tilburg research research magazine Making innovation work Adapting technology • Smart networks in global competition • Sharing tricks of the trade • Towards a more effective labour market • Defending our freedom • Competition and innovation Understanding Society 2 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 Preface Attempts in recent years to boost innovation in the Netherlands have failed: the Dutch knowledge economy is increasingly losing global competitive strength. This was the conclusion drawn by the Dutch newspaper NRC Handelsblad after the publication of the last report by the Innovation Platform set up in 2003 by Prime Minister Jan Peter Balkenende. There are too few innovative startup companies, too few breakthroughs by innovative companies into the world market, and businesses are too little involved in innovation. Tilburg University’s Professor of Innovation Policy Bart Nooteboom then drew attention in an opinion article to an important reason for the failing policy: through their established practices, mentality and working methods, investments, interests and political lobbying, big companies obstruct sustainable innovations by small companies. FEATURES port for it in the community, good market research and marketing techniques, or collaboration with the right partners. It is precisely these social, financial, microeconomic and legal prerequisites for innovation, and how innovation can really serve society that are the subjects of research at Tilburg University. This issue of Tilburg Research presents a cross-section of this research, with both analyses of the problems and possible solutions. We hope they will contribute to making innovation really work. Prof. dr. Philip Eijlander Rector Tilburg University 2 Making innovation work 6Innovation networks provide the best chances 10 Medical innovations may strike fear into patients’ hearts 14 Do we adapt to technology, or technology to us? 18 Innovate or rejuvenate 20Experimenting with social networking and privacy 23 Sharing the tricks of the trade 27Smartest networks will survive in global competition 31The new language of the labour market The policy will have to change – that seems obvious. But solutions may come from various directions. Innovation is about how knowledge is applied, the degree of sup- News 5 Connected customers 12 Grasping Europe's innovation policy 25Technology is an increasingly important regulatory tool Tilburg Research 33 Competing through temporary organizations Tilburg Research is a magazine for special-interest groups about research at Tilburg University in the Netherlands. Tilburg University specializes in the social sciences and humanities. Research portraits 9 Technology no longer for the happy few Colophon Publisher Marketing & Communications, Tilburg University Editor in chief Corine Schouten Editing board Tineke Bennema, Lenie van de Brug, Clemens van Diek, Leon Heuts, Reggy Peters, Corine Schouten, Diahann van van de Vijver, René Voogt Contributing editors Tineke Bennema, Marion de Boo, Clemens van Diek, Leon Heuts, Renée Kneppers, Rik Oerlemans, Corine Schouten, Enith Vlooswijk, Marga van Zundert Photo editor Stans van Dongen Layout and graphic design Beelenkamp Ontwerpers, Tilburg Printer Drukkerij Groels, Tilburg 13Defending privacy and with it our freedom 17Competition affects innovation, and vice versa Read more about Tilburg University’s innovation research at www.tilburguniversity.nl/ innovation. You can use this QR-code to access the website by taking a picture or scanning it with your mobile phone if it is equipped with QR-code reading or scanning software. 22Fast forward through history 26 Why companies decide to innovate 30Everything that is not renewed eventually dies photography Cover The Dutch Aibo Team is dedicated to designing a team that can beat human beings. It involves challenges in several areas, such as image processing, game representation, real time information processing and coordination of different team members. Photo Patrick Post/ Hollandse Hoogte IN THIS ISSUE Robots have always embodied human imagination about future merits as well as dangers of innovative technology. Ultimately technology is about what people need and want. The photo series in this issue of Tilburg Research illustrates innovation as a collaborative means to an end in society, which is also the starting point of Tilburg University’s innovation research. 1 2 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 cedures and organizations meet social needs in a broad sense, also in relation to the design and use of technological innovations. Making innovation work Innovation is often seen as a panacea for the big problems of our time. Climate change, global competition, rising health care costs, the ageing population – clever, often technological solutions are supposed to help us guarantee our socioeconomic security and to keep our quality of life at least at the same level. In the West we have high-quality knowledge to help us, but nevertheless politicians, the government and industry struggle every day to find solutions. This should not really surprise us. In itself, innovation is not sufficient to solve complex social problems. Take climate change: companies are still not stimulated enough to invest and experiment. That requires not only money, but also support from the community. In addition, well trained employees must be available on the labour market. Innovative solutions also have to be really dovetailed to what people or society needs. They have to be accepted, legitimized by law – or not – and put on the market. To generate more innovation the labour market should be organized more effectively For all those processes associated with innovation, from the definition of the real problems to the implementation of the solutions, contributions from people and society are needed. At Tilburg University researchers in the social and behavioural sciences are examining the social, financial, micro-economic, legal and organizational parameters which make innovation possible and how innovations can really be made to serve society. The Tilburg researchers do not invent new hardware technologies, but they do study them and provide social interfaces for them. Their knowledge of new organizational forms and methods which can improve decision-making and implementation processes in companies and social institutions makes it possible to work on innovation in a more focused way. Sociologists, economists, psychologists, researchers in cultural and communication studies, philosophers and legal scholars who are occupied with today’s complex problems look beyond the boundaries of their own disciplines. Often they also collaborate with companies, public or semipublic bodies and technologically trained researchers. All of this has to do with social innovation: new concepts, ideas, strategies, pro- Generating innovation Much of the innovation research at Tilburg has to do with the organizational prerequisites for effective innovation of a kind considered desirable. For example, the Center It is no longer the case that innovation sells itself for Innovation Research (CIR) is examining the effectiveness of networks of organizations in relation to innovation. Joining forces is commonly thought to stimulate innovation, but is that really the case? How can companies derive the most benefit from collaboration? Not only the management of innovation, but also the innovation of management itself are still issues for which there is no substantial theoretical or empirical knowledge base. In order to fill this gap, CIR is combining theoretical research with surveys, experiments and other empirical studies. Another way to generate more innovation would be to organize the labour market more effectively. Research into innovation of the labour market as a system is carried out at ReflecT, the Research Institute for Flexicurity, Labour Market Dynamics and Social Cohesion at Tilburg University. This kind of social innovation is needed to help the disadvantaged of our time, but also to enhance business potential – and preferably both at once. Attempts are already being made within the European Union to create a labour market which is flexible, but at the same time provides security for employees – Tilburg Professor of Labour Market Studies Ton Wilthagen’s ‘flexicurity’ concept. A related research theme at ReflecT is innovation of the education and training system so that job seekers’ skills will be better matched to the labour market. The Tilburg Law and Economics Center (TILEC) studies the enhancement of innovation by means of market mechanisms. As experts on market operation and market governance, TILEC researchers have observed that the interplay of innovation and market operation is still ignored in government policy. Current competition law within the European Union is supposed to contribute to the enhancement of competition, but it is not that simple, according to Professor of Competition Law Pierre Larouche. Companies also need to have money for research or be stimulated to do research. The worlds of innovation policy and competitive practice are still too far out of step. TILEC is also examining how much competition is conducive to innovation. If there is too much competition, products become too cheap in relation to the 3 required investment in Research & Development. If there is too little competition, a monopoly arises. Competition in the new digital economy is another research topic. Technological innovation plays an important role here, but competition law has not yet been brought into line. Improving innovation New technologies start with a good idea, but often it is only when they are used that it becomes apparent whether they really work. Psychologists from the Center of Research on Psychology in Somatic diseases (CoRPS) are examining the impact of medical technology on patients. Professor of Medical Psychology Johan Denollet thinks that better treatment of chronic diseases is the major challenge of the future. Technology is an important aid in doing this. But the effectiveness of technological remedies depends on the individual patient. CoRPS’s research focuses on the psychological impact and effectiveness of techniques such as the implantation of automatic defibrillators in heart patients or the treatment and monitoring of patients via the internet or by satellite. Research both during the development of such techniques and afterwards is needed to optimize their effect. As is well known, all kinds of things can also go wrong with big IT projects as well, such as the introduction of SAP systems in businesses or institutions. “We need to look more carefully at the human side of technology”, 4 Tilburg Research - 2010, volume 7, number 1 says Professor of Artificial Intelligence Eric Postma. ‘People and rigid systems just don’t go together. The “soft” human side is at least as important as “hard” technology’. Postma works at the Tilburg Centre for Cognition and Communication (TiCC), where information technology is applied in relatively new areas for IT – areas which centre around people and culture, such as archaeology, art and cartography. The researchers are working on finding clever ways to search in large quantities of information on the basis of words, patterns or images; or on ‘serious gaming’: computer games used for educational purposes. The focus is always on the human user. The implementation of innovative digital services is the subject of research at the European Research Institute in Service Science (ERISS). The researchers are examining the improvement of services through IT, mainly via the internet. Cloud computing and service-oriented architecture are examples. Introducing and selling innovation Marketing researchers at Tilburg University are developing methods to find out what consumers’ needs are and how to convert them into new products which create value for customers. Or how and when those products should be put on the market. “It’s no longer the case that innovation sells itself; people have only a limited number of needs”, says Professor of Marketing Bart Bronnenberg. “Often the market is a good judge of what is truly an improvement.” Researchers both at the Marketing Department and the CIR are investigating better ways of converting innovations into cash. Are user panels helpful? Is it advantageous to be the first to put a new product on the market or not? Consequences of innovation New technology has many consequences for people and society. In information technology drastic changes are around the meets national and international regulations and a company’s own management policy? How can you make new technology more applicable? At ERISS, researchers are looking for answers to these questions on the basis of expertise in accountancy, information systems, laws and regulations, and technology. The Center for Innovation Research (CIR) is examining the consequences for people in organizations. The organizations themselves will have to change, for instance to Our understanding of the fundamental laws and principles of services in the global, experiencebased economy is still in its infancy corner: the internet is spreading like wildfire, cloud computing is on the rise, and as a result many processes are making even more rapid strides. “We are increasingly connected through mobile phones, live links, web films, etc., but a lot more is going to change as well”, says Eric Postma. What exactly