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The Innovation Gap - in USA, what about in Finland

I used to go book stories when traveling in other countries. Now I’m in Berkeley for some weeks and I visited University Press Books in Bancroft Way. The new book Closing the Innovation Gap by Judy Estrin was an amazing hit (McGrawn-Hill, 2009).

The book is about innovation and how USA is losing its edge in innovation competition. Although it was interesting to read about the history of innovation policies in USA after the WW II, for me the most interesting part was the analysis of innovation practice.

Estrin uses the concept Innovation Ecosystem and even sustainable innovation in very much the same way than I use them (see other information in my we site). For her sustainable innovation is the ongoing process of innovation: it’s a kind continuous innovation. But Estrin associates also the big challenges of science and society to sustainable innovation. The “moon shot” challenges are health care, climate, energy and security. “Economic growth alone will not provide us with a bright future.” Right! Innovation is needed not only for economic growth but even more to solve wicked problems on mankind.

“The Innovation Ecosystem is made up of communities of people with different types of expertise and skill sets. Scientists, administrators, business leaders engineers, writers, educators, health-care professionals, and other individuals all play a role. Each community must receive the nutrients it deserves through leadership, funding and public attention.”

A major contribution of Estrin is the specification of three important communities in Innovation Ecosystem: research, development and application.

• “Basic research prepares the mind of the scientific community as a whole and creates an environment of discovery.
• Applied research is framed by defining a particular problem to be solved.
• The development community brings ideas to market.”

According to Estrin the sustainability of national Innovation Ecosystem will depend upon maintaining a healthy balance between all three communities (p. 41). Especially sustaining innovation requires the right leadership, funding, policy, education and culture (p. 49).

Central ingredients of innovation culture are some basic values. Estrin identifies five core values of innovation. They are questioning, risk taking, openness, patience and trust. See the Chapter 1: The capacity for Change. The Chapter 6: Green-Thumb Leadership, is an excellent presentation the leadership styles needed in cultivating the innovation “garden” in companies.

The message of the book is devoted to renewing the innovation policy in USA. America is losins its balance. Horizons was narrowing in 70s after a very fruitful period of long standing research in academia as well as in corporations. 1970’s the pressures from Wall Street led large companies to focus in efficiency and cut back research (Chapter 4). After the Internet bubble in the beginning of 2000, also venture capitalists lost their patience
and risk taking courage (see Chapter 5).

Judy Estrin proposes a concrete program to revive Innovation Ecosystem in USA. “We must expand our horizons, moving beyond incrementalism to encourage and value deeper transformations required for future growth.” In summary, the core of the program is MAKE SCIENCE A PRIORITY.

Although the situation is not so bad in Finland, we see the same pressure in our country to shorten the horizon and wait quick results. Science is not seen any more so important to Innovation Ecosystem that it used to be. But I see also a turn back to basics in Finland. Our university system is now under the biggest reform in years. It will improve the status of universities as autonomous institutions in society. Also some extra funding is coming to the university system. These steps must be taken boldly and firmly, although the financial crisis might be a threat to that.  I think that we need a new longlooking strategy to renew our economy towords a next generation knowledge economy! In this effort, Judy Estrin's ideas and proposals are valuable. 

For conversation see

www.theinnovationgap.com



Comments: antti@sustainableinnovation.fi