Ieee innovation

On Enterprise Innovation Integration based on the Self-organization Model
Hao Meng1
, Yan-hui Wang2
1
Research Center for Strategic Science and Technology Issues, Institute of Scientific and Technical Information of China,
Beijing, 100038 China
2
College of Environmental Resources & Tourism, Capital Normal University, Beijing, 100048 China
mhchx@163.com
Abstract - The research on innovation has become an
important trend from the perspectives of system and its
relative system theories. According to knowledge about
enterprise innovation and self-organization theory,
innovations include culture innovation, knowledge
innovation, institution innovation, technology innovation,
management innovation, and so on. Innovation integration is
defined as a dynamic innovation process and system for a
better comprehensive benefit, taking into account all
perspectives of innovation, emphasizing harmony and match
from all kinds of innovations, and all kind of innovations
interacting with each other. And then the difference of all
innovators engaging in innovations in enterprise innovation
integration is expounded. Based on analyzing the
relationship among all innovators of enterprise innovation
integration, the Self-organization model of enterprise
innovation integration is set up and the matrix operation of
the model is processed. The operation outcomes are received
as follows (1) there is no competitive effect, but synergetic
effect when self-relation of single innovation in enterprise
acts on enterprise innovation integration. (2) if only
self-relation of single innovation sub-system in enterprise
but lack of interaction among all innovation sub-systems,
even if they themselves have competitive and synergetic
effect, they will not contribute to enterprise innovation
integration. (3) The competition effect among the different
innovation subsystems has active effect and passive effect,
and the active effect has decisive influence on the final result
of the enterprise innovation integration. (4)By means of the
interaction of innovation subsystems, competition and
cooperation under the situation making use of the resources
in the innovation system, enterprise innovation integration
will lead to ideal integrated result in the end, and the higher
degree innovation integration will come into being, this
explains the mechanism and its complex evolvement of
self-organization about enterprise innovation integration.
Keywords - Innovation, Innovation system, Innovation
integration, Self-organization model
I. INTRODUCTION
With the rapid development of science and
technology during the modern world, innovation has
become the soul of a people’s progress and the
inexhaustible power to a nation’s prosperity. More and
more researches on innovation are being done by
enterprisers and academies. According to the Chinese
periodical network, the authors counted innovation
literatures as follows from 1979 to 2008, the number of
literatures including innovation in papers’ title is 226057,
involving institution innovation, technology innovation
and management innovation in papers’ title, which the
total literatures have 8090, 19334 and 7018 respectively,
accounting for 3.58%, 8.55% and 3.10% respectively.
The above proves that the innovative researches
concentrate on the main hot topics of technological
innovation, institution innovation and management
innovation in China. However, how to innovate is an
urgent problem in front of Chinese enterprise and
entrepreneur, which is also the key to strengthen
enterprises’ core competitiveness and to promote
enterprise sustainable development [1].
Innovation was first introduced by J.A. Schumpeter
in 1912, including five types such as introducing a new
product, adopting a new production approach, exploring a
new market, acquiring a new supply source, taking on a
new organization [2]. According to the views of Nelson
and Winter [3], innovation has two types, including
incremental innovation and radical innovation. Usually
incremental innovation brings small-step technical
changes by applying widely available knowledge, and if
the innovation is successful, the competitiveness of the
firm within the same market will be improved. Radical
innovation may be the base for new technological
trajectories, defining the technological opportunities for
further innovations, the development of complementary
applications, and the emergence of a group of related
markets. Innovation should not be considered on its own,
but must be understood on the base of ongoing
development of technical structure [4, 5]. Based on the
survey of many successful enterprises abroad and at home,
the authors have put forward the idea of innovation
integration and innovation integration figure [6], have
gradually improved the contents of the innovation
integration and innovation integration figure, and have
found the term ‘innovation’ is a complicated system,
including all kind of innovation subsystems which consist
of innovative activities, such as culture innovation,
knowledge innovation, institution innovation, technology
innovation, management innovation, and so on [7,8]. The
necessities of innovation integration are discussed from
the perspectives of discipline development of innovation
management, literatures review of innovation research,
neo-growth theory and self-need of knowledge economy
[7,9].
Although many scholars consider innovation as a
system, they have usually focused on some specific
innovation system (e.g. Technology innovation system)
based on the presumption that no changes of other
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978-1-4244-3672-9/09/$25.00 ©2009 IEEE

