A Poet's View of Complexity

A poet's view of complexity:
"Nature gives us shapeless shapes
Clouds and waves and flame
But human expectation
Is that love remains the same
And when it doesn't
We point our fingers
And blame blame blame"
Paul Simon, You're the One

And it's not just love where we look for blame. Almost all human systems are complex systems, and looking for a cause in them is fruitless.

Atlas Has Shrugged: West, Texas

“Like almost anyone who lives in Texas, I have visited the town of West, uncountable times. Nobody drives I-35 through the middle of the state without stopping for the famous kolaches[1]. Hardly anyone else knows much about the little community. But it is about to become an icon of our failures to properly oversee dangerous businesses and manage our governments.

Let's concede the remote possibility there may have been a criminal act involved. David Koresh's Branch Davidian compound at Mt. Carmel was only 15 miles distant, and, as we already know, the Oklahoma City bombing was a criminal response to the federal government's actions. This week in April, as has been shown by events like the Boston tragedy and the Ruby Ridge shootout, can deliver us unto evil in America.

But what happened in West is probably more about government inactions.” 

 

These are opening paragraphs of James Moore’s excellent essay in the Huff Post. The title of course refers to Any Rand’s controversial[2] book Atlas Shrugged[3]. This book has informed the philosophy of the radical conservatives[4] in the U.S. leading to reduction of funding of government and loosening of controls on business. Its title is derived from the myth that Atlas[5] holds the world on his shoulders. One of the characters asks the question of what happens when the load gets too heavy for Atlas. Another character answers that he shrugs.

Moore is correct, but I don’t think his essay tells the whole story. It is also a tale of two complex systems, each in disequilibrium. 

One system encompasses the ammonium nitrate, ammonia gas, and other, at this point unknown, chemicals and combustible materials in the factory. Ammonium nitrate has one of the classic characteristics of a critical state complex system, that of positive feedback. When ammonium nitrate burns, one of its by products is oxygen, which in turn encourages the fire to burn more, possibly leading to an explosion.

The other is the complex system encompassing the government regulations, the procedures that regulators follow, the funding of these programs and finally the response of the owners and the day to day actions of the employees.

Complex systems in disequilibrium have two annoying characteristics – cause and effect are not linked and the probability of a large event is much higher than normal statistics would predict. As a result the impact of a perturbation of the systems like cutting funding can have a measurably larger impact than might be expected. Add this, to the large errors committed by the owners detailed in Moore’s article, and a simple error in the factory, and kaboom.

“Atlas Has Shrugged: West, Texas”, James Moore, 4/18/13, http://www.huffingtonpost.com/jim-moore/atlas-has-shrugged-west-t_b_3111124.html

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[1] We like the Czech-American Restaurant in town as well.

[2] Paul Krugman alluded to an oft-quoted quip by John Rogers in his blog: "There are two novels that can change a bookish fourteen-year old's life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs." Wikipedia (http://en.wikipedia.org/wiki/Atlas_Shrugged)

[3] “The book explores a dystopian United States where many of society's most productive citizens refuse to be exploited by increasing taxation and government regulations and disappear, shutting down their vital industries. The disappearances evoke the imagery of what would happen if the mythological Atlas refused to continue to hold up the world. They are led by John Galt. Galt describes the disappearances as "stopping the motor of the world" by withdrawing the minds that drive society's growth and productivity. In their efforts, these people "of the mind" hope to demonstrate that a world in which the individual is not free to create and profit is doomed, that civilization cannot exist where every person is a slave to society and government, and that the destruction of the profit motive leads to the collapse of society. The protagonist, Dagny Taggart, sees society collapse around her as the government increasingly asserts control over all industry.” Wikipedia (http://en.wikipedia.org/wiki/Atlas_Shrugged)

