innovation economics | building regional economies

Innovation Economics: Harnessing the Power of Open Networks

Ed MorrisonPurdue Center for Regional DevelopmentJune 24, 2011

Oklahoma City, 1993A basket case

Oklahoma City, 2010A national model

Realities in 1993...

Another clear factGlobalization matters

Networks matter

0

500

1,000

1,500

2,000

1995 1998 2001 2004 2007 2010

Millions of Users

First rumblings of the Internet

Clusters matter

OK, Smart guy...How do you build an innovation economy?

How do you develop clusters?

New Ways of Thinking

New Ways of Behaving

New Ways of Doing

It comes down to this...

The Shanghai PerspectiveDeal with it

Confront your SwitchpointWe have choices to make

Engage the InternetOur first interactive mass medium

Move to a new S curveWealth created by networks

Understand the challengesWe are between two economies

Link assets to create pathways and opportunities

Develop 5 types of networksBuild a balanced portfolio

Find the leverage pointsEverything is connected

Think in new waysNetworks are different

Study networksWelcome to a new world

Molecular biologyLook familiar?

Understand Open Source softwareHow did Linux happen?

Manage complexitywith simplicityThe world is complex enough



New Ways of Doing


Our civic economy is in a ditchProof point: High School Dropouts

Transform our civic economy To make our entire economy more productive

Create shared valueVital to our productivity

Embrace diversityWhat is the reality of the coffee cup?

Civility is strategicSo we can do complex thinking

Create rules of civilityThere are none, unless we do

Cross invisible fences(They don’t work in global markets...besides they’re for dogs)

Confront your Personal SwitchpointBehave in ways that build trust and mutual respect

If your actions inspire others to dream more, learn more, do more and become more, you are a leader

John Quincy Adams



New Ways of Doing


Why Strategic Doing?Old approaches are too costly, inflexible and difficult to manage

Strategic Doing aligns networkswith “Link and Leverage” Strategies

Powerful experiencesExperiences that connect and move people...

Strategic Doing session Kokomo, IN

InnovationThe Nation’s first green manufacturing certification

Starting point: 12 people conducting a Strategic Doing session in the basement of the White County courthouse

Cluster activationMilwaukee Water Cluster launched a strategic agenda

SpeedMilwaukee Water Cluster 3 months after launch session

Strategic Doing accelerates trustBy moving people to action quickly

A core team leads the clusterThe team commits to principles of open innovation

Core TeamPrivately led with civic support

Commitment to collaborative innovation (creating shared value)

Rules on information sharing, confidentiality, governance emerge

Higher education anchorsColleges and universities can anchor the cluster

Others align to the clusterDevelopment organizations align to advance the strategy agenda

Build strategy portfoliosFive types of networks support a cluster

Place-based innovationUse the same strategy map

Charleston Digital CorridorPlace-based innovation

21 million jobsneeded to return to full employment by 2020Source: McKinsey Global Institute



New Ways of Doing

OK, Smart guy...How do you build an innovation economy?

Small Business Vitality RankingsWe can transform

1. Austin

2. Oklahoma City

3. Charleston, SC

Source: Business Journal Digital NetworkApril 11, 2011

Strategic DoingAccelerating solutions through civic collaboration

Coming Fall 2011Purdue Strategic Doing Professional Certification

Get ConnectedPurdue Center for Regional Development

Thank you!Ed Morrison