Models of Entrepeneurial Cooperation NETIE: Lisboa, 2-3 November 2000

1. Models ofEntrepeneurial Cooperation NETIE: Lisboa, 2-3 November 2000 BUILDING SYSTEMS of INNOVATION and COMPETENCE BUILDING THROUGH COLLABORATIVE LEARNING Pedro Conceição and Manuel Heitor CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+ Instituto Superior Técnico, Technical University of Lisbon http://in3.dem.ist.utl.pt

2. The scope • acceleratingtechnological Change • clustering effectsalong the value chain • strategic development of technology platforms • collaborative learning

3. The question Which trends for technology-based cooperation, in a way to stimulate localised learning, innovation and endogeneous development?

4. Knowledge InstitutionsLearning Organisations Intellectual PropertyLearning Networks The need for institutional renewal, …promoting diversity with institutional integrity at the supply side of technology, (Conceicão & Heitor, 1999) The need for technology clusters Our argument... • The scope:...the globalized “learning society”! BUT, understanding the role of social capital(Conceicão, Gibson, Heitor & Sirilli, 2000), to stimulate the inclusive development !

5. The contents 1. THE OBJECTIVE 2. THE CONTEXT:acceleratingTechnological Change 3. THE ARGUMENT: Building Social Capital in technology contextsclustering effects along the value chain 4. Case Study:internet clustering 5. Promoting collaborative learning: Case Studies

6. The context • 1. The “new” economy: “the big boom” • 2. Technological change: accelerating • Social Dynamics: complexity and diversity • “Governance”: a new model! OCDE: “FUTURES”, Hannover 2000 EC: “IPTS - Futures Report”, 2000

7. Technology replaces employment Industrial era I- Recession Economy without employment Services Demand Deficit Services Value creation Indústry Entrepreneurial economy Indústry Technology creates new industries and opportunities Agriculture Agriculture II- Growth The structure of the “new” economy Knowledge era

8. Technological Change:materials, IPTS(1999) 1800 1960 10 000 BC 5000 BC 0 1000 1500 1900 1940 1980 1990 2000 2010 2020 GOLD COOPER METALS METALS BRONZE GLASSY METALS AL-LITHIUM ALLOYS DUAL PHASE STEELS MICROALLOYED STEELS IRON NEW SUPER ALLOYS DEVELOPMENT SLOW MOSTLY QUALITY CONTROL AND PROCESSING POLYMERS CAST IRON SKIN FIBRE GUMS STEELS ALLOY IVORY STEELS COMPOSITES RELATIVE IMPORTANCE SURFACE ENGINEERING LIGHT ALLOYS POLYMERS BRICKS (with STRAW) RUBBER WOOD SUPER ALLOYS CONDUCTING POLYMERS PAPER HIGH TEMPERATURE POLYMERS TITANIUM ZINCONIUM ETC STONE ALLOYS COMPOSITES FLINT HIGH MODULUS POLYMERS BAKELITE POTTERT CERAMIC COMPOSITES GLASS EPOXIES METAL-MATRIX NYLON CEMENT COMPOSITES POLYESTERS CERAMICS CERAMICS KEVLAR REFRACTORIES SUPERCONDUCTORS PORTLAND CEMENT TOUGH ENGINEERING CERAMICS FUSED SILICA CERMETS 10000 BC 0 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020 5000 BC

9. Technological Change: telecommunications

10. Technological Change: perspectives TECHNOLOGIES • more technologies to produce each product PROCESSES TECHNOLOGY • more products produced from a given technology PROCESSES The Convergence: telecommunications and computers ... The QUESTION: scope and scale PRODUCT Source: von Tunzelmann (1999)) PRODUCTS