[4] “In the late 2000s, the book gained more media attention and conservative commentators suggested the book as a warning against a socialistic reaction to the finance crisis. Conservative commentators Neal Boortz, Glenn Beck, and Rush Limbaugh have offered high praise of the book on their respective radio and television programs. In 2006 Associate Justice of the Supreme Court Clarence Thomas cited Atlas Shrugged as among his favorite novels. Republican Congressman John Campbell said for example: "People are starting to feel like we're living through the scenario that happened in [the novel] ... We're living in Atlas Shrugged", echoing Stephen Moore in an article published in The Wall Street Journal on January 9, 2009, titled "Atlas Shrugged From Fiction to Fact in 52 Years". In 2005 Congressman Paul Ryan said that Ayn Rand was "the reason I got into public service" and later required his staff members to read Atlas Shrugged. In April 2012 he disavowed such beliefs however, calling them "an urban legend" and rejecting Rand's philosophy.” Wikipedia (http://en.wikipedia.org/wiki/Atlas_Shrugged)

[5] http://en.wikipedia.org/wiki/Atlas_%28mythology%29

Well Informed Futility and Complexity

I learned a new phrase on Friday's PBS TV program Moyers and Company - well informed futility.

“In the absence of federal policies that are protective of child development and the ecology of the planet on which our children’s lives depend, we serve as our own regulatory agencies and departments of interior…. Thoughtful but overwhelmed parents correctly perceive a disconnect between the enormity of the problem and the ability of individual acts of vigilance and self-sacrifice to fix it. Environmental awareness without corresponding political changes leads to paralyzing despair….We feel helpless in our knowledge, and we’re not sure we want any more knowledge. You could call this well-informed futility syndrome. And soon enough, we are retreating into silent resignation rather than standing up for abolition now.”

Sandra Steingraber, Raising Elijah

This syndrome is much larger than the issues Steingraber talks and writes about. It captures well how I feel most of the time on almost all of the wicked problems we face that I have researched.

http://billmoyers.com/episode/the-toxic-assault-on-our-children/

It seems to me that this syndrome may be why people don't want to talk about complexity. More knowledge only adds to their frustration as they don't feel they can do anything about it.

And, we know that's not true. Every system is likely a combination of simple, complicated and complex subsystems. Our normal ways of forecasting work well on simple systems and will usually give you optional futures to deal with through scenarios for complicated systems. Complex systems in disequilibrium are less tractable but in most cases will yield probabilities of occurrence and/or alternate potential futures (strange attractors). Complex systems composed of intelligent agents in dynamic equilibrium yield to massively parallel modeling. Systems composed of adaptive intelligent agents in  dynamic equilibrium are the least tractable.

Can you diagnose the types of systems and can they be  parsed? Then, like a doctor, can you prescribe a treatment? Or, is it a non treatable disease?

Policy and Complex Systems

"The world around us is a complex web of relationships connecting people, companies, groups, countries, and policies into a complex policy system that provides the context for our daily existence. Under such circumstances, it is imperative that our policies at all levels (local, state, country, the world), intended to regulate such systems, take into consideration this richness of both relevant system elements and relationships among them. Companies, societies, markets, or humans rarely stay in a stable, predictable state for long. Randomness, power laws, and human behavior ensure that the future is both unknown and challenging. How do events unfold? When do they take hold? Why do some initial events cause an avalanche of policy change while others do not? What characterizes these events? What are the thresholds that differentiate a sea change from insignificant variation? And, most importantly, what can we do at the policy level to promote activities that will bring about positive, long-term, and sustainable changes in the system of interest?"

Some questions being raised by Paul Rich, President - Policy Studies Organization
http://www.ipsonet.org/publications/open-access/policy-and-complex-systems

Letting Biodiversity get Under Our Skin: Why Cleanliness Might be Making Us Sick

This is a very interesting article, perhaps a revolutionary idea. And, it may have important lessons for complex human systems.

Rob Dunn[1] writes in the recent edition of Utne Reader, “We live at the crossroads of three global megatrends, three barreling and intertwined juggernauts of modernity. The first is the massive migration of humanity to the world’s cities. By 2050, two-thirds of all humans on Earth will live in urban areas.

