A Call for Action—Tackling the Profound Transitions Ahead

Abstract

In this chapter, we embark on a compelling journey, exploring the urgency of acting and preparing ourselves for the deep transitions we are immersed in.

Those who feel they have reached the pinnacle, and no longer acquire sufficient knowledge, have only a remaining option: to descend.

In this chapter, we embark on a compelling journey, exploring the urgency of acting and preparing ourselves for the deep transitions we are immersed in.

We underline the significance of foresight and proactive planning to navigate the challenges that await us. Understanding the importance of confronting transitions head-on lays the foundation for the subsequent discussions on transformative governance.

This chapter engages in a crucial dialogue on the concept of a just triple transition that focuses on the need to balance social, environmental and digital dimensions. Recognising the interconnection between these sets the stage for inclusive and sustainable transformations that will shape our collective future.

Let us embark on this enlightening journey together, as we prepare ourselves for the profound transitions that lie ahead!

Individuals and institutions have limitations in addressing complex challenges, therefore fostering change and transformative initiatives towards a just triple transition is crucial for achieving shared outcomes and impacts. This involves (1) recognising the need for improvement, (2) driving institutional change with a systemic approach, (3) rethinking governance structures, (4) promoting transparency and accountability and (5) promoting a culture of collaboration and shared responsibility.

Actors committed to change can identify areas where institutional advancements are required.

2.1 The Urgency to Plan Ahead the Transition Journey

Innovation and change are like climbing a mountain. We can stay down or try to conquer the top, even at the risk of falling. Perhaps at the top, we will find virgin and unexplored and better spaces for fairer human development, more flourishing market opportunities, regenerative outcomes for the planet, etc. (Fig. 2.1).

Fig. 2.1

Picture in Bolzano

However, we need to become aware, to overcome fear to face the head-on challenges, knowing that these will make us emerge stronger and better than we were. We can embrace life’s storms as opportunities to soar higher.

Traditional linear approaches to innovation offer a straightforward and predictable path from idea to execution. While they have their strengths, they often fall short in addressing the intricate nature, uncertainties and interconnections of the many opportunities and challenges of society, technology, economy and the environment. Linear thinking can impede the capacity of individuals and organisations to adapt, collaborate and effectively respond to evolving needs with a challenge-driven mindset.

As portrayed in the illustration, few embrace the nonlinear, complex and demanding path. Addressing the sloppy path may help organisations and innovation ecosystems, and each of us, to achieve milestones towards new goals. The complex, sloppier and more bending path that gets us out of our comfort zone and puts in motion efforts to address the deep transitions we are involved in (Fig. 2.2).

Fig. 2.2

Transition pathways

But what and how is this journey we are talking about? This is the one that individuals, companies, entities and ecosystems need to plan well to address the changes ahead. As in the figure portrayed above, the transition is a steep road full of twists and turns, ups and downs or green and red lines. In the processes of change, we find two realities that co-exist in constant evolution and adjustment with opportunities and tensions between established and emerging systems.

Throughout this process, it is important to anticipate recessions and be prepared to adapt and switch roles. This flexibility allows organisations and ecosystems to navigate challenges and seize opportunities for growth and development.

Fear, resistances, lack of coordination and inertias are just a few features that restrain us to think out of the box and chose the slopy but right complex path.

Instead of fixating solely on sales volume, a company must prioritise safeguarding its margins.

Choosing the complex, but just transition path, helps us shift from established systems in organisations and ecosystems towards the very much-needed renewed emerging systems.

Deteriorating margins push us perilously closer to the edge. The purpose is that we get better equipped to tackle the challenges and find innovative ways and solutions in an ever-changing world. To maintain healthy margins, it is crucial to position our products, services or policies as more than commodities and demonstrate clear differentiation.

The success of a company or any endeavour hinges on generating value for customers or users and ensuring that a portion of that value is retained. Let’s embark on your transformational journey towards sustainable success.

No matter which role, which type of company, which position we play in a public service or in the private sector, in society (mother, father, child, young, adult, active worker, retired), how could we derive fulfilment from confronting challenges and transforming them into steppingstones towards achievement and success?

This calls for adopting a more flexible and comprehensive mindset that requires a more holistic approach encompassing short-, medium- and long-term innovations.

