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An Innovation Framework

for South Australia

SECOND PROTOTYPEVersion 0.2d

22 June, 2016

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This document synthesises the outputs of the two community co-design workshops that have been held thus far in prototyping what a South Australian Innovation Framework might look like.

The intent is to develop a ‘minimum viable product’ so that we might put it to use in the real world - allowing users to try it on

for size, adapt, refine, and add to it over time.

A revised version of the prototype is proposed. This is really about identifying the essential elements our Innovation

Framework should contain, and finding a way to make a complex undertaking as simple and instructive as possible. (NB: The prototype will require some professional graphic design to

improve visual appeal before going to market).

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Overview

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Purpose

The ‘Innovation Framework’ refers to the guiding principles and mechanisms that we will put in place in order to create an environment that is rich in opportunity, supportive of innovation, and enables value capture.

This is very much about the ‘we’ of innovation. What is it that we will do together or coordinate across boundaries in order to create a rising tide of opportunity for ourselves and the next generation? How will we take collective responsibility for our own future? How will we support and celebrate innovators? How will weuniquely position ourselves in the global market, leveraging our key strengths?

The Innovation Framework is about… The Framework is not intended to…

Innovation and entrepreneurship endeavours with high growth aspirations and potential.

Serve enterprises who are not seeking to innovate, or have only modest growth aspirations.

The overall ‘systems’ view of innovation in South Australia. Be a methodology for an individual venture.

Establishing the conditions necessary for success. Take responsibility for the success of any one particular venture, which is ultimately up to the entrepreneur.

A multi-sector view of how we should work together. Be specific to any one sector or industry type.

Opening up the opportunity to all parts of society and the economy, all age groups, all forms of innovation.

Presuppose the form of innovation (e.g. commercial v social, technological v process), so long as it is worthwhile.

Shared ownership of, and responsibility for, our desired future (including, but not limited to government).

Be limited only to Government programs or responsibilities. We are not outsourcing the problem.

Informing policy, providing direction and context. Be a policy in itself.

A ‘living’ framework that learns, adapts & grows over time. Be a static view, or be allowed to stagnate.

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Prototype 0.2

Exploring innovation

opportunities

Designing innovative solutions

Taking innovationsto market

Scaling up successful

innovations

The world’s most joined-up innovation community, and best place to test new ideas.

AN ‘INNOVATION EXCHANGE’

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Prototype 0.2

Shared aspiration“The world’s most joined-up innovation community, and best place to test new ideas.”

Coordinating inititativeSome form of cross-sector, industry-led, for-benefit initiative serving as an ‘exchange’ for innovation opportunities and resources.

Innovation lifecyclewhich we can use to track our State’s opportunity pipeline, and the health of its innovation environment and ecosystem.

Conditions for successThose critical elements the innovation community knows we have to work together on, and have to get right, if we are to prosper.

Each of these elements are expanded upon in the next section of this document.

In the near future it is intended that:• this prototype be refined in terms of improved graphic design;• be transposed to an online platform, enabling richer content,

practical guidance and interactivity;• be put out to the community as a ‘minimum viable product’ to

test and refine through real-life application.

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Key elements

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Shared aspirationDRAFT

“The world’s most joined-up innovation community, and best place to test new ideas.”

Whilst the precise wording is open to further refinement, the sentiment from the co-design workshops is fairly clear. The most common views as to what our aspiration should be are around:

• Needing to have a global perspective, and being globally connected and competitive.

• Thinking of ourselves as addressing a global market of 7 billion, not a local market of 1.6m.

• Needing to be bold, confident, outward-looking.• Remaining true to our values and high ideals.

• This being about an ‘innovation society’, not just an ‘innovation economy’.

• Our ‘right size’, concentration in the one major city, our so-called ‘2 degrees of separation’.

• Our ability to mobilise as a community (e.g. festivals).

• Again, our ‘right size’ as an incubation / test bed.• Our history as a progressive jurisdiction & test market.• The desire to build acceptance of smart risks & ideas.• Turning our current assets (esp. unis) to advantage.

Getting these things right will go a long way in achieving objectives around creating new industries & jobs; attracting investment; build prosperity; social innovation; quality of life; etc.

“The world’s…”

“… most joined-up innovation community…”

“… and best place to test new ideas.”

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Innovation lifecycle

These four stages of the ‘innovation lifecycle’ appear to resonate with those participating in the co-design workshops. Or, at least, they are seen as sufficient. In wider literature this lifecycle is represented in a number of ways, some with four stages, others with five or six. But in essence they are similar, and for our purposes – as a macro-level framework – simple is good.

Having these stages as part of the Innovation Framework will allow the coordinating body, policy makers, and the wider community to get a sense of the health of our opportunity pipeline at each major stage.

As with the Medibank example workshop participants will be familiar with, this will allow us to measure ‘leakage’ or ‘drop-out’ between the stages, alerting us to gaps or opportunities to improve the effectiveness of our innovation programs. By working together to maximise the number of ventures that make it through each stage, we will be more prosperous and have more jobs created at the end of the day.

Exploring innovation

opportunities

Designing innovative solutions

Taking innovations to market

Scaling up successful

innovations

An entity such as the new coordinating body may take on responsibility for data collection, analysis and reporting in this regard – allowing us to monitor progress and learn about the effectiveness of different interventions.

