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The two sides of institutional innovation

Promises and Limits of Democratic Participation in Latin America

Leonardo Avritzer

The introduction defines political/democratic innovation as the capacity of government to express political will and civil society inputs in several formats. Usually, these inputs are linked to the introduction and/or implementation of public policies, through which civil society and the state interact in order to democratize the state itself. It based on this definition that different experiences of innovation will be analysed.

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Richard Shearmur

Innovation is assumed by many analysts to be intimately connected with cities and with clusters of economic activity. The geography of innovation – as an area of study – does not seriously examine innovation by isolated firms or in remote areas, which it considers atypical. In this chapter I argue that the evidence upon which this assumption is based is biased towards identifying innovation in clusters and urban areas, and that innovation theory contributes to this bias. I outline a theory that accounts for innovation both in urban and in remote areas, and which also accounts for the decline of many remote regions. This theory rests upon distinguishing initial firm-level innovation (that occurs similarly in urban and remote areas, as an increasing body of evidence shows) from subsequent growth and innovation diffusion (that often requires the market access and resources that cities provide). Evidence is presented that corroborates certain aspects of this theory. The chapter’s central argument is that once urban bias is overcome the geography of innovation can abandon some of its inhibiting assumptions and move in new directions.

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Pierre Desrochers, Samuli Leppälä and Joanna Szurmak

The relationship between innovation and urban diversity has drawn much interest in the geography of innovation literature. While the concept of “Jacobs spillovers” suggests a positive relationship, its underlying processes have yet to be explained satisfactorily. This chapter builds on our previous theoretical and case study work and adds new insights from the creativity literature, which is less known among urban economic development analysts. The aim is to provide a more complete account of how human creativity is both stimulated and facilitated by a diverse urban environment.

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Cyrielle Vellera, Eric Vernette and Susumu Ogawa

In the current economic landscape, users have been shown to be a highly promising and fertile external source of novel innovations. First, this chapter focuses on the importance and magnitude of the open innovation paradigm and collaborative practices. Second, this chapter underlines, through a body of work and on a wide variety of industries, the phenomenon of user innovation and stresses a theoretical and empirical development of the concept. Third, this chapter paints a striking picture of the trend of co-creation with users and shows that co-creation with users has grown in recent years with the deployment of online communities, interactive platforms for creation, self-service toolkits and companies specialized in crowdsourcing. Finally, this chapter provides details on two favored and atypical co-creation targets with a high potential for innovation – lead users and emergent nature consumers – and discusses the benefits and limits of co-creation and co-innovation practices with users.

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Kai Jakobs

This chapter discusses how companies may use the management of their information and communication technology (ICT) standardization activities to improve competitiveness and innovativeness. Case studies are presented to show different approaches to standardization management adopted by different types of companies in different parts of the ICT sector. The cases illustrate the variety of approaches to standards and standardization that firms and organizations might adopt, relative to several essential factors as drawn from the literature on both standards and innovation. This shows how different strategies emerge depending upon the relative importance of various strategic and tactical factors in participating firms. The chapter concludes by illustrating the variety of approaches to standards and standardization that managers in firms and organizations might adopt.

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Knut Blind

This chapter reviews the role of standards in creating new knowledge and applying it to products and services. Participation in standards development can add significantly to the knowledge base of innovating firms, but standards can also generate negative effects. How they are developed has a significant effect on their outcomes in terms of stimulating or retarding innovation. Questions of the legitimacy of standards and the role of institutions and rules in reflecting a legitimate consensus of affected stakeholders are also critical is this regard. The chapter explores such fundamentals in terms of their economic implications for several of the key activities and practices associated with innovation, for example research and development, public procurement, intellectual property rights, technology transfer and the creation of market demand.

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Edited by Richard Hawkins, Knut Blind and Robert Page

Innovation and standardization might seem polar opposites, but over many years various scholars have noted close connections between the two. This Handbook assembles a broad range of thinking on this subject, with contributions from several disciplinary perspectives by over 30 leading scholars and experienced practitioners. Collectively, they summarize and synthesize the existing body of knowledge – theory and evidence – pertaining to standards and innovation, and provide insights into how this knowledge can be useful to scholars, industrial strategists, policy-makers and standards practitioners.
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Henk J. de Vries and Paul Moritz Wiegmann

Most studies of the impact of standardization on innovation focus on manufacturing sectors for which they often report positive impacts. However, in many countries services represent more than 50 per cent of gross domestic product, and while the number of standards for services is small, it is increasing. This chapter addresses service standardization and its impacts on innovation. First, it presents a model that allows to study service standardization and innovation in a systematic way. Next, the authors develop a conceptual model of the impact of service standards and involvement in service standardization committees on service innovation at the level of individual organizations as well as at market level. Testing this model in an empirical case, they show a positive impact of a standard at both levels, which seems to be enhanced by participation in standards setting. However, this is just one case and many categories of service standards and of service innovation apply, so more research is needed; the chapter ends with suggested directions for future research.

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Richard Hawkins and Knut Blind

This introduction explores the conceptual background and definitions that pertain to understanding standards and standardization in the context of innovation. A general overview is provided of the themes explored in the chapters that follow.

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Robert Page

This chapter discusses the history and current development challenges of ISO 14000, one of the largest and currently most high-profile international standards frameworks. Climate change is certainly among the most pressing international social and political issues. One of the major problems in obtaining consensus on how to control or reduce it centers on how industry can manage, measure and monitor progress in meeting national and international environmental targets. The ISO 14000 framework of environmental management standards is an ongoing global effort to facilitate this objective. The chapter shows that although the ISO 14000 framework is an innovation in itself in terms of environmental management, the constant challenge is to ensure that the goals of environmental mitigation though standards also support efforts to innovate more broadly in environmental technologies and practices throughout the industrial spectrum.