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The Innovation Ecosystem as a Source of Value Creation
Diverse and Global Perspectives on Value Creation Set
coordinated by
Nabyla Daidj
Volume 4
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted
under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or
transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the
case of reprographic reproduction in accordance with the terms and licenses issued by the
CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the
undermentioned address:
www.iste.co.uk www.wiley.com
Any opinions, findings, and conclusions or recommendations expressed in this material are those of the
author(s), contributor(s) or editor(s) and do not necessarily reflect the views of ISTE Group.
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
7.5.3. The roles of the actors in the integrated value chain . . . . . . . . . 147
7.5.4. Towards an integrated value chain modeling . . . . . . . . . . . . . 150
7.5.5. Transfers via interdependencies . . . . . . . . . . . . . . . . . . . . . 152
7.6. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Introduction
The focal firm manages the mobility of knowledge, the design and
appropriation of innovation, and the stability of the network [DHA 06]. For
example, for Venkatraman and Lee [VEN 04], then Iyer and colleagues
[IYE 06], the ecosystem is a network whose core is the focal firm. Focused
on the co-creation of value, through products and services, for customers and
markets, exploitation of resources and knowledge is privileged over
exploration of new knowledge. This knowledge comes from scientific or
technological ecosystems. In this context, strategies, mostly commercial, are
driven by the business ecosystem. It is a source of competitive advantage for
companies at an individual level [ADN 12].
Here, the studies focus on the spillover effects of these activities in terms
of co-creation of innovation [MAC 13], knowledge transfer [ZAH 12],
growth [TEE 14], resource and risk sharing [BEN 18] and access to markets
[CLA 14]. From this point of view, only those relationships that favor the
increase of this economic performance are studied [WEB 15]. Strategic
actions performed by the actors are oriented towards competitive advantage
[VAL 15].
Introduction xiii
Here, only innovations that are economically profitable in the market are
developed. This strategic vision limits innovation to improvements of
existing products or services through additional features. In an attempt to go
beyond the boundaries of incremental innovation, studies of innovation
ecosystems are oriented towards networks and research into their impact on
the performance of innovation for the focal firm [SHA 20]. Attention is then
directed towards focal innovation, on the components and additional features
that support it [JAC 18]. New definitions of ecosystems are emerging, such
as that of Adner, who defines an ecosystem as “the collaborative
arrangements through which firms combine their individual offerings into a
coherent, customer-facing solution” [ADN 06].
1 The term “minimum viable product” was developed in 2001 by Robinson, CEO of SyncDev
Incorporated: www.syncdev.com/minimum-viable-product/.
xiv The Innovation Ecosystem as a Source of Value Creation
Chapter 7 studies the transfers of material assets and knowledge that take
place within the innovation ecosystem and between the three ecosystems via
an integrated value chain. This chain is anchored in the knowledge borne and
developed by the various actors in the innovation ecosystem. It highlights
the transfer processes, both in terms of content and context, at work in the
innovation ecosystem, as well as the roles of the actors in this integrated
value chain.
The mysteries of the trade become no mysteries; but are as it were in the air…
1.1. Introduction
The Innovation Ecosystem as a Source of Value Creation: A Value Creation Lever for Open Innovation,
First Edition. Odile de Saint Julien.
© ISTE Ltd 2022. Published by ISTE Ltd and John Wiley & Sons, Inc.
2 The Innovation Ecosystem as a Source of Value Creation
The author defines the focal firm as “an ecosystem leader which brings
value to the community by engaging members to act with a shared vision to
adapt their investments and find mutually supportive roles” [MOO 93].
Given the diversity of the partners, the business ecosystem can develop
around several focal firms. Each will have a determining influence on the
process of co-evolution of the partner enterprises [DAI 11]. The actors share
a “common destiny” [IAN 04] where the individual performance of the
actors, enrolled in the ecosystem, is dependent on the overall performance of
the business ecosystem. However, partner enterprises do not systematically
follow cooperative strategies alone: “They must maintain their ability to
alternate between collective and competitive strategies […] putting in place
and maintaining a particular strategy can only stabilize the company’s
environment for a very limited period of time” [PEL 05].
1 Main activity.
2 Customer-oriented solution: solution adapted to the needs and expectations of the customer.
6 The Innovation Ecosystem as a Source of Value Creation
monitoring the ecosystem so that it can react with agility and adapt to
changes in the environment.
focal firm and its partners to understand how knowledge is created, shared
and transferred from one entity to another [RAN 16].
