Structural funds and development of SME’s working in cultural and creative fields - lessons learnt

Miika Kajanus

Creative and cultural Industries event - 25th September 2013

Basic question

• How countries and regions manage the transformation of the assets of innovation (education, R&D and innovation expenditures) into innovation results (turnover coming from new products and services, and employment) ?

• The lack of innovative, growth-oriented small and medium sized enterprises (SMEs) and start-ups is one of the identified weaknesses

2

Lots of investments and efforts for Structural Fund projects => Resulting lots of activities, however, not much sustainable business developed!

Straightforward Focus on Business

Open Innovation Space - pedagogy

Industry / Society Integration

Tools: participative design and decision

support

Straightforward Focus on Business

Straightforward Focus on Business

Participative design and decision tools

• Tools developed and tested in structural fund projects

• Permanent outcomes: tools continue their living after project ends

• Participation

• Service design

• Business development

• Decision analysis

AWOT – turns list of SWOT-factors into analytic decision support by applying MCDA

Forge

Method for identifying development needs and defining

the action plan by asking questions

A = present situation of an organization X= actions needed to reach the objectives

B= objectives

9

MAP

Situation franchising-consept ready

cti

n w ranc ising nt r ris s growt

Mark tting - ranc isingin

-in or ation r s ntations - bränd - Benefits

n w custo rs

oard coac ing

S g nt stud to und rstand ranc ising

nt r rising

r nt ocational sc ools and uni rsti s

w ranc ising nt r ris s agr nts

t r ot ntial actors

orking las ractising

stud agr nts

Franchising

sparraus

yrityksessä

inanc

A FORGE ROAD MAP

Identified

development ideas (interviews of 18 key companies)

88 ideas

Result of intelligent evaluations

TOP 10 ideas

Workshop 4/19

TOP 3 +

Action Plans

InTo - Innovative Assessment Tool

Evaluation platform

Evaluate Ideas

by Drag-and-Drop

Selected idea description and

place for comments

Evaluate Ideas against the predefined criteria

Visual

scale

14

1. Critical business issues added:

- End-user needs,

- Proposed solution,

- Competing solutions

2. Analytically assessed

prioritization of the issues

0 0,02 0,04 0,06

cs1 - Acoustic … cs4 - cs7 -

pr3 - Dollar … pr6 - Finding …

co2 - Decoustics co5 - Akustik

so1 - Fire Rating so4 - T-Bar …

so7 - vp3 - Customization

vp6 - ch2 - Independent …

ch5 - cr1- Cultural …

cr4 - Company visits cr7 -

kr3 - US Commerce … kr6 -

kp2 - MANA kp5 -

ka1 - Business Plan ka4 - Collections, …

ka7 - cost3 - Shipping

cost6 - rs2 - High T/SF …

rs5 -

BUSINESS MODEL ANALYTICS

Selecting key items to Business Model (BM) by core value calculations

– Core items included in every effective portfolio = BM (core index =1 )

– Borderline items included in some effective BM (0 < core index = 0 < 1)

– Exterior items not included in any effective BM (core index = 0 )

6

3

10

2 1

7

4

5

8

9

6

3

10

2 1

7

4

5

8

9

A

B

• BM can be seen as a portfolio of items connected and interrelated with each others

• Method identifies the best portfolios by calculating a big number of alternative

criteria weights

• Core value calculation helps identifying the most preferable set of key items

Open Innovation Space - pedagogy

17

OIS – pedagogical approach

• OIS (Open Innovation Space): Learning by innovating

• Students, teachers, working life experts, end-users and international experts working, innovating and learning together

• The theoretical background comes from socio-constructive pedagogy and applied and action research, where the knowhow and knowledge production is seen as context-driven, problem-focused and interdisciplinary (Gibbons et al., 1994., Rissanen & Vidgren 2010).

18 Working life and partners also internationally

OIS-thinking multidisciplinary, student orientated,

functional, proximity to working life, collective

Teaching and studying RDI-activities

Study-modules

Practical training

Thesis work

R&D-projects

Productized

services

Tasks (=actions), which are jointly planned, implemented and evaluated for real use

Industry/society integration

• Multidisciplinary approach

• Creative and cultural industries integrated with other industries and with public sector development

Why multidisciplinary approach?

• The problems we confront, like global warming, ageing demographic and economics can not be solved by any single knowledge area

• Even small enterprise needs to combine knowledge from several areas

• Savonia UAS is a multidisciplinary institute and is contributing to the whole region

• Smart specialization combines disciplines!

• Multidisciplinary knowledge available from one contact!

Competition & specialization

• Adam Smith’s notion of specialization and the division of labour, and Alfred Marshall’s analysis of industrial districts and firm’s ‘external organization

After globalization competition not at industry

level, not at firm level, but at level of tasks,

functions or projects

Smart specialization on innovation design by integration of research development and education with small groups of people

Distributed innovation

• Numerous people with disparate expertise working in different institutions and countries, but united under a single project focused on rapid product development and deployment. (Jessica Morey)

• How to organize such rapid and straightforward innovation projects with group of people from different origins providing specialized knowledge into joint effort?

• Creative and cultural industries / smart specialization!

Propel model for smart specialization

Thank you!

Dr. Miika KAJANUS Project Leader, Entrepreneurship and Innovation

Savonia University of Applied Sciences Email: miika.kajanus@savonia.fi

Tel +358 44 785 6812 P.O.Box 72, FIN-74100 IISALMI, FINLAND