A network analysis of flows of information and investments a relationship perspective on the internal and external innovation ecosystems of China's ICT sectors. Crowd-sourced English language press release-type information provides a Western view in a systems framework.

1. 中国2.0内部和外围的创新生态系统网
Martha G Russell, Neil Rubens, Camilla Yu
May 10, 2011
Photo: Kaisa Still, 2010

2. 创新生态系统网络（IEN）汇集国际跨学科的团队，旨在发展和传播新型数据
和工具，从而了解信息和通信技术在区域内起到的促进作用。
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Innovation Ecosystems Network, 2011 2

3. 虽然人们可以随时随地地沟通，但对于复杂
的全球性问题，一个人很难在某个时刻具备
所有必须的洞察力，从而做出决定。
创新产生于至少两个人之间。
团队精神是必须的。
总是有赢家和输家。

4. Strategic Value Creation Networks
• Critically important in technology development and economic
growth
• Co-creation relies the relationship infrastructure of people,
organizations and policies.
– These complex intangible relationship assets can be observed through
network analysis of small, medium and large enterprises.
– By identifying relationships through which information and financial
resources flow, visual insights toward a shared vision can be created
and strategic network orchestration can be implemented.
– Using social network analysis, these relationship patterns can reveal
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• competitive forces
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• gatekeepers
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• collaboration opportunities
• within and across sectors
• in internal and external innovation ecosystems
• around the world, including China 2.0.

5. Models of innovation
• Identify and empower influential activate
the evolution of the ecosystem
• Develop and implement programs
(meetings, funding, initiatives) to foster
co-creator networks Collaborative
Innovation
Open innovation- Networks- Gloor
Chesbrough 2003 2005
Strategic
Innovation- Hamel
and Prahalad 1994
End-user Innovation-
von Hippel 1986
Economic Innovation • Communicate complexity to co-
(producer innovation)- create vision
Schumpeter 1934
• Measure the transformation of an
innovation ecosystem

6. Innovation Ecosystems & Value Co-Creation
Innovation Ecosystems Transformation Framework
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A dynamic innovation ecosystem is characterized by a continual realignment of synergistic relationships of people, knowledge, and resources that promote
harmonious growth of the system in agile responsiveness to changing internal and external forces.
Innovation Ecosystems refer to the inter-organizational, political, economic, environmental, and technological systems through which a milieu conducive to
business growth is catalyzed, sustained, and supported.
Value is co-created for the innovation ecosystem through events, impacts and coalitions/networks that emerge from a shared vision of the desired
transformations. Data-driven metrics measure, track and visualise the transformation, empowering interaction with feedback for the shared vision.
www.innovation-ecosystems.org

7. Infrastructure for Resource Flows
- - - Relationships
The Way We USED to Think About Organizations New Organizational Chart Based on Relationships
Relationship-Focused Co-Creation Infrastructure
(Companies are interlocked through key
people – information flow, norms,
mental models.(Davis,1996)
(Visual) Social Network Analysis
“. . . allows investigators to gain new
insights into the patterning of social
connections, and it helps investigators to
communicate their results to others.“
(Freeman, 2009)

8. Relationship Interlocks
• Executives and key employees
– Transfer of technologies and knowledge, professional networks, business
culture, value-chain resources
• Directors
– US Fortune 500 firms interlocked (shared directors) with average 7 other firms
• Corporate governance embedded and filtered through social structures
– Executive compensation, strategies for takeovers, defending against takeovers
• Gerald F. Davis, “The Significance of Board Interlocks for Corporate Governance,” Corporate Governance 4:3, 1996
• Investors and service providers
– Awareness of external forces, competitive insights, resource leverage
• Relationship interlocks provide
– Social relationship “filter” for governance, information flow & norms
– Transfer of implicit and explicit know-how
– Mental models
http://fusionenterprises.ca/Business_Training.php

9. Alumni Form Value Creation Networks

10. From IEN Dataset 2010
Global video_games sector
CapDigital members in sector
manually enhanced for emphasis
Global Video & Games Sectors
Preliminary and proprietary for CapDigital
Innovation Ecosystems Network 10
CapDigital membersmanually inflated for emphasis Permission required for sharing
© 2010 Innovation Ecosystems Network

