How to implement “open innovation” in city government

Curated on Posted on by Stefaan Verhulst

Victor Mulas at the Worldbank: “City officials are facing increasingly complex challenges. As urbanization rates grow, cities face higher demand for services from a larger and more densely distributed population. On the other hand, rapid changes in the global economy are affecting cities that struggle to adapt to these changes, often resulting in economic depression and population drain.

“Open innovation” is the latest buzz word circulating in forums on how to address the increased volume and complexity of challenges for cities and governments in general.

But, what is open innovation?

Traditionally, public services were designed and implemented by a group of public officials. Open innovation allows us to design these services with multiple actors, including those who stand to benefit from the services, resulting in more targeted and better tailored services, often implemented through partnership with these stakeholders. Open innovation allows cities to be more productive in providing services while addressing increased demand and higher complexity of services to be delivered.

New York, Barcelona, Amsterdam and many other cities have been experimenting with this concept, introducing challenges for entrepreneurs to address common problems or inviting stakeholders to co-create new services.   Open innovation has gone from being a “buzzword” to another tool in the city officials’ toolbox.

However, even cities that embrace open innovation are still struggling to implement it beyond a few specific areas.  This is understandable, as introducing open innovation practically requires a new way of doing things for city governments, which tend to be complex and bureaucratic organizations.

Counting with an engaged mayor is not enough to bring this kind of transformation. Changing the behavior of city officials requires their buy-in, it can’t be done top down

We have been introducing open innovation to cities and governments for the last three years in Chile, Colombia, Egypt and Mozambique. We have addressed specific challenges and iteratively designed and tested a systematic methodology to introduce open innovation in government through both a top-down and a bottom-up approaches. We have tested this methodology in Colombia (Cali, Barranquilla and Manizales) and Chile (metropolitan area of Gran Concepción).   We have identified “internal champions” (i.e., government officials who advocate the new methodology), and external stakeholders organized in an “innovation hub” that provides long-term sustainability and scalability of interventions. We believe that this methodology is easily applicable beyond cities to other government entities at the regional and national levels. …To understand how the methodology practically works, we describe in this report the process and its results in its application in the city area of Gran Concepción, in Chile. For this activity, the urban transport sector was selected and the target of intervention were the regional and municipal government departments in charge or urban transport in the area of Gran Concepción. The activity in Chile resulted in a threefold impact:

  1. It catalyzed the adoption of the bottom-up smart city model following this new methodology throughout Chile; and
  2. It expanded the implementation and mainstreaming of the methodologies developed and tested through this activity in other World Bank projects.

More information about this activity in Chile can be found in the Smart City Gran Concepcion webpage…(More)”

Twelve principles for open innovation 2.0

Curated on Posted on by Stefaan Verhulst

Martin Curley in Nature: “A new mode of innovation is emerging that blurs the lines between universities, industry, governments and communities. It exploits disruptive technologies — such as cloud computing, the Internet of Things and big data — to solve societal challenges sustainably and profitably, and more quickly and ably than before. It is called open innovation 2.0 (ref. 1).

 The promise is sustainable, intelligent living: innovations drive economic growth and improve quality of life while reducing environmental impact and resource use. For example, a dynamic congestion-charging system can adjust traffic flow and offer incentives to use park-and-ride schemes, guided by real-time traffic levels and air quality. Car-to-car communication could manage traffic to minimize transit times and emissions and eliminate road deaths from collisions. Smart electricity grids lower costs, integrate renewable energies and balance loads. Health-care monitoring enables early interventions, improving life quality and reducing care costs.

Such innovations are being tested in ‘living labs’ in hundreds of cities. In Dublin, for example, the city council has partnered with my company, the technology firm Intel (of which I am a vice-president), to install a pilot network of sensors to improve flood management by measuring local rain fall and river levels, and detecting blocked drains. Eindhoven in the Netherlands is working with electronics firm Philips and others to develop intelligent street lighting. Communications-technology firm Ericsson, the KTH Royal Institute of Technology, IBM and others are collaborating to test self-driving buses in Kista, Sweden.

Yet many institutions and companies remain unaware of this radical shift. They often confuse invention and innovation. Invention is the creation of a technology or method. Innovation concerns the use of that technology or method to create value. The agile approaches needed for open innovation 2.0 conflict with the ‘command and control’ organizations of the industrial age (see ‘How innovation modes have evolved’). Institutional or societal cultures can inhibit user and citizen involvement. Intellectual-property (IP) models may inhibit collaboration. Government funders can stifle the emergence of ideas by requiring that detailed descriptions of proposed work are specified before research can begin. Measures of success, such as citations, discount innovation and impact. Policymaking lags behind the market place….

