Systemic Innovation and Entrepreneurship
 Draft by Dino Karabeg, January 14, 2012
 Enabling systemic innovation
 At the workshop that Knowledge Federation organized within the Triple Helix
 IX conference at Stanford University last July, it was explained that the core
 purpose of Knowledge Federation is to ‘enable systemic innovation.’ This
 requires an explanation.
 A new wave of innovation is often enabled by a new technology (think about
 the transistor, the VLSI chip or the computer). The Web too in principle
 enabled innovation to expand into a new domain, where new socio-technical
 systems for knowledge work (journalism, education, research, governance...)
 are created. Yet this new wave of innovation has not yet reached us. The Web
 – as well as other information technologies – are largely being used to power
 the patterns of use and interaction that have been developed based on old
 technology, such as the writing desk and the filing cabinet (in the user
 interface of the personal computer) and the printing press and the classroom
 [1].
 We are now in a paradoxical situation: While our children are solving the
 challenges of World of Warcraft by collaborating globally and in real time
 using state-of-the-art virtual world technology, we serious researchers still try
 to tackle increasingly urgent and complex real-world challenges by publishing
 old-fashioned articles and going to conferences. This state of affairs obviously
 cannot last. But what is the alternative? And who will create it? While Blizzard
 Entertainment had no difficulty creating World of Warcraft within a traditional
 company setting, no game manufacturer can re-create the ‘game’ of
 journalism or of academic publishing and education. The journalists, and the
 academic researchers and educators, i.e. the people practicing in those
 professions, need to evolve new ways of working themselves. But they cannot
 do this on their own, because they lack the relevant technical and other
 expertise. And because ‘their job’ is to practice within their professions as they
 have learned them, not to recreate their professions.
 Knowledge Federation self-organizes as an answer to the above challenge. In
 Knowledge Federation field experts, such as journalists, researchers and
 educators, collaborate with knowledge media researchers and developers, and
 with other stakeholders as needed. New systemic solutions are created and
 tested by using ‘bootstrapping’ or self-organization – the community uses
 itself as a sandbox to develop and test solutions.
 As a result of several years of such self-organization, at our Stanford
 workshop we were able to introduce Knowledge Federation as a ‘missing
 piece’ that is still needed to trigger this new wave of innovation. Knowledge
 Federation has deliberately been conceived as a collaborative ‘The Game-
 Changing Game,’ where ‘winning positions’ are new systemic solutions for key
 areas of knowledge work put to use. In other words, an explicit goal of
 Knowledge Federation is to change the practice.
 To get an idea of the ‘winning stakes‘ in this game, for each of the ‘players‘ and
 for the society, think of a new systemic solution for knowledge work as a new
 piece of machinery, whose ‘nuts and bolts’ are the information technologies
 and the people engaged in knowledge work, as researchers and students,
 journalists and readers. The usefulness of each nut and each bolt in a piece of
 machinery is of course limited by the machine itself – whether it’s properly or
 poorly designed, and whether it is well functioning or dysfunctional. It will turn
 out that the possibilities for improvement on the systemic level are enormous:
 those large-scale ‘machineries’ we are talking about have never been
 designed; oddly, the intensive waves of innovation that gave Information Age
 its name have so far been focused only on individual nuts and specific bolts;
 they have entirely ignored the whole thing – the way those nuts and bolts are
 put together.
 As the following example might illustrate, the ‘winning stakes’ in this Game-
 Changing Game are uncommonly large, even for a new wave of innovation.
 Systemic innovation in journalism and academic research
 At the workshop “Co-Creating an Innovation Ecosystem for Good Journalism,”
 which Knowledge Federation organized in Barcelona last November, a zeroversion
 plan for a radically changed public informing has been created. Its
 details are now being developed within Knowledge Federation. In this
 designed systemic solution, journalists collaborate with academic researchers,
 the ‘crowd’ and other stakeholders, by using recently created collaborative
 knowledge-work technology, to co-create – and then operate – media
 information as it might be needed to enable contemporary democracy to
 tackle contemporary challenges. The details of this scheme are provided in a
 separate document [2]. What I would like to highlight here is the shadow this
 new way of organizing knowledge work might cast upon the conventional
 practice, where the vast proportion of the knowledge created in academia
 remains locked in academic specializations or ‘silos,’ while the journalists seek
 for the next sensation that will attract the attention of their readers...
