Enhancing Country Environment for Innovationpasca.ut.ac.id/wp-content/uploads/2019/03/... · • Sustainable & Disruptive Effects. 9 Global Drivers of Innovation Nations & Enterprises

EnhancingCountry Environment

forInnovation

Clarence J Mann, JD, Dr. jur.

University of Maryland

University College

Exchange Faculty Program

Universitas Terbuka – University of Maryland University College

UPBJJ JAKARTA 4 October 2009

EnhancingCountry Environment

forInnovation

Clarence J. Mann, JD, Dr. jur.University of Maryland University College

Graduate School of Management & Technology

Innovation Imperatives

• For the Country –Increasing Productivity and Standards

of Living for All

•For the Enterprise –Increasing Productivity and Competitive

Advantagein an

Intensely Competitive GlobalEnvironment

National Comparative Advantage

“Innovation and Imagination givean economy or a company thatextra edge. Today, wealth is

generated by new Ideas”

Goh Chok Tong, former Prime Minister,Singapore

Difficult to Measure Innovation?Countries Vary Significantly

• Quantitatively – e.g., patents, proportion ofscientists and engineers; different types (e.g.,soft and hard)

• Qualitatively – e.g., innovation intensity

– Complex Process – i.e., ability to create andthen commercialize new products, processes– shifting the innovation frontier (Porter)

– “Healthy rate of innovation” – Porter

– Effects – depend on users perspective

What is Innovation?• New combinations applied in the

market place

• Ability of Individuals, Companies andEntire Nations to Continuously CreateTheir Desired Future

• Process of –

– Harvesting Knowledge

– Generating New Products, Services,Processes & Business Models

– Applying to Change Existing “Ways”

Innovation Occursat

All Aspects & Levels of Society

• R&D Centers

• Enterprises

• Government Agencies

• Educational Institutions

• Provincial & City Government

• Rural Areas & Villages

8

Types of Innovation

• Products/Services & Processes

• Operations & Management

• Public & Private Sectors

• Sustainable & Disruptive Effects

9

Global Drivers of InnovationNations & Enterprises Alike

1. Intensifying Competition @ business

models, technology, value propositions

2. Diversity of Geography @ scattered

centers of excellence - transparency

3. Multiplicity of Value Networks @ chess

game, locking in advantages

Question to Consider

What Should Guide

Nations & Enterprises

in

Building Innovative Capacity?

