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Sumy State University, Ukraine
Championship participant: the National Research Analytics Championship - "Ukraine";
the Open European-Asian Research Analytics Championship;
Keywords: national innovation system, ecosystem, international technology transfer, cluster.
У статті розглянуто основи екосистемного підходу до формування інноваційної системи. Використання зазначеного підходу відповідає новітнім науковим умовам використання міждисциплінарних досліджень. У статті запропоновано теоретичні основи аналізу відкритості інноваційної екосистеми на основі міжнародного трансферу технологій. Також пропонується розглядати міжнародну взаємодію на основі інноваційних кластерів, що сформовані в певних екосистемах та забезпечують інноваційні комунікації між ними.
Ключові слова: національна інноваційна система, екосистема, міжнародний трансфер технологій, кластер.
Technology is properly defined as any application of science to accomplish a function. The science can be leading edge or well established and the function can have high visibility or be significantly more mundane but it is all technology, and its exploitation is the foundation of all competitive advantage.
In the context of the internationalization of innovation companies in developing new technologies and products relies not only on its own internal corporate R&D, but also actively encourages innovation and expertise from outside.
Public policy, according to OECD analysts, should develop an innovative system in the direction of its greater openness to foreign sources of knowledge that will not replace existing national sources, but rather complement them. OECD experts in its report  underlines that the degree of openness of innovation depends on its reachability and accessibility. According to A. Uayskof and E. Kolekchi openness entails the transformation to better (increasing of transparency or competition) or worse (potential invasion in regional business) state in the economy .
Founder of bionomics direction as the economy is Michael Rothschild. In his book "Bionomics: Economy as Ecosystem" (1990), he defined the essence of bionomics: broad similarities between biological evolution and the economy, and the use of natural selection as applied to economic processes. The properties marked evolution, inherited and accumulated.
According to Rothschild, the existing economic theory is almost in vain leave his sight progress, its causes and consequences, describing only the economic equilibrium. In addition, the principal disadvantage of traditional economic theories Rothschild considers their mechanistic: economy is a mechanism to leverage and impact of executive bodies. It turns out that the same impact the economy always answers the same reactions that do not correspond to reality. And he argues that the economy is only a redistribution of limited resources ("zero-sum game") as humanity as a whole as well as individual members of the economy and the industry are trained, each time for a new cycle of production unit product costs less, which creates additional surplus value. Theory of "equilibrium price" can not take this into account.
Based on the interdisciplinary analysis of the innovation system in terms of the natural ecosystem we note that openness of ecosystem (accessibility ecosystem) provides the ability to take a new ecosystem for her appearance and is usually associated with the presence of unoccupied ecological niches.
Figure 1. Innovation ecosystem structure
In order to explain or create innovation entrepreneurship, one isolated element in the ecosystem is rarely sufficient. In regions which have extensive amounts of entrepreneurship (e.g., Ireland, RNIS, Silicon Valley, Route 128, Iceland, etc.) many of the ecosystem elements are strong and typically have evolved more or less simultaneously. Similarly, the formation of these ecosystems suggests that governments or societal leaders who want to foster more entrepreneurship as part of economic policy must strengthen several such elements simultaneously.
Generally openness of any system is one of the key characteristics of nonlinear self-organizing systems, denoting a property in which the system has the capability of continuous exchange of matter, energy and information with the environment. Ideally such an exchange may be anywhere in the system, not just through the fixed channels.
By analogy with the biological approach the main property of the innovation ecosystem is its internationalization and obtaining the necessary resources from outside. Corresponding channel to obtain these resources is an international technology transfer in its extended sense, i.e. transfer of technology (explicit and implicit knowledge) in order to eliminate the fragmentation of the system.