The second is the loss of biodiversity. Species are disappearing, both from the places where we live and from the earth as a whole. If our hairy ancestors were to visit our cities and suburbs, they would wonder how the escalators work, but they would also question where the plants and animals have gone. What have we done with all the birds? Some, like the Carolina parakeet, are just gone. Others live on, but at a distance—geographically removed from our daily lives, far away from the majority of people.

And then there’s the third trend—the one that, at first glance, seems not to belong with the others. The prevalence of allergies and chronic inflammatory diseases among urban populations in developed countries has skyrocketed in recent years. Incidences of asthma, Crohn’s disease, multiple sclerosis, and even depression (which can have an immune component) are on the rise

.

The parallels in geography and timing between urbanization, the loss of biodiversity, and the rise in immune-system problems raise an intriguing—and troubling—question. Could our distance from nature and our chronic immunological discontent be related? Some now say … yes.”

The author summarizes the work of Ilkka Hanski, a Finnish scientist working in the field of ecology at the University of Helsinki, Finland, “comparing the allergies of adolescents living in houses surrounded by biodiversity to those of adolescents surrounded by simplicity—the modern landscape of cement and grass. They found that those individuals who lived in houses surrounded by a greater diversity of life were themselves covered with different kinds of microbes. They were also less likely to show the telltale immunological signs of allergies.”

This is a potentially revolutionary finding. But, as Dunn points out, “No one has offered a very compelling explanation of how the diversity of plants or life in general in backyards alters the composition of bacteria on human skin. But the bigger question is how the composition of bacteria on our skin (perhaps in concert with the diversity of plants and other organisms outside) influences our potential to develop allergies. Several options have emerged.”

·         “…the immune system is our sixth sense. It is our inner taxonomist. And this inner taxonomist needs to see a lot of species to learn to distinguish good from bad from innocuous. If it does not, it makes mistakes. It sees our body’s own cells or pollen grains and judges them to be dangerous. In this model, the world around us needs to be diverse enough for our immune system to gain perspective.”

·         “…the odds of having some beneficial bacteria species in a house increase with certain kinds of microbial diversity.” This results in a kind of “insurance policy.”

·         “Finally, a third possibility harks back to ancient wars. Bacteria and fungi compete. Fungi are everywhere in households and, in contrast to bacteria, seem more likely to cause allergies than to prevent them. Fungal diversity appears to be lower in houses where bacterial diversity is higher. Maybe more diverse household bacteria can fight off fungi, winning an invisible war on our behalf.”

I would speculate that there may be another reason. Maybe it takes a naturally occurring complex system of bacteria to produce a health immune system.

In 1999, maybe George Carlin was right in his rant about germs and our immune system. He said[2], “When I was a little boy in New York City in the 1940s, we swam in the Hudson River and it was filled with raw sewage okay? We swam in raw sewage! You know… to cool off! And at that time, the big fear was polio; thousands of kids died from polio every year but you know something? In my neighborhood, no one ever got polio! No one! Ever! You know why? Cause we swam in raw sewage! It strengthened our immune systems! The polio never had a prayer; we were tempered in raw shit! - I never get infections, I don’t get them, I don’t get colds, I don’t get flu, I don’t get headaches, I don’t get upset stomach, you know why? Cause I got a good strong immune system and it gets a lot of practice.”

Dunn concludes with, “As we wait for more understanding, we continue to simplify the world. We will become more urban and thus more likely to suffer from allergies and autoimmune diseases, at least if Hanski is right. And if he is right, there may also be a way forward, a way out of our sick and simple morass. Could we rewild the places around us, plant a richness of species in our backyards and so raise healthier children covered in more kinds of bacteria? Whatever we do, we will be measured by our immune systems and our microbes, which in their function or dysfunction seem to record the richness of our lives.”

Perhaps the lesson we could learn for this is that attempts to simplify complex systems that have to operate in complex environments will only harm the system in the long run. We could learn this from the failures of regimented, hierarchal political systems, or corporate systems. Yet we continue to attempt simplification of, for example, education by trying to reduce it to a standardized test. Or, racial, ethnic, religious or thought purity.

