1. Practice-based innovation Broad-based innovation – A conceptual assessment Vesa Harmaakorpi, Professor LUT Lahti School of Innovation

2. Finnish Innovation Landscape Innovations / Regional Value Added 1997-2007

3. Some statistics

4. Innovation modes Science-based Science, technology, innovation (STI) Practice-based Doing, using, interacting (DUI) Berg Jensen et al. 2007

5. Types of knowledge production Mode 1 knowledge production is traditional knowledge production based on single disciplines. It is homogeneous and primarily cognitive (STI). Mode 2 knowledge knowledge production, by contrast, is created in broader, heterogeneous interdisciplinary social and economic contexts within an applied setting (DUI). Gibbons et al. 1994

6. Science-based innovation (STI, Mode 1) Practice-based innovation (DUI, Mode 2a) Practice-based innovation (DUI, Moodi 2b) Most typical logics and capital Agglomeration – Clusters – Economies of scale Intellectual capital – Financial capital Proximity Related variety – Innovation platforms Social capital – Institutional capital Distance Developing innovation capability – Breaking silos Social capital – Structural capital Near distance Most typical innovation types and processes Radical technological innovations and related concepts Analytical Radical concepts and system innovations Interpretative Organisational innovations - Social innovations - Service innovations Interpretative Most typical innovation methods and environments and knowledge transfer mechanism Scientific methods World class scientific centres Technology diffusion for the firms of cluster Science and related expertise Methods of intellectual cross- fertilisation (also virtual) Arenas of intellectual cross- fertilisation in value networks Scanning and absorbing technology and market signals Networks, Serendipity, Customers Problem-based learning (e.g. culture- based methods) Arenas of developing organisational innovation capability Organisational learning Normal staff, Customers Most typical logics of knowledge production World classic scientific expertise in narrow field Codifield knowledge Analytical Homogeneous knowledge production Brokering – General ability to build possible worlds Future-oriented Synthetic Heterogeneous knowledge production Brokering – General ability to build possible worlds Tacit knowledge Symbolic Heterogeneous knowledge production Most typical communication IntegrativeDissipative Most typical evaluation Input-type measures Output-type measures Dynamic measures Differences in science-based and practice-based innovation

7. Bringing STI- and DUI-modes together Mode 2 knowledge production -> DUI-mode of innovation Mode 1 knowledge production -> STI-mode of innovation Context of knowledge application (companies and public sector organizations) Policy instruments and tools aiming at promoting knowledge transfer and utilization

8. Final words The concept of innovation policy has to be rethought based on the concept of broad-based innovation

9. New book on prcricw-based innovation Melkas, H. & Harmaakorpi, V. (eds.) (forthcoming). Practice-based Innovation. Insights, Applications and Policy Implications. Axel Springer Verlag. Scheduled October 2011