• Holistic Systems Thinking• National Priorities

11

Three Part Analysis

I. Systems Models - addressing

issues holistically

II. Building Country Climate for

Innovation

III. Strengthening Enterprise

Innovative Capacity

Part I.Systems Models

for Assessing the Climateof

Innovation

1. Social Process Model @Country Environments

2. Corporate Process Model @Organizational Environments

13

EconomicCommonality

CulturalCommonality

PoliticalCommonality

SocialProcessModel

Three ComplementaryThree ComplementarySocietal RealmsSocietal Realms

Rules ofConduct

PublicInfrastructure

MarketPreferences

Goods &Services

Protect &Structure

PolicyDirection

FoundationalFoundationalPolePole

OrganizationalOrganizationalPolePole

SignificatingPole

14

Social Process ModelRationale

Comprehensive – all societal aspects

Universal – every society

Analytical – critical components

Relational – 3 functional perspectives

Interactive – 3 inter-dependent realms

Transparent – underlying dynamics,

not institutions

Component SubsetsComponent Subsets

Fractals of Parent Dynamic

Contain All Three Poles

Reveal Depth and Nuance

Enable Multi-LevelAnalysis

16

SignificatingSignificatingPolePole



EconomicCommonality

CulturalCommonality


9.Symbol

7.Wisdom

8.Style

3.Distribution

1.Resources

2.Production

6.Welfare

4.Order

5.Justice

SocietalDynamics

3 Realms

Nine DynamicsNine Dynamicswithin Three Societalwithin Three SocietalRealmsRealms

17

CulturalCommonality

SocialProcess

3 RealmsEconomic

CommonalityPolitical

Commonality

Symbol

Wisdom Style

ReligiousBeliefs

CommunicationModes

AestheticExpression

Distribution Welfare

Resources Production Order Justice

Useful skills AccumulatedKnowledge

FinalMeanings

SocietalRecognition

Basic Roles DecisionalPatterns

ConsumptionPreferences

PropertyClaims

ExchangeMechanisms

TechnologicalResources

NaturalResources

HumanResources

ManagementSystems

ProductionAssets

ProductionProcesses

CommonDefense

Legal Base

DomesticTranquility

SecureExistence

PoliticalFreedoms

SignificantEngagement

LegislativeConsensus

ExecutiveAuthority

JudicialProcedures

MultiMulti--level View oflevel View ofSocial ProcessSocial Process

DynamicsDynamics

Constructed using Fractals of each higher levelFoundationalPole

OrganizationalPole

SignificatingPole

18

EconomicCommonality

CulturalCommonality


SocialProcess

Symbol

Wisdom Style

Distribution

Resources Production

Welfare

Order Justice

SignificatingDynamic

FoundationalDynamic

OrganizationalDynamic Corporate

ProcessAdministrationOperations

Culture

Corporations asMirror Images ofSociety – withParallel Dynamics

Part II

CountryEnvironment

Analysis

20

EconomicCommonality

CulturalCommonality


9.Symbol

7.Wisdom

8.Style

3.Distribution

1.Resources

2.Production

6.Welfare

4.Order

5.Justice

COUNTRY

ENVIRONMENT

ANALYSIS

7. Scientific literacy,,R&D/Discovery- oriented[Experimental Mindset]

3. Market Size,[Sophisticated,

DemandingBuyers]

Country Innovation IndicatorsCountry Innovation Indicators

1. Skilled Labor, Tech-nological Readiness,

Supporting Networks ofIndustries [Reliable

Infrastructure]

4. Transparent markets;consistent, predictablesystem of anti-trust law& property rights[Effective Institutions]

5. Rationale, transpar-ent decision-making;Stable, predictable

system of governance;[Stable Governance]

9. Societal Goals:Improving Qualityof Life for All[‘Progress’ Mindset]

8. Societal Recognition,Achievement & Risk-Oriented;income inequality acceptable;[Collaborative Linkages]

6. National Commitment:Favorable Regulatory

Regime, Incentives,[National Strategy]

2. Risk Capital, unfet-tered competition;results-oriented mngt.,e.g., kaizen, Six Sigma[Management Systems]

Author – Dr. Clarence J. Mann, UMUC – Oct. 12, 2008

21

EconomicCommonality

Rule of MarketCompetitiveness

CulturalCommonality

Rule of EffectivenessCollaborative Trust


Rule of LawStability/Predictability

SignificatingSignificatingDynamicDynamic



SocialProcess

Three RulesThree Rulesfor Assessingfor Assessing

CountryCountryEnvironmentsEnvironments

22

Three Complementary Realmsin Tension

Economic

Commonality

Cultural

Commonality

Political

Commonality

SocialProcess

ComplementaryComplementary

DynamicsDynamics

Rules ofConduct

PublicInfrastructure

MarketPreferences

Goods &Services

Protect &Structure

PolicyDirection

EconomicCommonality



FoundationalDynamic

OrganizationalDynamic

SocialProcess

CulturalCommonality

DynamicsDynamics

in Tensionin Tension

23

Ideological Tension

Among the Three Realms

• Economic Realm – functional rationality:Efficiency vs. fairness

• Political Realm – legitimacy: informedConsensus vs. coerced acceptance

• Cultural Realm – harmony, identityHigh vs. low trust

24

EconomicCreative Destruction

PoliticalShifting Alliances

SignificatingPole

FoundationalPole

OrganizationalPole

SocietalTensions

CulturalTraditional Values

InnovatingSociety -

In Transition

Harmonizing 3 Realms

• Supportive Industry Clusters

• Promote Centers of Excellence

• Encourage FDI Inflows

• Align Institutions

• Societal Commitment –

“Running in a New Direction”

Part III

Enterprise

Analysis

27

EconomicCommonality

CulturalCommonality


SocialProcess

Symbol

Wisdom Style

Distribution


Welfare

Order Justice


FoundationalDynamic

OrganizationalDynamic Corporate

ProcessAdministrationOperations

Culture

Corporations asMirror Images ofSociety – withParallel Dynamics

28

CorporateProcess

CorporateAdministration

CorporateOperations

CorporateCulture

Organizational Profile IndicatorsOrganizational Profile Indicators

What standards mustresources meet?