Keys to collaborative innovation

  1. Purpose. Efforts and intellects aligned through commitment rather than compliance deliver an impact greater than the sum of their parts. A great example is former US President John F. Kennedy’s vision of putting a man on the Moon. Articulating a shared value that can be created is important. A win–win scenario is more sustainable than a win–lose outcome.
  2. Partner. The ‘quadruple helix’ of government, industry, academia and citizens joining forces aligns goals, amplifies resources, attenuates risk and accelerates progress. A collaboration between Intel, University College London, Imperial College London and Innovate UK’s Future Cities Catapult is working in the Intel Collaborative Research Institute to improve people’s well-being in cities, for example to enable reduction of air pollution.
  3. Platform. An environment for collaboration is a basic requirement. Platforms should be integrated and modular, allowing a plug-and-play approach. They must be open to ensure low barriers to use, catalysing the evolution of a community. Challenges in security, standards, trust and privacy need to be addressed. For example, the Open Connectivity Foundation is securing interoperability for the Internet of Things.
  4. Possibilities. Returns may not come from a product but from the business model that enabled it, a better process or a new user experience. Strategic tools are available, such as industrial designer Larry Keeley’s breakdown of innovations into ten types in four categories: finance, process, offerings and delivery.
  5. Plan. Adoption and scale should be the focus of innovation efforts, not product creation. Around 20% of value is created when an innovation is established; more than 80% comes when it is widely adopted7. Focus on the ‘four Us’: utility (value to the user); usability; user experience; and ubiquity (designing in network effects).
  6. Pyramid. Enable users to drive innovation. They inspired two-thirds of innovations in semiconductors and printed circuit boards, for example. Lego Ideas encourages children and others to submit product proposals — submitters must get 10,000 supporters for their idea to be reviewed. Successful inventors get 1% of royalties.
  7. Problem. Most innovations come from a stated need. Ethnographic research with users, customers or the environment can identify problems and support brainstorming of solutions. Create a road map to ensure the shortest path to a solution.
  8. Prototype. Solutions need to be tested and improved through rapid experimentation with users and citizens. Prototyping shows how applicable a solution is, reduces the risks of failures and can reveal pain points. ‘Hackathons’, where developers come together to rapidly try things, are increasingly common.
  9. Pilot. Projects need to be implemented in the real world on small scales first. The Intel Collaborative Research Institute runs research projects in London’s parks, neighbourhoods and schools. Barcelona’s Laboratori — which involves the quadruple helix — is pioneering open ‘living lab’ methods in the city to boost culture, knowledge, creativity and innovation.
  10. Product. Prototypes need to be converted into viable commercial products or services through scaling up and new infrastructure globally. Cloud computing allows even small start-ups to scale with volume, velocity and resilience.
  11. Product service systems. Organizations need to move from just delivering products to also delivering related services that improve sustainability as well as profitability. Rolls-Royce sells ‘power by the hour’ — hours of flight time rather than jet engines — enabled by advanced telemetry. The ultimate goal of open innovation 2.0 is a circular or performance economy, focused on services and reuse rather than consumption and waste.
  12. Process. Innovation is a team sport. Organizations, ecosystems and communities should measure, manage and improve their innovation processes to deliver results that are predictable, probable and profitable. Agile methods supported by automation shorten the time from idea to implementation….(More)”

Can An Online Game Help Create A Better Test For TB?

Curated on Posted on by Stefaan Verhulst

Esther Landhuis at NPR: “Though it’s the world’s top infectious killer, tuberculosis is surprisingly tricky to diagnose. Scientists think that video gamers can help them create a better diagnostic test.

An online puzzle released Monday will see whether the researchers are right. Players of a Web-based game called EteRNA will try to design a sensor molecule that could potentially make diagnosing TB as easy as taking a home pregnancy test. The TB puzzle marks the launch of “EteRNA Medicine.”

The idea of rallying gamers to fight TB arose as two young Stanford University professors chatted over dinner at a conference last May. Rhiju Das, a biochemist who helped create EteRNA, told bioinformatician Purvesh Khatri about the game, which challenges nonexperts to design RNA molecules that fold into target shapes.

RNA molecules play key roles in biology and disease. Some brain disorders can be traced to problems with RNA folding. Viruses such as H1N1 flu and HIV depend on RNA elements to replicate and infect cells.

Das wants to “fight fire with fire” — that is, to disrupt the RNA involved in a disease or virus by crafting new tools that are themselves made of RNA molecules. EteRNA players learn RNA design principles with each puzzle they solve.