is hard to predict. “Our understanding of the fundamental laws and principles of services in the global, experience-based economy is still in its infancy”, says Professor of Information Systems Willem-Jan van den Heuvel. The global digital economy is changing not only the way we do business, but also our everyday lives and our society. The new possibilities raise new questions and problems. How can you ensure that shared software adapt to new production processes. New business models have to be developed in which a group of companies can see to the integration of processes, says Professor Marius Meeus. CIR researchers are investigating the best way to do this. The philosophy of the Tilburg Institute for Law, Technology and Society (TILT) is that unintended problems caused by new technologies can be solved in three ways – by adapting the technology itself, by regulating technology, and by raising people’s awareness of the problems. Professor of Regulation by Technology Ronald Leenes: “It’s only by involving all these factors in your solution that you can solve problems.” Corine Schouten Innovation to learn In the Dutch Science museum NEMO in Amsterdam, children learn by experimenting with technology. Photo Joost van den Broek/ Hollandse Hoogte Tilburg Research - 2010, volume 7, number 1 5 BOOK PUBLICATION Today’s customers are guided by emotion, reason and other factors Consumers today are no longer alone in their decision-making. Information technology, communication technology and globalization grant us access to information from other consumers with experience from around the world as well as businesses and institutions in the know. As consumers, we are developing an increasingly stronger connection with brands, companies and fellow consumers. But how do we use all this information to make choices? According to new findings detailed in The Connected Customer by marketing researchers from Tilburg University, the information process is guided by emotion, reason and social factors. Innovation to perform South African athlete Oscar Pistorius celebrates his world record on the 400 metres at the Dutch Open Paralympics (2008). Photo Jiri Buller/Hollandse Hoogte Today’s consumers no longer decide on a purchase by themselves but are increasingly influenced by other consumers, companies and brands. Customers communicate with one another using social networking sites, video clips on YouTube, brand community sites or anti-brand websites. Contacts between companies have also grown. All these modern forms of connectivity call for new analyses and strategies. In The Connected Customer, four marketing researchers from Tilburg University present a broad spectrum of new insights from leading international marketing scientists. Selective The experts in The Connected Customer provide examples of how customers deal with large volumes of information. This sometimes results in a more rational, active and personal relationship to a product, comparable say to the relationship between patient and doctor. However, in other situations, emotions or religiosity appear to play an important role. Emotions guide customers in their selective processing of information, which can result in greater brand loyalty, whereas a strong religious belief leads to a greater sense of security. The study found that customers with a strong belief display greater brand loyalty for everyday products such as mobile phones and watches. More and more, consumers are influencing each other in their decision-making. As one of the chapters illustrates, fundamental mechanisms such as social comparison and socialization play a role in this process. Popular phenomena such as word-of-mouth and viral marketing are also discussed in detail: which consumers exert the greatest influence, how do you deal with negative word-of-mouth? The Connected Customer: The changing nature of consumer and business markets by Stefan Wuyts, Marnik G. Dekimpe, Els Gijsbrechts and Rik Pieters of Tilburg University not only a source of inspiration for marketing academics but also for students and marketers. Published by Routledge (2010), ISBN 978-1-84872-837-0. [CS] 6 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 Innovation networks provide the best chances Innovation is of crucial importance to many small and medium-sized businesses, but it often also entails substantial risks. Innovators who fail to protect their intellectual property rights adequately may go under. Networking however, especially with suppliers and customers, gives small and mediumsized businesses the best chances for successful innovation. This was shown by a study carried out by organizational researchers Leon Oerlemans and Joris Knoben, who work at Tilburg University’s Center for Innovation Research. For organizational researchers The right partners small and medium-sized enterpris- The Tilburg researchers found es (SMEs) are an interesting field that networking can contribute to of study, because the vast majorinnovation. Small business ownity of businesses in many econoers usually have less raw materials, mies belong to this group and it knowledge and other resources at includes many different kinds of their disposal and therefore run businesses. “Often it is riskier for up against their limitations sooner. smaller businesses to change and “One solution is to find compleinnovate”, says Leon Oerlemans, mentary partners”, says Knoben. Professor of Organizational “Various studies have shown that Dynamics. Moreover, not all SMEs collaboration between competitors are involved in innovation and they is less successful than between don’t have to be. “For the bakery partners who complement each around the corner, the butcher other. A competitor is more likely and many other retail businesses to make off with your knowledge. innovation is often of very little sig- And that will have even more nificance”, adds Dr Joris Knoben. impact than if a non-competitor “In contrast, in companies which were to do the same.” have emerged as spin-offs from the universities innovation plays a Oerlemans remembers a small major role.” business owner who had devel- oped a clever mobile banking application. “To expand his market he joined forces with a big foreign bank, who then made off with the invention themselves. The inventor didn’t have enough resources to protect his intellectual property rights properly or to prosecute for abuse. This is a serious risk for small businesses. It’s always very hard for a small business owner to protect intellectual property rights effectively against a malicious big company – they can’t maintain an expensive court case long enough.” Risks According to Knoben the concept of innovation has a positive ring to it which is not always justified. “The source of the credit crisis was a whole range of financial products and services regarded as innovative such as the repackaging and reselling of mortgage debt, but no-one could properly assess the risks involved. Investment schemes were offered that looked so appealing that consumers began to feel they were losers if they did not participate – but in actual fact these schemes were anything but rewarding.” But lack of innovation can also have unfavourable consequences. Oerlemans: “A classic example is the computer manufacturer IBM, which relied heavily on the success of its big mainframe computers. IBM failed to foresee the rapid rise of the personal computer. They invested too late and too little in it and therefore lost the market to China and Taiwan.” Co-development What the Tilburg organizational researchers found was that the success of an innovation network depends to a large extent on its composition. Knoben: “Small and medium businesses which collaborate with suppliers and customers are often more innovative than businesses that collaborate with like-minded businesses in the same field. Contrary to what one might think, cooperation with universities may have negative consequences for small businesses.” Oerlemans: “There is a lot of debate about the need for more collaboration between universities and SMEs, but it turns out that in practice the two worlds often are too different. The small business owner often turns to the wrong university, or asks the wrong question, or his question is misunderstood.” Many small suppliers work for bigger companies such as car manufacturers. Oerlemans: “Increasingly you see co-development, with part- The success of an innovation network depends to a large extent on its composition ners developing a new invention together. Innovation is also stimulated if the manufacturer only indicates what features are expected for a particular module and leaves it to the supplier to work out the best way to address that.” According to Knoben it is always a good idea to collaborate with end users: “They can indicate whether they would like the product to be lighter or smaller for instance, or improved in some other way. This is called demand pull. Collaboration with end users stimulates innovation.” Power differences Cooperation is usually most successful when the partners have an equal position of power. “Very often you see that a small business gets off to a flying start if it gets to collaborate with a big manufacturer – it can suddenly supply a lot and have a large turnover. But in the long run it nearly always turns 7 out to be disadvantageous, because when it comes to reaping the rewards the big company suddenly bares its teeth.” Knoben nods. “It would be an interesting research question to find out what a small business needs to do to protect its position and what a big company should not do in order to achieve synergy in the collaboration.” Oerlemans thinks a good example of synergistic collaboration is what happened when a producer of loudspeakers met a small plastics manufacturer more or less by chance during a training programme. “Together they came up with the idea of selling the loudspeakers with plastic brackets which absorb vibrations, so that when the speakers are used in apartments they would not bother the neighbours downstairs.” Commissioned by the agribusiness sector, the researchers analysed the feasibility of certain business models in which major players in agribusiness invest in small innovative enterprises in this region, but do not take them over. In the Dutch province of Brabant many entrepreneurs in the agricultural sector are under considerable pressure and innovation is badly needed. Oerlemans had previously studied possibilities in the Eindhoven and Tilburg regions for strengthening the ‘industrial fabric’, or in other words cooperation between businesses. Oerlemans: “We like to feature in international journals, but we also like the research we do to be relevant to society.” 8 Tilburg Research - 2010, volume 7, number 1 Geographical distance The results of one of their surveys show for example that the optimal number of partners in an innovation network varies. The organizational researchers calculated that when existing products are being improved, a network of six to seven participants works best. “If there are more, the collaboration will be less productive”, says Knoben. Contrary to what you might think, in the case of a very innovative product it is better to have fewer partners – about three. “If too many people are involved and they all put Another interesting question is whether geographical distance affects collaboration. Knoben: “Lots and lots of people say it does. Silicon Valley is thought to be the most innovative region in the world because the same kinds of businesses are all clustered there. The idea is that face-to-face contact stimulates collaboration. We believe forward contradictory ideas without that at the very most proximity is sufficient knowledge of the facts, that is counterproductive. Moreover, important in the early stages of the innovation process, when businessa new product requires very intenes have to learn to trust each other.” sive collaboration and you simply can’t manage that many intensive relationships.” Marion de Boo When existing products are being improved, a network of six to seven participants works best Understanding innovation in organizations: The CIR way By Andrew van de Ven, Vernon H. Heath Chair of Organizational Innovation and Change, Carlson School of Management, University of Minnesota During its short existence the Center for Innovation Research has established an impressive program of leading-edge research and important contributions that advance knowledge of managing innovation. CIR research focuses on innovative activities of organizations and networks. This focus distinguishes CIR from most other research centers with a similar profile across Europe, as these tend to focus on policy-related aspects of innovativeness. More specifically, CIR's ambition is to generate new ideas, princi- ples and theories to understand and explain what drives and what hinders innovativeness of organizations. CIR's research is thus fundamental in nature, as it seeks to identify and understand the basic mechanisms underlying the innovative processes of organizations. While such research might not immediately help practitioners with their everyday concerns, it does stimulate new ways of thinking that can revolutionize and dramatically improve how practitioners deal with their innovation-related problems. To be able to advance the understanding of the fundamental principles underlying the innovativeness of organizations, CIR relies on data from