Abstract:
Innovation is not a zero-sum game or a standalone process. Interactions with partners and ecosystems can form synergies which can improve the effectiveness and efficiency of innovation activities. Understanding the innovation ecosystem in a firm and how it interacts with the external innovation ecosystem will be crucial for synergies to happen. Knowledge transfer and collaboration are examples of activities which if addressed properly can help create the right conditions for innovation. Firm level innovation ecosystem can be shaped better by understanding the elements of interaction and participation with the regional and national innovation ecosystem.
Innovation occurs through the process of recombining and integrating past knowledge and practices in new ways. There is a need to look at the factors which are necessary for successful innovation ecosystems and relate this into New Zealand context to come up with a model which could be replicated by firms in different sectors. It is good to replicate elements from successful models and adopt this as part of the organisation’s innovation strategy. New Zealand as a country spends comparatively less amount as percentage of GDP for R&D and private businesses also have low R&D spend. Economic size, scale and geographic barriers exist for New Zealand firms. All these challenges are visible in the three layers of national, regional and firm level innovation ecosystems.
Participatory action research was conducted on two New Zealand firms which included a survey and follow up interview. This was combined with the observational study at the firm to find out the main factors of interaction within the firm and with external innovation ecosystem. Culture, collaboration and knowledge sharing are found to be the key factors which determines the dynamics of the internal innovation ecosystem in a firm. External interactions are found to have positive influence on internal factors and vice versa.
The study looked at all the elements which are important to create a functioning innovation ecosystem. Trust, communication, commitment, absorptive capacity and knowledge spillover are found to be the main characteristic elements of a vibrant ecosystem. There is also evidence of the influence of national identity and culture on the regional and firm level innovation ecosystem. This influence was well evident in the case of New Zealand and its firms.
For firms to develop a successful innovation ecosystem they need to nurture a culture of collaboration and knowledge sharing and create a growth mindset in their employees. This is true for regional ecosystems as well as national innovation ecosystems. There is a huge opportunity for New Zealand firms to develop a synergy through positive cycles of interactions. Knowledge economy asks for more spending on R&D and focus on more value creating exports which will help
a small advanced economy like New Zealand. The country needs to diversify its export basket to add more value-added products and services. This will help the country and its economy to grow and provide more for its welfare measures. Without a systemic change in its innovation and research policy and addressing the productivity paradox it will be impossible for New Zealand to attain the general level of wellbeing the country aspires for the future. Strengthening the innovation ecosystem in New Zealand is a core requirement for the long-term prosperity of the country.