Eoh-for-Good’s flexible and adaptable methodology can align individual and institutional needs, interests and innovations into multi-i co-creative governance vortices to transform challenges into solutions through multi-actors’ collaborative endeavours.

At Eoh-for-Good, we combine over 20 years of experience managing R&I internationalisation, outreach, engagement and impact strategy with a collaborative approach involving 1300 stakeholders across various sectors. We offer actionable areas for action, including boosting the global presence and sphere of influence of EU organisations and companies.

Institutional and ecosystem change involves reimagining and transforming institutions to be more inclusive, accountable and responsive to the needs of society and the environment. This may involve changes in decision-making processes, resource allocation and organisational culture to prioritise fair sustainable development. It entails the alignment of policies, regulations and governance structures with the common good goals.

Aligning innovative institutional processes of transformation towards a courageous goal-alignment for the synchronisation and maximisation of impact. Enables actors committed to change to focus their resources and initiatives on areas where they can make the most significant contributions and helps create a coherent and synergistic approach, where innovation drives institutional change and institutional change enables an environment for innovation.

Contrary to the traditional notion that cooperation, sustainability and competitiveness are mutually exclusive, encouraging sustainable collaborative just practices can enhance the attractiveness and competitiveness of organisations and innovation ecosystems. Actors can support each other and learn from each other’s experiences. Fairer sustainable innovation can lead to cost savings, increased efficiency and improved resource management, providing a competitive advantage to companies and start-ups.

By integrating just collaborative sustainability into operations, products and services, regions, companies, clusters, entrepreneurs can differentiate in the market, attract environmentally conscious consumers and better respond to evolving regulatory requirements (e.g. EU Directive on reduction of the impact of certain plastic products on the environment).

Sustainable-just-oriented innovation can also open new market opportunities, particularly in sectors focused on health and well-being, renewable energy, clean technologies and sustainable solutions.

Fig. 2.3

Reinforce bridge between established and emerging systems

Figure 2.3 presents an overview of the transition path. Gaps arise between two systems in transition and the bridge between them is usually very weak and fails in establishing the necessary connections.

When reflecting on the processes needed for transformative governance in our era of transitions, we see this as profound transition shifts between established, when old ways of doing things are threatened, and emerging systems. To truly transform the economy, social relationships and values of society, we must navigate the profound transition shifts of our era towards the emerging systems. Novel governance mechanisms need to be employed, tested, refined to overcome the deep gap between the declining established systems and the urgent emerging ones. Many innovations often end up into deep gaps during the periods of transition or change.

It is evident that the current mechanisms for transitioning between systems are insufficient, leading to missed opportunities for innovation adoption which calls for a shift in our approach to transitions. As a result, many of our innovations, products and services fail to reach the market or society (dropping to the valley of death¹). This phenomenon has been labelled as the ‘European paradox of innovation’. The European paradox of innovation refers to the region’s strong emphasis on research and development, but its struggle to effectively translate these innovations into successful commercial products or services, leading to a weakness in overall innovation competitiveness. To address this challenge, we require more robust transition and governance models that promote collaborations, strengthening the ups and downs of transitioning to emerging systems. There is a need for cohesive governance, collaboration and effective strategies that bridge this gap and ensure the successful integration of new ideas and technologies into the market and society.

Carlota [2], as expert in technology and socio-economic development, suggests that as new technological paradigms emerge, they bring about disruptive changes that challenge existing norms and practices. Perez portrays the breaks as turning points, due to the challenges associated with societal acceptance of changes and new paradigms.² This period is marked by what Schumpeter called ‘creative destruction’. However, Perez emphasises that this is just the beginning.

The transition gap, bridging established systems and emerging innovations, is a pressing concern we delve into, seeking to understand the factors reinforcing this divide.

Successfully transitioning through this turning point is essential to realise the benefits of the new paradigm. To address this challenge, we must focus on developing transition and governance models that are capable of facilitating, as much as possible, smooth and seamless transitions. These models should encourage collaborations among various stakeholders, including industry leaders, policy makers, researchers and entrepreneurs.

When a diversity of actors creates and diffuses new ideas, technologies and practices, they are better prepared to prioritise the triple bottom line, considering economic, social and environmental dimensions and integrate sustainable practices into their operations and business models. They encourage collaboration, knowledge exchange and social cohesion, leading to impactful and socially just outcomes.

