1. The Innovative Region as Catalyst for Economic Growth (Lecture 1: RIS in Old & Rural Industrial Spaces) PD Philip Cooke. Cardiff & Aalborg Universities Presentation to GEOG 80000 ‘Innovation & Development – old and new concepts’ U. Trondheim, October 26-27, 2011

2. The Linear-Interactive Innovation Models Narrative Linear Innovation Model (Phase 1- Techno - Push) Basic Science (R&D Lab) Design & Engineering Manufacturing Marketing & Sales Linear Innovation Model (Phase 2 - Market Pull) Market ideas influence (‘pull’) R&D Development Manufacturing Sales Critique of Linear Model Ignored stage interactions Did not recognise feedback loops Little attention to learning Phase 1, no attention to market Phase 2, over-estimation of market Interactive Model User-producer interactions ‘Organized’ markets, NIS Network relations, learning Buyer-supplier asymmetries Proximities important (geographical, cultural, economic, organizational) Incremental innovation Problems with Interactive Model User-producer..why not producer-user? Conceived for ‘Organized’ markets Not accurate for liberal markets Incremental innovation privileged Problem of radical innovation – ‘epochal’, waveform, engineering – not ‘episodic’ e.g. design, ‘revolutions’

3. Classic Regional Innovation System Regional socioeconomic and cultural setting Knowledge exploitation subsystem Customers Competitors Contractors Collaborators Industrial companies Knowledge exploration subsystem Knowledge, resource, and human capital flows and interactions Technology mediating organizations Workforce mediating organizations Public research organizations Educational organizations NSI organizations NSI policy instruments Other RSIs International organizations European Union Policy instruments Figure 5.4: Schematic illustration of the structuring of RSIs (after Autio, 1998). Vertical networking Horizontal networking External influences Regional system of innovation

4. Global Production Networks Model

5. Global Innovation Networks (GINs) in ICT : Chipset Design; ‘Apps’; Brand Leader & Assembly Platforms

6. Shanzhai or ‘Bandit’ smartphones, with Taiwanese offshore assembly in China markets.

7. BYD Electric Vehicle Production Chain

8. BYD and other EV assets Passenger transport electrification crucial due to megacities and their air quality problems Shenzhen is uniquely positioned, with BYD, the globally leading electric vehicle and battery firm located nearby (plus SinoMOS) Chinese State Grid EPRI and other local R&D institutes specialise in V2G requirements, standards and development of EV charging stations

9. Shenzen-Pingdi as centre of ECO-zone Pingdi Eco-City strategy Proximity and co-location of connected and complementary industrial (sub) clusters Open campuses and valuation of environment leads to further innovative clustering Valuable ecological areas with rare flora and fauna fully protected Of two Open Campus universities, the second, close to the existing Gaoqiao industrial park, is a focal point for eco-innovation

10. Technology adaption Technology transfer Own technology development 1986 19901992 199719981999 20002001 20022006 2009 ITRI TFT-LCD (Projector) Unipac ITRI Oversea returnees (Hsing-Chien Tuan, David Su- GE) External Internal Prime View ITRI Oversea returnees (Biing- Seng Wu, T.K. Wu) RCA, a-Si TFT HannStar ITRI Toshiba CPT Mitsubishi ADI Acer Display ITRI IBM Chimei Unipac ITRI Quanta Display ITRI Sharp TPO ITRI- LTPS (1997) Innolux Unipac Chimei Innolux Innolux merge Chimei and TPO AUO Acer Display merge Unipac TPO Merge MDS in Philips AUO Merge Quanta Display Purchasing IBM Japan 170 TFT patents a-Si TFT AUO, HannStar, CPT, Chimei PDP AUO LTPS TPO Prime View Merge E-ink 2005 Prime View Merge electronic paper department in Philips OLED AUO (2003) TPO (2005) Note: The names with underlines refer to major local industrial players in Taiwan’s FPD industry. FED ITRI PDP ITRI (1994) OLED ITRI A Chronology of FPD Industrial Development in Taiwan

