Innovation in the new ICT ecosystem

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International Institute of Communications

The document discusses innovation in the ICT sector. It argues that new knowledge is endogenously created through symbiotic interactions between knowledge creators and users. Specifically, it identifies four main groups in the ICT sector - networked element providers, network operators, platform/content/applications providers, and final consumers. New knowledge is created through the six symbiotic relationships between these groups, with financial, information, and material flows facilitating this process. The environment also influences these relationships and opportunities for innovation.

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Innovation in the New ICT Ecosystem: How New Knowledge is Endogenously Created in the ICT Sector Martin Fransman Professor of Economics and Founder-Director Institute for Japanese-European Technology Studies University of Edinburgh

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How is new knowledge endogenously created in the ICT Sector? Paradoxically, even Schumpeter does not provide an answer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How is new knowledge endogenously created in the ICT Sector? ,[object Object],[object Object],[object Object]

How do they fit together as creators and users of knowledge?

The Creators and Users of Knowledge in the ICT Sector ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Financial Markets Regulation Layer 1 Output of innovative goods and services (from all three layers) A Simplified Model of the New ICT Ecosystem Cont. & App. Providers Converged Networks Final consumer Standardisation Global trade Global trade Layer 3 Layer 2 Networked elements

ICT Companies in the FT Top 500 from the US, Japan, Europe and East Asia (Korea, Taiwan and China), 2006 Source : M. Fransman (copyright), calculated from FT Top 500, 2006 US 12 Japan 9 Europe 6 East Asia 2 29 I US 5 Japan 3 Europe 8 East Asia 2 18 II US 6 Japan 2 Europe 1 9 III Number of companies by region Total number of companies Layer

There are 6 symbiotic relationships between these four players

6 symbiotic relationships in the New ICT Ecosystem 3. PLATFORM, CONTENT & APPLICATIONS PROVIDERS 2. NETWORK OPERATORS 1. NETWORKED ELEMENT PROVIDERS CONSUMERS CONSUMERS C O N S U M E R S 4 1 2 3 5 6

3 Flows within the Symbiotic Relationships ,[object Object],[object Object],[object Object],[object Object]

Old and New Symbiotic Relationships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Examples of Symbiotic Relationships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Symbiosis – example 4 ,[object Object],[object Object],[object Object]

The Environmental Context of the Knowledge-Creating Symbiotic Relationships ,[object Object],[object Object]

Symbiosis is Environmental Context-dependent 6 Symbiotic Relationships COMPETITION FINANCIAL INSTITUTIONS REGULATION & COMPETITION LAW OTHER INSTITUTIONS e.g. legal standardisation universities

The Innovation Opportunity ,[object Object],[object Object],[object Object],[object Object]

4 Implications for Government Policy-Makers ,[object Object],[object Object],[object Object],[object Object],[object Object]

3 Implications for Regulators ,[object Object],[object Object],[object Object],[object Object]

Problems regarding governance by telecoms regulators ,[object Object],[object Object],[object Object],[object Object]

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Innovation in the new ICT ecosystem

1. Innovation in the New ICT Ecosystem: How New Knowledge is Endogenously Created in the ICT Sector Martin Fransman Professor of Economics and Founder-Director Institute for Japanese-European Technology Studies University of Edinburgh

5. How do they fit together as creators and users of knowledge?

7. Financial Markets Regulation Layer 1 Output of innovative goods and services (from all three layers) A Simplified Model of the New ICT Ecosystem Cont. & App. Providers Converged Networks Final consumer Standardisation Global trade Global trade Layer 3 Layer 2 Networked elements

8. ICT Companies in the FT Top 500 from the US, Japan, Europe and East Asia (Korea, Taiwan and China), 2006 Source : M. Fransman (copyright), calculated from FT Top 500, 2006 US 12 Japan 9 Europe 6 East Asia 2 29 I US 5 Japan 3 Europe 8 East Asia 2 18 II US 6 Japan 2 Europe 1 9 III Number of companies by region Total number of companies Layer

9. There are 6 symbiotic relationships between these four players

10. 6 symbiotic relationships in the New ICT Ecosystem 3. PLATFORM, CONTENT & APPLICATIONS PROVIDERS 2. NETWORK OPERATORS 1. NETWORKED ELEMENT PROVIDERS CONSUMERS CONSUMERS C O N S U M E R S 4 1 2 3 5 6

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14. Mobile Handset Makers: Market Share

15.

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17. Symbiosis is Environmental Context-dependent 6 Symbiotic Relationships COMPETITION FINANCIAL INSTITUTIONS REGULATION & COMPETITION LAW OTHER INSTITUTIONS e.g. legal standardisation universities

18.

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Innovation in the new ICT ecosystem

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