“Letting Biodiversity get Under Our Skin: Why Cleanliness Might be Making Us Sick”, Rob Dunn, Utne Reader, March – April 2013 from Conservation, http://www.utne.com/mind-body/benefits-of-biodiversity-zm0z13mazwil.aspx

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[1] Rob Dunn is a science writer and biologist in the Department of Biology at North Carolina State University. His new book is The Wild Life of Our Bodies. Excerpted from Conservation (Fall 2012), an independent science magazine published by the University of Washington.

[2] http://georgedpcarlin.com/2012/07/14/george-carlin-fear-of-germs-2/

Reinventing Society in the Wake of Big Data

A Conversation with Alex (Sandy) Pentland, The Edge, 8/30/12

"With Big Data we can now begin to actually look at the details of social interaction and how those play out, and are no longer limited to averages like market indices or election results. This is an astounding change. The ability to see the details of the market, of political revolutions, and to be able to predict and control them is definitely a case of Promethean fire—it could be used for good or for ill, and so Big data brings us to interesting times. We're going to end up reinventing what it means to have a human society."

I have more concerns than positive thoughts about this  provocative discussion.

Foremost is his understanding and beliefs related to complexity: "The notion that it is connections between people that is really important is key, because researchers have mostly been trying to understand things like financial bubbles using what is called Complexity Science or Web Science. But these older ways of thinking about Big Data leaves the humans out of the equation. What actually matters is how the people are connected together by the machines and how, as a whole, they create a financial market, a government, a company, and other social structures."

Complexity is all about connections, whether it is molecules (including genes), things, insects, animals and certainly social systems of humans. Melanie Mitchell's book Complexity: A Guided Tour, is a tour of the sciences of complexity, a broad set of efforts that seek to explain how large-scale complex, organized, and adaptive behavior can emerge from simple interactions among myriad individuals. And, in One, Two, a Few and Many, I summarize this book and many other sources of information on complexity.

The problem is that if you have a truly complex systems composed of intelligent agents, more data will lead you nowhere. Remember, if we're talking about humans here, you have a complex system of complex systems. If it's truly complex, no matter how deep you dive into the data, there will always be uncertainty. (Think of a fractal.) And, if the systems is in disequilibrium, cause and effect are unrelated.

Pentland states, "With Big Data you can easily get false correlations, for instance, "On Mondays, people who drive to work are more likely to get the flu." If you look at the data using traditional methods, that may actually be true, but the problem is why is it true? Is it causal? Is it just an accident? You don't know. Normal analysis methods won't suffice to answer those questions. What we have to come up with is new ways to test the causality of connections in the real world far more than we have ever had to do before. We no can no longer rely on laboratory experiments; we need to actually do the experiments in the real world." Which won't help. That's like dropping a grain of sand on a pile of sand (think hourglass) and observing what happens. Then drawing a conclusion from your experiment when nothing happens. However, the next grain of sand you drop may cause a whole avalanche to occur. The best you can ever do is to gather historical data on the system and talk about probabilities. And, it's not normal statistics. Now imagine that each grain of sand has intelligence and you have the croquet game described by Lewis Carroll's surrealistic version of the game in the popular children's novel Alice's Adventures in Wonderland; a hedgehog was used as the ball, a flamingo the mallet, and playing cards as the hoops.

"Alice thought she had never seen such a curious croquet-ground in her life; it was all ridges and furrows; the balls were live hedgehogs, the mallets live flamingos, and the soldiers had to double themselves up and to stand on their hands and feet, to make the arches.

The chief difficulty Alice found at first was in managing her flamingo: she succeeded in getting its body tucked away, comfortably enough, under her arm, with its legs hanging down, but generally, just as she had got its neck nicely straightened out, and was going to give the hedgehog a blow with its head, it would twist itself round and look up in her face, with such a puzzled expression that she could not help bursting out laughing: and when she had got its head down, and was going to begin again, it was very provoking to find that the hedgehog had unrolled itself, and was in the act of crawling away: besides all this, there was generally a ridge or furrow in the way wherever she wanted to send the hedgehog to, and, as the doubled-up soldiers were always getting up and walking off to other parts of the ground, Alice soon came to the conclusion that it was a very difficult game indeed.

