Researchers at Bocconi University suggest that informal groups, working together in areas with tough competition and poor resource management, could be the solution to creating innovation hubs. These hubs, or innovation ecosystems, bring together government, universities, and others to boost innovation and commercialize key technologies.

While a lot of attention has been given to how these ecosystems evolve, not much has focused on the early stages of setting them up. The study looks at how these ecosystems can overcome hurdles that have been blocking their development for years, using the example of Israel as a case study.

Organizational problems

In Israel, the struggle to establish a nanotechnology ecosystem wasn’t mainly because of tech problems but organizational ones. Issues like a messy bureaucracy, bad resource handling, and conflicting goals between the government and universities created a tough environment. This situation went on for about 20 years until two unrelated events changed things.

First, an informal group called the Forum for Research Infrastructure stepped in to fill the gaps left by government shortcomings. This group worked alongside formal structures, bringing government officials together to pool their resources.

Secondly, the Russell Berrie Foundation in the US promised a big donation to Technion, Israel’s top science university. But there was a condition: the Israeli government and Technion had to match the funds. This triggered other universities to adopt the same model for their nanotechnology research centers.

Growing coopetition

This shift led to what the researchers call “coopetition” — a mix of competition and cooperation. Even though there was initial competition, cooperation started happening for things like sharing resources, working together on strategies, handling administration, and building a common identity.

The actors realized that competition was stopping them from achieving their personal goals, so they had to cooperate. Once this realization hit, the process took off. The only thing left was to create and put in place the rules to govern the innovation ecosystem, which turned out to be a relatively easy task.

“We reveal how resource constraints and deficient bureaucracy mount organizational barriers and reinforce conflict, which prevented the ecosystem from emerging years after the technology was discovered. For the ecosystem to emerge, these impediments need to be dismantled via organizational metamorphosis and transition to coopetition by the ecosystem’s members, who align their interests and pool resources,” the researchers conclude.

“Our theory can guide policymakers, universities, and entrepreneurs in identifying bottlenecks that delay commercialization and in shaping the evolution of innovation ecosystems. We underscore the role of informal voluntary organizations in overcoming bureaucratic hurdles and advocate cooperation among competing actors that strive for a shared mission.”