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Madeline Smith Head of Innovation, EKOS Learning Clusters TCI 2009

Cluster basics: Learning Clusters

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By Madeline Smith at the 12th TCI Global Conference, Jyväskylä 2009

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Page 1: Cluster basics: Learning Clusters

Madeline SmithHead of Innovation, EKOS

Learning ClustersTCI 2009

Page 2: Cluster basics: Learning Clusters

What do we mean by Learning Clusters

How can Clusters Learn?

Why should they learn?

Challenges to overcome?

o External Environment

o Internal behaviours

Focus for this week

Doing(sensing)

Reflecting(perceiving)

Linking(intuition)

Planning(judging)

KOLB D A (1984) Experiential Learning: experience as the source of

learning and development

Page 3: Cluster basics: Learning Clusters

Why are we here?

TCI

o Share experiences

o Learn from others

o Take something back

Good intentions fail

o Real world intervenes

o “Day job”

o Difficult to change what we do

Page 4: Cluster basics: Learning Clusters

Cluster’s Environment

Is it a good environment for growth?

• Money – Financial Capital

• Skills – Human Capital

• Knowledge – Intellectual capital

• Access to Markets – Market Capital

• Things – Physical Capital

• Networks – Social Capital

Page 5: Cluster basics: Learning Clusters

Clusters are ...

Subject to changes in external environment

Affected by changing customer expectations

Must learn to adapt and evolve

Listen to those at the edge – early signals

Learning organisations

By nature open and collaborative

Share knowledge

Learn from each other

Learning to work in different way

Page 6: Cluster basics: Learning Clusters

Clusters – Innovative Communities

Communities are driven by (one or more):

Innovation Communities exhibit cohesion in some + diversity in others

Innovation is often expressed at a communities’ ‘edges’

Purpose

PassionPlace

Perspective

Trust

Beyond Open Innovation, Dames, Robson, Smith & Tumulty, 2007

Page 7: Cluster basics: Learning Clusters

Building Trust

Very important

Very difficult

Trust is necessary precondition for collaboration – in practice the suspicion rather than trust is the starting point.

Difficulties in collaboration“Seeking collaborative advantage is a seriously resource-consuming activity, so is only to be considered when the stakes are really worth pursuing…don’t do it unless you have to” (Huxham and Vangen, 2005)

Page 8: Cluster basics: Learning Clusters

Stimulation andAcquisition of

relevant research and development

L5 FUTURE FOCUS LOOP

Performance of individual firms

Overall performance of all firms in the

zone

Intensity of differentiated

competitive performance

Motivation for competitive innovation

Degree of enhancement of

competitive innovation

Competitive level of

platform for innovation

Sharing of critical sectoral

knowledge

Extent of collaborative

initiatives

Extent of shared response to

common challenges

L1 INTER-FIRM RIVALRY LOOP

L2 INTER-FIRM CO-OPERATIONLOOP

Global competition and external market

pressure

Type of cultural context

L3 COLLABORATIVEADVANTAGE

LOOP L4 VENTUREATTRACTIVENESS

LOOP

Collection – Cooperation - Collaboration

Competitive power of cluster

Smith and Brown, Local Economy, June 2009

The Cluster Dynamic Loops

Page 9: Cluster basics: Learning Clusters

Proactive not Reactive

Look further ahead

Anticipate dips

Catch and ride the nextwave

Speed of change ever faster

Challenging our ability to learn fast enough

Innovation needed

o When speed of change > Ability to learn

Page 10: Cluster basics: Learning Clusters

Act

ivit

y

+

Horizon 2Horizon 1 Horizon 3

Innovation . . . 3 Horizons

Improve the

current

Envision the

possible

Nurture the

emergent

Sustaining innovation Transformative innovation

Disruptive Innovation

David Robson, Head of Energy and Environment Foresight

Page 11: Cluster basics: Learning Clusters

Learning to change

Insanity = doing the same thing over and over again and expecting different results.

Insanity = doing the same thing over and over again and expecting different results.

Insanity = doing the same thing over and over again and expecting different results.

Insanity = doing the same thing over and over again and expecting different results. Albert Einstein

Page 12: Cluster basics: Learning Clusters

How do we recognise good ideas

Our current “world view” restricts our ability to learn

Cognitive Bias / Cognitive Frameworks

Visible

Challengeable

Fluid

Hidden

Un-challengeable

Rigid

Intelligence & Information

Analysis Hypotheses

Mental models Assertions

Beliefs Assumptions

Time

Cognitive

Framework

Barriers to Learning

Page 13: Cluster basics: Learning Clusters

Points of view

Page 14: Cluster basics: Learning Clusters

You do not have the full picture

Diverse groups learn quicker

Diverse groups perform better

Page 15: Cluster basics: Learning Clusters

Learning clusters

We need to

Be open and collaborative

Value external input

Collective learning is more effective

Look for other perspectives – to complete the picture

Challenge our cognitive barriers – “same as usual” is not good enough

Be ready to do things differently

Page 16: Cluster basics: Learning Clusters

Revisit on Friday