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CHAPTER 4 91

Innovating Together? The Age of macy

KIRSTEN B OUND, Nesta, United Kingdom

As the globalization of and then highlights the range of ini- • facilitating international science innovation intensifies, policy mak- tiatives implemented by policy cooperation (diplomacy for sci- 4: Innovating Together? The Age of Innovation Diplo ers around the world are looking for makers around the world to shape ence); and new ways to shape and influence its these dynamics for both national • using scientific cooperation to dynamics. and mutual interest. Finally, it sets improve Until recently, these efforts have out steps that policy makers need between countries (science for focused on science diplomacy: enabling to put in place for a more effective diplomacy). international scientific approach to innovation diplomacy partnerships and influencing foreign in the future. Although science diplomacy policies with scientific evidence and may have multiple objectives, it is advice. However, there is a grow- most commonly couched in the ing interest in facilitating interna- From science diplomacy to innovation language of global public goods. tional collaboration on innovation, diplomacy A former Chief Scientific Advisor with a range of new collaborative have never really had a at the US State Department (a role approaches emerging. monopoly on influencing interna- first created in 2001, and one that At first blush, these efforts at tional relations. The power of the has since been replicated by many innovation diplomacy look merely like international countries around the world) defined a continuation of science diplomacy to shape international relationships, ‘science diplomacy’ as ‘the use of sci- into a somewhat more commercial for instance—from sidestepping entific interactions among nations to arena. Yet this is precisely what makes politics to helping avoid military address the common problems fac- international collaboration more conflict—has been demonstrated ing humanity and to build construc- complex: thorny questions need to as early as the 18th century. The tive, knowledge based international be resolved about which parties in the United Kingdom (UK)’s Royal partnerships.’# relationship are capturing the com- Society appointed its first Foreign The international networks and mercial as well as the public benefits. Secretary in 1723, nearly 60 years institutions used for science diplo- This is not to say that collaborating before the British government cre- macy have grown significantly on innovation is a zero-sum game; on ated an equivalent post.! in profile and professionalism in the contrary, such collaboration often Yet there is no doubt that sci- recent years: from the annual G7 results in strong mutual advantages. ence has become an ever more meeting of science ministers last However, recent experience has important force for intermediating held in Berlin in October 2015 and shown that policy makers, businesses, global relations in recent decades. In the first World of official and other stakeholders need a more their analysis of the trend, the Royal government scientific advisers held sophisticated approach to assessing the Society outlines three different ways in Auckland in 2014 to the creation risks and opportunities found at every in which governments have sought of a new Scientific Advisory Board stage of the innovation value chain. to support and shape these collabora- to the UN.$ This chapter describes the shift tive relationships:" Yet as science has become ever from science diplomacy to innova- • informing foreign policy objec- more a global endeavour, so has inno- tion diplomacy, drawing attention tives with scientific advice (sci- vation—not just with the relocation of to the new challenges encountered ence in diplomacy); multinational corporation R&D, but and the new skillsets required. It THE GLOBAL INNOVATION INDEX 2016 92 THE GLOBAL INNOVATION INDEX 2016 4: Innovating Together? The Age of Innovation Diplomacy lowing four types of activities: of types four lowing fol- the for support funded publicly to include considered widely is term nition of diplomacy’, the ‘innovation chain. value innovation the in link every across risks assessed be to need and opportunities laborative col- diplomacy, this In diplomacy. innovation of terrain treacherous times at and expansive more the to collaborations— research academic promoting by operationalized are often diplomacy—which science of move agendas beyond the traditional origin. their from everfurther discoveries exploit commercially to ability the and chains value of kinds many of globalization the with also ditions of ‘radical uncertainty’.€ uncertainty’.