the innovation.  Relational Capital of the innovative collaborations between companies is also significantly related with the innovation.  Innovation is explained reasonably well by the three key variables Human, Technological and Relational Capital. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 40. Index of contents 01 The open context 02 Globalization: From Complexity to Serempathy concept 03 Model of application to forty-six regions of Atlantic Arc countries 04 Serempathy Index for regions of Atlantic Arc countries in Europe. 05 Conclusions UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 41. Serempathy Index  From equation 1.2.a the results obtained for the countries of the Atlantic Arc in relation to the so-called Serempathy Indicator of the regions of the countries studied. St =  1 – (Ît – It)  Where St is Serempathy in period t, Ît is estimated innovation in equation 1.2.a and period t , and It is innovation in period t. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 42. Serempathy Index Atlantic Arc 2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 43. Serempathy Index  The Atlantic Arc regions, particularly the English seem to have a significant Serempathy indicator. In France, Spain, and Portugal are the leading regions in Serempathy indicator Bassins Parissin, Ile de France, Nord-Pas de Calais, Rioja, Castilla La Mancha, Navarra, Cataluña, Valencia and Illes Ballears, Norte and Centro.  The rest of English regions together, and some of the regions of other countries, also get average scores. This is the case of Lisbon, Wales, Yorkshire and the Humber, País Vasco, Galicia, Asturias, Castilla-León, Aragón, Cantabria and Madrid.  The remaining regions are facing significant competitive challenges in aspects of Serempathy. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 44. Index of contents 01 The open context 02 Globalization: From Complexity to Serempathy concept 03 Model of application to forty-six regions of Atlantic Arc countries 04 Serempathy Index for regions of Atlantic Arc countries in Europe. 05 Conclusions UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 45. Conclusions (1)  Human Capital operates as a crucial intermediate variable in the process of economic growth which connects the factors outside the market or related to technological innovation.  Technological Capital or the technological platform has an important role in generating innovation.  It is surprising the high explanatory power of the new Relational Capital, defined here. It seems that collaborative relations between universities, private companies and public administrations, this is, the Relational Capital, are significantly associated with the generation of Innovation. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 46. Conclusions (2)  The relational factors (outside the market) have positive and relevant role in the production of Technological Capital and Innovation.  The three factors of Human, Technological and Relational Capital do not operate in competition with each other, but they tend to act playing complementary roles in the process of generating innovation.  However, there is something more, is what we call Relational Capital, not reflected so far in the economic literature, which is what in our opinion stimulates the impulse of the implementation of innovation. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 47. HOMO IMITANS: We are because we copy The art of social infection: Viral Change™ in action The fundamental proposition of the book is that “the only change is behaviour change” and that this is brought about primarily through people copying the behaviours of others. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 48. Contrasting ‘worlds’ of organizational change From cogito ergo sum to copy ergo sum Leandro Herrro  “World I” is ruled by Homo Sapiens. It is the “world of communication”, in which messages are sent in a range of sophisticated ways, to “push” people towards the desired changes  “World II” is ruled by Homo Imitians. It is the “world of behaviours”, in which the Viral Change can be applied to “pull” people towards the desired goal through the dynamics of social infection. UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 49. PUSH to PULL Leandro Herrero UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 50. From Traditional Change to Viral Change Leandro Herrero Traditional change = Big initiative X all management layers X communication channels Viral change = Small set of behaviours X small number of people X networks of influence UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 51. SEREMPATHY: from Homo Sapiens to Homo Imitans Homo Sapiens Homo Imitans Awareness and sensitization Behavioural change Stimulation, Motivation Ways of doing Education Culture building Rational/emotional appeal New social norms Training Culture change Fuente: Homo Imitans. Leandro Herrero, 2011 UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 52. Thinking, FAST and SLOW Daniel KAHNEMAN. October 2011 «Two systems drive the way we think and make choices: System One is fast, intuitive, and emotional System Two is slower, more deliberative, and more logical.» UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN
  • 53. Product Innovation Harvard Business Review June 2011 New product development involves some:  Art  Science  Serendipity UNICAN Universidad de Cantabria. Departamento de Transportes. E. T. S. Ingenieros de Caminos. Avda. Los Castros s/ n 39003 Santander. SPAIN