real organizations. These organizations are in fact the labo- ratories in which CIR researchers carry out their work. This approach is not only important for assuring on-going access to in-company data but also to maximize the societal relevance of CIRs research. Another unique feature of CIR is that its fellows originate from two different schools of Tilburg University: the School of Economics and Management and the School of Social and Behavioural Sciences. As a consequence, the research conducted at CIR is multidisciplinary in character. By bringing together the strategic, sociological, microeconomic, behavioural, and a number of other perspectives, CIR research offers a much richer and complete picture of actual innovative activities of firms than it would otherwise have been the case. Innovation to regulate The chip card for public transport was introduced in Rotterdam in January 2010; the rest of the Netherlands will follow soon. Assistance is needed to introduce the new technology. Photo: David Rozing/Hollandse Hoogte Tilburg Research - 2010, volume 7, number 1 9 research portrait The use of technology is no longer for the happy few Name: Lonneke van de Poll Position: Associate Professor Department: Center of Research on Psychology in Somatic Diseases (CoRPS) Research: Patient-Reported Outcomes Following Initial treatment and Longterm Survivorship (Profiles) “ Doing a survey online instead of on paper makes our study of cancer survivors more flexible, more reliable and affordable. In the past we used to approach 800 people; now we can easily reach 8,000. About 70% of cancer patients were already online in 2005, 10% of these through a family member. Relatively speaking the Netherlands has the highest number of internet users in the world, so that with our internet application we can be world leaders. Worldwide a lot of research takes place online, but most of it is ad hoc. Ten hospitals in the region are participating in our project, which means that our sample reflects the population well. After my PhD project I discovered that at the Comprehensive Cancer Centre South, where I also work, we don’t really know how people who have survived cancer are doing as time goes by. When we started asking them, it turned out that they were very pleased with the attention. Many people still had complaints as a result of their illness. You only obtain this kind of information if you ask the patients themselves. Innovation to replace The SAYA humanoid acts a secretary at Tokyo University of Science. The humanoid can talk and has unlimited facial expressions. It is being introduced as a teacher for primary school children. Photo Richard Jones/ Hollandse Hoogte We copied our digital survey system from the Tilburg research institute CentERdata and in May the first surveys went out. The Comprehensive Cancer Centre South selects patients from the participating hospitals and then doctors write letters to the patients inviting them to take part. Participants will be able to see the results of the survey online. In the future we want to send the results to the individual patients as feedback as well, because they increasingly prefer that. It fits in with the trend towards patient empowerment. Of course we make sure our research data are stored anonymously and that we treat the information confidentially. In the United States the fear of inadequate privacy protection is so enormous that it is getting increasingly difficult to conduct this kind of research. But we need information from patients if we are to move forward. We have to take care we are not paralysed by that fear. Technology can support us in all kinds of ways. Using it is no longer just for the happy few. The advantage of online surveys is that it’s easy to adapt the questions to match the latest insights. And new questions can be added at once. A few years ago we discovered that when women with breast cancer had lymph nodes removed, this still caused them pain even after a long time had passed. These observations stimulated the introduction of a new surgical technique in our region. It also emerged that there was a great deal of uncertainty as to the long-term impact of cancer. We can provide that information more effectively online. These practical effects of our research give me a lot of satisfaction. Because of what we do, progress is made in health care. [CS] ” 10 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 Medical innovations can strike fear into patients’ hearts Life-saving heart devices may have a paradoxical dark side: after a device has been implanted, anxiety about its functioning may have a demonstrably adverse effect on heart patients’ physical recovery. This is why Tilburg professors Susanne Pedersen and Johan Denollet advocate that more attention be paid to these patients’ psychological well-being. ‘Where is the patient?’, Professor of Cardiac Psychology Susanne Pedersen asked several times during her inaugural address in spring 2010. In her opinion this question is just as relevant as questions about heart patients’ blood pressure and cholesterol levels. “Based on these data, we determine whether medical intervention is necessary, so the patient can be treated and have a better and longer life. It is time that we also take the patient’s perspective into account with respect to health care for patients with heart disease.” This is not only a matter of cour- Stress management needs to be tailored towards a patient’s individual needs tesy to the patient, but also a medical necessity; research has shown that a patient’s personality has a demonstrable impact on recovery after a medical intervention. Johan Denollet, Professor of Medical Psychology and initiator of research in this field, discovered this twenty years ago. At that time, he was counselling heart patients at the university hospital in Antwerp. “I started there with the naive idea that I didn’t have much more to offer to heart patients than a bit of consolation and support. But over the years, I found out there were big differences in the way people reacted to their cardiac condition and invasive treatment. While some people recovered from serious heart attacks relatively smoothly, other people with less severe cardiac disorder took much more time to recover and reported more feelings of being disabled.” It turned out that the patient’s personality was a significant explanatory factor. In particular, patients with a “distressed” or “Type D” personality may experience a relatively large number of problems during recovery. These are people who are prone to worrying and catastrophic thinking and at the same time inclined to bottle up their anxiety and other negative feelings. “Stress makes our hearts beat faster, our blood pressure rise, and our breathing shallower”, says Denollet. “Sometimes this mechanism enables us to perform better than usual, for instance when someone has to give a lecture. But people who suppress their reactions to these stressful situations may fail to convert that physiological energy into adaptive action. Also, there is no cooling down period. In the end, this can lead to excessive strain on the cardiovascular system.” Mind – body interface The aim of the new research centre CoRPS - Center of Research on Psychology in Somatic diseases – at Tilburg University is to address these issues at the interface between mind and body. Pedersen’s research focuses mainly on patients with cardiac devices such as an implantable cardioverter-defibrillator (ICD). The ICD corrects any cardiac arrhythmia by delivering a sharp jolt of electricity. It is a life-saving device, but a quarter to a third of all patients experience psychological problems. Questions such as: ‘Is this device 11 Managing the complex relationship between heart and mind By Jens Brock Johansen, MD, PhD; Cardiologist, Odense University Hospital, Denmark Since 2007 we have conducted a series of studies in Danish ICD patients in close collaboration with Professor Susanne Pedersen of Tilburg University. We found that the degree of underlying heart disease and the ‘distressed’ (Type D) personality were the main determinants of anxiety, depression and reduced quality of life. This was a surprise, as cardiologists tend to believe that the ICD and in particular the ICD shock is the ‘evil villain’. In fact, we found that ICD therapy was generally well tolerated and accepted by patients. Our findings indicate that potential psychological side effects may be over-estimated and should perhaps be less emphasized when ICD implantation is discussed with patients. Furthermore, we will be able to direct psychological counselling to those patients working? When will I get a shock?’ trouble patients. “This anxiety is only partly caused by the sharp jolt of electricity delivered by the ICD”, says Pedersen. “Patients with a Type D personality have a higher chance of remaining anxious and experiencing poor quality of life following the implantation of an with the greatest need. Together with Professor Pedersen we have also done a national survey in Danish health care professionals involved in the treatment of ICD patients on their attitudes towards ICD therapy. In another study, we examined the psychological impact in patients who have been notified about a potential malfunction in their ICD system. Ultimately, these findings have led to the launch of a national prospective study, spearheaded by Professor Pedersen, on clinical and psychological outcomes in ICD therapy with a focus on women. This will hopefully enhance our understanding of ICD patients further. It will help us to better manage the complex relationship between heart and mind in patients with an ICD. ICD.” In fact, their mortality rate is twice as high as that of patients with a more positive attitude. In other words, a life-saving device can strain the cardiovascular system because of the stress it causes. Anxiety can also hamper the patient’s physical recovery indirectly. Patients have difficulty fol- 12 Tilburg Research - 2010, volume 7, number 1 lowing all the medical instructions after implantation: take medication, stop smoking, engage in more exercise, eat more healthily, etc. “Anxious and depressed people in particular find this difficult”, says Pedersen. Tilburg Research - 2010, volume 7, number 1 By taking psychological factors into account we increase the chance of new medical technology being integrated properly into human life Stress management All in all, there is sufficient reason to improve patients’ psychological well-being. This is not easy, as comparable programmes targetDenollet notes. “You can’t just ing depression do not improve the write a recipe for the best way prognosis of this risk group, but for someone to cope with stress. this does not discourage Pedersen. Strategies to improve stress “If patients’ anxiety and depression management need to be tailored towards patient’s individual needs.” are reduced, they will feel more at ease, experience better quality of This is why Pedersen has set up life, and will also be more likely to an experimental intervention procomply with the doctor’s advice. gramme called WEBCARE which offers ICD patients relaxation exer- I think that’s an end in itself.” Denollet’s research group is also cises and feedback via the intercollaborating with manufacturers net. Studies from the USA and of heart devices on medication the Netherlands have shown that dispensers, which indicate when it is time for patients to take their medication. The researchers hope this strategy will enhance patients’ adherence to their medical treatment. At the same time, they will investigate whether such a system also creates any additional stress itself. “By taking psychological factors into account we may increase the chance of new medical technology being integrated properly into human life”, says Denollet. “This is why industry is interested in our research. The same also applies to the medical world. Ten to fifteen years ago this kind of research was dismissed as folklore, but now more and more attention is being paid to the impact of psychological factors on physical health.” Enith Vlooswijk NEWS Grasping Europe's innovation policy The European Commission does not have a directorate-general responsible for innovation as such. This is not surprising as many legal interventions (in addition to many budgetary interventions) have an impact on innovation, directly (e.g. intellectual property law, R&D policy) or indirectly (competition law, state aid regime, standardization practices). Thus, one wonders: does Europe have the right innovation policy? does it have a coherent innovation policy to start with? How do various policy interventions affect the growth rate of the economy? Those are the questions that the Tilburg Law and Economics Center TILEC will be investigating in the coming four years as part of a larger research effort undertaken with researchers at CEPR, Université Libre de Bruxelles, DIW Berlin, Bocconi University and University of Oslo. The research is funded by the European Commission under its 7th framework program by the name of GRASP. This project, led by TILEC director Pierre Larouche, will allow TILEC to increase the breadth of its already sizable research on innovation as well as further the links between economists and legal scholars throughout Europe. 