11. information technologies materials biotechnologies energy information technologies Telematics Automation Computers Semiconductors Superconductors Biosensors Biochips Photovoltaic applications materials Computer based design of new materials New alloys Ceramics and composits Bio-leaching Biological ore processing Power lasers biotechnologies Instrumental analysis of dna sequences Membranes Biocompatible materials Recombin. DNA New drugs Enzymatic Synthesis Batteries Pacemakers Artificial Heart energy Supervision of energy processes Robotics Security systems Photovoltaic materials Fuel cells Superconductors New energy biomass New reactors Nuclear fusion Technological Change:Emerging interactions...Source: BIPE to from

12. Technological Change: Practical IMPLICATIONS • A knowledge gap: • “old”education systems to be renewed • the need to promote diversified training and education systems • 2. Social and economicinequality • Lagging regions: promoting local systems of knowledge creation and diffusion • But the need for: • Building technology platforms: a strategic vision • Promoting clustering effects: the value chain • ...building SOCIAL CAPITAL in a technology context

13. Regional diversity in Western Europe Source:Sixth Periodic Report DG XVI, 1998

14. A fragmented regional innovation system: an institutionally blocked regional economy Large firms SMEs SMEs SMEs SMEs SMEs SMEs Large firms Sectoral Associations Regional Government Universities SMEs SMEs SMEs Regional economy SMEs SMEs SMEs SMEs SMEs SMEs SMEs Chamber of Commerce SMEs Technology Centers SMEs SMEs Business Services SMEs Large firms SMEs SMEs SMEs SMEs Technology Consultants SMEs SMEs SMEs SMEs

15. A learning region: An efficient regional innovation system Open gate: International R&D/academic excellence networks SMEs Cluster SMEs SMEs SMEs SMEs SMEs Valorisation of R&D and Tech. Transfer Office SMEs Large firms; Tech. Centers; Sect. Associa- tions SMEs Science base: Universities; Public R&D; Laboratories Open gate: International technology transfer networks Regional economy Large firms SMEs SMEs Open gate: International value chains SMEs Regional government SMEs Global economy SMEs SMEs SMEs Technology Centers SMEs Business intermediaries: Cham. of Comm.; Local Agencies BICs Business services & tech. con- sultants SMEs SMEs SMEs Sectoral Associations SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs Open gate: International business consultants & specialized business services

16. Internal coherence of the regional innovation system by connecting its different key elements: R&TDI supply with well identified Demand and business needs, from SMEs in particular. Increase the amount and, more importantly the quality of innovation public spending through innovation projects (bigger and better spending in this field through regional policy). Rationalise the regional innovation support system by raising awareness, eliminating duplications, filling gaps and promoting synergies. Regional Innovation StrategiesLandabaso et al. (1999) Successful stories: The Regional Technology Plans Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle-Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).

17. What type of Social Capital ? Source: Conceicão, Gibson, Heitor & Sirilli (2000)

18. The issue • “With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors… • …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”, • Henderson & Morgan (1999) A specific issue: Regional DIVERSITY

19. The regional dimension:technology and innovation gap…cont. • INSTITUTIONAL NETWORKS to mediate: • mediate information exchange • knowledge creation • capacity for collective action • potential for interactive learning • efficacy of voice mechanisms • Henderson & Morgan (1999)

20. Social capital for inclusive development OECD(2000) Portugal Source: World Values Survey. Percentage of people who responded in the affirmative to the question: “Generally speaking, would you say that most people can be trusted?”

21. Building Social capital in technology contexts: a case study – the internet industry Develop software solutions Designed to enhance the Internet experience for both Consumers and business SoftwareSolutions CONTENTS SERVICES E-TAILERS “THE INTERNET” ALTERNATIVE MEDIA E-CHANNELS BUSINESS CONSUMER INTERNET SERVICES ACCESS PROVIDERS Enabling Technologies Create hardware/software solutions which enable the efficient operation of the internet