The players all played at once without waiting for turns, quarrelling all the while, and fighting for the hedgehogs; and in a very short time the Queen was in a furious passion, and went stamping about, and shouting 'Off with his head!' or 'Off with her head!' about once in a minute."

Another problem I have with Pentland's vision of the future is that the opportunities for abuse is enormous and will certainly happen. He recognizes this by writing, "Another important issue with Big Data is that since this data is mostly about people, there are enormous issues about privacy, data ownership, and data control. You can imagine using Big Data to make a world that is incredibly invasive, incredibly 'Big Brother'… George Orwell was not nearly creative enough when he wrote 1984."

There is some inherent limit to our ability to understand and predict the behavior of complex systems akin to the Heisenberg Uncertainty Principle in quantum physics. Heisenberg stated the principle in 1927 as "The more precisely the position is determined, the less precisely the momentum is known in this instant, and vice versa." What occurs in complex systems is not the same as what happens in quantum physics, and we've not stated a similar law for complex systems, yet.

However, my biggest fear is that we will build the systems Pentland envisions.

"This is the first time in human history that we have the ability to see enough about ourselves that we can hope to actually build social systems that work qualitatively better than the systems we've always had. That's a remarkable change. It's like the phase transition that happened when writing was developed or when education became ubiquitous, or perhaps when people began being tied together via the Internet.

The fact that we can now begin to actually look at the dynamics of social interactions and how they play out, and are not just limited to reasoning about averages like market indices is for me simply astonishing. To be able to see the details of variations in the market and the beginnings of political revolutions, to predict them, and even control them, is definitely a case of Promethean fire. Big Data can be used for good or bad, but either way it brings us to interesting times. We're going to reinvent what it means to have a human society."

William Calvin wrote in his book, The Cerebral Symphony: Seashore Reflections on the Structure of Consciousness, “Inconsistency is part of flexibility, of nature's strategy of keeping options open. Animals that cannot adapt to new environments will not survive the incessant fluctuations of climate. Judicial systems that cannot grow and change with our society's evolving problems will become rigid anachronisms that promote social earthquakes. Consistency and rationality are human virtues in dealing with certain potentially orderly situations; we make excellent use of them in engineering and legal systems, but we shouldn't expect living systems to have made them centerpiece of their operation in a changing, unpredictable world.”

In the book, A Simpler Way, Margaret Wheatley and  Myron Kellner-Rogers write, "The universe is a living, creative, experimenting experience of discovering what's possible at all levels of scale from microbe to cosmos. Life's natural tendency is to organize. Life organizes into greater levels of complexity to support more diversity and greater sustainability. Life organizes around a self. Organizing is always an act of creating an identity. Life self-organizes. Networks, patterns, and structures emerge without external imposition or direction. Organization wants to happen. People are intelligent, creative, adaptive, self-organizing, and meaning seeking. Organizations are living systems. They too are intelligent, creative, adaptive, self-organizing, meaning-seeking."

Life needs messes. Let's not attempt to get rid of them all and in so doing destroy life.

It's a Jungle Out There

by Randy Newman

It's a jungle out there
Disorder and confusion everywhere
No one seems to care
Well I do
Hey, who's in charge here?
It's a jungle out there
Poison in the very air we breathe
Do you know what's in the water that you drink?
Well I do, and it's amazing
People think I'm crazy, 'cause I worry all the time
If you paid attention, you'd be worried too
You better pay attention
Or this world we love so much might just kill you
I could be wrong now, but I don't think so!
'Cause there's a jungle out there.
It's a jungle out there.

Watch Video

The Importance of Mistakes in Complex Systems

Tim Harford argues for making intelligent mistakes in order to understand and imrove compex systems.

Economics writer Tim Harford studies complex systems -- and finds a surprising link among the successful ones: they were built through trial and error. In this sparkling talk from TEDGlobal 2011, he asks us to embrace our randomness and start making better mistakes.

