1. How ICT research supports Innovation Ecosystems and SMEs Francesco Nachira European Commission DG Information Society and Media Head of Sector “Technologies for Digital Ecosystems” http://www.digital-ecosystems.org Brussels, 1. 6. 2006 UEAPME workshop The place of the SME in the ICT & eBusiness developments

2. Brussels, June-1.-2006Francesco Nachira - European Commission # 2 of 29 Knowledge-base economy: migrating towards digital economies mediated by ICT More interrelations More knowledge More innovation More specialised resources Small companies have limited specialised resources and difficulties To access to global value chains To access to knowledge To access to specific services (e.g. legal) To adopt new technologies (ICT) To adopt new business models Threshold and Digital Divides (geogr..; SMEs vs. LEs) SMEs : a weakness or a potential for Europe ? SMEs But the only hope for a SMEs is to become BIG?

3. Brussels, June-1.-2006Francesco Nachira - European Commission # 3 of 29 SMEs in a Dynamic knowledge-based global economy Growth Node Business EcosystemIndustrial District Virtual cluster How to reach the critical mass of resources ? How to cope with the increased complexity ?

4. Brussels, June-1.-2006Francesco Nachira - European Commission # 4 of 29 Peculiarities of EU economical structure Cultural diversity (model of business, approaches, practices, …) Dimensions of enterprises (SMEs vs. LE) Historical presence of clusters with diffused tacit unstructured knowledge, skills and infrastructure How to turn peculiarities and diversity into competitive advantages How to foster innovation, creativity and autonomy of SMEs ? Which policies, which paradigms ? Which infrastructures ?

5. Brussels, June-1.-2006Francesco Nachira - European Commission # 5 of 29 The Business Ecosystem Create a climate conductive to investments, innovation and enterpreneurship: the conditions for –Attracting biz and entr. direct investments –Attracting enterprises –Attracting skilled and qualified workforce Service & technical Infrastructure Business & financial conditions Human capital, knowledge and practices Governance regulations & industrial policy How to create a favourable environment for business and people: a socio-economic eco- system ?

6. Brussels, June-1.-2006Francesco Nachira - European Commission # 6 of 29 Which Paradigms for Innovation Ecosystems ? To create favourable environment Engineers: “problem solving” approach: isolate problem, identify variables, make a plan … Economy as machine Complexity Ecosystemic approach: economy as machine -> economy as ecosystems (garden) Processes: Interpretation - Partecipation - Collaboration - Harmonis. of interests Plurality and richness of: economic actors, subjects, ideas and interaction, aggregation

7. Brussels, June-1.-2006Francesco Nachira - European Commission # 7 of 29 ICTs catalyse improve New organizational & business models Policy supports The Innovation Ecosystems: An integrated approach for development “Digital Ecosystem Infrastructure” Derivative work from P.Dini - London School of Economics to reduce the digital divides - among regions - among SME and LE to foster local economic growth and innovation; new forms of dynamic business interactions, enabled by new paradigms and digital ecosystem technologies Growth Competitiveness, market & internal efficiency Cooperation & innovation networks improve lead to encourage provide resources Open Source Evolutionary infrastructure make viable shape & foster supports support Bio-Paradigms enhances

8. Brussels, June-1.-2006Francesco Nachira - European Commission # 8 of 29 Which ICT technology for innovation ecosystems ? “… the actual slowly changing network of organizations will be replaced by more fluid, amorphous and often transitory structures based in alliances, partnership and collaborations”... “…building a community that share business, knowledge and infrastructure, develop creativity” “The support to SMEs and innovation requires a further stage in ITC technology adoptions and an infrastructure which exploits the dynamic interaction (cooperation and competition) of several players in order to produce systemic results; innovation and economic development.” “Towards a Network of digital business ecosystems fostering the local development ” (EC, Discussion paper, 2002) But one business model fits all ? But one infrastructure fits all ?

9. Brussels, June-1.-2006Francesco Nachira - European Commission # 9 of 29 The Digital Ecosystem, the carrier for services and ideas (+ their integration) Courtesy from DBE project Who owns it? What does it contain? What‘s the destination? Which is the revenue model ? Owner Serial-ID Check-ID Country ISO Ident

10. Brussels, June-1.-2006Francesco Nachira - European Commission # 10 of 29 The digital ecosystem Which ICT infrastructure for this new paradigm ? How could ICT support the transition from industrial district to knowledge-based business ecosystem ? Computing and telecom. Infrastructure Diffused + Digitalised knowledge affordable ICT services ICT service- knowledge- oriented architecture How to create ICT infrastructure that allows digital components to exhibit behaviour of natural ecosystems? Integrated scalable approach with intermediate results

11. Brussels, June-1.-2006Francesco Nachira - European Commission # 11 of 29 What is a Digital Ecosystem ? THE DIGITAL ECOSYSTEM is a pervasive “digital environment” that supports the business ecosystems that is populated by “digital components” that evolves / adapts to local conditions with the evolution of its components THE “SOFT” SUPPORT INFRASTRUCTURE, WHICH MEDIATES SERVICES & INFORMATION (knowledge) EMPOWERING THE NETWORKING AND THEIR SHARING architecture / structure