13 research portrait ‘We must defend our privacy and with it our freedom’ Name: Martin Pekárek Position: PhD candidate Department: Tilburg Institute for Law, Technology, and Society (TILT) Research: Privacy-enhanced e-ticketing solutions using location-based services “ It seems convenient to sell tickets electronically through mobile phones, for example in public transport. After all, your mobile phone is always linked to where you are, by GPS information, so that it is possible to calculate exactly how far you have travelled. But is this really a good idea? The Dutch Railways or other parties would always know where you were. With this information they would be able to analyse what kind of consumer you are – what is known as social sorting. Then these companies could start spamming you, for instance. My research is about how we might be able to use e-ticketing in public transport without the privacy drawbacks. I am looking at the technological aspects of various solutions and exploring the market for them. But I am also investigating to what extent such solutions are legally possible and what the procedural and organizational consequences would be. For example, what personal data would a telecom company like KPN have to pass on to the Dutch Railways to enable a payment to be made? How great is the risk that this information would be distributed further? Would it be possible, for instance, to place some kind of intermediary agent in between to safeguard the data? With this research I hope to develop a blueprint for electronic payments based on location information. This could also be used in road pricing, for instance, or ticket sales for concerts. It would always apply to situations in which authentication and identification have to be differentiated – in other words, showing entitlement to a particular service as opposed to establishing the identity of the customer in question. Often authentication is enough, whereas identification is what happens. The broad applicability of this research is something very special, as is the collaboration with businesses. Trans Link Systems (TLS), the company which developed the Dutch public transport chip card, is sponsoring the research. In conjunction with several universities TLS has set up an expertise forum to stimulate collaboration between the parties involved. This independent forum is now funding research into the applicability of new technologies in the field of transport. l don’t know if we will manage to find a satisfactory solution for location-based e-ticketing. If we don’t, at least we will have mapped out the basic principles clearly. Moreover, this research is urgent. Increasing quantities of personal data are being collected and stored, and nobody knows what the consequences may be. Take the introduction of the Electronic Patient Record and the digital fingerprints in passports. If we do nothing, within five or ten years we will have a transparent society. We must defend our privacy, and with it our freedom. But we have to have the tools to do that. [CS] ” 14 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 Krahmer adds: “You can make a clever voice recognition programme that can understand what you mean if you want to go by train from Tilburg to Amsterdam, and you provide the right travel details. But it’s almost inevitable that a programme like this will occasionally not understand you and will have to ask you to repeat your destination. Often people then get annoyed and start to articulate very clearly. But the computer programme is not designed to understand clearly or loudly spoken words and will only function even worse. The next step in intel- Do we adapt to technology or technology to us? “It is very understandable that people often yell at their computers. Let’s face it, computers are terribly rigid machines. Our aim is to make computers friendlier. Computers should adapt to us, not the other way round.” This is the opinion of Eric Postma, Professor of Artificial Intelligence, who works at TiCC – the Tilburg Centre for Cognition and Communication. Postma has been working at Tilburg University for two years, after a rather remarkable transfer. Along with fellow professor Jaap van den Herik and with several researchers following in their wake, he left Maastricht University for Tilburg. A ‘major loss’, according to the Maastricht University paper Observant, because the research conducted by Postma and his colleagues is undeniably state of the art. It is really the next step in the development of Computers will become better and better at responding to our wishes and needs artificial intelligence – research that is shaping the near future, when IT and computers will play an increasingly prominent role in everyday life. A small example: our personal avatars – intelligent, computer-generated faces – will ‘know’ when to tell us the milk has run out. Postma: “Computers will become better and better at responding to our wishes and needs, detecting what we want and how we feel. Since the fifties the development of artificial intelligence has fulfilled many promises. But it’s mainly related to intelligence based on cognition. Chess programmes are a good example. They are able to calculate with incredible quantities of data very quickly. And since computers’ computing capacity has increased over the decades, it was only a matter of time before chess programmes started to beat top players like Kasparov. But intelligence is not only about cognition; it also has to do with perception, recognition and observation. Recognition of facial expressions or a raised voice for instance, or of intentions or patterns in behaviour.” Postma’s fellow professor Emiel example, we are investigating children’s nonverbal behaviour. The results can be used to design programmes to help children learn, such as a maths programme that ‘sees’ that children are having trouble – or no trouble at all – with a sum and automatically adapts the level. Facial expressions play a role, but so do other signals, such as the length of the pauses between question and answer, and the intonation of the answer.” “Another good example is a recent study of the eyebrow and head movements of news readers, by which they communicate prop- It’s up to people to think carefully about how and where they want to use these tools ligence is for computers to ‘hear’ from the pitch or volume of your voice that you are annoyed and adapt their behaviour. Research from the United States has shown that voice recognition computers which ‘know’ when to apologize, so that people calm down, are very much more effective.” Facial expressions Krahmer: “In this form of intelligence the important thing is how someone says something, not just what they say. That doesn’t mean the content is irrelevant, but the form often emphasizes what we mean. With new computer techniques we can now study that form very precisely. We are focusing on nonverbal communication, such as facial expressions. For erties of their news reports, for instance to emphasize important words or to indicate whether they are talking about a light-hearted or serious topic. This information can be used to make better and more true-to-life avatars. Of course we know intuitively that eyebrows are used to reinforce words, but not when exactly, or how high the chance is with certain words. If an avatar constantly moves its eyebrows, it looks unnatural or even neurotic, so the timing is very important.” Postma: “With recognition as a new step in the development of artificial intelligence, just checking as much data as possible as quickly as possible is often not enough. The computer has to learn which data are important 15 and which are not; they have to learn to recognize patterns and situations. This is called machine learning and it is another area on which TiCC research focuses. Serious gaming is a good example; take the simulation programmes used to train police officers. A drawback of these simulation programmes is that the weak points are relatively easy to discover. We are therefore also investigating intelligent games that detect and improve their own weaknesses and improve and adapt to the player. Another example is recognizing paintings. We are teaching a computer to distinguish real Van Goghs from fakes. On the basis of examples of real and fake Van Goghs, the computer is trained to ‘recognize’ visual texture, for instance brushstrokes. In this way it ‘discovers’ Van Gogh’s personal fingerprint. This can be compared with the way our brains work; we use biological findings about how the brain processes information.” Sensitive aspects Postma: “With recognition software like this you can also recognize the faces of real people. That would be a handy app on your iPhone, in case you meet someone whose face you can’t quite place. But obviously there are also many other applications, such as in airport security systems. The research we are doing here has sensitive aspects; for instance, it may raise many privacy issues. What if a programme that recognizes faces on the basis of biometrics is used by the judiciary and then makes an error?” 16 Tilburg Research - 2010, volume 7, number 1 Weave maps and colour schemes By Ella Hendriks, Head of Conservation Van Gogh Museum, Amsterdam Some of the most exciting advances in the field of art history and conservation are being made through collaboration between art specialists and computer scientists. Such interdisciplinary studies have demonstrated how digital image analysis tools can help to classify features specific to a particular painter, studio, or period of production. For example, in a pilot project, fine and coarse scale features of brushwork were measured in high resolution scanned images of paintings by Van Gogh and his contemporaries. Based on a statistical analysis of these measured features, it was possible to distinguish paintings by Van Gogh from those by other artists with a success rate of around 85%, not bad for a first attempt. Computer image analysis tools are also proving very useful for the study of paintings on canvas. Exploiting digitized images of x-rays of paintings that reveal the structure of the canvas weave, the computer is able to map subtle weave variations across a picture support. The so-called weave maps produced provide a specific fingerprint for the particular piece of cloth used. In retrospect, the computer then successfully matches up canvases used for different paintings that were originally cut from the same sheet of canvas woven on the same loom. Another useful application of computer imaging technologies has been to explore the visual consequence of colour change in paintings. Regrettably the colours used by Van Gogh have often deteriorated over time due to the poor quality of the tube paints he used. Though this effect cannot be reversed in reality, some idea of how the paintings looked when they left the painter’s easel can be given by rejuvenating their colour schemes in digital images. Together these computer-aided studies of the canvases, brushwork and colours found in Van Gogh’s paintings have increased our understanding of the artist’s working practice, helping to date and correctly attribute paintings by his hand. The Van Gogh Museum looks forward to continued exploration in collaboration with the Tilburg Institute for Cognition and Communication in the years ahead. Krahmer: “I can understand why people question how far this should go. Isn’t it dangerous to let IT intrude too far into our everyday lives? A good book about this is HAL’s Legacy by David Stork, published in 1997. Of course HAL is the intelligent computer in '2001: A Space Odyssey', which loses the plot and threatens astronaut Dave Bowman’s life. But I don’t think it will come to that. Technology is more likely to remain a tool. It’s up to people to think carefully about Intelligence is not only about cognition enables a pathologist or doctor to discover a tumour quicker. That doesn’t mean I don’t realize that this research may involve moral issues, but it also leads to good things. For example, it removes barriers for people who would otherwise never dare to use computers. If compu-ters are made more friendly, it will be easier for those people to overcome their fear, and then they will be less excluded from society.” how and where they want to use these tools.” Postma: “Exactly. A programme that can distinguish fake Van Goghs from real ones is not going to replace art experts. It’s a tool that enables them to do their work better, just as a recognition programme can also be used to develop new medical technology which Leon Heuts Innovation to enjoy Two girl friends on a raft, designed with the materials available to them. Photo Marcel van den Bergh/Hollandse Hoogte Innovation to charm A Star Wars robot tries to tempt girls into a technical training at an education fair in Rotterdam, the Netherlands. Photo Joost van den Broek/de Volkskrant/HH Tilburg Research - 2010, volume 7, number 1 17 research portrait Competition affects innovation, but also vice versa Name: Jan Boone Position: Professor of Industrial Economics Department: Economics & Management / TILEC / CentER Research: Market structure, innovation and productivity: an empirical approach “ Innovation to research MIT's humanoid robot's management, used as research platform for human-robot interactions Photo Jean Claude Moschetti/REA/HH How competition affects innovation is an old question in economics. If a product is faced with more competition, the price will go down. That's good for customers who want to buy the product, but less profit also means less money