Through collective action, motivated innovators from different contexts, disciplines, expertise and sectors can challenge existing norms and drive systemic change.

Embracing shared responsibility to achieve the common good is essential at every stage of innovation, entrepreneurship and institutional change. This involves ensuring that socio-digital and technological advancements:

• 1. create societal value, considering the social and environmental impacts of products and services,

• 2. do not harm individuals, communities or the planet promoting fair trade practices,

• 3. contribute to human and environmental well-being and sustainability and

• 4. embrace entrepreneurship necessary for institutional change, prioritising transparency, accountability and the common good.

Natural and innovation ecosystems, and organisations lack a more encompassed way of various actors working together, including entrepreneurs, start-ups, citizens, established companies, research institutions, government agencies and supportive infrastructures. Innovation ecosystems are characterised by complex interdependencies and interactions among their components. The success and effectiveness of the ecosystem rely on the synergistic collaboration and exchange of knowledge, resources, policy areas, infrastructures and expertise among its actors. Organisations, companies and innovation ecosystems are dynamic and interconnected networks that need to better collaborate and interact to raise innovation and drive economic growth.

Inclusive innovative institutions and ecosystems break down barriers, provide equal opportunities and entrust individuals from all backgrounds to participate and contribute.

The collective commitment towards the common good and shared outcomes cultivates a more sustainable, competitive and inclusive future for all. Key components of innovation ecosystems include a wide variety of actors and interdependencies (Fig. 2.4):

Fig. 2.4

Key components of innovation ecosystems

• 1. Knowledge and Research Institutions

  Universities, research centres and academic institutions contribute to the creation and dissemination of knowledge, fostering research and development activities that drive innovation.

• 2. Entrepreneurial Support Organisations

  Incubators, accelerators and entrepreneurship centres provide resources, mentorship and guidance to start-ups and entrepreneurs, facilitating their growth and success.

• 3. Funding and Investment

  Access to capital and funding sources, such as venture capital firms, angel investors and government grants, is crucial for supporting innovation and scaling up entrepreneurial ventures.

• 4. Industry and Market

  Established companies, industries and markets provide opportunities for collaboration, commercialisation and the adoption of innovative solutions, contributing to the growth and sustainability of the ecosystem.

• 5. Government and Policy

  Government agencies play a role in shaping the regulatory environment, providing incentives and nurturing an ecosystem that supports innovation and entrepreneurship.

• 6. Citizens, Social Entities, Organisations and Bodies

  They play a pivotal role in processes of change by actively engaging, advocating, and collaborating. They contribute ideas, resources and collective action to shape and drive transformative initiatives, encouraging inclusivity, participation and a sense of ownership for positive societal impact.

The quadruple (or n-) helix approach advocates for a collaborative and participatory problem-solving approach, nurturing innovation through multidimensional collaboration among various stakeholders (an entire book chapter explains this topic, the multi-i collaboration in depth).

Mariana Mazzucato’s research on the role of the state and mission-driven innovation highlights the importance of collaboration and collective action in driving transformative change.

As socio-digital entrepreneurs, we need to understand the interdependencies and interactions within ecosystems. For example, knowledge and research institutions generate cutting-edge research and technological advancements that can be commercialised by start-ups and established companies. Entrepreneurial support organisations provide guidance, mentorship and access to networks, helping start-ups navigate the challenges of scaling their innovations. Funding and investment sources play a vital role in fuelling the growth of start-ups and supporting their innovative ventures. Collaboration between industry players and start-ups can lead to the adoption of new technologies, the development of new markets and the creation of value for all involved.

Understanding these interdependencies allows ecosystem actors to identify opportunities for collaboration, leverage each other’s strengths and address challenges collectively. It nurtures a culture of cooperation, knowledge sharing and continuous learning within the ecosystem, leading to enhanced innovation capacity and overall ecosystem resilience.

Given the interdependencies of global challenges, collaboration and cooperation among diverse interested parties are essential, they have become more crucial than ever. No single actor or sector can tackle these issues in isolation.