€ ‘radical of ditions con- under undertaken already are • encouraging and encouraging collab- enabling • con- framework the creating • interna- early-stage developing • lu- inf and power soft exerting • Although there Although is no defi- agreed In response, a shift is under way to Innovation policy initiatives initiatives policy Innovation change. from health pandemics to climate challenges grand global address to actors non-governmental and private, public, between orations and flourish; to partnerships tion innova- global and regional for threats) and opportunities information about and conditions, trade rules, migration property regimes, (intellectual ditions growthand competitiveness; the sow seeds for future nationalthat economic universities, and businesses between betweenor businesses, partnerships mercial com- and pre-commercial tional hub;innovation an as cluster or region, nation, a of investment) and ideas, talent, (to attractiveness the through ence tory public procurement. public tory discrimina- or transfer forced through example, ity—for capac- innovation domestic boost to scenarios trade and collaborations to try exploit international countries which in mercantilism’ ‘innovation in trend growing a of analysts warned have some advantage, mutual reap to least partners allow at to are intended initiatives innovation diplomacy most Although ships. partner- of results the exploit and to absorb to abilities overseas national unequal acting actors and private public incentives between of interests and alignment the in shifts and capabilities and enforcement regimes property national intellectual contrasting from that range challenges additional of a host adds collaboration International different ministries. For example: For ministries. different several engage to affairs foreign of realm the beyond reaches that ing emerg- is diplomacy innovation for time. the all growing is collaborations innovation national inter- boost to designed funds and programmes, networks, dialogues, multilateral and bilateral of number the diplomacy, innovation for gies strate- published of a dearth Despite diplomacy innovation approach world the around makers policy How tion diplomacy. tion innova- undertaking are countries different how at looks section next The capabilities. and activities of set distinct a as but diplomacy, science to ‘add-on’ an as merely seen be not • Incentivizing collaboration collaboration Incentivizing • A toolkit of practical initiatives initiatives practical of toolkit A both independent bilateral for funding bilateral matched and funds independent both partnerships— R&D laborative tunities. oppor- funding new through Innovation diplomacy should should diplomacy Innovation Examples include col- include Examples ! • Influencing policy frameworks frameworks policy Influencing • • Clarifying national priorities priorities national Clarifying • informa- to access Improving • and conditions. and partnerships." national inter- these of 40 over operates for Centre R&D, Industry Israeli MATIMOP, common. the more becoming gradually are which partnerships— R&D bilateral the Asian Century,$$ developed developed Century,$$ Asian the in Australia strategy, of kind this of instances best-known the of one that fact the by are exemplified strategy long-term of type this implementing to political challenges The rare. are extremely strategies formal these els, mod- engagement craft lomats dip- helping in benefit obvious Despite the strategies. or national would include published regional partners. chosen to innovation for objectives and exception.$% notable a is Europe,beyond tries over in coun- dozen a bases with Institutes, Fraunhofer of work net- Germany’s support. vation that focus on inno- organizations funded publicly for true less far been has This institutes. research and universities global leading for strategy common a become has footprints institutional izing International- example. an are networks institutional national capabilities. and tion 2015.#September in Dialogue Commercial and Strategic India US- the consolidating and ing approachrefin- to latest the with recently seen as requires coordination, often proliferate—which can They trade and commissions. economic joint or forums executive chief to logues dia- property intellectual and icy innovation pol- from tiple forms, mul- take can dialogues policy For example, example, For Examples Examples Inter- 93

in 2012 under Prime Minis- and Innovation attachés has grown A similar level of ambition is ter Julia Gillard, was ‘officially to over 90 staff, based in embas- displayed by the 2015 commitment macy dumped’ a year after its release sies and in 28 countries from the UK’s Foreign Office to by Tony Abott’s government.€ and 47 cities around the world, create a £1.3 billion Prosperity and is supplemented by an inter- Fund over the next five years to • Addressing cross-border inno- national network of IP experts.$ ‘promote the economic reform and vation challenges. Examples Additionally, in a move that would development needed for growth’ in include building global coali- have been seen as countercultural priority partner countries.+ tions: These are often facilitated to the UK’s bottom-up approach to by multilateral or non-govern- science in the past, the UK research The case of China mental actors. Notable recent funding body Research Councils Another notable case is that of efforts include Mission Innova- UK now has several permanent China. China’s approach to inter- tion, a commitment by 20 coun- overseas offices, including in India national collaboration as a whole is