for innovation within the company; which in turn leads to lower profits. And in the long term growth is always more important, not only for a company but for the whole economy. The reason you invent a faster road bike is that there is a demand for it. You need to organize the economy in such a way that companies can respond to that quickly. How companies can become more innovative – that’s what interests me. And what competition is and how you can measure it properly. One of the questions in the research project I did with my Tilburg University colleague Professor Jan van Ours and PhD student Henry van der Wiel was how competition can be measured. Usually people look at the price-cost margin (how prices relate to costs). A high margin gives you more market power. But the price-cost margin is not really a good variable to measure how competitive a market is, because you don’t know whether you are measuring market power – the price is higher than the costs – or whether it’s just that the production costs in a company are low. If that is the case, then the main factor is efficiency. That margin is not the way to measure how competitive a sector is. If that isn’t the right way, what is? We studied efficiency in businesses by looking at labour productivity, for example. Then we measured what increased efficiency yields. How rapidly did profits rise? In a highly competitive sector profits rise very rapidly. Apparently improving efficiency is extremely rewarding. We also showed that not only does competition affect innovation, but innovation affects competition as well. Companies innovate in order to reduce competition. If they put a new product on the market, that creates market power for them. So companies innovate to obtain more market power. The government also exerts influence. Firstly, by subsidizing research. They already do that through the Promotion of Research and Development Act, a subsidy scheme which promotes research and development through tax breaks, but according to our research findings this has not had much effect. It is much better to let competition be stimulated by the Netherlands Competition Authority, which keeps an eye on competition within a sector to make sure it doesn’t level off due to price fixing or similar practices. That seems to work. [RK] ” 18 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 “The best way to predict the future is to create it.” (Peter Drucker) Innovate or rejuvenate In the year 1992, Motorola introduced the first handheld cell phone on the Dutch market. If you wanted one, you had to pay the almost incredible sum of 4,000 Dutch guilders – plus VAT and a quite expensive subscription. Some people wanted one; just because it existed. Most of the time the network proved insufficient and conversations were abruptly ended. But people wanted one still the same, because the leap into the future was tremendous. It made them feel like James Bond entering a Star Wars movie. Which was well worth their four grand. Innovation at its best! Other producers were soon to follow. The network improved, along with the battery capacity of the phones, which at the same time became smaller, cheaper and sexier. Four years later one could see people calling from supermarkets, restaurants and public toilets. In 2004, Nokia had sold one billion appliances. The market became clogged and remained slow for four more years. Suddenly an Apple-shaped lightning bolt struck the world of mobile phones: the iPhone. Apple had reinvented both the phone and the market completely. Entry time is crucial Professor of Marketing Bart Bronnenberg specializes in new products, market strategy, and entry timing; what is the best moment to bring your product to the market? According to Bronnenberg, the best cards for success within any market are in the hands of those who are among the first to enter it. The other option is to come with a redevelopment of a product that is so revolutionary that consumers see it as a new product, and the producer effectively resets the entry clock to zero, thus creating its own future. Marketing and the science that studies it can do a lot to improve the results of innovation: “First of all, we develop methods that help firms figure out what consumers want. The study of consumer behaviour has provided science and marketing people with extensive information. Secondly, we want to know how we can help entrepreneurs to develop their innovation strategy, by finding answers to questions like: what is the best time to put a product on the market and what is the best initial price for a new product? In our ongoing research, we aim to measure the benefits from an early entry strategy. Consumers seem to develop a preference for brands that entered the market early and that they knew from the start. Those early brands also profit from the fact that they had the opportunity to build their position on the market through investment in distribution channels and contracts with retailers. The position they have achieved changes the playing field for late movers, who will have an expensive job trying to catch up. For example, through years of investment in name recognition and presence in the distribution channel by giants like Pepsi and Coca Cola, it has become prohibitively expensive for a me-too brand to find a place next to them. Preferences for regional products Besides early entry-brands, consumers also tend to be loyal to brands that are in some way connected to the region they live in. Heinz ketchup originates in Pittsburgh and has thus far remained in favour there. Hunt’s ketchup has a more dominant position in its home state California. A good brand becomes a habit to the consumer. Whereas in many consumer goods, early entry seems to have persistent effects, in product categories with more turbulent innovation the first entry-phenomenon seems to have eroded, perhaps due to repeated reinvention and rejuvenation of the product category. For instance, in the market for personal computers, brands have difficulty keeping their number one position. IBM, Dell, Compaq were all once the market leader in personal computers, but not persistently so. Especially within this market, the lifecycle of a product and the brand popularity are shorter, due to the fact that innovations happen quicker. You cannot sell a person something he doesn’t want During the eighties, Ingvar Kamprad turned his national business Ikea into a worldwide empire. Today it is hard to find any household without Ikea furniture or kitchen tools. The presence of Ikea in the market for cheap furniture has become so predominant that consumers can’t imagine an Ikea-less life. How is that possible? “Probably there was a preference for products like that to which Ikea responded,” says Bart Bronnenberg. “You cannot sell a person something he doesn’t want. It is difficult and expensive to create a preference where there is none. Preferences can be influenced for sure, but no company can build a business attracting customers with products they don’t want. Ikea researched the existing preferences regarding furniture and household commodities thoroughly before they took off with their business plan.” The spinning wheel of innovation The best drive for innovation is competition and profit; if a company can improve its results by innovating and trying harder than the rest, both that company and its consumers will benefit. The pioneer of modern management Peter Drucker saw innovation as the specific instrument of entrepreneurship; the act that endows resources with a new 19 capacity to create wealth. He also considered it a company's primary responsibility to serve its customers. Profit is not the primary goal, but rather an essential condition for the company's continued existence, Drucker stated. When you add these two considerations, you can only conclude that the free market is the spinning wheel of innovation. “Universities have a lot to offer to entrepreneurs who want to study the market,” says Bronnenberg. “Our scientific work develops methods to better gauge the sentiment of consumers and help define innovative projects. It helps entrepreneurs study their markets.” Creating methods for studying the market and developing new products Some businesses are strongly interwoven with science. “A good example is Sawtooth Software, who build their online software for interviewing and conjoint analysis strongly on the knowledge they gather in the academic world. Apart from that, business and science share their visions on various platforms, such as the Marketing Science Institute in Boston. Here in Tilburg we have Econtrack (www.uvt.nl/econtrack), which serves as an outlet for scientific research. Overall, one of our goals is to develop marketing research methods, which help businesses to innovate in an effective manner.” Rik Oerlemans 20 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 Experimenting with social networking and privacy Social networking sites like Facebook and Hyves have become hugely popular in recent years. However, many reports appear in the media about privacy problems with these sites. Academic researchers have also identified these problems and are investigating them. At the Faculty of Law, philosopher of technology Bibi van den Berg is conducting research in this area in the framework of the European research project Prime Life, which examines privacy and identity issues on the internet. She and her research team have set up a completely new privacy-friendly social networking site: Clique. In the information society individuals can interact and share information online. But personal data may also become public in the Many users don’t look at the privacy settings at all process. Many users do not realize what consequences this may have. For example, most employers already check job applicants’ data on the internet. Cyber criminals can commit fraud or steal money using stolen identities. The wealth of personal data users share on social networking sites can also be used for other purposes. The question is how those data can best be protected by privacy-friendly or privacy-supportive technologies without users being hampered. This requires both technological and social innovation. The ultimate goal is also to strengthen European industry by enabling consumer data to be handled in a way that inspires confidence. The Tilburg Institute for Law, Technology and Society (TILT) is conducting a research project relating to privacy and identity in online social environments. Fifteen partners are participating in this research project called Prime Life, including other European universities, Microsoft and IBM. Most of the funding comes from the European Commission. For the Tilburg researchers, the goal is to analyse privacy problems on existing social networking sites. Within this framework Bibi van den Berg focuses on privacy issues which may arise in connection with social networking sites such as Hyves, Facebook and MySpace. She is also trying to find out if alternative designs could be developed for social networking sites, so that user privacy would be better safeguarded, and whether the way users form or maintain relationships on those sites could be more in line with the way they do that in the real world. The intention was that the research findings would ultimately be shown in a series of screenshots of an alternative, privacy-friendly social networking site. Van den Berg thought that was not very convincing. She asked a Master’s student to set up a completely new social networking site. After over one and a half years of research on privacy and identity problems in existing social networking sites, the innovative social networking site Clique went online (www.clique.primelife.eu). No warnings One problem that occurs with existing social networking sites is that once users have defined their privacy settings on joining the site, they share all their information with the same privacy preferences. Many users are not aware of this and don’t look at the privacy settings at all. As a result, they may unknowingly share all the information they put on the social networking site with the entire world. There are no warnings or reminders about the size or composition of the public. Van den Berg: “In Clique we have solved this problem by raising users’ awareness of privacy. Every time users put information online, for example by uploading photos, but also when they modify their profile, perhaps adding a phone number, they are asked who they want to show that information to.” Another problem with existing sites is that users have only one identity, which they show everyone: colleagues, friends, (former) classmates, acquaintances and sometimes even strangers. “This does not reflect the way people relate to other people in their daily lives”, says Van den Berg. “At work we show different sides of ourselves than at home on the couch or in the supermarket checkout line. In short, we show different ‘identities’ (‘faces’) in all these everyday contexts.” If users cannot do that on social networking sites, then privacy risks are also involved. Users need to think very carefully about what they share with their ‘public’. Colleagues, friends, relatives and mere acquaintances all get the same picture, sometimes with very personal information. “In Clique we have given users the option of creating several faces (identities)”, explains Van den Berg. “For example, you can set up a ‘work’ identity, in which you only present