We can enumeratespecific features of the innovations which allow us to apply the ecosystem approach in its analysis, which include :
1) openness, which involves the constant situational correction;
2) non-linearity, unpredictability of innovation, the constant presence of uncertainty in the appearance of the moment, and implementation;
3) high level of dynamics, which implies constant development, improvement of species and forms of innovation, creativity elements;
4) incompleteness, i.e. constant presence of intention to generate innovations , inventions , the emergence of creativity at all levels;
5) procedural, which manifests itself in the existence of a special " life cycle" of innovation for which is being implemented in phases innovations;
6) alternatively, including the choice and implementation of set of development invariants;
7) probabilistic nature of the venture , which implies a high degree of uncertainty and the effectiveness of their implementation , as well as the lack of guarantees for both commercial and social success;
8) systematic of innovation, implying their implementation subject to the mobilization of all types and forms of activity at different levels aimed to main innovative idea;
9) objectivity, ie determinism due to their innovation and socio-cultural , historical, industrial and other circumstances and needs .
Management of innovation in open innovation process conditions is predominantly an information process that involves finding, collecting, processing and dissemination of information in global environment. Intersection of the borders by the innovation chains involves overcoming barriers of cross-cultural nature, at least in the field of business communication (exchange of business information) as well as in marketing communications through the development of the institutions of international cooperation.
One way for companies (regions and nations for that matter) to approach which of the global innovation ecosystems they should network with and consider important could be by making an initial critical assessment of key strategic dimensions for partnering with or tapping into innovation ecosystems . Some of these strategic dimensions for consideration are highlighted below.
Leadership and partner role: How is the ecosystem governed? Is it centralized and closed with one or few dominant leading players like e.g. Apple, Google, Microsoft, or is it a more decentralized and open ecosystem with dispersed leadership like e.g. Linux? Controlling ecosystems is a new source of competitive advantage and your own company needs to review carefully how you participate and what levels of control or risk reduction are available.
Technology lock-in risks: Tapping into just one ecosystem or platform may be similar to the risk of ‘just betting on one number at a roulette wheel’. This is usually a very risky strategy and it might be better to use smaller business projects to tap into a number of different ecosystems and test out their benefits this way.
Supply side risks: There might be superior management and transaction-cost gains derived from dealing with just one or a few ecosystems. Yet, such dependency can be fatal as Japanese companies learned when they temporarily were denied access to rare earth from China, the world’s leading producer and ecosystem for rare earth. Or as when the earthquake in Japan resulted in the suspension of 25% of the world’s production of silicon wafer supply, which could have had wide ranging implications for the global electronics industry.
Brand reputation: The outsourcing of for instance food-production and consumer goods to emerging markets’ ‘manufacturing ecosystems’ should be considered another example of risk in view of the quality and social responsibility within the entire supply-chain of the ecosystem. The scandals with tainted milk from Sanlu and Chongqing in China or Nike’s case of child labour are examples that show how fast and easily online communities like Facebook and You-tube can damage even leading global companies’ brands and reputations. Reputation is arguably one of the most underestimated dimensions when companies’ consider which ecosystem to engage with.
Pros and cons of tier one versus tier two ecosystems: What would be the advantages of going for non-obvious partners outside the mainstream of what is the norm within the industry? For example, most ICT companies consider Silicon Valley or Bangalore, but few consider tapping into towns in developing countries.
Analysis of technologies, rather than products and separate industries, is based on the fact that the industry is not a homogeneous set of industries and technologies, and innovative level of products are differentiated by country. World Intellectual Property Organization (WIPO) defined technology as a systematic knowledge about the production, application process, or service, regardless of whether it reflects the knowledge of inventions, industrial designs, utility models, new technological setup, technical information or services provided by specialists in the design, construction or management. According to UN technology is considered in two ways :
-information component - technology in its pure form, covering the methods and techniques of production of goods and services (dissembled technology), the stock of knowledge that allows you to create new products;
- physicalcomponent (embodied technology) – material and embodied technology (equipment, integrated systems and products with high technical and economic parameters.
