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2014 | Buch

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Innovation Through Cooperation

The Emergence of an Idea Economy

verfasst von: Georg Weiers

Verlag: Springer International Publishing

Buchreihe : Management for Professionals

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Many people have great ideas. Without the necessary skills and means most never get to realize them. If they could cooperate with competent firms and entrepreneurs together both could achieve much and this is increasingly happening. Mechanisms are being established making a division of labour between inventors and implementers a reality. This is changing the nature of innovation from an internal R&D, or purely entrepreneurial attempt, to a more cooperative innovation. An Idea Economy emerges, where anyone has the possibility to profit from their ideas, and everyone will benefit from more and better innovation.

This book presents us the emergence and structure of the Idea Economy by extending the seminal concepts of Entrepreneurial Society and Open Innovation. Part I describes the big picture on how innovation is evolving, where we are today, and what an Idea Economy will look like. Part II points the way forward, discussing in detail on how cooperation in the innovation process works, and why this is only recently becoming possible.

Inhaltsverzeichnis

Frontmatter

Introduction

Frontmatter

1. Introduction

Abstract

Many people have ideas. Many others have the skills and means to realize them in the market. If the two would work together more ideas could get realized—both would prosper. But such cooperation requires trust. The book explores the emerging mechanisms that facilitate a trusted division of labour in the innovation process between inventors and firms. It traces the implications this has and how it is changing the nature of innovation. The introduction sets out this argument and provides an overview of the book.

Georg Weiers

The Emergence of an Idea Economy

Frontmatter

2. Economic Evolution

Abstract

Why is innovation important? Innovation is essentially, what has made us so well off. We can achieve more with less. Innovation is the fundamental driver of prosperity. But what are the fundamentals of innovation? It seems we know little of how to foster innovation. It is critical to understand this better. If it is possible to nurture more innovation we can achieve so much more.

Georg Weiers

3. The Entrepreneurial Society

Abstract

How has innovation happened so far? After the Second World War, innovation was mainly a corporate process. In-house researchers were tasked to innovate for firms. Towards the end of the 20th century, entrepreneurship became more and more important where anyone with a bright idea and the skills and means to set up a firm could innovate. An Entrepreneurial Society arose, ‘an economy full of innovators and entrepreneurs, with entrepreneurial vision and entrepreneurial values, with access to venture capital, and filled with entrepreneurial vigor’. Now innovation is essentially equated with entrepreneurship. Innovation is entrepreneurship. Entrepreneurs are hailed the modern economic heroes, the bringers of growth and prosperity.

Georg Weiers

4. Open Innovation

Abstract

How is innovation done today? The emergence of the entrepreneurial society has not gone unnoticed. Firms are realizing the need to open up their doors to ideas from the outside to compete with innovative start−ups and survive in a competitive market driven more and more by innovation. They are reacting to the increasing pressure from entrepreneurs and the promise of profit from external innovation. They are more open to ideas from the outside, and make better use of their own ideas. This offers new possibilities, new paths for ideas to be realised, and an alternative to entrepreneurship. It is reshaping the innovation landscape.

Georg Weiers

5. The Idea Economy

Abstract

What will change in the future? Innovation is evolving. As firms are opening up to allow in ideas from inventors, an increasing division of labour will take place. This opens up an entirely new perspective on innovation. An Idea Economy emerges where ideas are traded. Anyone with an idea can approach a firma or gifted entrepreneur to realize the innovation together. Anyone can profit from their ideas even without the skills and resources to be an entrepreneur themselves. This new division of labour will lead to a new kind of innovation: cooperative innovation. This development has profound implication for the innovation process, it will reshape the nature of the firm, and will influence the way we think about innovation.

Georg Weiers

6. More and Better Innovation

Abstract

What will be the impact of more cooperative innovation? The implications are far-reaching. Innovation will change. There will be more and better innovation. Ideas will be used better as anyone can now see their ideas realised. Ideas will be realized by professionals with a better chance to succeed. Ideas will be traded, as ideas themselves will be valuable. Innovation becomes faster.

Georg Weiers

Cooperative Innovation

Frontmatter

7. Setting the Stage

Abstract

Why is cooperation necessary? Many people have ideas. Mostly, unfortunately, they are not businessmen or those best able to realize ideas in the market. Bringing the two together – ideas and companies – and getting them to cooperate could seriously foster innovation and offer many more people the chance to benefit from their ideas. A division of labour seems the most promising way to give everyone a better chance to succeed and innovation to flourish. Everyone could do what they do best, invent or realize – all too rarely do they coincide.

Georg Weiers

8. The Missing Link

Abstract

Why are inventors and businessmen not already cooperating? When it comes to ideas cooperation is tricky. There is a strong risk of others stealing your idea. You cannot just offer it openly. Once shared there is no taking it back. But without sharing the idea the partner cannot decide if they want it or how much it is worth. A paradox arises, called Arrow’s Fundamental Paradox of Information, which makes trading ideas very difficult. This is the reason a market for ideas has not yet evolved.

Georg Weiers

9. Narrowing the Gap

Abstract

What has been done so far to make it possible for inventors and businessmen to work together to realize ideas? Many interesting approaches exist that work around Arrow’s paradox. The most prominent and promising so far is to offer prizes. A prize is promised for the best idea to solve a given problem. This has proven a successful method. Many platforms have sprung up offering innovation prizes, creating a multi-billion dollar industry. But innovation prizes have some severe limitations. They only apply to ideas that address given problems. Many ideas are novel in nature, or improve on something already quite good. No prize exists for them. Prizes help, but do not solve the paradox.

Georg Weiers

10. Bridging the Gap

Abstract

If innovation prizes are not the solution, how can Arrow’s paradox be solved? In some niches such as the movie industry or venture capital, trading ideas is somewhat possible. Identifying the underlying principles can help draw up a solution to make trading possible in general. Trust and fairness between the partners are essential. Research has made significant progress in analysing and finding mechanisms to support both. Establishing a reputation mechanism and norms of fairness are the most promising elements to make cooperative innovation a reality.

Georg Weiers

11. Cooperative Innovation

Abstract

How can trusted and fair cooperation work in practice? Making cooperation work in practice is much more difficult than the theory suggests. Many details need to be addressed to make it happen. This includes (i) a good matching between those with ideas and those able to realise them; (ii) a commonly acceptable code of conduct to trading ideas to establish a benchmark for fairness and thus minimise friction and foster better cooperation; (iii) a transparent feedback mechanism to support building up a reputation and thus incentivize cooperation; and (iv) clear support and guidance throughout the innovation process. It is a new approach. To jumpstart it must be simple yet refined enough to make it work.

Georg Weiers

12. Cooperative Innovation and Its Future

Abstract

Will cooperative innovation work? With a practical reputation mechanism in place it becomes possible to reasonably bridge the gap between ideas and its realisation and get people to trust one another when working together to realize ideas. Efforts are under way to operationalize this. Working together with firms and businessmen is becoming accessible to anyone with ideas. The Idea Economy is ready to unfold. Anyone can contribute to it. Everyone will benefit from it.

Georg Weiers

13. Concluding Remarks

Abstract

The broader landscape is shifting. Innovation is evolving. It is on the verge of a new era. The Idea Economy is arriving. It is characterized by a division of labour. Innovation becomes more effective, and more democratic. It also becomes faster – and less a leisurely exercise.

Georg Weiers

Backmatter

Titel: Innovation Through Cooperation
verfasst von: Georg Weiers
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-00095-4
Print ISBN: 978-3-319-00094-7
DOI: https://doi.org/10.1007/978-3-319-00095-4