 The Game-Changing Game has so far been played in the manner of positional
 chess: By making 'moves' that make other good 'moves' possible or more
 likely to succeed. In a recent letter, I have illustrated the nature of the 'position'
 we are in after Barcelona as follows:
 I remember this brief story from one of my first school books: The
 grandmother prepared a ‘remedy’ for a sick boy, which consisted of a frog
 leg – so that the sickness would spring out of his body, and seven pebbles –
 so that it may jump over seven mountains etc. Then his mother gave him a
 real medicine, and the boy recovered quickly.
 I mention this story because it illustrates the notion of a paradigm: if you
 happen to see some part of our conventional social reality in similar terms as
 you see that grandmother’s ‘remedy,’ then you might be on the track of a new
 paradigm. At my recent lecture in Europe House Zagreb, which you attended,
 I showed how Knowledge Federation is developing a new paradigm in
 knowledge work as a whole. We are not claiming that the sciences are like
 that grandmother’s ‘remedy;’ and even the commercial journalism has its place
 and its reason for existence. It is, however, not difficult to see that the whole
 thing – specialized, isolated sciences, journalism whose aim is to attract
 attention... – is neither the best way to take advantage of human talent and of
 technology, nor a ‘collective mind’ that can give meaning and direction to an
 advanced civilization.
 This letter was addressed to Iva Ra⌃ica, a gifted third-year student who leads
 eSTUDENT’s Team for International Cooperation. eSTUDENT is a student
 excellence network at the University of Zagreb, which includes students from
 Economics, EECS and Mathematics and Natural Sciences. I wrote this letter as
 part of a dialog, through which some of the forthcoming moves in the Game-
 Changing Game are being prepared:
 • I am proposing to create in Zagreb a mini- student version of the “Innovation
 Ecosystem for Good Journalism,” which was created in Barcelona. The
 eSTUDENT organization already has the required kinds of expertise, only
 journalism is missing. Professor Nenad Prelog, who leads the study of
 journalism in Zagreb, and I have already talked about creating a project with
 eSTUDENTs where also his students would also participate.
 • To streamline the process of putting the results of this development into
 actual practice, we are organizing a Startup Weekend in mid-September,
 where we will design and put into practice suitable entrepreneurial
 undertakings, as explained below.
 • Through the IUC Dubrovnik, more concretely through the already planned
 Knowledge Federation-staged course “Systemic Innovation for Collective
 Creativity” we would ‘internationalize’ the mentioned project.
 • I know I am not alone in desiring a (academic, entrepreneurial and cultural)
 scheme where the young people are developing elements of global positive
 change. Already in Spring 2012 we will begin contacting potential sponsors.
 Systemic innovation in entrepreneurship
 Entrepreneurship streamlines human and other resources to provide benefits
 to society and jobs and wealth to participants, by creating new impulses in
 business. Reportedly, however (owing to the obvious difficulty to find yet
 another gadget that fits into the existing scheme of things, and which has not
 yet been invented) entrepreneurship has often resulted in ‘new shaving razor
 with four blades’–type of entrepreneurial ideas.
 Systemic innovation, backed by the Game-Changing Game, offers to
 entrepreneurs the first-mover advantages in a completely new game. the
 following metaphor might illustrate the nature of those advantages:
 While an investment into oil drilling and gas stations would make little
 sense in a world where the only means of transportation is the horse, it
 made lots of sense in the world where Ford had just undertaken to
 mass-produce automobiles. Systemic innovation in any domain offers
 similar first-mover advantages to its participants.
 Hence the project that Knowledge Federation may now begin in Zagreb is
 also an instance of systemic innovation in entrepreneurship.
 The knowledge federation approach to systemic innovation
 What we have just seen illustrates a particular approach to systemic
 innovation, which we are calling ‘knowledge federation.’ Political federation
 brings together formerly independent political units in a way that preserves
 their identity and part of their autonomy. Knowledge federation organizes
 various actors in knowledge work (scientists, journalists, students,
 entrepreneurs...) in an analogous way.
 What I find particularly attractive about the project we are proposing to begin
 in Zagreb is that its goal is to design a single, concrete system (an ‘innovation
 ecosystem for good journalism’), and yet its outcomes are systemic
 innovations in all major components of knowledge work: journalism, research,
 education, entrepreneurship and governance. Through this act of systemic
 innovation, those areas are brought into a harmonious, synergistic
 relationships with one another; each of them benefits from all others.
 Notes
 [1] See the translation of Drago Pilsel’s article “Knowledge
 Federation” (subtitle: “What will the creation of knowledge look like in the
 future?”in Croatian Novi List of Dec. 7, 2008) at http://heim.ifi.uio.no/~dino/
 KF/NL2008.pdf
 [2] See “An innovation ecosystem for good journalism” – synopsis given in the
 detailed view (right-hand column) of http://debategraph.org/IEforGJ