yourself to col- Existing sites do not reflect the way people relate to other people in their daily lives leagues and former colleagues. You also have a ‘private’ identity, in which you present yourself only to close friends and family. This prevents mixing contexts.” In addition, Clique has replaced the socially awkward and very unfriendly act of ‘defriending’ by ‘fading contacts’, in the same way as that works in real life: if you 21 don’t share information with an individual on your contact list for a long time, this person fades on your contact list, and if you don’t do anything the person may eventually even disappear from your list. Collections In the past it has often also been impossible to cluster the contacts in separate categories, such as ‘neighbours’ or ‘former colleagues’. “This also fails to reflect the diversity of social relationships and the wide range of levels of intimacy people experience in their everyday lives”, says Van den Berg. In Clique users can create ‘collections’ (within each ‘face’) in which they place their contacts. “For example, in my ‘work’ face I have a ‘TILT colleagues’ collection, a ‘former colleagues’ collection and a ‘Prime Life’ collection. These are all work-related people, but they don’t all have to see everything I share about my work. With our system you can make information available to a small group of people within a certain identity.” There has already been a great deal of interest in Clique. Next year the researchers will examine how users behave on this social networking site and on the basis of their findings the system will be further adapted and refined. Van den Berg now gives master classes at secondary schools to make students aware of the dangers of unprotected use of social networking sites. Tineke Bennema 22 Tilburg Research - 2010, volume 7, number 1 research portrait Fast forward through history Name: Antal van den Bosch Position: Professor of Memory, Language and Meaning Department: Faculty of Humanities, Tilburg Institute for Cognition and Communication Research: Intelligent access to cultural heritage databases “ Animal was found in another animal’s stomach. Recorded in a zoologist's logbook kept during a VOC ship’s voyage to distant shores. Fascinating, isn’t it? It’s wonderful to see that centuries-old documents about the development and distribution of animals can be accessed, that biologists are being helped to do this, and that as experts in language technology and artificial intelligence we can play a role. This study is part of MITCH, a project subsidized by the NWO research programme CATCH. Its objective is to enhance access to cultural heritage. To do this we use text mining: rapid analysis of texts by a computer that can detect and show connections which human beings cannot, for instance because there is too much material. We are using this technique to make the natural history museum Naturalis archives digitally accessible. These archives include thousands of logbooks and registers, some of which are hundreds of years old. At that time it was an ingenious way of storing information, but for today’s biologists it is a huge amount of work to retrieve the information they need from those paper archives. We have helped to develop a database which makes those archives digitally accessible. You can also ask difficult questions, such as: How did a certain frog spread over time, and can you please show us on Google Maps? Obviously this goes a lot further than typing out those old texts. What it boils down to is training a computer to automatically detect which words in a logbook entry designate a species name, which the biotope, which the location where the animal was found, etc. Then – after a few hundred examples – the computer can learn how to categorize the information from the context automatically, many times faster than entering the information manually. It took ten years for human experts to enter approximately sixteen thousand database records; in a short time the MITCH project was able to add about forty thousand more records. After animals we went on to socialism; that is, at present we are improving the accessibility of the archives of the International Institute of Social History in Amsterdam. They include historical texts about the rise and fall of social movements and trade unions; correspondence from leading figures such as Marx, Engels and Troelstra, minutes of labour union meetings, newspaper reports, eyewitness accounts of important events. A challenge, because these sources are much more heterogeneous than the reports about animals. But we expect a lot of this HiTiME project: an automatically generated chronological database of important events. History is usually presented as a tidy story, revolving around leaders, but history is also made by unknown people and chance. Perhaps this intelligent database will help historians discover that an apparently insignificant figure was the instigator of important event such as strikes or a resistance campaign. Or take the red flag of socialism: who was the first to wave it? It was not Marx. We may well find the answer in those archives, provided we combine the texts in the right way. [LH] ” Innovation to collaborate Tilburg University recently opened its Baby lab to conduct experimental research into development of the brain of young children and baby’s, even when they are still in te womb. One of the research topics is the impact of stress and fear in pregnant women on development after birth. The Baby lab creates new opportunities for collaboration with other universities in Europe. Photo Ton Toemen Tilburg Research - 2010, volume 7, number 1 Sharing the tricks of the trade Intellectual property laws stimulate inventions and ideas, as they guarantee that inventions cannot be copied with impunity. But a successful idea in the hands of one company may inhibit further innovation. TILEC is investigating how tricks of the trade can be shared fairly. Innovation to help Staffs of Cyberdyne Co. Ltd., wearing the Robot Suits HAL (Hybrid Assistive Limb), cross the street during their demonstration walk in Tokyo. Photo Katsumi Kasahara/Gamma/HH ‘Which internet browser do you want to use?’, asks every new computer with a Windows operating system these days. The buyer is given a choice from more than five browsers including Firefox, Safari, Chrome, Netscape and Explorer. This range of options is the latest result of a legal battle between the European Commission and Microsoft, the maker of Windows, which lasted for years. In an earlier case, the Commission imposed fines on Microsoft amounting to no less than 1.68 billion euros. “The Microsoft case is a classic example in the fields of intellectual property law and competition law”, says Pierre Larouche, Professor of Competition Law and director of the Tilburg research institute TILEC (Tilburg Law and Economics Center). “Patent law protects people’s ideas so that they earn an honest living from them. Competition law sets limits on monopoly positions, so that everyone gets a fair chance to put a product on the market. IP (Intellectual Property) law and competition law are not adversaries, but tools to stimulate innovation. They have the same objective.” Sharing your best recipe Nevertheless, the combination of IP and competition law does raise problems. Pharmaceutical companies invest heavily to develop new medicines. Patents help them to earn these investments back. “It’s right that there is protection”, Larouche argues. “But a recurrent question is: how long should patent protection last? And how extensive may a patent be? A too long-lasting or too extensive protection may stand in the way of new innovations.” According 23 to Larouche, ultimately the most important question is: how much may a company earn from its idea as a reward for the invention and a stimulus for further efforts? A tricky question, which would also be very difficult to benchmark. Modern communication technology is an outstanding example of a sector where patent law and competition law cross paths. In the Microsoft case the Commission found that the IT company was abusing its dominant market position in operating systems by installing its own mediaplayer by default. The Commission also ordered Microsoft to release technical information about its operating system, so that others could develop their products further. Microsoft protested; the company thought it was unjust that it had to help its own competitors. But ultimately the European Court of First Instance decided in favour of the Commission. Larouche: “Innovation in the ICT sector is often very complex. Companies develop new applications for other people’s ideas, while the company in question is often also working on them and is not particularly keen to see others’ products appear.” A recent exam- 24 Tilburg Research - 2010, volume 7, number 1 People are quick to call for new rules when problems arise, but it’s a good idea to analyse and interpret the existing regulations first ple is the software company Apple. Apple opens its iPhone to competitors’ applications, but sometimes only after long hesitation. In case of the iPad, Apple refuses to support the wide spread video format Flash. According to some this is a clever trick to make things as difficult as possible for competitor Adobe; according to Steve Jobs of Apple it is "refusing an outmoded and inefficient technology". Licences Anyone who wants to develop an application for someone else’s platform may do so provided they pay the platform’s inventor a reasonable fee: a licence. If the inventor is unwilling to open the platform, licences can even be exacted through competition law. This may seem unfair; it is as though a chef is being forced to release his best recipe. But from a social point of view it can be a huge waste of costs and energy if everybody fits out their own platform. In a world with twenty different computer operating systems, for example, it is almost impossible to put a computer game on the market that everyone can play. Besides, without a licence a company sometimes has no chance at all of becoming a serious player in the market, because the developer of a successful gadget very quickly gains a monopoly position. With its Windows operating system Microsoft clearly had a monopoly position. Larouche analysed the decision of the European Court of First Instance (CFI) to force Microsoft to open its platform to a greater extent. This study was no mean feat: the document is over 300 pages long. Larouche: “It’s unfortunate that there is no explicit reference anywhere to the role played by innovation in the CFI’s considerations, because implicitly choices are certainly made. I wanted to reveal those choices, so as to make it clear what framework innovation offers as a basis for judicial decision-making.” For the time being his conclusion is that the CFI prefers incremental innovation to ground-breaking innovation, which means that it gives priority to competition in the market above competition for the market. In other words, the CFI opts for making a successful invention open to all – and if necessary enforcing this – so that the invention can develop further. This is more important than a company’s right to exclusivity. Larouche: “However, the decision is formulated in such a way that this conclusion is probably limited to the Microsoft case, or at any rate to cases where super-dominance is involved. That’s a pity, because now it doesn’t provide any firm Tilburg Research - 2010, volume 7, number 1 legal footing for other cases.” The professor sees his research as an academic counterpart to proactive government intervention. “People are quick to call for new rules when problems arise in connection with competition. But it’s a good idea to analyse and interpret the existing regulations properly first, before you put a bandaid on the wrong spot.” Standard setting Often the industry itself also realizes that there are many advantages to making a successful platform a standard, so that everyone can elaborate on it. That has in fact been happening for years. Some examples are GSM for mobile telephony, WI-FI for wireless internet and XML to make old files readable. These standards have been established jointly by a number of businesses under the auspices of special standard setting organizations such as ISO, ETSI and IEEE. They supervise the negotiations and supply the legal expertise required. "Twenty years ago, standardsetting was the kingdom of engineers", says TILEC Professor Damien Geradin. "Engineers from the various firms came together and set a standard based on the best available technology." Times have now changed. The stakes are high, as a standard technology in ICT may mean earning billions of euros from license royalties. The engineers have been replaced by IP lawyers and business manag- ers. Many of the firms involved do not produce goods anymore. They are licensing companies, companies that profit from their inventions by selling licenses. Becoming a standard technology is the holy grail in this modern business. Geradin studies the economics and business models of the licensing firms. He tries to gain insights into the market mechanisms and the underlying incentives. He is also interested in the roles and procedures of the standard-setting organizations (SSOs), including their legislative history. Geradin: "Because of the major interests concerned, standard-setting processes and standard-setting organizations have