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Conditions for success

The first co-design workshop focussed largely on the conditions we would need to create in South Australia if we were to see wide innovation success. This identified five key themes. These were subsequently consolidated into four, following feedback from the second session:

The right culture, mindset & identity

Opening eyes to opportunity.A ‘growth’ rather than ‘fixed’ mindset.Thinking of ourselves as a global society/economy.Having high aspirations, values and standards.Doing away with tall poppy syndrome, risk aversion, complacency, small-market thinking.Marketing ourselves better to the world.

The innovation talent pool is being developed

Developing, attracting, retaining world-class talent.Developing STEAM, innovation and problem-solving skills from primary school onwards.Drawing back and tapping into our SA expats, immigrants, and other networks.Providing an enviable lifestyle for innovators.

Innovators are collaborating, experimenting and learning

Actively building culture, practices and institutions where collaboration is the norm. Active brokering, mentoring, partnering and market-making. Creating spaces were people come together to explore, experiment, prototype, share lessons.Enabling risk and allowing for disruption.

Entrepreneurs are accessing resources & support

Utilising our existing assets more effectively.Make it easier to do business. Facilitate access to capital, intellectual property, space, advice.

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Coordinating body

“An innovation exchange”

The advice from the innovation community was unequivocal on this point: we need an independent and jointly-owned coordination initiative. Some workshop teams suggested the concept of an ‘exchange’ or ‘hub’).

This initiative would, for example:• have responsibility for maintaining living ‘Innovation Framework’;• further enhance the coordination of the innovation ecosystem;• bring sectors together. Link and cross-pollinate industry initiatives;• provide a central reference point for innovators and investors, directing

them to others who could assist with their needs;• point innovators to appropriate resources and services;• help facilitate access to intellectual capital, knowledge bases, etc;• curate a program of innovation mentoring, events & learning opportunities;• ‘buddy’ innovators up with mentors, sponsors, etc;• facilitate innovation scholarships, fellowships, awards & showcase events;• work with government to inform policy, improve practice, open access;• ensure that South Australia is connected and promoted globally.

In terms of its form this initiative might:• be Government-backed, but industry/community-led;• have a dynamic, expeditionary think-and-do approach. Minimal bureaucracy;• be a meritocracy (our best and brightest), not necessarily the ‘usual faces’;• have a healthy representation across different sectors / innovation categories;• have shared/revolving responsibility so as to keep it refreshed.

The idea of a ‘South Australian Innovation Exchange’ is a placeholder at this time. In

practice there is further work to be done to determine how the intent might best be

achieved, particularly vis-à-vis other complementary bodies already in existence and other initiatives being contemplated, such the

SA Commercialisation Fund and others.

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Application

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Overview

The Framework will have value in mapping our existing initiatives, and proposed new ones, in order to ensure appropriate coverage, balance and effectiveness across the innovation ecosystem.

This section highlights a few (of the scores) of potential applications of the Innovation Framework, particularly after it is brought to life in digital form and content is able to be filtered.

The Innovation Framework will also help us move beyond linear thinking, and leverage the one asset or program across a wider range of uses.

We will be able to see how individual elements can come together as a whole, where the gaps and overlaps are, and where we might need to make the pathways clearer.

For both new and existing initiatives we will be better able to determine their alignment with, and contribution to, our shared aspiration as a State –as well as their effectiveness for the innovators they serve.

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Example: UniSA innovation top-up degreeEXAMPLE 2

UniSA is currently designing a unique top-up degree program that would help diffuse innovation skills across sectors, allowing students from any discipline to graduate with a complementary degree in Innovation, with a large portion of the course being dedicated to solving real-world problems and building new ventures.

In this scenario we could have 100 or 200 new graduates entering the market each year with high-quality skills in innovation, entrepreneurship, problem-solving, and the like. People with an Innovation degree matched with their core profession (from Nursing to Marketing to Engineering to Urban Planning or Architecture).

They will each have pursued a new innovation or venture, in a real-world context, in partnership with existing businesses, NGOs, agencies, or other entrepreneurs.

The new Innovation program is being co-designed with industry. In future this collaboration could extend even further to include the new ‘Exchange’ entity, and build in the real-life lessons from SA’s experience as we determine what is effective, and where the skills gaps are.

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Example: attracting international investorsEXAMPLE 3

South Australia’s attractiveness to international investors could be enhanced if they are able to see evidence of an ecosystem able to produce a consistent flow of new opportunities – a pipeline.

It can be relatively difficult for a single SA-based venture to attract the attention of a major venture capital or other investment firm.

We do have the new Investment Attraction Agency to assist, but believe it’s role and proposition to investors could be significantly enhanced if:

• it could be demonstrated that South Australia is taking a systemic approach in creating a consistent flow of opportunities;

• the proposed ‘exchange’ were able to assist ventures in becoming investment-ready, and possibly even encourage aggregation in some cases, to present a bigger offer to investors.

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Example: inter-agency collaborationEXAMPLE 4

The presence of a central coordinating agency like the proposed South Australian Innovation Exchange, opens up the possibility of greater synergy and synchronisation with other complementary institutions.

The SA innovation ecosystem could have much more effective interaction with other key supporting agencies and organisations, by virtue of:

• greater leverage (as the collective / aggregated voice);

• more informed policy and funding conversations (as the owner of the Innovation framework and associated data);

• making it easier to do business with the innovation and entrepreneurial community;

• improving economies of scale;

• etc.

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David PatersonManaging Director, Cornerstone Strategy

Phone: +61 417 813 098Email: david@cornerstonestrategy.com.au