innovation systems don’t change (eg. Institution
innovation system) .One reason of the presumption is
their different interest and research direction; another is
the complicatedness in the process of innovation research.
Therefore, in this paper, the innovation system, namely
innovation integration, is emphasized from the
perspective of system theory. Total and systematic
innovation is the key to enterprises cultivating
competition advantage and enhancing competition power.
How to innovate and make all kinds of innovation
integrated is an urgent issue to be solved before many
entrepreneurs, professors and scholars. However, looking
back the review on relevant literatures abroad and at
home, there are few people who have made research on
the coordination and optimality of all kind of innovations
in enterprises and on the relation between its and
humanity hypothesis, that is to say, seldom research has
been made on enterprise innovation integration. The
paper first introduces the relative knowledge about
innovation integration, and then constructs the
Self-organization model of enterprise innovation
integration. Finally, the conclusions of innovation
integration are received, explaining the mechanism and its
complex evolvement of self-organization about enterprise
innovation integration.
II. INNOVATION INTEGRATION
According to author’s research on innovation
integration[9,10], innovation and integration are
naturally inner- linked, and they exist organically as a
unified whole in essence, namely innovation
integration. Enterprise innovation integration is a
dynamic best-researching process that makes creative
integrated thoughts applying to innovative practices in
markets, cultures, knowledge, systems, technologies,
managements, etc.
Based on building materials industry and coal
industry, and on the ideas of some successful innovation
activities abroad, as well as of some new researches,
innovation integration is defined in this paper as a
dynamic innovation process and system with a better
comprehensive benefit in the times of knowledge
economy, taking into account all perspectives of
innovation, emphasizing harmony and match from all
kinds of innovations, and all kind of innovations
interacting with each other innovations such as culture
innovation, knowledge innovation, institution innovation,
technology innovation, management innovation and so
on.
If the influences of different innovations from an
innovation integration system have been taken into
account, a man-shape innovation integration figure would
be proposed, as showed in Fig.1.
We may understand innovation integration and its
figure based on the figure 1 from several aspects. Firstly,
innovation is a complicated system. It is not only one
kind of innovation of market innovation, culture
innovation, knowledge innovation, institution innovation,
technology innovation, management innovation, approach
innovation and means innovation; but also organic
integration of all kinds of innovation. Therefore,
innovation must be of system.
Secondly, innovation integration is dynamic, because
of the complication and change of external environment,
the great variation of internal conditions and interweaving
of the components, interaction among market innovation,
culture innovation, knowledge innovation, institution
innovation, technology innovation, management
innovation, approach innovation and means innovation.
Thirdly, innovation integration affects the relation of
system elements. Since the innovation system is an open
system composed of many elements or subsystem (e.g.
market innovation subsystem and institution innovation
subsystem). In the innovation system, each component
always exchange a lot of material, energy and information
with the external world and other components , and at the
same time there are close connections, which affect the
function of system.
Finally, innovation integration is a process of
searching for best performance. Innovation integration
combines all elements of innovation system together by
means of the best structure through actively optimizing,
choosing and matching, and then forms a whole organism
consisting of all innovation subsystems which improve
and match each other.
Fig. 1. The illustration of Innovation integration figure [8]
Man.I
Mar.I
TI
I I
Mar.I
KI
CI
Met.I Mea.I
Legend:
CI: Culture Innovation
Met.I: Method Innovation
Mea.I: Means Innovation
Man.I: Management Innovation
I I: Institution Innovation
TI: Technology Innovation
KI: Knowledge Innovation
Mar.I: Market Innovation