Specifically, the shift towards a circular or regenerative economy, with individuals, business and organisations striving to create positive impacts rather than simply acknowledging or trying to reduce negative ones, will help design systems that work in harmony with nature. Regenerative actions go beyond sustainability as they aim to restore and enhance ecosystems and communities which aligns with the triple transition approach. This involves practices such as recycling, reusing and regenerating resources, as well as restoring biodiversity and promoting community well-being. We can address global challenges and build a more sustainable and resilient future [1] by embracing a regenerative approach.

The need for profound transformations has never been more evident. We find ourselves at a crucial juncture where fairer transformative innovation is not just a choice but a necessity.

The crossing reinforced bridge resembled in Fig. 2.3 above captures the synthesis of many years of experimentation in building stronger transition bridges within organisations and innovation ecosystems.

Fig. 2.5

Four (or n-) helix collaboration bridge

We can bridge the gap of the ‘turning point’ towards the emerging systems by establishing stronger partnerships and knowledge sharing networks.

Forming communities (interdisciplinary platforms, living labs, core groups), composed of actors who share common professional interests or goals can strengthen the bonds and bridges to cross the weak path from the established system to the emerging one (Fig. 2.5).

It delves into the process between established systems and the new emerging ones. By recognising the need to reinforce the transitions gaps, we lay the groundwork for developing inclusive strategies, policies, initiatives and collaborative actions.

Building networks and coalitions allows for pooling resources, expertise and influence to create a collective impact. The aim is to build stronger bridges, creating reinforced bonds between the bottom-up and top-down initiatives. This creates a more robust transition path that helps us gauge the ups and downs, the uncertainties and risks that we experience during the process of change.

This can be done through not fixed or formalised structures, but flexible and adaptable ones that promote collaborative learning, problem-solving, exchange of insights and experiences and initiate joint projects. Continuous learning processes consider learning feedback and feedforward loops, therefore the spiralling effect.

Creating multi-i co-creative governance tornado (as we will see in Chap. 5) support the creation of knowledge and practice-sharing communities, to cultivate and expand innovation and influence. These are groups of people within the organisation or the innovation ecosystem who come together to share knowledge, expertise and practices (mutual learning from good or bad experiences) in a specific domain or area of interest.

To facilitate this transition, it is crucial to focus on institutional changes and promote innovation ecosystems. Mere technological advancements or infrastructure development alone cannot bring about comprehensive transformation. Instead, we need to prioritise social transformation, integrating the impacts of new developments and technologies into our society.

Novel aspirational and practical approaches that are able to nurture trust, co-creation, co-responsibility and mutual care should be explored, instead of proposing closed formulas. This should entail encompassing top-down, middle-round and bottom-up avenues.

2.2 Towards a Just Triple Transition: Social, Green and Digital

Global challenges and issues such as climate change, poverty, inequality and resource depletion do not exist in isolation but are intertwined and mutually influenced. For instance, climate change exacerbates poverty and inequality, while economic inequality contributes to social and environmental injustices.

Relying solely on so-called practical, pragmatic and realistic approaches will not be enough to meet the sustainable development goals within the timeframe outlined in the 2030 agenda. It will require a bold and unwavering change in our attitudes and opinions, coupled with decisive actions and a strong commitment to speeding up global efforts for decarbonisation, quality education for all, etc. Achieving a fairer triple transition (social, green and digital) towards generating new energy, water and food models cannot be accomplished by postponing actions to address global warming, poverty eradication, ecosystem preservation or the need to strike a balance between economic gains and investments in achieving universal innovation ecosystems (Serra 2014), access to Internet as another human right, universal access to quality health systems, gender equality, etc. It’s crucial that we acknowledge these challenges and work together to find viable solutions.

This section echoes the new vision for change we developed in The MoskEUteers—the ‘all for one, one for all’ just triple transition [4]. There, we proposed courageous ecocentric alternatives to the urgent need for more human and planet-friendly actions. The idea behind is that by collaboration and alignment of our goals, we can drive transformative impact on a larger scale. This way we can detach from a destructive (for us and for the planet) egocentrism that works mainly for our own interests, to function with a broader worldview for the common good and that is more ecocentric, human-centric and planet-friendly.

Recognising the interdependencies of global challenges is crucial for addressing them effectively. Solutions that focus on a single issue or operate within silos are often inadequate and may inadvertently exacerbate other problems. A holistic and integrated approach is needed to address the complex and interrelated nature of these challenges.

