Responsible Business Model Innovation – Detailed Study Notes

Science & Responsible Innovation

• Conventional policy view: science is emancipatory – it liberates society from constraints.
  • "Emancipatory" = freeing individuals/groups from social, political, or legal restrictions → promotes autonomy & self-determination.
• Post-$20^{th}$-century shift:
  • Science + innovation are now formally entwined in research policy.
  • Scientists’ ideas of research integrity evolve with societal concerns.
  • Science & technology are technically and socio-politically constituted.
• Implication: Responsibility in research must acknowledge social, ethical, and political dimensions, not just technical efficacy.

Kodak Moment Case (Illustrative Example of Missed Transition)

• Kodak pioneered film-based commercial photography; became a global, iconic brand.
• Quote (Senior VP, $1985$ Wall Street Journal):
  • "We’re moving into an information-based company… but it’s very hard to find anything with profit margins like colour photography that is legal."
• Failure points:
  • Did not master transition from analog to digital → declared bankruptcy in $2012$.
  • Competitors (Nikon, Canon, Fujifilm) successfully embraced digital & remain multi-billion-dollar firms.
• Lesson: Clinging to old business models, despite foresight, jeopardizes survival; highlights need for responsible business model innovation.

We Know Change Is Needed (But It’s Hard)

• Adopting new mind-sets – e.g., tackling climate change, global wealth equity – is challenging.
• Temptation: emulate Kodak, delay adaptation because legacy methods still profitable now.
• Responsible leadership demands proactive, not reactive, transformation.

Innovation in Responsible Business: Core Definition

• Innovation = introduction of a new or improved product, service, or business model.
  • Range: incremental improvements → radical/different offerings.
• Essential because it:
  • Creates value from ideas → raises question for whom value accrues.
  • Enables adaptation to dynamic markets; differentiates firm via unique offerings.
  • Strengthens customer relationships by aligning with evolving needs.
• Responsible innovation (research context): process fostering creativity that is socially desirable & in the public interest.

Why Responsibility Matters in Innovation

• Financial success correlates with innovation and ethical performance.
• Emerging concepts:
  • Sustainable innovation – economic value + long-term societal/environmental benefit.
  • Eco-innovation – reduces environmental impact, boosts resource efficiency & resilience.
  • Social innovation – new ideas/services that address social needs, improve well-being.
• Policy & academic emphases:
  • Stakeholder inclusion, gender diversity & equality.
  • Open, transparent, responsive, adaptive processes.
  • Science literacy, education, open access to knowledge.
• Benefits of a responsible stance:
  • Builds opportunity confidence & social impact.
  • Catalyzes social entrepreneurship.
  • Reinforces sustainability via waste reduction & efficiency.

What Responsible Innovation (RI) Could Mean

• Stilgoe et al. definition: Transparent, interactive process where societal actors + innovators become mutually responsive to ensure ethical acceptability, sustainability, and societal desirability of both process & products → proper embedding of S&T.
• Alternative phrasing: "Taking care of the future through collective stewardship of science & innovation today."
• Example: Electric Vehicles (EVs) as an RI case – integrates environmental goals, stakeholder feedback, and anticipatory policy.
• Further illustrations via external video links.

Practical Architecture of Responsible Innovation

• Complex global challenges demand radically interdisciplinary solutions.
  • Ethics, law, social science inputs integrated through design-for-values methodologies.
• Technical advances linked to institutional governance with ethical, societal, juridical & economic targets.
• Responsible approach embeds public values at planning & design stages.

Key Characteristics & Alignment with UN SDGs

• Rising concern over environmental degradation, social inequality, over-consumption.
• Innovation positioned as a tool to meet UN SDGs (resource management, climate action, inclusive prosperity).
• Core attributes:
  • Ethical, sustainable, inclusive practices.
  • Anticipation of impacts, transparency, multi-stakeholder engagement.

Everyone’s Job

• Reflection prompts for practitioners:
  • What does innovation mean in your organisation?
  • Personal role in creating innovative culture?
  • Which areas (processes/services/products) can embed responsible principles?

Purpose of RI (Sources: Wilford et al. $2016$; Stilgoe et al. $2013$)

• Align tech development with societal values, minimizing negative impacts.
• Requires proactive consideration throughout the life-cycle, not post-hoc fixes.

Four Foundational Dimensions of RI

1. Anticipation
   • Tools: foresight, horizon scanning, scenarios, technology assessment.
   • Goal: systematic exploration of uncertainties & alternative futures.
2. Inclusion
   • Techniques: consensus conferences, citizens’ juries, focus groups, open innovation, user-centred design.
   • Goal: active stakeholder participation → legitimacy & richer insights.
3. Reflexivity
   • Practices: embedding social scientists/ethicists, codes of conduct, vision assessment.
   • Goal: self-awareness of values, motivations, knowledge limits; blur boundary between professional & moral responsibilities.
4. Responsiveness
   • Mechanisms: niche management, value-sensitive design, stage-gates, alternative IP regimes.
   • Goal: adapt to new knowledge & stakeholder feedback; iterate responsibly.

• Implementation Factors (selected):
  • Need for plausibility & investment in scenario-building.
  • Scientific autonomy vs. anticipation reluctance.
  • Addressing power imbalances in dialogue.
  • Institutional leadership, openness & transparent standards.

Behavioural Indicators of Responsibility

• Innovation strategy starts with social/environmental problem-solving (not only commercial gains).
• Rigorous benefit assessment & mapping against alternatives.
• Evidence-based claims (scientific + social data) bolster legitimacy.
• Co-creation processes with broad stakeholder groups; continuous listening & concern exploration.

Innovation Assessment for Responsibility & Ethics

• Success requires:
  • Anticipating ethical, societal, environmental opportunities & challenges.
  • Envisioning impacts of both process & outcomes.
• Evaluation/control integral to planning & implementation.
• Key questions:
  1. How to verify innovator responsibility without evaluation/control? (e.g., Artificial Intelligence emergence).
  2. How to assess ethics for still-emerging tech?
  3. Which standards/methods ensure responsible processes/outcomes?
  4. Who conducts assessments; who else participates?

Responsible Research & Innovation (RRI) and Ethics Assessment (EA)

• RRI = continuous alignment of R&D with societal values/needs/expectations.
• EA identifies & judges ethical issues via principles:
  • Rights (freedom, privacy), benefits/harms (society, environment), fairness, virtues (integrity).
• Context-sensitive; engages stakeholders for workable solutions.

Workshop Theme: RI as Driver of Change for Just Transition

• Premise: Technology alone cannot solve climate crisis.
• Challenge: Steer RI systems to merge creativity from humanities & social sciences with STEM to address climate impacts and interlinked SDGs.
• Implications:
  • Decision-makers must design inclusive governance structures.
  • RI becomes a catalyst for equitable, sustainable transition pathways.