Khatri was intrigued by the notion of engaging the public to solve problems. His lab develops novel diagnostics using publicly available data sets. The team had just published a paper on a set of genes that could help diagnose sepsis and had other papers under review on influenza and TB.

In an “Aha!” moment during their dinner chat, Khatri says, he and Das realized “how awesome it would be to sequentially merge our two approaches — to use public data to find a diagnostic marker for a disease, and then use the public’s help to develop the test.”

TB seemed opportune as it has a simple diagnostic signature — a set of three human genes that turn up or down predictably after TB infection. When checked across gene data on thousands of blood samples from 14 groups of people around the globe, the behavior of the three-gene set readily identified people with active TB, distinguishing them from individuals who had latent TB or other diseases.

Those findings, published in February, have gotten serious attention — not only from curious patients and doctors but also from humanitarian groups eager to help bring a better TB test to market. It can currently take several tests to tell whether a person has active TB, including a chest X-ray and sputum test. The Bill & Melinda Gates Foundation has started sending data to help the Stanford team validate a test based on the newly identified TB gene signature, says study leader Khatri, who works at the university’s Center for Biomedical Informatics Research….(More)”

Social app for refugees and locals translates in real-time

Curated on Posted on by Stefaan Verhulst

Springwise: “Europe is in the middle of a major refugee crisis, with more than one million migrants arriving in 2015 alone. Now, developers in Stockholm are coming up with new ways for arrivals to integrate into their new homes.

Welcome! is an app based in Sweden, a country that has operated a broadly open policy to immigration in recent years. The developers say the app aims to break down social and language barriers between Swedes and refugees. Welcome! is translated into Arabic, Persian, Swedish and English, and it enables users to create, host and join activities, as well as ask questions of locals, chat with new contacts, and browse events that are nearby.

The idea is to solve one of the major difficulties for immigrants arriving in Europe by encouraging the new arrivals and locals to interact and connect, helping the refugees to settle in. The app offers real-time auto-translation through its four languages, and can be downloaded for iOS and Android….We have already seen an initiative in Finland helping to set up startups with refugees…(More)“

Revolutionizing Innovation: Users, Communities, and Open Innovation

Curated on Posted on by Stefaan Verhulst

Book edited by Dietmar Harhoff and Karim R. Lakhani: “The last two decades have witnessed an extraordinary growth of new models of managing and organizing the innovation process that emphasizes users over producers. Large parts of the knowledge economy now routinely rely on users, communities, and open innovation approaches to solve important technological and organizational problems. This view of innovation, pioneered by the economist Eric von Hippel, counters the dominant paradigm, which cast the profit-seeking incentives of firms as the main driver of technical change. In a series of influential writings, von Hippel and colleagues found empirical evidence that flatly contradicted the producer-centered model of innovation. Since then, the study of user-driven innovation has continued and expanded, with further empirical exploration of a distributed model of innovation that includes communities and platforms in a variety of contexts and with the development of theory to explain the economic underpinnings of this still emerging paradigm. This volume provides a comprehensive and multidisciplinary view of the field of user and open innovation, reflecting advances in the field over the last several decades.

The contributors—including many colleagues of Eric von Hippel—offer both theoretical and empirical perspectives from such diverse fields as economics, the history of science and technology, law, management, and policy. The empirical contexts for their studies range from household goods to financial services. After discussing the fundamentals of user innovation, the contributors cover communities and innovation; legal aspects of user and community innovation; new roles for user innovators; user interactions with firms; and user innovation in practice, describing experiments, toolkits, and crowdsourcing, and crowdfunding…(More)”

Opening Up Government: Citizen Innovation and New Modes of Collaboration

Curated on Posted on by Stefaan Verhulst

Chapter by Stefan Etzelstorfer, Thomas Gegenhuber and, Dennis Hilgers in Open Tourism: Open Innovation, Crowdsourcing and Co-Creation Challenging the Tourism Industry: “Companies use crowdsourcing to solve problems by using a widely dispersed and large group of individuals. Crowdsourcing and open innovation are not restricted to businesses. Governments also increasingly rely on open innovation principles to harness the expert knowledge of citizens and use citizens’ contributions to the public value creation process. While a large body of literature has examined the open government paradigm at the national level, we still know relatively little about how open government initiatives play out at the local level. Even less is known about whether open government initiatives may create positive spill overs, for example by having a trickle-down effect onto local tourism sectors. In this article, we present the City of Linz’s open government activities. More specifically, we review how the public administration implemented the interactive mapping and reporting application “Schau auf Linz“ (“Look at Linz“). Through our analysis of this case study, we show what role the local context and prior policies play in implementing open government initiatives on a local level. In addition, we discuss how this initiative, like others, leads to positive spill overs for the tourism sector….(More)”