Innovation
Cluster Business ecosystem
ecosystem
Groupings of Focal firm Places of
actors or digital platform co-creation
geographically Value proposition of value where
and economically Various partners actors and material
located in a given assets and
territory Varied and knowledge are
complementary grouped together
Specific or related sectors of activity
sector of activity Network of
Networks of interconnected
Definition Self-managed, organizations, organizations
self-sufficient of suppliers
network and/or individuals,
of complements, communities
Production of of technologies
related or User networks
Customer networks
complementary Actors grouped
goods Common destiny around a focal firm
or a digital
platform
Private companies Focal firm(s) Focal firm(s)
Public companies Partner enterprises that Entrepreneurs,
Entrepreneurs, revolve around the focal industrialists, R&D
artisans firm laboratories,
Universities Customers, suppliers, technology
industrialists, suppliers,
Governmental- customers, users,
economic entrepreneurs,
Key actors various agencies, individuals,
institutions communities,
governments,
Associations, associations, financial
commercial institutions,
companies Commercial enterprises
commercial
companies
Government
agencies
Price competition Customer satisfaction Co-creation
and oriented strategy through open
product/service Strategic partnership innovation strategy
differentiation between core business Set of collaboration
“Triple helix” and partners agreements
Collaboration/strategy interactions around the value Combining
Set of proposition individual offers
“coopetition” Set of “coopetition” into a customer-
agreements agreements oriented solution
Monitoring/coordination
via digital platform
Innovation Ecosystem: Definitions 9
Columbia
University Seoul
(US) University
Korean Research
Institute of
Standards and
Science
Invention-product:
graphene bulb
This first definition shows the absence of the focal firm with a value
proposition for innovation around which various partners gravitate. Here, the
innovation ecosystem is rooted in discovery. We note the absence of a digital
platform as an “actor” in the coordination of the actors. It exists, but its
3 https://techventures.columbia.edu/news-and-events/latest-news/worlds-thinnest-light-bulb%
E2%80%94graphene-gets-bright-columbia-engineering.
12 The Innovation Ecosystem as a Source of Value Creation
4 https://fr.sputniknews.com/sci_tech/201604141024224886-production-carbyne-autriche-
scientifiques/; https://arxiv.org/ftp/arxiv/papers/1801/1801.07670.pdf.
Innovation Ecosystem: Definitions 13
This second definition still shows the absence of the focal firm with a
value proposition for innovation around which partners gravitate. Here, the
innovation ecosystem is also rooted in discovery. There is still no digital
platform to coordinate the actors. It is present to promote the sharing of
scientific and industrial knowledge between the actors in the research
project.
This third definition still shows the absence of the focal firm and a value
proposition for innovation. Here, the innovation ecosystem is anchored on
the exploitation of scientific discoveries. The digital platform is developed to
foster the sharing of scientific, industrial and business knowledge between
all these heterogeneous actors. Unlike the first two innovation ecosystems,
the discoveries have already been made. Industrialists, specialized in
polymers, have private R&D centers to develop product inventions. Most of
these industrialists also have departments in charge of transforming these
invention-products into innovations that will be rapidly diffused over the
various targeted markets.
entrepreneur quickly realized that in order to make this artificial heart work
in a similar way to a biological heart, a system of mini-pumps was needed to
pump the stale blood from one side, purify it and return it to the body. Not
having the skills in the design of these mini-pumps, against all odds,
Carpentier turned to the French industrialist EADS (European Aeronautic
Defense and Space) and more precisely to Matra-Défense.
EADS? Why is the Carmat team turning to the aerospace and defense
giant? According to Piet Jansen, Carmat’s medical director, just like EADS:
“NASA has already been involved in the development of implantable
medical devices. It’s pretty logical to collaborate with aerospace specialists
when you want to make an extremely sophisticated product that requires
significant miniaturization.”
6 www.truffle.com/.
7 https://partenaire-bpi.sudouest.fr/premiere-greffe-mondiale-de-coeur-artificiel-carmat-
retour-sur-le-financement-de-lentreprise/.
Innovation Ecosystem: Definitions 19
Start-up:
Matra- Professor
Défense Carpentier
Financers
Invention-product:
Carmat artificial heart
For these partners, the innovation, an artificial heart that once implanted
plays the role of a human heart over the long term, will be a medical and
technical success rather than a commercial success as is seen in many
collaborations.
While there are common features between the innovation cluster, the
business ecosystem and the definitions of the innovation ecosystem by
practitioners and researchers, the four examples presented in this chapter
show that there is no universal definition of the innovation ecosystem.