III. SELF-ORGANIZATION MODEL OF
ENTERPRISE INNOVATION INTEGRATION
Given that an enterprise’s innovation includes many
kinds of innovation subsets, just like culture innovation,
knowledge innovation, institution innovation, technology
innovation and management innovation, denoted by i1 i2
i3 …… in respectively. In the enterprise developing
process, we input 1 to imn when direct interaction exists
between m innovation and n innovation, otherwise, we
input 0 to imn . So, we build the following
self-organization matrix model of innovation integration.
(1)
Refer to “(1)”, the imn equals 1or 0 That is to say, the
imn equals 1 when m innovation subset has direct
interaction with n innovation subset. Otherwise, the imn
equals 0. Of course, there are many relations matrix MR
among the interactions of innovation subsets through the
method. Generally speaking, in the n×n matrixes, there
are the following five typical matrices, each of them
stands for a kind of interaction. Here, MR1 stands for
self-interaction of each innovation subset, also calling
unit matrix; MR2 for certain innovation subset of
enterprise having direct interaction with other innovation
subsets; MR3 for certain innovation subset of enterprise
having direct interaction with all kinds of innovation
subsets; MR4 for existing direct interaction with all kinds
of innovation subsets of enterprise. We think that MR4 is
an ideal innovation integration model MRO also includes
all interaction types MRT of enterprise innovation
integration. Therefore, we have five typical interaction
model of enterprise innovation integration, as illustration
in the formula (2).
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1000
0100
0010
0001

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0000
1110
0000

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010
111
010

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0111
1011
1101
1110

RoM RTM ¦
m
k
RKM
1
=
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1111
1111
1111
1111

(2)
IV. THE OPERATIONAL OUTCOMES ABOUT
SELF-ORGANIZATION MATRIX OF ENTERPRISE
INNOVATION INTEGRATION
Generally speaking, the direct relation among all
innovation subsystem is reflected only by the above
self-organization model of enterprise innovation
integration, but the indirect relation among all innovation
subsystems and among the self-organization model is not
clear. This cannot make us understand the internal
mechanism of enterprise innovation integration. To
resolve the question, we need further matrix operation to
analyze the process of enterprise innovation integration.
MRk k=1 2 3 4 relative to MRT is not
self-contained, which may be regarded as the outcome of
some conditional effect, may also regarded as some
self-contained enterprise innovation integration. To the
latter meaning, we may continue regard MRi MRj as the
synergetic (or co-operational) effect between the two
non-self-contained enterprise innovation integration.
MRi•MRj may be regarded as the competitive effect
between the two non-self-contained enterprise innovation
integration under the certain environment. Based on the
n n
i1 i2 i3
i1 i11 i12 i13
i2 i21 i22 i23
i3 i31 i32 i33
in in1 in2 in3
MR1
MR4
n n
n n
MR3
n n
MR2
n n

cognition, the following operation on self-organization
model of enterprise innovation integration is made
according to the operational rules of boolean algebra
(operation process and the simple addition operation is
left out here).
(1) MR1•MR1 MR1 MR1•MR2 MR2
MR1•MR3 MR3 MR1•MR4 MR4
(2) MR1•MR1 MR1 MR1 MR1
MR2•MR2 MR2 MR2 MR2
(3) MR2•MR3
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0000
1111
0000

MR3•MR2
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1111
1111
1111

MR2•MR4
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0000
1111
0000

MR4•MR2
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11111
11111
00000
11111
11111

From the above formulas, we can receive the
following outcomes.
MR2•MR30R3•MR2
MR2•MR40R4•MR2
MR2•MR3 MR2•MR4
but MR3•MR20R4•MR2
(4) MR3•MR3 MR1 MR3 MR4 MR1 MR4 MRO
This explains the one complexity evolvement of
self-organization on enterprise innovation integration.
At the same time for R4 and R1,
MR4•MR4 MR1 MR4 MRO
This shows the another complexity evolvement of
self-organization on enterprise innovation integration.
(5) MR3•MR4
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11011
11011
11111
11011
11011

MR4•MR3
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11111
11111
00100
11111
11111

