February 2008 -- Innovation and Innovation Management - Perspectives from Around the World

[Sue Klein Lebeck]

February 2008

Innovation and Innovation Management:
Perspectives from Around the World
Panel discussion with worldy members of the Innovation Society
moderated by Sue Lebeck and Howard Lieberman

Join us as we discover what Innovation Society members observe as they work with innovators and innovation managers from across the northen hemisphere. Discover perspectives from Japan, Pakistan, China, Israel, Finland, Sweden, Spain, France, Italy, Germany, England and Canada, as we enjoy a lively panel discussion with:

Kimberly Wiefling, consultant and innovation teacher
Francine Gordon, innovation teacher
Farrukh Shah Khan, technology programming producer
Tom Buckholtz, business advisor
Max Sims, industrial designer
Harlan Jacobs, angel investor and incubator director
,
Learn about our colleagues' globe-hopping projects. Listen to what they have discovered while working with distinct innovation cultures. Hear about cultural attitudes toward innovation, innovators, idea-development, risk management, funding and more. Discover the unique innovation challenges -- and advantages -- that might exist in other innovation communities.

Bring your curiosity, your questions, and your own worldly experience.
Join us for the conversation!

[Sue Klein Lebeck]

Notes and Gems....

February 2008

Innovation and Innovation Management:
Perspectives from Around the World

During our Feature Presentation, I noted these observations on innovation and innovation culture from our worldly panel members. Thank you, Kimberly, Francine, Max, Tom and Harlan! Thank you also to our audience members who added to the conversation and these observations.

Observations on Japan:
- While select companies can be exceedingly innovative (e.g. Toyota), many more others are not. They are open to innovation, but unsure what to do. While a Karaoke attitude reigns after work, a more controlled attitude prevails in the workplace.
- Japanese culture notices and appreciates beauty: Cherry blossoms are treasured because “there is a brief period of beauty and then its is gone”.
- Japan looks to Silicon Valley as a source of inspiration.
- Currently, Failure is often fatal. However, the old guard is changing. They recognize the need to change, and are bringing in teachers from the U.S. to teach their successors a more failure-tolerant and innovative attitude (e.g. make decisions with 50% confidence; stick with an idea and take the next steps, i.e. don’t drop the chickenJ). The “series of workshops” from U.S. teachers is really a model for team-based consulting.
- Note that although the elder leadership does not wish to change itself, it is preparing their successors, as they see this as serving the greater good of Japan. Prepare to see a big change.
- This change agency invited from the outside is very significant (from a country whose word for “foreigner” literally means “poison”).


Observations on China:
- Hundred-year planning is part of the mindset.
- A money-saving attitude, and a resistance to paying people more for innovative performance, are among the challenges.
Programs like Google’s 20% exploration time, or Cisco’s Fellow program are incredulous to Chinese leaders, who are accustomed to controlling the use of employees’ time. The trust required for innovation time is generally not present.
- Greater innovation freedom can be found in community activist work, than in the workplace
- Chinese leaders are sending their folks to other places to find out what they are doing.
- Though a culture of non-participation may reign in Shanghai, it can be broken down in a classroom in Silicon Valley.
- People are seeking resources, knowledge, and thinking tools.

Observations on Europe:
- Though Europe is a major part of the “Western World”, the pan-European attitude is based in a much older culture, and can be slow to change, socially and otherwise. In some contexts, a small product improvement may look like a huge innovation.
- While Americans “live to work”, Europeans “work to live”.
- Spain:
- A very old culture: Queen Isabella was among the first VCs; the Inquisition among the first innovations
- Universities control a lot of turf (“Research” what we ask you to), and generate few patents;
“Institutes” are sometimes created to work around existing hierarchies.
- Competitive success often plays out visually (e.g. who has the best architect)
- Cultural norms which slow innovation include:
- One screw-up per career is typically all that is allowed.
- “Ambitious” is a word with bad connotations.
- Investment models (49%/51%) do not offer market liquidity.
- People remain close to their families, so geographic mobility is limited.

Observations on Russia:
- Only since about 1991 is there an understanding of the need to market and sell. The older generation has many great engineers, but no capitalist mindset. Today’s capitalism in Russia is very young, similar to the U.S. in the 1920’s and 1930’s.
- An oil-rich country, Russia is experiencing a bubble of growth.
- With lots of money available right now, it is difficult to motivate Russia into the green/sustainable innovation mindset that is becoming strong elsewhere

Observations on India:
- Rigid government controls on business are giving way, so Indian entrepreneurs are beginning to move back to India.
- Great demand for localized products; an opportunity for innovation. (Next: make it green.)

Observations on Singapore:
- “Singapore Inc.” model prevails – the government is linked to most companies. Moving beyond Singapore is difficult, because other models prevail elsewhere
- Hidden pollution (e.g. drinking recycled sewage water) is a great problem, and an opportunity for innovation.


Observations on most places outside the U.S. (and even simply outside Silicon Valley):
- asking for money, with a knowledge that 9 out of 10 ventures fail, is simple not done.
- “the nail that sticks up gets hit by the hammer”: many cultures punish non-conformity
- the U.S. can be a cathartic broker between cultures with historical animosities.

Observations on the U.S.:
- Failing honorably is admired. This is a powerful value.
- Ironically, innovation adoption can sometimes be faster outside of the U.S: Medical innovations can become adopted sooner in other countries (eg. Sweden, Finland, even China) because the higher hurdle exists in the U.S. (e.g. it can take three years to get a “Medicare Reimbursement Code”).
- U.S. Innovation can happen anywhere in the U.S., including the “fly-over land” of the Midwest, though the jobs often go elsewhere. There is a tendency for Silicon Valley VCs to want to bring technologies developed in other domestic geographies over to Silicon Valley. A better solution is sometimes to keep the technology and its technology team at home, and send thoughtful VCs to the local geography.
- We too can get locked into our own ways and be resistant to change (e.g. too much work and a lack of balance in life)


Thank you, everyone!