Innovation State - Global Perspective
Supporting Emerging Business Ecosystems
11
1 Analyze the Complexity and Uncertainty of Emerging Business Ecosystems Different business environments require different governance approaches for developing ecosystems. An easy way to understand the main differences are by creating two categories, orderly and the un-orderly. Some business environments, such as the paper industry, have an orderly business environment with specific activities including cutting the trees, transportation of raw materials, creation of paper rolls, cutting and product distribution. Contrasted with new technology ecosystems that have unorderly environments, the relationships among private entities are complex with unpredictable outcomes, which altogether create a chaotic system. These environments need more
decentralized and evolutionary governance approaches. Any emerging technologies such as Artificial Intelligence, Hyperloop Technology, Biomechanics or Nanotechnology are the unorderly, innovative sectors California should be focused on developing. A successful process takes a facilitated, yet decentralized decisionmaking process, open knowledge-sharing, rich dialogue and standardized interfaces between activities, while creating a flexible resource and regulatory environment needed for emerging industries. In other words, the first step for policymakers is gathering necessary data to select an emerging industry or multiple industries that have high growth potential, while keeping in mind the strengths and weaknesses of general demographics, infrastructure and the current workforce.