Wealth of Nations

Wealth of Nations, Seed Magazine, 11/29/10

This article describes some fundamental changes in the ways we look at and measure wealth. It could lead eventually into an economic revolution globally. Here are a few excerpts:

"Amid the dark clouds of the 2008 financial crisis, as the media documented a litany of bank failures, collapsed credit markets, and growing panic well beyond Wall Street, there was a brighter headline: For the first time since scientists began tracking them, carbon emissions in the United States decreased. The drop was marginal, but this environmental success, when juxtaposed with the crippled economy, raised a troubling point: Two important objectives—mitigating climate change and reviving the economy—were at cross-purposes. And it now appears likely that this contradictory relationship extends far beyond atmospheric carbon and climate change. In area after area, issue after issue, economic growth appears to be whittling away at the very foundations of the global economy: the ecosystems that supply our food, fuel, clean water, and stable climate. Our principle measure of success, the gross domestic product, or GDP, excludes the worth and loss of ecosystems and the services they provide, because as valuable as they are, they have no price."

***

"The global public good that both epitomizes and encompasses the challenges that the world faces today is biological diversity, the variety of life on Earth. “Biodiversity loss is, in a sense, the big problem of which all others are relatively small applications,” says Charles Perrings, an environmental economist at Arizona State University and a fellow of the Beijer Institute in Stockholm. Biodiversity is the foundation of ecosystems that capture carbon and energy, and that cycle water and nutrients through the biosphere. These processes, in turn, enable all of the activities—from plant photosynthesis to potato farming—that make human life on Earth possible. Another way of looking at it, says Perrings, is that most human activity boils down to changing the mix of organisms with which we interact. Public health, for instance, is the control of which pathogens come into contact with humans. Farming is simply the tweaking of wild species to suit human tastes and energy needs. Science, medicine, and global agriculture rely heavily on the barely explored cornucopia of the world’s genetic resources. The loss of biodiversity, then, is the loss of everything.

To begin putting a price on such global public goods, says Perrings, we must understand that biodiversity has a dual nature. A healthy forest, for example, provides an array of public services, such as carbon sequestration and water filtration. The components of forestland, however—the trees, animals, and soil—are often privately owned. According to Perrings, this creates large externalities: Private actions, such as cutting down trees, have an effect on public well-being that isn’t reflected in the price of that timber. Clean water that benefits the region, medicinal plants that could benefit the nation, and carbon sequestration that is valuable to the entire world are all at risk of destruction because they are invisible to the market."

***

"Ecologies, we’re now beginning to understand, are best described as complex adaptive systems, with biodiversity as the key to their ability to absorb shocks and stresses. And the economic value of such resilience is likely to be extremely high. Experts have surmised, for example, that mass erosion of Louisiana’s coastal wetlands was largely to blame for the billions of dollars in damage from Hurricane Katrina. Some scientists now say that the worldwide push toward monoculture and away from crop diversity could create huge vulnerabilities in the global food supply."

***

"So today’s more sophisticated assessments don’t just attempt to quantify the benefits that ecosystems provide to humans; they also figure in the costs of foregone economic development and the expenses of conservation. A major 2002 review of 300 case studies published in the Proceedings of the National Academy of Sciences found that by investing $45 billion per year in a global reserve program, we could protect natural services worth some $5 trillion—a benefit-cost ratio of 100:1. In other words, even when the steep costs of non-development are figured into the equation, nature’s services emerge as the ultimate bargain.

It is increasingly evident that safeguarding ecosystems makes solid financial sense, yet biodiversity and the services that ecosystems provide have long been overlooked by classical economists. That is all about to change."

***

"Using more holistic metrics, we may unearth some telling truths. The US is an unrivaled powerhouse when it comes to per capita GDP: $47,500 per person as of 2008. Take into account life expectancy, “life satisfaction,” and ecological footprint, however, and suddenly the top ranking goes to Costa Rica, a nation with a per capita GDP of just $11,600. The global public value of Costa Rica’s forests, coupled with its robust PES* program to keep those forestlands healthy, is a major contributor to its top-notch ranking. In short, biodiversity and ecosystems can become a large slice of a poor nation’s development pie."