11. Recent Timeline of Taiwanese ICT

12. The Future: ‘Smart’ but not very ‘Green’- Taiwan’s i236 Initiative

13. What is Green Innovation? ‘Green’ refers to ‘….diverse products, technologies and processes which, through improvements in the clean energy supply chain from energy source through to point of consumption, result in reduction in greenhouse gases.’ (Cooke, 2008) Innovation, as ever, refers to ‘…the commercialisation of new knowledge..’ (neo- Schumpeterian/Evolutionary school, Freeman, 1987, Lundvall, 1992, Edquist, 1997)

14. Biofuels

15. Environmental Innovation in Wales: 30 Solar Energy Equipment Manufacturers LlaniSolar G24i Sharp Solar, Dulas; PV Systems; Corus Colours, ICP Solar, Jantec Solar, IQE PHOTOVOLTAICS CLUSTER ICP Solar MicaulSolar Clear Sky Thermonax Sundance Renewables Royce Renewables PJB Systems Solar Housing Solarfit KDUK Sunset Solar SB Alternative Energy Bright Light Solar VE Heating Eco Energy Systems Solarfit InterSolar Kingspan Sundance Renewables also Produce 300,000 Biofuel litres/yr.

16. IGER – Novel Agricultural Products Research: Miscanthus & Wood Chips

17. Biofuels Producers in Wales Cardiff The new facility in Swansea is believed to be the largest biodiesel plant in Wales Below: Wood Pellets Miscanthus ↓ 50 wood-chip farms supplying Bluestone

18. Tuscany Art-Food System Wine Associations e.g. Chianti, Grossetto Tuscany Region/‘Strade Del Vino’ – 16 Wine Tours Hospitality Association – Benvenuti in Toscana Enoteca Training, Fiesole (nr. Florence) High School & University Cuisine Training Racolta Organic Food Distribution Cuisine Farms, Art Farms, Agro-Tourism Etruscan, Roman Archaeology 3 Eco-Museums, GeoParks Orchestras, Music Schools (e.g. Limana), Art Institutions, L’Accademia Fine Arts, Florence

20. Finland: Seinajöki & Lahti Filials Epanet Knowledge Network Innovative Professor Network (6 Unis) Emphasis on Networking Process E-technology process-driven more than product Is as good as the Lahti model? Healthcare could be focus, with ‘sidebars’ like error diagnostics & embedded systems Lahti RDPM model very advanced, expert panels, leadership, envisioning, new platforms

21. ICT Biotech Medtech Cleantech Israel’s Jacobian Clusters

22. 4. Jutland’s Solar Thermal Cluster Source: ESTIF Data Danfoss A/S Grundfos Sensor

23. The North Central Jutland Wind Turbine Cluster Source: Danish Wind Industry Association Data, 2007

24. Signal session R&D projects Exploitation Innovation session Acquisition Assimilation Transformation Value recognition Knowledge source : Weak signals Disturbance signals and their strengthening, “information-like”, “top-down” Signal panel Companies The main operational field of the new project Tacit signals, foresight and normal processes, “knowledge-like”, “bottom-up” Future foresight-related research within the Cleantech Cluster at Lahti

25. The ‘peak cotton’ question Cotton production consumes more than 11% of all farming chemicals used on the earth and 25% of all pesticides One pair of jeans ”consumes” 6600 litres of water 13,2 m² land 0,5 kg chemicals 103 different pesticides Is there a ”peak cotton” round the corner? “Your jeans are a poison bomb” (Ekonominyheterna 2006)

26. Örnsköldsvik biorefinery cluster Holmen Eurocon MoRe Research SEKAB AGA Etek Övik Energi Processum Domsjsö Fiber Domsjö Fabriker Domsjö Biofuel Plant Domsjö Specialities DomInnova Akzo Nobel

28. ”Comfortable as cotton, beautiful as silk” The only thing we have in common with the forest industry is the raw material

29. Conclusions Classic RIS model was very successful It evolved in ‘old industrial spaces’, rural settings & LDCs as well as NICs New globalisation trends – GPNs to GINs New ‘rising stars’ e.g. Taiwan In ‘old industrial spaces’ innovation occurs where industry disappeared (Lahti) or became transformed (O’vik) New challenges………..Lecture 2