11. Networks of Female and Male Executives
in Companies in the Biotech Sector
Kaisa Still, Neil Rubens, Jukka Huhtamäki, and Martha Russell , “Networks of Executive Women in Technology-Based Innovation Ecosystems,” Technical Report

12. Traditional Data Gathering Methods
http://www.flickr.com/photos/tomatoskin/1339929731/

13. Have to react QUICKLY
http://www.flickr.com/photos/clydeorama/3495284608/

14. “There is no data like more data”
“There is no data like more data”
(Mercer at Arden. House,1985)
(Mercer at Arden. House, 1985)
Tan, Steinbach, Kumar; 2004
8,000 points 2,000 points 500 Points

15. Mashup
Easy, fast integration, using APIs and data sources to
produce results that were not the original reason for
producing the raw source data [wiki].
15

16. Higher Dimensions: Double Edged Sword
More Data is Need
bonn.de/research/projects/engel/engelpr2/pr2_thumb.jp
http://wissrech.ins.uni-
g
http://www.iro.umontreal.ca/~bengioy/yoshua_en/research_files/CurseDimensionality.jpg
Could be easier to find patterns

17. Data for Visualization & Shared Vision
Accessing Data Streams about Innovation Building a Dataset on Innovation
Crystallisation Through Visualisation The Card-Mackinlay-Shneiderman visualisation
reference model:(Card et al., 1999; Miksch, 2005)

18. Place of innovation
Innovation
Cluster- Yim
Regional
2008, 2002
Innovation
Systems-
Clusters- Porter 1998,
Metcalfe 1995
Saxenian 1994
Menlo Park (Research Park) 1948,
Stanford Industrial Park 1951,
Research Triangle Park 1959
Localized concentrations -
Marshall 1890

19. .
Number of US Technology-based companies
By sector, Dec 2009
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves”
Technical Report. Media X, Stanford University, Feb.2010.

20. .
Number of US Technology-based companies
Advertising & Web, Dec 2009
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Players and Players and Their Moves”
“Behind the Innovation Curtain: Mobile Innovation Their Moves.”
Technical Report. Media X, Stanford University, Feb.2010.
Submitted to the International Conference on Mobile Business,” Intl Conf on Mobile Business.

21. .
Number of US Technology-based companies
Biotech & Cleantech, Dec 2009
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Behind the Innovation Curtain: Mobile Players and Their Moves.”
Submitted to the International Conference on Mobile Business,” Intl Conf on Mobile Business.
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell “Leveraging Social Media for Analysis of Innovation Players and Their Moves”

22. Distance
Old
New

23. The new maps may be
based on the connections
- rather than on distance.

24. Global Perspectives - Three Examples
• Parisian Innovation Ecosystem: Digital Media
• Norwegian ICT Innovation Ecosystem
• China ICT – Western view
– Internal Ecosystems
– External Ecosystems

25. Case Study - CapDigital
Conducted stakeholder
interviews to understand
shared vision, tap
knowledge in practice,
identify transformational
metrics
•CapDigital staff
•CapDigital members:
– Small startup
– Large company
– Collaboration
Vision
To catalyze the new digital infrastructure in France with global connections
To create an ecosystem to facilitate the relationship between France and global
market
Enable Paris to become global region of the market for digital services
Innovation Ecosystems Network November
25
2010

26. From IEN Dataset 2010
Selected Paris companies Pale Red: French company
Linked people & venture/financing entities Dark Red: CapDigital member
Linked companies, people & v/f entities
1 degree
Network Graph Light Green: Foreign Venture/ firm
2 degree Dark Green: French venture firm
Parisian Innovation Ecosystem Blue: Foreign company
Preliminary and proprietary for CapDigital
© 2010 Innovation Ecosystems Network
Permission required for sharing
Innovation Ecosystems Network 26

27. From IEN Dataset 2010
Selected Paris companies Pale Red: French company
Linked people & venture/financing entities Dark Red: CapDigital member
Linked companies, people & v/f entities
1 degree Light Green: Foreign Venture/ firm
2 degree Dark Green: French venture firm
Blue: Foreign company
Preliminary and proprietary for CapDigital
© 2010 Innovation Ecosystems Network
Permission required for sharing
Parisian Innovation Ecosystem
CapDigital – France - Global
Innovation Ecosystems Network 27