* Payments for Ecosystems Services

***

"Valuing ecosystems will strike some as a heartless utilitarian approach, tantamount to slapping dollar signs on species, soils, oceans, and air. What it presages, however, will be a change in the very shape of the global economic system: by valuing our landscapes and the services they impart, by recalibrating incentives toward their preservation, and by respecting the needs of communities most closely dependent on them. We will not just value what nature provides, but also reorganize around a new definition of what is valuable. "

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On Systemic Risk

On Systemic Risk, Ian Goldin, Seed Magazine, 12/16/10

"Systemic risk, as the world has learned the hard way, may arise as a result of the operation of market forces and is transmitted across geopolitical boundaries. As a consequence, it demands regulatory intervention as well as cooperation between countries. A new paradigm for dealing with systemic risk is needed.

Looming systemic risks include pandemics, which may spread more rapidly across a densely connected world, and bio-terrorism risks, which are likely to become increasingly systemic in the 21st century. The ability to produce biological and other weapons of mass destruction is becoming more widespread, especially among non-state actors, due to technological innovation (not least with the development of DNA synthesizers). Increases in population density, urbanization, and the growth of connectivity, both physically and virtually, means that dangerous recipes and panic can be instantaneously transmitted globally. And climate change, a silent tsunami that crept up on us, presents major systemic environmental, social, and economic risks to humanity."

Read More

Innovation Systems

There were five questions about innovation systems that I posed in my blog of July 6, 2009. I answered the first two questions but never did complete the series:

1. Why did you begin working with innovation systems?

2. How would you define an innovation system?

3. What is your favorite aspect /concept of innovation systems?

4. In your opinion, what is the most problematic aspect/concept of innovation systems?

5. How do you see the future of innovation systems?

So, let’s see if I can complete the series now.

What is your favorite aspect /concept of innovation systems?

There are two. One aspect is that an innovation system can be generative, and the second is that it can improve the common weal.

An innovation system can be generative in that it can outlive the humans that fashioned it and continue producing innovation and reinventing itself.

Weal is an old word not often used in our society today, but it indicates a viewpoint missing from the common paradigm. Weal means prosperity; happiness or more broadly, the way I’m using it, the welfare of the community; the general good. If the innovation system is conceived to encompass all its important elements, it can produce innovations that improve the general good. Innovation doesn’t have to be sub optimized, focused solely on the bottom line.

In your opinion, what is the most problematic aspect/concept of innovation systems?

First that they even exist. Many people, particularly in business, think that innovation is an accident, a freak of nature. Their strategy is to let other people invest the money and roll the dice, and then to just cherry pick the ones that make it, paying the organization or individual who developed it. The second assumption they make is that their organization is like a machine with plug compatible parts. And, since “pigs is pigs”, they can just bring the innovation into their organization easily.

I tend to follow Peter Drucker in this respect. In Innovation and Entrepreneurship he defined systematic innovation as “the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic or social innovation.”

Systematic, purposeful innovation will create an effective and efficient organization. Systematic, purposeful innovation begins by identifying the changes occurring in a market. This is followed by understanding the opportunities and threats that will result from these changes, developing a strategy to take advantage of the opportunity and avoiding or minimizing threats, assessing the organization's capability to implement the strategy, and developing an organization which can effectively and efficiently innovate.

If this systematic, purposeful innovation process is followed, the organization will benefit by becoming market driven. It will do what is appropriate for the market and it will anticipate the market. As a result, the organization will become more effective and efficient. Society will benefit because the organizations within it that create wealth and meet societal needs will be more sharply focused on the proper targets.

The purpose of business is innovation, which, when properly focused, creates wealth as defined in the broadest sense. The creation of wealth benefits all.

There is another issue with innovation systems. Every innovation system has an innovation bias. In other words, each innovation system tends towards a particular innovation profile.

How do you see the future of innovation systems?

The future of innovation systems is complexity. I see an innovation system as a complex system composed of intelligent agents with emergent properties. The ecology of the complex innovation system is sustainable. It would be adaptable to its environment, and possibly under certain condition self replicable.