Living Labs: Concepts, Tools and Cases

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Introduction by Pieter Ballon , Dimitri Schuurman: “This special issue on “Living labs: concepts, tools and cases” comes 10 years after the first scientific publications that defined the notion of living labs, but more than 15 years after the appearance of the first living lab projects (Ballon et al., 2005; Eriksson et al., 2005). This five-year gap demonstrates the extent to which living labs have been a practice-driven phenomenon. Right up to this day, they represent a pragmatic approach to innovation (of information and communication technologies [ICTs] and other artefacts), characterised by a.o. experimentation in real life and active involvement of users.

While there is now a certain body of literature that attempts to clarify and analyse the concept (Følstad, 2008; Almirall et al., 2012; Leminen et al., 2012), living lab practices are still under-researched, and a theoretical and methodological gap continues to exist in terms of the restricted amount and visibility of living lab literature vis-à-vis the rather large community of practice (Schuurman, 2015). The present special issue aims to assist in filling that gap.

This does not mean that the development of living labs has not been informed by scholarly literature previously (Ballon, 2015). Cornerstones include von Hippel’s (1988) work on user-driven innovation because of its emphasis on the ability of so-called lead users, rather than manufacturers, to create (mainly ICT) innovations. Another cornerstone is Silverstone’s (1993) theory on the domestication of ICTs that frames technology adoption as an ongoing struggle between users and technology where the user attempts to take control of the technological artefact and the technology comes to be fitted to users’ daily routines. It has been said that, in living labs, von Hippel’s concept of user-driven design and Silverstone’s insights into the appropriation of technologies are coupled dynamically through experimentation (Frissen and Van Lieshout, 2006).

The concept of stigmergy, which refers to addressing complex problems by collective, yet uncoordinated, actions and interactions of communities of individuals, has gradually become the third foundational element, as social media have provided online platforms for stigmergic behaviour, which has subsequently been linked to the “spontaneous” emergence of innovations (Pallot et al., 2010; Kiemen and Ballon, 2012). A fourth cornerstone is the literature on open and business model innovation, which argues that today’s fast-paced innovation landscape requires collaboration between multiple business and institutional stakeholders, and that the business should use these joint innovation endeavours to find the right “business architecture” (Chesbrough, 2003; Mitchell and Coles, 2003).….(More)

Smarter Government For Social Impact: A New Mindset For Better Outcomes

Curated on Posted on by Stefaan Verhulst

Report by Drive Impact: “From Kentucky to Arkansas to New York, government leaders across the United States are leveraging data, technology, and a heightened focus on outcomes to deliver social impact with modern solutions. In Louisville, Kentucky, “smart” asthma inhalers track where attacks happen citywide and feed this data into a government dashboard, helping policymakers identify hot spots to improve air quality and better treat patients. Policy leaders in New York and Texas are reforming Medicaid with “value-based payments” that reward doctors for performing preventive procedures that protect against costly tests and treatments down the road. In Arkansas, a digital government platform called Gov2Go connects citizens with a personalized console that sends reminders to file paperwork, renew registrations, and seek out other relevant government services.

What all of these initiatives share is a smarter approach to policymaking: an operating belief that government can and should reward the best policies and programs by paying for the best outcomes and using the best data and technology to identify solutions that can transform service delivery and strengthen citizens’ connection to government. These transformational policies are smarter government, and America needs more of it. Smarter government uses an outcomes mindset to embrace cutting-edge data and technology, make better funding choices, learn from policy failures and successes, act on new knowledge about what works, and align clear goals with the right incentives to achieve them. Americans need a smarter, outcomes-focused government for the twenty-first century—one that can identify and address systemic barriers to effective service delivery and seek out and promote innovative solutions to our greatest social challenges….(More)”

Making Open Innovation Ecosystems Work: Case Studies in Healthcare

Curated on Posted on by Stefaan Verhulst

New paper by Donald E. Wynn, Jr., Renee M. E. Pratt and Randy V. Bradley for the Business of Government Center: “In the mist of tightening budgets, many government agencies are being asked to deliver innovative solutions to operational and strategic problems. One way to address this dilemma is to participate in open innovation. This report addresses two key components of open innovation:

  • Adopting external ideas from private firms, universities, and individuals into the agency’s innovation practices
  • Pushing innovations developed internally to the public by reaching out to external channels

To illustrate how open innovation can work, the authors employ the concept of the technological ecosystem to demonstrate that fostering innovations cannot be done alone.