How to ensure improvingproductivity?

How are decisionsmonitored & controlled?

How are criticaldecisions made?

What values guidethe decisional

process?

How do employees& stakeholders

interrelate?

What symbolizesorganizational

identity?

How are skills andinnovation enhanced?

How is customervalue delivered? Marketing

Resources Production Controlling Policy-Making

Mission

Learning Style

Identity

Performing a CorporateInnovation Audit

Aligning Nine Dimensions

of

Organizational Dynamics

with

Corporate Vision

Innovation Organizational AuditFour Steps

1. Practical Vision – Images of Success

2. Assess Future-Critical Gaps/Needs

Especially Core Competencies

3. Assess Country-Specific

Environmental Constraints

4. Build Strategic Pathway

31

EconomicCommonality

CulturalCommonality


CountryEnvironment

Symbol

Wisdom Style

Distribution


Welfare

Order Justice


FoundationalDynamic


Triangulating theTriangulating theCorporate FutureCorporate Future

for Innovationfor Innovation

CorporateProcess

AdministrationOperations

Culture

CorporateProcess


Culture

Envisioned Corporate Profile

Present Corporate Profile

Gaps

32

TriangulatingFuture Organizational Requirements

Two Assessments

1. Present Capacity of Firm

vs. Future-Critical Needs

2. Future Organizational Needs

vs. Country Environment

33

CorporateProcess

CorporateAdministration

CorporateOperations

CorporateCulture

Organizational InnovationOrganizational InnovationIndicatorsIndicators

1) Improving qualitystandards for all inputs

2) Continually im-proving productivity

4) Tracking andcontrolling decisions

5) Building credibleleadership

6) Future-orientedguidance of risks/

returns acrossportfolio

8) Promoting synergyamong employees. &stakeholders

9) Building anorganizational ethosof innovation

7) Continuallyenhancing skills andinnovative thinking

3) Improvingcustomer

value?

3Marketing

1Resource

s

2Production

4Controlling

5Policy Making

6Mission/Vision

7Learning

8Style

9Identity

Author - Dr. Clarence J. Mann, UMUC – Oct. 12, 2008

34

Part I

Organizational Constraints

• Limited Vision

• Reluctant Leadership

• Short Term Thinking

• Investment Costs

• Organizational Rigidities

35

Strategic Innovation Dimensions

1. Internal Focus – strengthen innovative

capacity of the firm

2. Location Focus – leverage the firm’s

environment - multiple locations?

3. Alliance Focus – build the firm’s

international value network

36

Consider Nowthe Nine Corporate Dynamics

for Building InnovationCapacity

37

Org’l Innovation Dynamics

Corporate Operations

• Resources Dynamic – quality standards

• Production Dynamic – kaizen, Six Sigma

• Marketing Dynamic – customer value

38


Corporate Administration

• Controlling Dynamic – measuring

appropriate results

• Policy-Making Dynamic – credible

leadership

• Mission/Vision Dynamic – balanced values

39


Corporate Culture

• Learning Dynamic – enhancing

skills and creative thinking

• Style Dynamic – promoting synergy

• Identity Dynamic – building

innovation ethos

40

EconomicCommonality

CulturalCommonality


CountryEnvironment

Symbol

Wisdom Style

Distribution


Welfare

Order Justice


FoundationalDynamic


Triangulating theTriangulating theCorporate FutureCorporate Future

for Innovationfor Innovation

CorporateProcess


Culture

CorporateProcess


Culture

Envisioned Corporate Profile

Present Corporate Profile

Gaps

41

Questions & Comments

Documents

Enhancing Country Environment for Innovationpasca.ut.ac.id/wp-content/uploads/2019/03/... · • Sustainable & Disruptive Effects. 9 Global Drivers of Innovation Nations & Enterprises