become heavily disputed. Royalties are said to be excessive, which is due to patent holders who fleece those implementing the standard." On the basis of his legal and financial analyses, Geradin does not agree with the criticism levelled at licensing firms. He argues that reform policies designed Intellectual property law and competition law are tools to stimulate innovation 25 in stimulating innovation, and the licensing companies operate on the basis of an economically healthy, competitive business model. My research shows that the frequently mentioned problems of ’ransom’ and excessive royalties are more theoretical than real. In my view, most standard-setting procedures are quite fair and result in proper standards." Marga van Zundert to weaken the rights of intellectual property rights holders in standard-setting processes are not necessary. "Intellectual property rights play an important role NEWS Technology is an increasingly important regulatory tool The programmable tools we use more and more in everyday life, such as iPods or technologies in cars, make it easier to monitor our lives. CDs and DVDs have copy protection and internet content is filtered. Many rules of this kind, also known as techno standards, are not transparent and have not been specified in law. In his inaugural speech Professor of Regulation by Technology Ronald Leenes said that the relationship between legislation and technology as a regulatory tool should be studied carefully. The traditional tool to regulate behaviour has been to draw up legal rules and statutes. But hardware and software can also determine behaviour, for instance by making it impossible to copy copyright-protected works. Techno-regulation – regulation by technology – is about embedding rules of conduct in technology. Technology can regulate and enforce behaviour, but also prevent it. The advantage of regulation by technology is that technology can impose strict enforcement. For instance, on-board computers can automatically regulate the maximum speed in vehicles. Ronald Leenes, research director of the Law Faculty’s Tilburg Institute for Law, Technology, and Society (TILT), is investigating how traditional legislation or classical policy rules compare with the rising tide of techno-regulation. Often it is not clear exactly what the standards enforced by technology are, or whether this new form of regulation is legally binding. According to Leenes, the government will have to concentrate harder to see whether structuring by policy is needed because of self-regulation by technology. 26 Tilburg Research - 2010, volume 7, number 1 Tilburg Research - 2010, volume 7, number 1 27 research portrait Why companies decide to innovate Name: Gertjan Lucas Position: PhD candidate Department: Department of Organization Studies, Center for Innovation Research Research: Inconsistency in performance feedback and innovation “ How people deal with inconsistent information about their performance is a question that intrigues me. I am faced with that situation myself too. For instance, if I have written a paper and one reviewer says the statistics are not correct while another thinks they are fine, what should I do? The great thing about my research is that it reveals fundamental human mechanisms which are broadly applicable. When deciding whether or not to invest in innovation, businesses rely on feedback about their performance. For instance, if the feedback about their profits is not favourable, they become more willing to innovate. If the feedback is favourable, then they are less willing, because it seems obvious that their strategy is working. But what if the cues relating to their business performance are ambiguous? For example, what if turnover is growing, but profitability in comparison with the competitor is not? Which information is more important? One way I examine how people deal with inconsistent feedback like this is through experiments in which students – as test subjects – are presented with a decision-making scenario. The initial results show that comparison with the competitor outweighs comparison of the business’s performance with its own aspiration level. It also turns out that what is known as the ‘self-serving rule’ does not apply: according to this rule businesses neglect the negative cues and respond solely to the positive ones when faced with inconsistent feedback by not changing and therefore not innovating. What guidelines businesses actually follow remains to be revealed in my research. Understanding the underlying feedback mechanism can ultimately help companies to make better decisions. In the Netherlands, companies still innovate relatively little or they are slow to do so. Perhaps this is because they interpret inconsistent information about their performance in a particular way. In addition to experiments with students, I will do experiments with business managers. I am also analysing data from the Institute for Labour Studies (OSA) on the extent to which companies invest in innovation and how that relates to their aspirations or to competition within the sector or region. A special point is that I also do research among design students, such as graphic or interior design. In their final year they work on projects commissioned by businesses outside their college. Several students devise and design competing concepts and teachers provide feedback at various points. How do the students react? How do they deal with contradictory feedback? If a consistent line emerges in all my research projects, I will have discovered something really fundamental. I think it’s important for my research to reflect reality. The explanation I find has to be recognizable to practitioners, otherwise it is not a true explanation of reality. Ultimately I hope that the results of my fundamental research will in turn be applicable in everyday practice, for instance in the design of a decision support system. [CS] ” Smartest networks will survive in global competition Smart service networks will play a crucial role in global competition, professors Willem-Jan van den Heuvel and Mike Papazoglou predict. And the great thing is that anybody can be part of this. For small businesses in particular, collaboration in digital services offers unprecedented opportunities. “We’re almost there”, says Professor of Computer Science Mike Papazoglou when the subject of new services to improve the living standards of elderly people is raised. Many people are working on designing new services, for example to improve living standards and enable elderly people to live independently for longer. In the near future ‘smart’ digital services can be designed that take care of chronic disease patients or people with disabilities without the presence of a healthcare pro- vider. For instance, patients with diseases like obesity, diabetes and cardiovascular diseases, can be cared for remotely by continually tracking and automatically communicating important parameters such as blood sugar, blood pressure, all vital signs, etc. Patients can wear sensors that monitor vital signs and automatically report them to a specialized doctor. As soon as, for instance, a heart rate monitor detects an abnormal or serious condition, emergency help can be notified. In the future, patients will be able to travel equipped with smart cards and sensors, which make their medical conditions and records immediately accessible to medical staff anywhere in a nearby location in case of an emergency. A ‘smart service network’ will ensure optimal individualized healthcare. Smart service networks will be designed with simplicity in mind, making it Anyone can join in easy for people to use and allowing them to maintain their independence and mobility. “We believe this emerging concept will completely transform healthcare as we know it”, says Papazoglou. Smart use of digital software networks and signals such as GPS signals has been made possible by new technology. This can significantly improve the productivity, efficiency and effectiveness 28 Tilburg Research - 2010, volume 7, number 1 of services, explains Professor of Information Systems WillemJan van den Heuvel. Technology makes it possible to disseminate information more rapidly and more directly, so that the chance of errors and omissions in communication is reduced to practically nil. According to Papazoglou this leads to higher-quality services which are better tailored to individual customers, which consequently leads to more economic value. Whether it’s in transport, energy, government or health, services are provided everywhere and they can be made smarter everywhere. Given that the service sector comprises at least 70-80 percent of the economy, there is a lot of profit to be made there. Organizing services At Tilburg University’s European Research Institute in Service Science (ERISS) researchers are investigating the best way to develop and use smart networks. However, these researchers are not primarily technologists. “We are trying to understand the problems services currently have”, says Papazoglou. “There are also social, commercial and legal implications.” “Smart networks can’t solve all those problems”, adds Van den Heuvel. “Ultimately the aim is to organize services as effectively as possible. That may be at the global level, but also regionally or locally. Eventually the competition will no longer be between individual businesses, but between smart networks.” That means that businesses will Tilburg Research - 2010, volume 7, number 1 A brand new service network for service sciences as well as business partners Both the European Union and such as IBM, PWC, Ericsson, the United States have proTelefonica and KPN. ERISS’s claimed ‘service sciences’ to research focuses on five areas: be one of the major research fields of the 21st century. The •Globalisation and service European Research Institute in Service Science is also aware of networks •Evolution of service networks this. Led by scientific director • Compliance management Mike Papazoglou and manag• Health care services ing director Willem-Jan van den Heuvel of the University of •Business cases for serviceTilburg, the institute is working oriented applications. on becoming the most imporIn September 2010 the twotant think tank in this field. year Master’s programme ERISS is trying to improve autoInternational Master in Service mated services by approaching Engineering (IMSE) will start questions and problems in an at Tilburg University. This prointegrated way, drawing on difgramme, the first of its kind, will ferent disciplines: IT, econombe given by Tilburg University’s ics, business, marketing and School of Economics and organization. Fifteen research Management in collaboration institutions from all over the with the University of Stuttgart world are affiliated with ERISS, (Germany) and the University of Crete (Greece) and with lecturers from Berkeley (USA), Tsinghua (China) and New South Wales (Australia). The Master’s programme will train a new generation of service managers and researchers – professionals who can work at the cutting edge of software services and new worldwide business processes. Because of the nature of the programme, students will also immediately gain international experience. The programme is part of the European Commission’s prestigious Erasmus Mundus grant programme for top talent from the European Union and elsewhere. See also www.tilburguniversity.nl/eriss. Businesses will have to collaborate much more with various other parties than they do now to improvement in the quality of services, but can also do so in manufactured products such as cars and aeroplanes. have to collaborate much more with various other parties than they do now. An example: in ERISS’s Cockpit project government’s services are being redesigned. Digital services and Web 2.0 technologies (with social media) will probably play a role in the new services. “By search- ing blogs and news groups to find opinions regarding existing services and also by asking members of the public directly, we can create added value for the public in those services”, explains Van den Heuvel. “In this way a large number of players generate innovation.” This process leads However, as smart networks expand across national borders, they encounter legal problems. Do business processes in one country comply with legislation in the international partners’ countries? How do you find out? Within the EU-funded project COMPAS, 29 ERISS is developing software for businesses to ascertain whether they meet with certain regulatory requirements. The first test phase has been reached: now the user communities involved will be given an opportunity to comment on the prototype. companies now have a monopoly, soon SMEs will be able to compete in some components of services, such as service design, execution, or offering of computing power. Anyone can join in, including companies in developing coun- Cloud computing Another problem smart networks are faced with is that there are not yet enough standards for services to be connected to each other efficiently. ERISS is developing design guidelines to set up digital services in such a way that they can fit into various networks as separate modules. Services which require specialised or a lot of processing power can then lease or rent that power instead of purchasing it, from any operator in the world, for example, where it is cheaper. Service developers using this idea of ‘cloud computing’ no