28. 1
2
3
Innovation Ecosystems Network 28

29. Zone 1 Opportunity
VC Community
In Zone 1, most of the companies are highly connected with VC or other companies.
VCs are making investments actively - many high potential opportunities to funding.
Venture & financing provides local relationships
Alto-invest
Funds 6 French media companies, none are CapDigital members
Some funded by other VCs also
Some VCs and companies provide global relationships
– Unruly Media (headquartered in London)
– Unruly Media helps agencies and marketers distribute branded content on the social web.
– Using a cost-per-engagement pricing model and non-interruptive advertising formats, Unruly Media’s global network of influential blogs, cult
web properties, video sites, and social media applications brings scale, targeting, and safety to a fragmented and chaotic long-tail media
landscape.
– Founded in 2006 by Scott Button, Matt Cooke and Sarah Wood, Unruly is headquartered in London, UK.
Innovation Ecosystems Network 29

30. Zone 2 Opportunity
Potential New Members for
Cap Digital
In zone 2, most of the companies have fewer connections
There are many French based companies, to which CapDigital reach out
Some zone 2 companies already have global connections to be leveraged.
• Webwag publishes Mobile and Web widget convergent solutions, helps
users create a personalized home page with data feeds and web 2.0
services that are always accessible from any computer or mobile. Its
technologies are made available in white brand to its customers that
include Network Operators, handset and connected devices
manufacturers, service owners and media publishers.
Innovation Ecosystems Network 30

31. Zone 3 Opportunity
Expand Global Network
Many foreign companies in Zone 3 - opportunities for
CapDigital to seek international partnerships.
Wellington Partners
• A venture capital firm that invests in French and intl
firms in Digital Media and Software
• Offices in Munich, London, Palo Alto, Zuirch.
• Co-invests with a French VC.
Innovation Ecosystems Network 31

32. http://www.slowtrav.com/blog/chiocciola/Geirangerfjord.jpg

33. The Norwegian Puzzle
• Norway is a wealthy country with high standard
of living and almost NO unemployment
• Yet, low rate of technology-based innovation
• What is the future of Norway after oil reserves
have been extracted?
• Given technology targets:
– How can innovation be catalyzed?
– How can establishing global relationships be
accelerated?

34. Norwegian Tech-based Companies
Their Branch Offices and Their Financial Orgs
Example view to IEN dataset in Gephi. Companies are selected with
keyword search “Norway + Norwegian;” the funding organizations
Links show relationships associated with those companies are added Nodes represent
companies and their investors; edges indicate resource flows. The
network layout is created with Yifan Hu Multilevel algorithm and nodes
are inflated according to their indegree, i.e. the number of the
connected investors.

35. Advisors & Investors Expand Access
Investors leverage co-creation opportunities
with investments in multiple companies. Intl
companies not shown.
Companies leverage value co-creation
opportunities through relationships with
multiple investors. Some investors are
international.
Timeline analysis of investment events
reveals patterns of co-investment – an
indication of intention to co-create value
and, perhaps, stimulus programs.
IEN Dataset, July 2010

36. International Relationships for
Value Co-Creation
Huge opportunities for
international
relationships lie 2 & 3
degrees out from
Norwegian companies
IEN Dataset, July 2010
Example view to IEN dataset for keyword search. Nodes represent companies and their previous and current employees. The
network layout is created with Fruchterman Reingold algorithm and nodes are inflated according to their outdegree. Protocols
for anonymity are evolving.

37. Globalization of Norwegian ICT
Norwegian tech-based
companies with financing
are more likely to have
networked relationships.
Norwegian tech-based
companies have access to
global relationships through
current board members,
investors, and key personnel. IEN Dataset, July 2010

38. Insights About Norway
• Dual offices: regional and Oslo
• In sectors we studied
– Business locations parallel technical university programs
– Investor relationships have strong local links
• Some investing organizations are governmental programs
• Expands to Oslo when offices are in Oslo
• International relationships linked to small set of personal
relationships at executive level
– International investors drawn through executive
relationships
• Relationships through execs at Google and AOL provide channels
for global network expansion