22. a case study:internet business model Business/Customer Support On-line Products and Services Software solutions Content Services • NetObjects • Real Networks • Egain • Netscape • Marimba • Inktomi • Sitara Networks • Resonate • THE GLOBE.COM • THE MOTLEY FOOL • BROADCAST.COM • MPATH • MONSTER.COM • NETCENTIVES Access Providers Service Providers • YAHOO • MSN • EARTHWEB • VERTICALNET • BABY CENTER • EARTHLINK • MINDSPRING • Alternative • Media • ESPN • CNN • Wall St. • Journal • DOUBLECLICK • USWEB/CKS • IXL • MEDIA TRIX • RAZORFISH • ABOVENET • Networks • Associates • WebOrder • Vignette • Ariba • AT&T • WorldNet • Ameritech • VERIO • COMPUSERVE • NETCOM • Cisco IOS • Hewlett-Packard • Sun IBM • AOL • EXCITE@HOME • DELL • BARNES & NOBLE • CHARLES SCHWAB • CITIBANK • MACY’S • E-CHANNELS • Cisco • Lucent/Ascend • Nortel/Bay Networks • Nexabit • Netopia • Broadcom • Verifone • AMAZON.COM • E*TRADE • BEYOND.COM • EBAY • BUY.COM Enabling Technologies E-tailers Technological Innovation Traditional Corporations Source: joint Venture – Sillicon Valley Network, 1999

23. Building Social capital in technology contexts: a case study - internet clustering • It is unlikely that technological clusters aimed at supporting service integration will emerge, unless incentives exist to integrate elements in the value chain...Hawkins (1997) • Internet business models:creative destruction, as usual !! (McKnigth et al, 2000) • Continuous evolution to a“new” value chain • The need to extend the analysis to thecontext: • communities of users • Regional/local context

24. Building CONTEXT:the importance of LOCATION in a virtual medium • Universities • Talent • Research • Networks • TALENT • Management • Engineering • Programming • Marketing • PILLAR • COMPANIES • Capital • Management Talent • Technical Resources • Business Partners • SUPPORT • SERVICES • High-Tech Lawyers/ • Accountants • Incubators • Industry Associations • INVESTORS • Venture and Angel • Financing • Network to Customers, • Business, Partners • And Talent INTERNET COMPANIES IDEAS ENTREPRENEURIAL CULTURE

25. The contents ... 1. THE OBJECTIVE 2. THE CONTEXT: acceleratingTechnological Change 3. THE ARGUMENT: Building Social Capital in technology contexts clustering effects along the value chain 4. Case Study: internet clustering 5. Promoting collaborative learning: Case Studies

26. Edudation / training for last 10 years New technologies Education / training acquired for more than 10 years Existing technologies 2000 2010 2000 2010 The knowledge gap(Scope: EUROPEAN REGIONS) 2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years

27. Promoting COLLABORATIVE LEARNING: CASE STUDIES 1. COLLABORATIVE LEARNING AND VIRTUAL TEAMING IN SCIENCE AND TECHNOLOGY COMMERCIALIZATION a program developed at: IC2 INSTITUTE, Austin, USA ITESM, Monterrey, MX IST, Lisbon, PT 2.ON THE DESIGN OF FREE-FORM, COMPLEX PRODUCTS THROUGH COLLABORATIVE LEARNING a case study on the design of a glass chair developed at: MIT,Boston, USA IST, Lisbon, PT

28. Learningè A set of formal and informal processes and practices, strongly influenced by the environment, that lead to knowledge accumulation Challengeè How to promote learning that links diverse social actors with different degrees of development Perspectiveè Universities Mechanismsè Networks linking people in order to increase their ability to learn Key Components of the Experiments

29. SOME CONCLUSIONS... THE CONCEPT: the learning skill is the creative factor for economic development. THE CHALLENGE: to promote the valorisation of human and intellectual capital, in a context favourable to innovation and wealth creation, where learning networks assume a critical role THE TOOL: global networking through collaborative learning and virtual teaming

30. Innovation and competence building Clustering and learning in technology contexts… ...NEW opportunities for partnerships! … debate Contact:mheitor@dem.ist.utl.pt; http://in3.dem.ist.utl.pt

31. … debate