tries and a host of leading indus- 4: Innovating Together? The Age of Innovation Diplo and China. increasingly strategic./ Ever since it trialists at the One of the biggest shifts, how- began the process of opening up in Climate Change Conference in ever, has been in the creation of sig- 1978, foreign policy has been used (COP 21) held in Novem- nificant new funds to enable global to advance economic development. ber 2015 to work together to collaborations not only in research, More recently, an intensifying web of accelerate the green energy revo- but also in innovation. One example international connections has spread lution. ! is the Newton Fund. Launched in across every aspect of China’s inno- The case of the UK 2014, this fund originally commit- vation system— from joint academic ted £75 million a year for five years research to and Some countries have taken very to support collaboration with 15 licensing, foreign direct investment, visible steps to improve their abil- emerging economies in three types and mergers and acquisitions.< As ity to shape and influence global of activity: a result, the Chinese innovation science and innovation relation- system is now densely connected to ships and outcomes. A case in point • People: increasing capacity in sources of expertise elsewhere. One is the UK. The UK boasts one of science and innovation, individ- thing that distinguishes China’s the most highly internationalized ually and institutionally, in part- innovation pathway from that of systems of science and innovation ner countries; Japan or the Republic of Korea is its in the world. Approximately 46% • Research: establishing research willingness, where necessary, ‘to buy of the UK’s scientific publications collaborations on development expertise off the shelf’.= Time and have an international co-author, and topics; and again, examples of highly targeted an exceptionally high proportion of collaborations in research and inno- UK business R&D is funded from • Translation: translating science vation are evident.€> As Adam Segal, abroad." into commercial activities and a China expert at the US Council The last 10 years have seen a sig- creating collaborative solutions on Foreign Relations, outlined in nificant increase in the UK’s efforts to development challenges and his testimony to Congress, ‘One of to build capabilities for influencing strengthening innovation sys- China’s great strengths has been a and enabling international collabo- tems. laser-like focus on shaping foreign ration on science and innovation. interactions to serve national inno- Part of this is the result of greater In 2015, the Newton Fund was vation goals.’€ information sharing. The Global extended by two years (from 2019 Science and Innovation Forum, for to 2021) while the UK’s annual instance, chaired by the UK gov- commitment to the fund was set to Steps towards a more effective and ernment’s chief scientific advisor, double—from £75 million per year impactful approach to innovation helps coordinate the various efforts to £150 million per year by 2021— diplomacy of UK ministries, funding bodies, leading to an overall investment Although it is possible to discern academies, and government-funded of £735 million, with partner coun- a broad range of strategies and a agencies. Part of this is the result of tries expected to provide matched growing prioritization of innovation growing infrastructure—for exam- resources. diplomacy in many countries, it is far ple, the UK’s Network of Science THE GLOBAL INNOVATION INDEX 2016 94 THE GLOBAL INNOVATION INDEX 2016 4: Innovating Together? The Age of Innovation Diplomacy harder to harder be clear about first step. These players include: players These step. first and involved incentives) is a interests the of (and players range wider therefore Acknowledging innovation diplomacy. to diplomacy of science approaches the applying about cautious be to need makers policy this, of Because diplomacy. science of subset a merely not is diplomacy working. is what judge to collected being are data right the whether consider to and (3) goals; strategic onto different map they how determine and tion ques- in initiatives public and tools of range the improve and to identify (2) diplomacy; prin- innovation of and ciples players the identifying by analysis for framework better a it whether (1) is possible to construct consider to useful is it diplomacy, innovation of impact the of account historian’s future a for waiting of instead However, term. long very and indirect is often influence Their difficult. notoriously is diplomatic initiatives its Evaluating and outcome. intervention particular a between link specific the about and • national innovation agencies, agencies, innovation national • • new supranational or multilat- or supranational new • non- powerful and philanthropic • small, and large both companies, • First, it is clear that innovation innovation that clear is it First, internationalized; more become initiatives their as role greater a playing are which recognition that current science science current a that recognition from stem Council—which Innovation European EU’s proposed the as bodies—such eral and Foundation; Gates Melinda & Bill the as such organizations, governmental nationality;!" corporate to commitments and paredness pre- appe- varied widely as well as tites risk wide-ranging with !! what what works — these include the emergence of of emergence the include these familiar: entirely are of globalization tropes the now, By world. the around innovation of dynamics and opportunities new the about makers policy and universities, companies, to information of flow and quality the improve to be could diplomacy initiatives innovation of aspects partnerships. R&D forging to limited be not should initiatives diplomacy innovation training),!