In 2007, Japan’s Prime Minister made education his nation’s top agenda.
Innovation – is the transformation of knowledge and ideas into commercially successful products. Innovation has been the key factor behind the rise in living standards since the Industrial Revolution. We talk of the knowledge society and knowledge worker as a result.
The driver behind transforming ideas into products is creativity and the process is one of solving a problem – in this case it is one of innovation.
Getting back to Japan. The country has a long history of importing ideas from the rest of the world. It has been good at adapting and transforming ideas – it was essentially an incremental innovator.
Japan improved and tweaked products and processes that had been developed by other countries. This took place in closed networks of organisations, where promotion was seniority-based. There was lifetime employment, internal research and the norm was to have in-house training. The system worked for awhile, however, like any relatively closed system, it cannot adapt to change. The destiny, as Prigogine would say, is for the organization to fail.
After the 90s, Japan started to invest seriously in research and innovation. It spent 3.2% of GDP on R&D. Japan knew that it needed to shift from catching up with the rest of the world towards developing its own fundamental product innovation through creativity. Despite this goal, its leading organisations like Sharp, Sony and Panasonic are struggling.
There are some fundamentals at play here. Japanese culture is conservative. Its educational system has been one of rote learning; its researchers are not the best in the world. The companies remain bureaucratic and hierarchical and lack the dynamism and agility that is required for innovation to flourish.
The Japanese Prime Minister identified that the schooling system had to shift from rote learning (maintenance of the status quo) to one where the emphasis was on learning to solve problems. This is a very important and fundamental shift. It recognizes that a healthy reality is an open, dynamic and complex system. The map to guide any enterprise into the future is not cast in stone. It emerges and gets addressed constantly where the attitude is one of solving problems creatively. Knowledge is temporary – projects are the new organizational structure – they are temporary knowledge organisations. This term was coined by me (Rui Martins) and Kim Sbarcea in 2003.