40. Context of Investments into/from China
Socially constructed dataset, in English, openly
available– all challenges in China
Socially Innovation Ecosystems Dataset:
Constructed
Data •323 technology-based companies with one or
more locations in China
•42 Chinese, 77 foreign investment firm
Social •Investment into China US$ 5.4 B
Network •Investment originating from China
Analysis US$ 3.1 B
Insights explored:
Insights into
Innovation
The flow of financial resources into and out of
China
More illustrative than descriptive/prescriptive
results
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal
of Networks, Fall, 2010. Innovation Ecosystem Network

41. More Specific: Context of eCIS sector
eCommerce and electronic security=
eCommerce, software search, network hosting, mobile, games &video, enterprise
Initial Data Analysis:
53% (113) of the Chinese companies
Socially
Constructed from eCIS business sector
Data
50 % (66) of the foreign companies
are from the eCIS business sector
Social
Network Toward Insights about:
Analysis
Patterns and differences in the
Insights into characteristics of investment flows
Innovation
into and from China
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal
of Networks, Fall, 2010. Innovation Ecosystem Network

42. CULTIVATION
Investments into China
(receiving investments)
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell
A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.
Innovation Ecosystem Network

43. Emerging Chinese business clusters linked
by firms’ relationships
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell
A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal of Networks, Fall, 2010.

44. HARVEST
Investments from Chinese
(making investments)
Neil Rubens, Kaisa Still, Jukka Huhtamaki, Martha G. Russell, A Network Analysis of Investment Firms as Resource Routers in Chinese Innovation Ecosystem, Journal
of Networks, Fall, 2010. Innovation Ecosystem Network

45. Topline Findings
• Modes of value co-creation
• Cultivation
• Harvesting
• Chinese interlocks at the investment firm level
– Government-led investment firms
– Knowledge of government guarantees
– Investments in firms that return benefits to China
• Global interlocks at both investment firm and
enterprise levels
• Opportunity network & value co-creation
http://successbeginstoday.org/wordpress/wp-content/unexpected2.jpg

46. A Western View:
China’s Internal
Innovation
Ecosystem
Chinese
investment organizations,
companies,
branch offices

47. A Western View of
China’s
External
Innovation
Ecosystem

48. Intl investments into
Chinese companies

49. Chinese investments
into
Intl. companies

50. Innovation Ecosystem Networks Action Model
Translate, measure and transform an innovation ecosystem
Impact Measure & Track
Co-Create Source
Value Absorb
Exchange
Isolates
Shared
Vision
Transformation
Event
Coalition
Gatekeepers
Stars Interact &
Feedback
Innovation Ecosystems Network 2011 50

51. Innovation Ecosystems Network
http://www.innovation-ecosystems.org
• Martha G Russell, PhD, martha.russell@stanford.edu
– Sr. Research Scholar, HSTAR Institute
• Ben LeNail – Associate Director, Media X at Stanford University
• benlenail@pacbell.net
• Media X Visiting Researcher • Neil Rubens, PhD, neil@hrstc.org
– Assistant Professor, Graduate School of Information Systems
• Mergers & Acquisitions
– University of Electro-Communications, Tokyo
• Mario Gastel, mariogastel@zeelandnet.nl
– Graduate student, Texas Advertising, UT Austin • Jukka Huhtamäki, jukka.huhtamaki@tut.fi
– Fulbright Scholar (2009-11) – Researcher, Lecturer
– Hypermedia Laboratory (HLab) of Tampere University of Technology (TUT).
• Jiafeng (Camilla) Yu, camillayu@gmail.com
– M.A. in Advertising in Planning Track • Kaisa Still, PhD, kaisastill@yahoo.com
– The University of Texas at Austin – Knowledge Management Specialist
– Beijing DT Electronic Technology Co., Ltd
51

52. Questions?
Martha.Russell@stanford.edu
Neil@hsrtc.org
CamillaY@stanford.edu
http://4.bp.blogspot.com/_qFju91K89HM/SxRpABd1DTI/AAAAAAAABjw/6LaSJfjfk-I/s1600/Unexpected_Guests.jpg

53. THANK YOU!
www.innovation-ecosystems.org
社交架
构的数
据
社交网
络分析
对于创新的
洞察
Innovation Ecosystem Network