* as and learning, (such organizational design, spending to R&D required exploit innovation in ments invest- complementary the about perspectives.’!% and stakeholders of range adiverse such across priorities shared about agreement reaching in involved effort and time extensive the of recognition including macy, diplo- of innovation side human the to ships governments across facilitate out, ‘We need and to relation- points build skills Skills, and Innovation Business of Department UK’s the at Strategy Innovation of Head former Rousseau, Nick As partnerships.!$ be innovation of can success the to time critical over trust and ships relation- build to support However, missions. trade and one- workshops to off connect limited to often individuals efforts with ments, agree- trade and frameworks, legal conditions, enabling overall the on been has date to relations economic international of focus the of Much decades. recent in innovation open learned about promoting successfully been has what exploiting grammes, pro- of public toolkit the improving and evaluating, mapping, in made Indeed, one of the most valuable valuable most one of the Indeed, learned been has what Given be must investment Second, scaling.!#to support ficient suf- provide or enterprises sized medium- and small of needs the do diplomacy initiatives not meet What is required is to see how how see to is required is What stage. advanced an at only mation infor- provide that indicators ging lag- being of danger in are agreed ventures joint of number the like metrics even while collaboration, of impact the judging of of story part the one only are patents and joint publications joint as such rics met- Standard outcomes. and goals desired articulating at better to far get need they and diplomacy, tion in innova- for change of invest theory to their need makers Policy evaluated. and tracked are efforts diplomacy innovation how for tions implica- has That measured. are being things right the that ensure to important is done’, it gets measured world. the around ration collabo- and investment innovation about decisions strategic make better stakeholders other and helps companies that analysis balanced a more support could efforts diplomacy Innovation underestimated. ously veers to danger- romanticized from wildly analysis this Yet industries. existing eclipse might that printing that methods from range Uber to 3D and models business new to tators dic- topple could that storms media social mean—from power of forms new these what of analysis constant is There hubs. innovation emerging of number any by exploited be and models and from could business arise disruptive that idea the to used getting are companies and makers Policy communities. ferent dif- of performance and evolution the shaping people-to-in connections and people soft culture, of power, importance growing the and centres; strategic new towards power hard the and economic of networks; shift multiple through ideas and money, lows goods, f people, of growing the chains; vation inno- and production transnational Third, and finally, if ‘what gets gets ‘what if finally, and Third, 95 relationships are blossoming early 24 Information about the European Breznitz, D. and M. Murphree. 2013. ‘China’s Run:

Commission’s Research & Innovation website Economic Growth, Policy, Interdependences, macy on, in real time, using innovative and its ‘Designing a European Innovation and Implications for Diverse Innovation sources of data such as web scraping, Council: A Call for Ideas’ is available at https:// Policies in a World of Fragmented social media, and collaboration plat- ec.europa.eu/research/eic/index.cfm. Production’. In The Third Globalization: Can Wealthy Nations Stay Rich in the Twenty-First forms (such as GitHub in software 25 Reid et al., 2015. Century? ed. D. Breznitz and J. Zysman. Oxford development)—these better reflect 26 Private communication from Nick Rousseau, and New York: Oxford University Press. the wider intangible investments in BIS, March 2016. G7 Germany. 2015. Ministers’ Summary. relationships beyond formal R&D, 27 Information about Nesta’s Innovation Index Communiqué, Meeting of the G7 Ministers project is available at http://www.nesta.org. of Science, Berlin, 8–9 October. Available at and thus eventually lead to successful uk/project/innovation-index. https://www.bmbf.de/files/English_version. innovation outcomes. pdf. Glennie, A. and K. Bound. 2016. How Innovation Agencies Work: International Lessons to Inspire References and Inform National Strategies. London: Nesta. Notes