Remember that, in the cluster, the actors are grouped together by similar
or related field of activity in order to reconfigure their assets to adapt their
products to the markets with agility, with a view to continuous innovation
and financial profitability. Similarly, in the business ecosystem, the focus is
on the focal firm with a value proposition, around which suppliers,
distributors and customers are grouped in a logic of business profitability.
In this market pull logic, the innovation process of the cluster and the
business ecosystem is solution-customer-oriented. Consequently, there is no
room for discovery and little room for invention. Yet, in the innovation
process, these precede innovation. The definition of innovation ecosystems,
oriented towards producers, users and customer-centric solutions, is
incomplete. The discovery and invention phases, where there are no
competitors, producers or users yet, are not always well integrated into the
innovation process. Chapter 2 will discuss how to take the latter into
account.
8 Market pull logic refers to innovation “driven” by the market, the demand, whereas
technology push logic characterizes innovation “driven” by technology, the invention.
22 The Innovation Ecosystem as a Source of Value Creation
The actors have divergent interests while pursuing the common objective
they have set. These divergent interests are endogenous to the nature of the
actors involved and their objectives. For example, an industrial company
will not necessarily have the same interests as a research laboratory, a
Innovation Ecosystem: Definitions 23
The configuration of actors and activities, the links that form and dissolve
between the various elements of the innovation ecosystem, and the
regulations and laws that change as a result of the globalization of
innovation [OKS 15] make its borders open and permeable [GUL 00]. Open
innovation strategies accentuate this phenomenon because resources and
skills essential to the development of innovation processes emerge and
disappear at different phases of the process [ZOB 17]. Moreover, studies on
innovation ecosystems, focused on regional or local actors, neglect the
international dimension of innovation [VAL 15].
The diversity of actors and the fact that innovation processes do not stop
at community boundaries and engage complementary participants makes it
difficult to define the boundaries of an innovation ecosystem. It is clear that
the boundaries of the innovation ecosystem are not the same as traditional
industry boundaries. These are defined by a specific set of products, services
and their producers.
1.6. Conclusion
As we have seen from the four definitions derived from the four
examples of innovation ecosystems, the characteristics of these ecosystems
depend on the nature of the actors, which we will explore in more detail in
Chapter 4, their collaborative strategies and the production of new material
and knowledge assets that emerge from the activities of these heterogeneous
actors.
Each of the four definitions, taken from the examples analyzed in this
chapter, reveals the absence of the focal firm as the keystone of the
innovation ecosystem. As we have seen, the value proposition is not
systematically the origin of the grouping together of actors or of the
innovation. Unlike many works on ecosystems, the innovation ecosystem is
also distinguished by the absence, by partner companies, of the offerings
they bring to co-create an innovative end-customer-oriented solution to
generate profits for the focal firm and themselves.
Je vous invite, de la façon la plus formelle, à n’abandonner votre poste que sur
ordre du Gouvernement ou de l’autorité militaire. Vous devez donner aux populations
l’exemple du calme et du sang-froid. Tous les fonctionnaires doivent rester à leur
poste. Les mesures les plus rigoureuses seront prises contre ceux qui manqueraient
à leur devoir.
Instructions pour les fonctionnaires adressées par M. Malvy, ministre de
l’Intérieur, aux préfets et sous-préfets des départements frontières.
29 Août 1914.
Appel au
pays
Le Gouvernement sait qu’il peut compter sur le pays. Ses fils répandent leur sang
pour la patrie et la liberté. Aux côtés des héroïques armées belges et anglaises, ils
reçoivent sans trembler le plus formidable ouragan de fer et de feu qui ait jamais été
déchaîné sur un peuple. Et tous se tiennent droits. Gloire à eux! Gloire aux vivants et
aux morts! Les hommes tombent. La nation continue.
Pendant ce temps, nos alliés russes marchent d’un pas décidé vers la capitale de
l’Allemagne.
Dans le Nord, les lignes franco-anglaises ont été légèrement ramenées en arrière.
La résistance continue.
Communiqué officiel du 17 août.
Gallieni.
2o A défaut par les intéressés d’avoir obéi à la présente prescription dans le délai
imparti, il sera procédé d’office par l’autorité militaire à la démolition des immeubles et
à l’enlèvement des matériaux.
Le Gouverneur militaire de Paris, commandant des armées de
Paris,
Signé: Gallieni.
31 Août 1914.