longer have to physically include expensive computing machinery in their own businesses and can concentrate instead on their own distinctive expertise and services. However, in order for this system to work it must be clear to everyone exactly what a digital service or module entails and how it is set up. “The development of tools to coordinate services has major consequences for society”, Papazoglou and Van den Heuvel stress. “Small and medium-sized enterprises (SMEs) and institutions will have far more opportunities to offer services, alone or with partners ‘in the cloud’. In areas where big Competition will no longer be between individual businesses, but between smart networks tries. Together they can create something new and more sophisticated.” Papazoglou thinks these practical and social implications are the great thing about his research. “Academic publications are not enough for me. I’m trying to make an impact on how society operates in the future.” Van den Heuvel adds that collaborating with business partners such as IBM, PriceWaterhouseCoopers or Ericsson, government bodies and other universities in the Netherlands and abroad is very rewarding. “From this point of view ERISS itself is also a smart service network.” Judging by the number of externally funded projects, it is a network that can easily win the international think tank battle. Corine Schouten 30 Tilburg Research - 2010, volume 7, number 1 research portrait Everything that is not renewed eventually dies Name: Victor Gilsing Position: Associate Professor Department: Organization Studies Research: Creation of breakthrough technologies/innovations; network evolution & strategic technology alliances; corporate entrepreneurship “ It’s intriguing that there is an inherent contradiction in the innovation process, once referred to by the famous Austrian economist Joseph Schumpeter as ‘creative destruction’. The creation of something new also leads to the destruction of what existed before. A good example is DSM. It began as a Dutch state mining company, but is now a listed company and a world leader in Life Sciences. At the individual level I firmly believe that you need to renew yourself constantly. Everything that is not renewed eventually dies. That is also my philosophy of life. We know more and more about the process of incremental innovation, but not about the creative process associated with more radical innovations; major breakthrough innovations such as those we see in biotechnology or IT. Big companies and existing companies are quite good at incremental innovation, but have trouble with radical innovations, whereas smaller companies and start-up companies are often very good at those. I am investigating the development of radical innovations and the extent to which they entail different processes than more incremental innovations. At Philips and DSM I examined the success factors involved in bringing about those more radical innovations. One way to do this is to foster entrepreneurship by creating small venturing teams which are separated from the company to a certain extent and have the space to be enterprising. A pivotal success factor is – quite paradoxically – that while the teams must not to be too externally focused, they must be very open. Too much external orientation often goes hand in hand with a strong marketing orientation and focusing on the needs of existing customers. But the problem is that breakthrough innovations often relate to new customers who are not yet being served or to markets which hardly even exist yet. Until recently it was inconceivable that the market for wireless services would develop so rapidly or that you would be able to download online content anywhere. This is the first time this paradox has been highlighted so clearly and that it has turned out to be such a key factor in the success of these teams. The results are now being applied within the companies where this research was done. In conjunction with colleagues from the Center for Innovation Research (CIR) and the Brabant Center for Entrepreneurship (BCE) I am going to develop this research further. We will be examining the role of collaboration with external parties and how they can contribute to the development of radical innovations. We call this process open innovation. [CvD] ” Innovation to explain Passengers of the first Dutch train with wireless internet receive instructions. More and more, people are connected 24/7 but technology does not (yet) speak for itself. Photo Bart Muhl/Hollandse Hoogte Tilburg Research - 2010, volume 7, number 1 The new language of the labour market: flexicurity and e-portfolio Innovation to improve The Nuna 5, a Dutch contribution to the World Solar Challenge being tested by students of Delft University of Technology. The team came second in the 2009 race from Darwin to Adelaide, Australia. Photo Berry Stokvis/Hollandse Hoogte Flexicurity is already a familiar concept among European Union policy makers. It combines two ostensibly incompatible quantities: a flexible labour market and social security for employees. Professor Ton Wilthagen was involved in the development of this concept right from the outset and is now doing everything he can to have it implemented. For instance, in the experimental setting of Brainport in Brabant, where businesses, government bodies and trade unions work together. He has trying to bring about flexicurity with innovative tools such as the e-portfolio. Meet the labour market of the future. 31 If there is one thing the credit crunch has made clear, it’s the need for businesses – and therefore also the labour market – to be flexible. Liquidations led to mass unemployment. The productivity and competitiveness of a business depends on the skills of its employees, who must be well trained and versatile. If businesses are to survive in times of rapid technological and ecological change, they need to make sustainable and targeted investments. Also in the interests of a futureproof labour market, says Ton Wilthagen, professor of labour studies at Reflect, the Research Institute for Flexicurity, Labour Market Dynamics and Social Cohesion at Tilburg University. “The times when you worked for one employer your whole life are over for good. Developments are so rapid, there is so much competition from Asia for instance, that we are in danger of missing the boat if we don’t join in. I don’t want my children to have to make keyboards for Chinese employers later. Things like dismissal law, for example, will have to be redeveloped and applied more flexibly. I realize this is a sensitive issue – that’s why you have to offer employees security, for instance in the form of opportunities for permanent training and good unemployment benefits, also for flex 32 Tilburg Research - 2010, volume 7, number 1 We should provide people with more space for ‘critical life events’ workers (employees with shortterm contracts) and self-employed people.” Complacency An additional problem in the current labour market is shortage due to the ageing population. This has made it imperative for people to keep working longer, but often there are factors which make that impossible, such as care tasks, illness or divorce. Wilthagen: “I believe that a solution to this is to provide people with more space for ‘critical life events’ like these. This is what I call the new ‘polder model’, in which current leave regulations will have to be made much more flexible. It will require a new vision and a lot of adaptability, but it is the only way we can keep our market position. We can’t just sit back complacently any more.” E-portfolio One way to make it easier for businesses to find the right employees at short notice and for people to find jobs quicker is using the e-portfolio. Up till now demand and supply on the labour market have been ill-matched. Often people have more skills than they themselves mention in job applications, and these may well be exactly the skills employers are Tilburg Research - 2010, volume 7, number 1 Meeting of minds at Brainport By Elies P.J. Lemkes-Straver, Chair of the Board of Brainport Development N.V., Director of the Brainport Foundation Tilburg University is a vital partner in Brainport and a crucial player on the chessboard of the ‘industries of the future’ at Brainport and therefore of competitiveness in the Netherlands. Along with the transport hubs of Amsterdam (airport) and Rotterdam (seaport), Brainport is one of the three pillars of the Dutch economy. Brainport extends across the South East Netherlands, with the Eindhoven region as a hot spot. With about 25% of national exports, 36% of private investments in R&D, and the highest patent density in Europe, Brainport is one of the most innovative regions in Europe. Brainport owes its strength to the chain which extends from fundamental research through development and design all the way to manufacture. But proximity is also a factor. Seventy per cent of first-line suppliers to original equipment manufacturers such as Philips, ASML, DAF and NXP, but also OCE and DSM are located within a radius of forty kilometres from Eindhoven – from great minds to skilful hands. Tilburg University is a vital and natural partner in the ecosystem that Brainport is. For example, we are giving shape to the labour market of the future, which entails topics such as flexibility. Brainport is an ideal testing ground. Tilburg University is also involved in the confidential advisory team for entrepreneurs in times of crisis. In the open innovation model the humanities and social sciences will become more and more important, since thinking in terms of potential users will take an increasingly prominent place. What is the point of ingenious high-tech products if they do not cater for users’ needs? Behavioural scientists can make an important contribution in this area. Knowledge about business models and entrepreneurship, about governance, and about privacy and patent legislation are also crucially valuable links in the high-tech industry chain. This meeting of minds is inspiring and mutually reinforcing. The humanities, the exact sciences and the social sciences working together is the alliance of and for the future. looking for. This is why people are looking for solutions to make the market more transparent. Wilthagen: “Recently I was talking to a manager who only had lower secondary vocational education, but he had had many years of experience, had proved himself to be extremely competent and by this time was bearing huge responsibility. Skills like this can be validated and stored in the APL (Accreditation of Prior Learning) system. The employee can obtain a certificate of prior learning for them. In addition, private activities such as chairing a parent council may be included. An employer who dismisses someone should have an obligation to add the skills acquired during employment to that person’s e-portfolio. And companies should base their job descriptions on interchangeable skills and talents profiles. But before that happens the traditional CV will have to undergo a makeover and a revolution will have to A revolution will have to take place in HR policy take place in HR policy.” In education there are already qualification systems, but they 33 need to become more transparent. On leaving school, students should also obtain an e-portfolio which includes not their diploma but also other competencies they have acquired. It will be clear that some of them need additional training, because society wants more than just a basic education. Wilthagen: “Ultimately the aim is to register the profiles of people, training programmes and jobs in a universally comprehensible way and to put them – properly secured – on the internet. Only then will the labour market really work”. Tineke Bennema NEWS Temporary collaboration strengthens competitive position of SMEs More and more often small and medium-sized enterprises (SMEs) collaborate temporarily in order to improve their competitive position. One important reason for this is to stimulate innovation, as was shown by research into temporary organizational forms by Tilburg University in conjunction with research agency EIM. Almost 1 in 5 small and medium-sized Dutch businesses – about 19,000 – collaborate on a temporary basis with one or more partners. The main reason for this is that it enables them to focus more effectively on innovation, as was shown by a large-scale empirical study. Temporary organizations can be roughly divided into three groups: those that explore new markets together (market innovation), those that work together on technological innovations, and those that carry out big joint projects (for example in infrastructure). Temporary organizations are more creative It also seems that temporary partnerships operate differently from permanent businesses. Employees are often more creative because they can detach themselves from ordinary everyday routine. The different kinds of knowledge contributed by the partners provide fertile ground for innovation. Temporary organizations also relate to time in a different way: for instance, they focus more strongly on the present, and employees are more likely to achieve an efficient work flow. Tilburg University’s Department of Organisation Studies specializes in temporary organizations and innovation. Recently the book Temporary Organizations: Prevalence, Logic and Effectiveness, written and edited by Tilburg researchers, was published by Edgar Elgar.