After having developed a preliminary analysis of the foresight report published by the European Commission [5,6,7,8,9],³ we see that all the areas covered by the report tackle broad and complex challenges. Most of them focus on the twin transitions, digital and green (climate change, renewable energy). However, they fully embrace the social dimension, thus being completely aligned with:

• the triple transition idea, of the MoskEUteers [4],

• the necessity of generating new governance models that are more collaborative, participative and involving the quadruple (or n-) helix with the more decisive enrolment of citizenship; and

• the call for action in a more collaborative and encompassed way (better alignment and governance).

The figure below synthesises the priority areas of action for European actors in the coming years (Fig. 2.6).

Fig. 2.6

Priority areas of actionFootnote

[5,6,7,8,9].

To tackle innovative and advanced governance issues that enable us to overcome milestones, separate approaches and to have a more systemic and a steady view, one of the keys is to anticipate and be aware of the challenges, regulations and indices and indicators that are applied to the working and implementation scope we are in.

Cultivating sustainable and inclusive innovation ecosystems requires integrating the principles of the triple transition, which encompasses environmental, socio-economic sustainability and digital transformation for the common good. While the twin digital and green transitions have gained recognition through, for instance, the EU policies and funding programmes, we believe that a more holistic approach—one that fully integrates the social dimension—is necessary for a true systemic change.

This approach acknowledges the interconnectedness between these dimensions and recognises that long-term success and competitiveness depend on their balanced consideration. By understanding the interconnectedness of global issues, actors committed to change can identify leverage points and develop strategies that create positive ripple effects across multiple domains. For example, addressing poverty and inequality can contribute to environmental sustainability, while sustainable development practices can help alleviate poverty and enhance social well-being.

The digital transition encompasses the ongoing technological advancements that shape our societies, economies and interactions. It holds immense potential to drive efficiency, innovation and connectivity. However, without a human-centric perspective, it risks exacerbating inequality, marginalisation and privacy and security concerns.

Similarly, the green transition (Fig. 2.7):

Fig. 2.7

Twinning the green and digital transitionsFootnote

[10,11,12], accessed March 5th, 2023.

• recognises the urgent need to address environmental challenges and build sustainable systems that minimise the negative impact on the environment;

• promotes practices that preserve natural resources, reduce greenhouse gas emissions and promote clean technologies;

• involves transitioning to renewable energy sources, adopting circular economies and promoting ecological balance.

Yet, without addressing social aspects, such as equitable access and social justice, we risk perpetuating existing disparities, and by incorporating the social dimension into the twin transition, we can promote an inclusive and equitable future. Social innovation and societal well-being need to become an integral part of our transformation efforts, ensuring that the benefits of progress are shared by all [10,11,12] (Fig. 2.8).

Fig. 2.8

MoskEUteers for a just triple transitionFootnote

[4].

Socio-digital innovation integrates technology, social sciences and human-centric design principles to address societal challenges. Digital solutions play a vital role in promoting individuals, communities and organisations (digital platforms, data analytics and collaborative networks) to co-create innovative solutions that have a positive impact on society.⁷

By integrating sustainable practices into innovation processes, such as ecodesign, resource efficiency and circular economy principles, ecosystems can contribute to mitigating climate change and promoting a more sustainable future.

Social inclusiveness and sustainability highlight the well-being of individuals and communities within the organisation or ecosystem. This includes promoting diversity, equal opportunities and social inclusion. Innovation ecosystems should strive to address systemic inequalities, ensure fair access to resources and opportunities and entrust underrepresented groups and marginalised communities. By fostering social cohesion and inclusivity, ecosystems can tap into a wider pool of talent, creativity and perspectives, leading to more innovative and impactful outcomes.

Forward-looking economic sustainability encompasses more than just creating economic value and ensuring long-term viability and competitiveness. It embraces a vision that integrates social and circular economy principles, regenerative approaches, resilience, quadruple helix collaboration, living labs, inclusion, access and agency.

In this transformative vision, economic sustainability goes beyond traditional notions of prosperity and instead focuses on creating shared prosperity that benefits all members of the ecosystem. It highlights the importance of rising entrepreneurship and job creation while considering the societal impact of economic activities. This involves promoting fair and inclusive business practices, supporting the development of social enterprises and ensuring equitable access to economic opportunities for marginalised communities.