Elsevier

Technovation

Volumes 96–97, August–September 2020, 102122
Technovation

Renewing a dysfunctional innovation ecosystem: The case of the Lalejin ceramics and pottery

https://doi.org/10.1016/j.technovation.2020.102122Get rights and content

Highlights

  • Uses the innovation ecosystem concept to address the issues of a troubled ceramics and pottery industry.

  • Evolutionary history, status quo, and barriers and drivers of innovation are documented through interviews.

  • Proposes a renewal plan for the ecosystem that combines authority, expertise and stakeholder participation.

  • Training; research and learning; business consulting services; proactive adjustment; and creating synergies are emphasized.

  • Many issues may have cultural roots. A cultural turnaround program may be needed.

Abstract

The innovative output of nations is partly explained by the strengths of its innovation ecosystems. The Iranian Lalejin city has been home to a ceramics and pottery industry for at least 200 years. Despite showing resilience over the years and occasional success; e.g. the 2016 “World Pottery Capital” designation; the industry is facing plummeting demand for consumer artifacts and rivalry from competitors. Innovation is the key to survival and sustainability but innovation capacity is low. This study adopts the “innovation ecosystem” lens to address the problems. Interviews provide information for understanding the historical evolution of the industry, mapping the status quo, highlighting the barriers and drivers of innovation, and crafting a renewal plan. The proposed renewal process pools regional authority, expertise, and stakeholders to craft an effective and sustainable solution. While the study does not proffer a new theory of ecosystem renewal, there are important implications for research and practice. For practitioners, understanding the ecosystem evolution and the cultural underpinnings of the observations will help craft a detailed, sustainable ecosystem renewal plan. A cultural turnaround program may also be needed. For researchers, linking cultural characteristics, ecosystem evolution and outcomes is a viable and fruitful research avenue.

Introduction

Innovation requires multi-faceted interactions and knowledge flows (Haberstroh and Pinkwart, 2018). A lot of contemporary innovative activity is concentrated in cities (Cohen et al., 2014). Cities are focal points and regional hubs that facilitate interactions between actors and support knowledge flows; thus, acting as “fonts of innovation” (Haberstroh and Pinkwart, 2018). Hence, some researchers advocate for “city-based innovation ecosystems” (Oh et al., 2016).

This study revolves around restoring an endangered ceramics and pottery innovation ecosystem in Iran as a developing country and its specifications (Ghazinoory and Heydari, 2008). Lalejin city in the Hamedan province of Iran was once a thriving center of ceramics and pottery production; however, it faces the prospect of losing a 200 year-old industry with deep cultural roots. Lalejin city has a population of about 15,000 and is located about 20 km from the provincial capital, Hamadan. The majority (80%) of the population is engaged in pottery and ceramics production in about 683 workshops (2006 census). However, plummeting demand for consumer artifacts coupled with arduous traditional production processes is threatening to obliterate certain branches of pottery. (Lalejin Municipality, n.d.). Lalejin city is a tourist attraction in the province (IranProject, 2015). It was designated as the “World Pottery Capital” by the World Crafts Council in July 2016 (UNWTO, 2018). Around the anniversary of the designation, there were rumors of the sale of imported pottery in the city that met with official denial (ISNA, 2017). Lalejin was also suggested for inclusion in the UNESCO Creative Cities Network (UCCN) according to an official's statement (IranProject, 2015).

There are few studies on the Lalejin ceramics and pottery. Prior research highlights a dearth of innovation, creativity, and training in the Lalejin pottery ecosystem. Moreover, constructive interactions between the new, more educated generation and traditional artisans is missing (Afrakhteh et al., 2016). A survey-based evaluation of the Lalejin Vocational Training Center indicates that nine years after establishment neither improved potters’ qualifications nor product quality and quantity (Jahanbakhsh, 2012). The “innovation ecosystem” concept is a useful lens for examining the Lalejin case and crafting solutions. A host of economic, social and ecological can be addressed through product, process, organizational, and social innovations (Rabelo and Bernus, 2015). Innovation is no longer the domain of a single firm but denotes a “distributed process” traversing organizational boundaries (Marzocchi et al., 2019). This leads to the notion of an “ecosystem”; i.e. a “dynamic, interactive network that breeds innovation”. It materializes in the form of local hubs, global networks, or technology platforms (Oksanen and Hautamäki, 2014).

The “innovation ecosystem” concept is a useful lens for examining the Lalejin case and crafting solutions. The “innovation” aspect is one strength of the concept. A host of economic, social and ecological issues need to be addressed through product, process, organizational, and social innovations; examples are globalized competition, unemployment, climate change, natural resource scarcity, and social inclusion (Rabelo and Bernus, 2015). However, innovation is no longer the domain of a single firm but denotes a “distributed process” traversing organizational boundaries (Marzocchi et al., 2019). This leads to the notion of an “ecosystem”. An entrepreneurial ecosystem consists of interacting social, political, economic, and cultural entities promoting the seeding and growth of new ventures (Spigel, 2017). Ecosystems have a life cycle. They progress through the interdependent stages of birth, expansion, leadership, and self-renewal (or death absent self-renewal) (Moore, 1993).

This study proposes a renewal plan for the Lalejin ceramics and pottery innovation ecosystem (after this, the Lalejin ecosystem). Interviews with key actors are used to build a historical picture of the ecosystem, map the status quo, and identify barriers and drivers of innovation. Insights from these analyses are used to craft a renewal plan for the ecosystem.

This paper is structured as follows. First, a conceptual framework for the study is constructed based on the innovation ecosystem literature. Then, the “methods” of the research is explained. Results of the study are presented under the four topics of “the evolution of the pottery ecosystem”, the “status quo”, “barriers and drivers of innovation”, and the “renewal plan”. The need for cultural turnaround is also highlighted. Concluding remarks wrap up the paper.

Section snippets

Conceptual framework: Innovation ecosystems

The innovation ecosystem literature is used to build a conceptual framework for the research. Successful and innovative businesses do not prosper in a vacuum. Rather, they form cooperative networks with a web of entities to source supplies, draw capital, build partnerships and attract customers. A variety of terms have been proposed for these networks such as strategic alliances and virtual organizations (Moore, 1993). In response to the increasingly network-based innovation processes, the term

Methods

The study relies on interviews with key actors in the Lalejin ceramics and pottery industry (Table 1). Actors fall under eleven categories constructed from initial field work and a prior study (Ghasemi, 2007). Some interviewees played more than one role and their most important role is emphasized. Fifty individuals were selected for interviewing. A total of over fifty-five hours of interviews were conducted between July 28, 2018 and April 11, 2019. Thirty-four interviews were conducted in

Results

The results are presented under five interrelated headings. First, the historical evolution of the ecosystem is presented. Then, a picture of the status quo is constructed. Subsequently, the barriers and drivers of innovation are extracted. Next, the renewal plan is presented and finally, given the cultural roots of many observed problems, the final section builds the case for a cultural turnaround program.

Conclusion

The Lalejin ecosystem has a history of at least 200 years and impacts the well-being and prosperity of an entire community. Given its world reputation, it even touches upon national identity and economy. With such deep cultural and economic linkages, problems of the Lalejin ecosystem should be given appropriate priority and addressed at a fundamental level with sustainability principles. This study drew on the innovation ecosystem lens to tackle the problems. The ecosystem has shown resilience

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