The CCI Symposium @ The Glasshouse, Queensland University of TechnologyDAY 2, Monday 30 March 2009

Session: “Methodologies: Evidence-based Approaches to Creativity and Innovation”

What is an evidence-based approach?

Theory & evidence in evolutionary analysis of creativity & innovation

What does evolutionary economics predict?

Creative innovation services

Jason Potts

What is an evidence-based approach?

FIRST…

A growth of knowledge process in which theory is iteratively proposed and tested

The core of an evidence based approach is the continual testing of theory

An evidence-based approach is an evolutionary approach to knowledge, to science, to policy, to action

Opposites of an evidence based approach

1. A data based approach – no connection to theory

2. A belief based approach – no evidence needed

Properties of an evidence-based approach

• That theory determines data – data is created for the purpose of testing theory [only]

• That when evidence falsifies a theory, make a new theory

• That theory is specific/lucid/stark/spare• That data is ‘fit for purpose’

This leads to a ‘models’ approach

• We propose & test & sort among competing ‘models’ or hypotheses

IMPLICATION A

THIS IS WHY WE’VE BEEN MAKING MODELS

This requires a framework to create/ generate new models/hypothesis

This framework is – Evolutionary– Complexity– Cultural/Institutional– Economic

THIS IS WHY WE’VE BEEN BUILDING CULTURAL SCIENCE

Cultural Science

IMPLICATION B

Theory & evidence in

evolutionary analysis of

creativity & innovation

SECOND…

What are we looking for evidence for?

• Creativity & innovation as evolutionary

mechanisms & processes

THEORY

• Connects to evolutionary & complexity theory

• Connects to evolutionary economic theory

• And so on… toward Cultural Science

EVIDENCE

• Mechanism seeking

• Statistical law seeking

• Pattern-based, simulation, historical, …

What, then, are our hypotheses?

On creativity?

On innovation?

On creativity

• Situated• Ecology• Open • Market-nonmarket, pro-am, consumer-

producer…• Evolutionary structures & incentives

On innovation

• (Schumpeterian) evolutionary process• (Hayekian) market process• Co-evolutionary • agent, network, system • B2B, B2C, C2B, C2C, G2B?, G2C?• Creative innovation services

What does evolutionary economics predict?

Economic growth & dynamics

• Industries & markets transformed by innovation trajectories

• Differential growth, ‘creative destruction’ & continuous structural change

Power laws

• Open system (evolutionary) population dynamics manifest as power law distributions

– Income– Market shares– Size distributions– Networks

entrepreneurship & risk-taking

• Driver of growth & change• Institutions of an

entrepreneurial economy

Importance of – finance– new businesses– new business models

Creative innovation services

An example of what the evolutionary economic perspective offers- Four models- Social network markets

creative innovation services

• Creative industries as part of the innovation system

Generation Description

1st Supply push Science Technology Applications by firms to market

2nd Market pull Market demand R&D technology & manufacture sales

3rd: Coupling modelScience and technology interactions between R&D, design,

operations, marketing, etc (all within the firm) Markets

4th: Collaborative modelScience and technology interactions between R&D, design,

operations, marketing, etc (extended network) Markets

5th: Open model Systematic interactions with all sources of knowledge

5 generations of innovation system

As the innovation system evolves, it becomes more complex & open…

…and so creative industries innovation services come to matter more and more

creative industries innovation servicescreative industries innovation services

Creative innovation service Value

Creativity servicesProviding new ideas as content into other businesses

Creating new market nichesShaping consumer preferences and perceptions to differentiate

Design and interfaceShaping interactions between the technical and social

Normalisation of novelty, persuasion

Via story-telling, representatives of new (magazines, advertising, TV drama)

Business models Translating models of value delivery

Connecting to user-communities Creating communities, shaping identity

Social network marketsChoice over uncertainty in social context and signalling

Technologies to lifestyles Social context of use

Lifestyles to technologies Applications of technology

Demand for creative innovation services in terms of innovation trajectory

1 origination Supply of innovation capabilities to create new ideas

2 adoptionSupply of leading preference formation, social network market services

3 retentionSupply of embedding and normalization services e.g. brand awareness

Demand for innovation services in

Demand for creative innovation services in 5G context

Business networks Supply of services to enable increased network connection

ICT & IvT (& ImT)Supply of imagination technologies to facilitate whole of network creativity

Multiple sources of ideas & knowledge

Services to integrate and connect tacit knowledge and shape it into new ideas, solutions, supply of access to user-consumer communities and open innovation communities

Brokers Services to connect ‘tacit demand’

Business modelsServices to export value creation models from creative domain