In addition to thepower ofsearch technologyknowledge, the organization must havethe infrastructurefor the dissemination andsharingof explicit(or implicit) knowledge.
Oftentransferof technology packageoccurs. It may includebest practices and highly qualified specialists knowledge, intellectual property, products and services of variousknowledge-intensive. As a result,during theinternational technology transfergradual transitionfrom theirsimplest formsto complextechnologicalpackages occurs. The variety of this process depends onthe level of technologicaldevelopment of the donor and recipientof technologies.
According to H.Evers, exactlytacit knowledgetransferis a major factorin the emergence ofclusters . The most obviousexample ofrestrictions ontechnology transfer–nuclear weapons, implicit knowledge of which, despite their useful lifeislimited, and thereverseexample –free andalmost instantaneousdistributionof Internet technologies.
Hidden component of technological knowledge is a key point of technology transfer issues . economic agents (firms, research institutions , individual inventors, individuals, etc.) that really has an implicit knowledge, ceteris paribus have no desire to share them, as any innovative technology provides a competitive advantage in the market. Also, with keeping implicit elements of the new technology in secret its owners thus greatly complicate the process of its potential competitors quickly copy and possible improvements.
In international interaction requests for innovation in a broad sense and technology in particular are directed to the external environment. Requests are translated in the form of tenders to find solutions and to requests for startups. It attracts both professionals and projects, but always offer innovations ensured demand. Thus, there is the development of private clusters unrelated to the associated network and incubated with the total community features.
The result of the analysis  theoretical scientific papers on cluster policy, international cooperation, regional competitiveness and materials and public research institutions has been the allocation of key reasons for internationalization:
- necessity for new competitive advantage formation in order to avoid the effect of "freezing» («locked-in effect»), which is manifested in excessive secrecy and orientation only on the local market needs, and that the key socio-economic conditions in the basis of competitive advantage over time become a critical factor in braking of development;
- necessity to diversify and (or) change of specialization to meet global priorities;
- necessity to expand the space sharing competencies (knowledge, skills, know-how) through explicit and implicit communication channels. Hay Group experts believe that competitiveness is central to the company's openness to innovation and willingness to take advantage of new opportunities as evidenced by the results of the study of practice the most successful companies.
Cluster of enterprises in the economy is a similar ecosystems in biology. In ecosystem development cooperation and mutual assistance are important. Also new feature of cluster in ecosystem approach is COOPETITION – “cooperation of competitors”: partners pool resources for joint activities, achieve common goals, while remaining autonomous.
Process of cluster evolution is shown in Figure 2.
Figure 2. Evolution of high-tech cluster within the internationalization of innovation and technological development
Cluster progressive development is a change of integrative quality, which is reflected in the transformation of the nature of the interactions between the cluster components that determine the appearance of new emergent properties, increasing system complexity . This provides cluster transition to the new environment which meets its new, improved system organization. Result of progressive development is raising the competitiveness of the cluster, its members, products and processes. All this allows him to move to a new more complex environment, e.g. inter-regional or international, which corresponds to increase the system complexity of the cluster formation.
Charles Darwin underlined that the fittest are not the ones who are physically stronger or smarter or more agile or others, but those, who are better able to communicate and support each other. Those societies that contain the great number of members, which are sympathetic to each other, will be the most flourish. Henry Chesbrough, California University Professor (Berkeley) in his study  in 2003 concluded that “it is impossible to make all smart guys work for you – and then you need to learn how to work with smart guys both inside and outside your company!”. Effective consideration of this factor may provide crowd sourcing and сrowd funding, as well as new tools of organizing an international innovation.
Its necessary to create an open network ecosystem, ready to free flow of information and knowledge beyond its borders into the surrounding economy. Modern information technologies in general reduce the physical presence of the virtual exchange of information and joint web development, developing open source technology and open access to ideas involving the generation of external Internet users, etc. All this suggests the formation of a global innovation system as explicit and sustainable process.
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