Successful technological ecosystems create innovation through the combination of five key elements:

  1. Resources – the contribution made and exchanged among the participants of an ecosystem
  2. Participants – the characteristics of the participants
  3. Relationships – the relationships and interaction among the participants
  4. Organization –of the ecosystem as a whole
  5. External environment in which the ecosystem operates

This report examines both strategies by studying two cases of government-sponsored participation in technological ecosystems in the health care industry:

  • The U.S. Department of Veterans Affairs (VA) built a new ecosystem around its VistA electronic health records software in order to better facilitate the flow of innovation practices and processes between the VA and external agencies and private firms.
  • The state of West Virginia selected a variant of the VistA software for deployment in its hospital system, saving a significant amount of money while introducing a number of new features and functionality for the seven medical facilities.

As a result of these studies, the authors have identified 10 best practices for agencies seeking to capi­talize on open innovation.  These best practices include encouraging openness and transparency, minimizing internal friction and bureaucracy, and continuously monitoring external conditions….(More)”

Civic Jazz in the New Maker Cities

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 at Techonomy: “Our civic innovation movement is about 6 years old.  It began when cities started opening up data to citizens, journalists, public-sector companies, non-profits, and government agencies.  Open data is an invitation: it’s something to go to work on— both to innovate and to create a more transparent environment about what works and what doesn’t.  I remember when we first opened data in SF and began holding conferences and hackathons. In short order we saw a community emerge with remarkable capacity to contribute to, tinker with, hack, explore and improve the city.

Early on this took the form of visualizing data, like crime patterns in Oakland. This was followed by engagement: “Look, the police are skating by and not enforcing prostitution laws. Lets call them on it!”   Civic hackathons brought together journalists, software developers, hardware people, and urbanists. I recall when artists teamed with the Arup engineering firm to build noise sensors and deployed them in the Tenderloin neighborhood (with absolutely no permission from anybody). Noise was an issue. How could you understand the problem unless you measured it?

Something as wonky as an API invited people in, at which point a sense of civic possibility and wonder set in. Suddenly whole swaths of the city were working on the city.  During the SF elections four years ago Gray Area Foundation for the Arts (which I chair) led a project with candidates, bureaucrats, and hundreds of volunteers for a summer-long set of hackathons and projects. We were stunned so many people would come together and collaborate so broadly. It was a movement, fueled by a sense of agency and informed by social media. Today cities are competing on innovation. It has become a movement.

All this has been accelerated by startups, incubators, and the economy’s whole open innovation conversation.  Remarkably, we now see capital from flowing in to support urban and social ventures where we saw none just a few years ago. The accelerator Tumml in SF is a premier example, but there are similar efforts in many cities.

This initial civic innovation movement was focused on apps and data, a relatively easy place to start. With such an approach you’re not contending for real estate or creating something that might gentrify neighborhoods. Today this movement is at work on how we design the city itself.  As millennials pour in and cities are where most of us live, enormous experimentation is at play. Ours is a highly interdisciplinary age, mixing new forms of software code and various physical materials, using all sorts of new manufacturing techniques.

Brooklyn is a great example.  A few weeks ago I met with Bob Bland, CEO of Manufacture New York. This ambitious 160,000 square foot public/private partnership is reimagining the New York fashion business. In one place it co-locates contract manufacturers, emerging fashion brands and advanced fashion research. Think wearables, sensors, smart fabrics, and the application of advanced manufacturing to fashion. By bringing all these elements under one roof, the supply chain can be compressed, sped-up, and products made more innovative.

New York City’s Economic Development office envisions a local urban supply chain that can offer a scalable alternative to the giant extended global one. In fashion it makes more and more sense for brands to be located near their suppliers. Social media speeds up fashion cycles, so we’re moving beyond predictable seasons and looks specified ahead of time. Manufacturers want to place smaller orders more frequently, so they can take less inventory risk and keep current with trends.

When you put so much talent in one space, creativity flourishes. In fashion, unlike tech, there isn’t a lot of IP protection. So designers can riff off each other’s idea and incorporate influences as artists do. What might be called stealing ideas in the software business is seen in fashion as jazz and a way to create a more interesting work environment.

A few blocks away is the Brooklyn Navy Yard, a mammoth facility at the center of New York’s emerging maker economy. …In San Francisco this urban innovation movement is working on the form of the city itself. Our main boulevard, Market Street, is to be reimagined, repaved, and made greener with far fewer private vehicles over the next two years. Our planning department, in concert with art organizations here, has made citizen-led urban prototyping the centerpiece of the planning process….(More)”