12. Brussels, June-1.-2006Francesco Nachira - European Commission # 12 of 29 What is a Digital Component ? DIGITAL COMPONENTS could be: software components, applications, services, knowledge, business processes and models, training modules, contractual frameworks, laws....... and hopefully a mixture of all these formalised knowledge ANY USEFUL IDEA, EXPRESSED IN A LANGUAGE (formal or natural), DIGITALISED AND LAUNCHED ON THE NET, WHICH CAN BE PROCESSED (by computers and/or humans) Repres. of service: biz model rev. model comp. model ref. to Ontology

13. Brussels, June-1.-2006Francesco Nachira - European Commission # 13 of 29 The innovation ecosystem Digital ecosystem: an o-s, public, distributed, pervasive environm. - transport, identification, match (services, knowledge) - spontaneous evolution, adaptation and composition of services, digital content and sw components - embedding knowledge, biz rules, revenue models, ontology... Derivative work from Salzburg Technical University

14. Brussels, June-1.-2006Francesco Nachira - European Commission # 14 of 29 Economy changes needed infrastructures too Hamburg, Harbour in 1900Hamburg, Harbour in 2006 The Digital Ecosystem is the transport infrastructure for the services and knowledge Courtesy from DBE project

15. Brussels, June-1.-2006Francesco Nachira - European Commission # 15 of 29 Conceptual Layers of ecosystems

16. Brussels, June-1.-2006Francesco Nachira - European Commission # 16 of 29 Conceptual Layers of ecosystems

17. Brussels, June-1.-2006Francesco Nachira - European Commission # 17 of 29 Conceptual Layers of ecosystems

18. Brussels, June-1.-2006Francesco Nachira - European Commission # 18 of 29 Conceptual Layers of ecosystems

19. Brussels, June-1.-2006Francesco Nachira - European Commission # 19 of 29 Conceptual Layers of ecosystems

20. Brussels, June-1.-2006Francesco Nachira - European Commission # 20 of 29 The innovation ecosystem Derivative work from Salzburg Technical University Economy (business ecosystem) Structural coupling ICT (digital ecosystem)

21. Brussels, June-1.-2006Francesco Nachira - European Commission # 21 of 29 ICT-SME Inputs Digital (ICT) Services Digital Ecosystem Dynamic aggregation of ICT-services ICT service Rules, models, context Aggregated Complex, personalised, ICT-services Needs of ICT solutions, Profile of users, of ICT needs DE structural services* Digital Ecosystem infrastrucutre DE structural services, e.g. Accounting Billing Authentication Reputation Decentralized Data Storage Fitness data

22. Brussels, June-1.-2006Francesco Nachira - European Commission # 22 of 29 SME Offers 2. Final Services Digital Ecosystem Dynamic aggregation of final services (and SMEs) ICT serviceICT productICT service Rules, models, context Aggregated Complex, personalised, Services / Solutions Needs of ICT services, solutions, profile of providers, profile of users Digital Ecosystem infrastructure 1. Networks of SMEs DEstructural services* Digital Services, applications

23. Brussels, June-1.-2006Francesco Nachira - European Commission # 23 of 29 DE Roadmap - past events Sep 2002 - Discussion Paper End 2002 - Cycle of Workshops Nov 2003 - Start 1st integrated project DBE Apr 2005 - Cycle of Workshops - re-tuning DE concept June 2005 - Position paper - Research vision 2010 July 2005 - Int’l Summer School - EU bisness ecosystems Nov 2005 - WSIS - Int’l interest for EU models Feb 2006 - 2nd digital ecosystem cluster meting - Launch of Innovation Ecosystem Initiative

24. Brussels, June-1.-2006Francesco Nachira - European Commission # 24 of 29 DE Roadmap - Consultation Process Feb-June : Multi-stakeholder open consultation process for the Innovation Ecosystem Initiative. Defining future innovation and research initiatives in digital ecosystems and priorities (FP7) strategy and instruments for a pan-European deployment and mechanisms for local self-sustainability (CIP; structural funds, nat’l initiatives) roadmap for technical development (needs, …) structures and the bodies needed for – the sustainability of the local/regional digital business ecosystems, – the global technical interoperability of the technical infrastructure, – the definition of a “bill of rights”: the “constitutional” ethical rules and the obligations, of the digital ecosystems – the legal framework

25. Brussels, June-1.-2006Francesco Nachira - European Commission # 25 of 29 The cluster of EU FP7 projects

26. Brussels, June-1.-2006Francesco Nachira - European Commission # 26 of 29 The Deployment - The International network

27. Brussels, June-1.-2006Francesco Nachira - European Commission # 27 of 29

28. Brussels, June-1.-2006Francesco Nachira - European Commission # 28 of 29 DE Roadmap - future June 2006 - Start of 1st NoE on Ecosystems July 2006 - Stakeholder position paper Sept 2006 - Staff working paper on Innovation Ecosystems Nov 2006 - DBE conference Dec 2006 - Initial governance structures End 2006 - 15 Digital Ecosystem Pilot regions, 1st national charter

29. Brussels, June-1.-2006Francesco Nachira - European Commission # 29 of 29 More information … http://www.digital-ecosystems.org