From the above formulas we arrive at the following
conclusion.
MR3•MR40R4•MR3 but MR3•MR4 MR4•MR3 ’
MR3•MR4 MR4•MR3 MRO
Therefore, the competition and cooperation among
the different innovative subsystems lead the complexity
evolvement of self-organization on enterprise innovation
integration .
V. THE CONCLUSION
Based on analyzing the operational outcomes above,
there are the following conclusions
First of all, according to the outcome (1) above unit
matrix multiplying any other matrix can not change the
property of other matrix, but unit matrix adding any other
matrix may change the property of other matrix. That is to
say, there is no competitive effect, but synergetic effect
when self-relation of single innovation subsystem acts on
enterprise innovation integration. For example, ‘MR1
MR4 MRO’ is typical example of complexity evolvement
of self-organization on enterprise innovation integration
through synergetic effect of unit matrix.
Secondly, according to the outcome (2) above no
matter what we add or multiply between unit matrix and
matrix R2, it still keeps itself in-dependence. That is to say,
if only self-relation of single innovation sub-system in
n n
n n
n n
n n
n n
n n

enterprise but lack of interaction among all innovation
sub-systems, even if they themselves have competitive
and synergetic effect, they will not contribute to
enterprise innovation integration.
Thirdly, according to the outcome (3) and (5)above,
the competition effect among the different innovation
subsystems has active effect and passive effect, and the
active effect has decisive influence on the final results of
the enterprise innovation integration. For example,
MR2•MR3 or MR2•MR4, its outcome is affected mainly by
MR2 , which is explained by the outcome of matrix
operation.
Finally, according to the outcome (4) and (5) above,
every enterprise innovation integration being of
interactive effect (e.g. MR3), or the interaction among
innovation subsystem (e.g. MR4), by means of the
interaction of innovation sub-systems, competition and
cooperation under the situation that makes use of the
resources in the innovation system, the ideal integrated
result of enterprise innovation integration will come into
being in the end and will cause the birth of higher degree
innovation integration, which explains the mechanism
and its complex evolvement of self-organization about
enterprise innovation integration well.
In a word the enterprise innovation integration is a
complex system engineering, as long as there is
interplaying and interaction among all the subsystems of
enterprise innovation integration under the given
environment, objective, resource and organization, the
self-organization trend of enterprise innovation
integration is inevitable. Of course, with the change of
environment, objective, resource and organization,
especially the man-made controlling and leading, the
enterprise innovation integration may take on the
characteristic of herter-organization. Therefore, the
enterprise innovation integration should be organic
combination of self-organization and herter-organization.
The research on the enterprise innovation integration will
help to master and take full advantage of the rule of the
enterprise innovation integration which may effectively
speed up the practice of the enterprise innovation
integration.
ACKNOWLEDGMENT
The work described in this paper was supported by
the China Postdoctoral Science Fund (CPSF) under grant
No.2005038337.
REFERENCES
[1] H. Meng, L.J.Wang, “The analysis on innovation integration
and its costs.Reform and Strategy”, 2003, 19(9) 11-13(In
Chinese).
[2] J.A.Schumpeter, Theories of economic growth and
development, Shangwu Press, 1990, pp. 76-77.
[3] R.R.Nelson , S.G.Winter, “In search of useful theory of
innovation”, Res. Policy. 1977, 6(6):36-76.
[4] P. Saviotti, J. S. Metcalfe, “A theoretical approach to the
construction of technology output indicators”. Research
Policy, 1984, 13(3):141-52.
[5] L. Soete, Eds, Technical Change and Economic Theory.
Pinter, London, 1988,pp.221-238.
[6] H. Meng, “A Tentative research on Innovation Integration”,
Scientific Management Research , 2000, 18 5 :11-13.(In
Chinese)
[7] H. Meng, “Innovation integration: the demand of knowledge
economy times”, Economy and Management, 2001,
15(9):6-7. (In Chinese)
[8] H.Meng , L.J. Wang, X.B. Zhao, “The Influence of
Innovation integration on Local Economies and its Policy
Study”, Science of science and management of S. T.
(Monthly). 2002, 23(3):13-15. (In Chinese)
[9] H. Meng, Research on Enterprise’s Innovation Integration,
Beijing, China University of Mining Technology, 2003.
(In Chinese)
[10] H, Meng, YH, Wang, JK. He, “On innovation integration in
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international conference on public administration. 2005,Oct
21-22, pp.502-50

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