Atkinson, R. 2013. ‘Innovation Mercantilism’s Jones, G. 2006. ‘The Rise of Corporate Nationality’. 4: Innovating Together? The Age of Innovation Diplo 1 Royal Society, 2010. Dangerous Consequences for American Harvard Business Review, October. Manufacturing’. Industry Week, 22 October. 2 Royal Society, 2010. Available at http://www.industryweek.com/ Reid, B, P. Williamson, and K. Bound. 2015. Harnessing China’s Commercialisation Engine: 3 Royal Society, 2010, p. 2. competitiveness/innovation-mercantilisms- dangerous-consequences-american- Collaborating with China to Help UK Innovation 4 See G7 Germany, 2015; the International manufacturing. Scale-Up and Succeed in the Global Market. Network for Government Science Advice, London: Nesta. Available at http://www. available at http://www.ingsa.org/; and Australian Government. 2012. Australia in the nesta.org.uk/publications/harnessing-chinas- UNESCO, 2014. Asian Century. White Paper, October. commercialisation-engine. Canberra: Commonwealth of Australia. 5 Wilsdon et al., 2013. Available at http://www.defence.gov.au/ The Royal Society. 2010. New Frontiers in Science whitepaper/2013/docs/australia_in_the_ Diplomacy: Navigating the Changing Balance 6 Bakhshi et al., 2011. asian_century_white_paper.pdf. of Power. London: The Royal Society. Available at https://royalsociety.org/~/ 7 Atkinson, 2013. Bakhshi, H., A. Freeman, and J. Potts. 2011. ‘State media/Royal_Society_Content/policy/ 8 Information about MATIMOP is available at of Uncertainty: Innovation Policy through publications/2010/4294969468.pdf. http://www.matimop.org.il/bilateral.html. Experimentation’. Provocation 14. London: Nesta. Available at http://www.nesta.org.uk/ Segal, A. 2011. ‘The , China, and the 9 U.S. Department of State, 2015. publications/state-uncertainty. Globalization of Science and Technology’. Prepared statement before the Committee 10 Information about Fraunhofer is available Bason, C., ed. 2014. Design for Policy (Design for Social on Foreign Affairs, Subcommittee on at http://www.fraunhofer.de/en/institutes/ Responsibility). New York: Routledge. Oversight and Investigations, Council on international.html. Foreign Relations, 2 November. Available at Beeson, M. 2013. ‘Is This the End of the “Asian http://www.cfr.org/china/united-states-china- 11 Australian Government, 2012; Bason, 2014; Century”?’ The Conversation, 28 October. globalization-science-technology/p26412. Bentley, 2104. Available at http://theconversation.com/ is-this-the-end-of-the-asian-century-19616. Shambaugh, D. 2013. China Goes Global: The 12 Beeson, 2013. Partial Power. Oxford and New York: Oxford Bentley, T. 2014. ‘Design in Policy: Challenges and 13 Information about Mission Innovation is University Press. Sources of Hope for Policymakers’. In Design available at http://mission-innovation.net/. for Policy (Design for Social Responsibility)., ed. Simon, D. 2012. ‘The Changing Face of China’s 14 BIS, 2011, p. 2; BIS, 2012—see Figure 24, p. 34. C. Bason. New York: Routledge. International S&T Relations.’ Presentation at University of Twente, October. 15 Nesta’s Innovation Policy Toolkit articulates BIS (Department of Business, Innovation and a range of case studies of the Science and Skills, UK). 2011. International Comparative UNESCO (United Nations Educational, Scientific Innovation Network’s efforts in innovation Performance of the UK Research Base – 2011: and Cultural Organization). 2014. Inaugural diplomacy. See http://www.nesta.org.uk/ Executive Summary. Available at https:// Meeting of the Scientific Advisory Board innovation-policy-toolkit. www.gov.uk/government/uploads/system/ of the United Nations Secretary-General: uploads/attachment_data/file/32489/11- Outcomes of the Inaugural Meeting. 16 See the UK government’s Cross-Government p123-international-comparative- Available at https://en.unesco.org/scientific- Prosperity Fund, available at https://www. performance-uk-research-base-2011.pdf. advisory-board-united-nations-secretary- gov.uk/government/publications/cross- general-outcomes. government-prosperity-fund-programme. ———. 2012. Annual Innovation Report: Innovation, Research and Growth, November. Available U.S. Department of State. 2015. U.S.-India 17 Simon, 2012. at https://www.gov.uk/government/ Commercial, Trade, and Economic uploads/system/uploads/attachment_data/ Cooperation. Fact Sheet. Washington, DC:

18 Bound et al., 2013. file/34805/12-p188-annual-innovation- U.S. Department of State. Available at http:// 19 Breznitz and Murphree, 2013. report-2012.pdf. www.state.gov/r/pa/prs/ps/2015/09/247174. htm. 20 Shambaugh, 2013. Bound, K., T. Saunders, J. Wilsdon, and J. Adams. 2013. China’s Absorptive State: Research, Wilsdon, J., K. Bound, and T. Saunders. 2013. 21 Segal, 2011. Innovation and the Prospects for China-UK ‘Beijing’s Innovation Diplomacy’, The Guardian Collaboration. London: Nesta. Blog, 9 October. Available 22 Glennie and Bound, 2016. at https://www.theguardian.com/science/ 23 Jones, 2006. political-science/2013/oct/09/science-policy. THE GLOBAL INNOVATION INDEX 2016