27/03/2026
Innovation Systems Under Strain: Risks and Opportunities WELCOME!
RESEARCH NETWORK ON INNOVATION
The Research Network on Innovation is inaugurating the new form and format of its blog by presenting the framework of its major thematic strands, which have taken shape after eight years of intense intellectual effort. The readership is demanding; the editorial team rises to the challenge. A cross-cutting analysis of sources drawn from the RRI/RNI Blog over recent years outlines the contours of a society undergoing profound transformation, confronted with an unprecedented convergence of economic, ecological, and digital crises. To face these challenges, organizations and social systems are no longer content with superficial reforms, but instead engage in deep transformations driven by systemic, open, and territorially embedded innovations.
Challenges, Stakes, Dead Ends, or New Pathways?
The current growth model is being called into question: prosperity would no longer depend solely on physical factors, but on latent socio-economic forces such as intergenerational altruism, the sharing of resources (material and financial) and knowledge, and a collective appetite for risk-forces that appear to be eroding in favor of a quest for absolute security and withdrawal. At the same time, the emergence of impact investing seeks to reconcile profit with social utility, yet this form of capital valorization struggles to reach maturity in the face of persistent financial rent-seeking logics.
From an ecological perspective, the crisis is described as a tragedy in which technology plays an ambivalent role, acting as both poison and remedy. The major challenge lies in moving beyond techno-solutionism—the belief that technical innovation alone can resolve climate collapse without a shift in social paradigms. A striking example is the paradox of plastic recycling, often used by industrial actors as an “illusion of circularity” to avoid reducing production at the source. Similarly, renewable energies are undergoing a form of “fossilization”: they reactivate centralization logics, create new geopolitical dependencies linked to critical metals (lithium, rare earths), and generate land-use conflicts. Water management is also becoming a multifaceted systemic risk (health, economic, and security-related), requiring increasingly contentious trade-offs between agriculture, industry, and domestic consumption.
Moreover, the current digital revolution is marked by the dominance of intellectual monopolies (GAFAM and ByteDance) that capture and appropriate global knowledge. The European Union is attempting to respond through the Digital Markets Act (DMA) to restore interoperability and foster the emergence of local start-ups. Nevertheless, the digital divide remains deep, as American firms often exploit the results of European research due to superior absorptive capacity.
Artificial Intelligence (AI) lies at the heart of these upheavals. No longer a mere simulation, it is a force transforming intellectual labor, threatening to automate up to 300 million jobs while promising productivity gains of 35%. A major organizational phenomenon is emerging: Shadow AI. This refers to the clandestine use of AI tools by employees to boost productivity, exposing firms to massive data leaks and legal risks. At the same time, the data economy is turning everyday objects—such as robotic vacuum cleaners or connected cars—into sophisticated surveillance tools enabling financial and behavioral profiling of users. Consumers, often victims of dark patterns (manipulative design), relinquish their privacy by default consent or fatigue in the face of unreadable terms of use. Finally, the future is taking shape through Web 3.0 (blockchain, NFTs) and quantum computing, which promise to break with traditional binary logic and dramatically increase AI’s computing power—at the risk of further widening the digital divide.
Toward New Innovation Paradigms
In response to this instability, economic and social systems are shifting toward new innovation paradigms. Innovation can no longer be the act of an isolated entrepreneur (the classic Schumpeterian model), but instead becomes a collective and open process. The Open Innovation 2.0 paradigm relies on open source, open data, and standardization to break technological rent positions. Organizations adopt a “system of systems” approach to anticipate shocks and coordinate heterogeneous actors (firms, universities, public administrations, citizens).
The modern firm becomes a hybrid entity in which formal structures ensuring reliability coexist with informal knowledge communities that generate innovation. To integrate these forms of knowledge, organizations create “boundary structures” or encourage intrapreneurship. They also promote strategic divestment (spin-offs or divestitures) to stimulate innovation by restoring autonomy and flexibility to specialized entities, while maintaining control over numerous critical assets dispersed across multiple entrepreneurial environments worldwide.
Work itself is becoming fragmented with the rise of freelancing, pushing independent workers to form collectives to break isolation and pool skills. Hybrid forms of work—such as “workations” (working while on vacation), multi-employer arrangements, telework, or techno-scientific entrepreneurship—are emerging in response to the well-being aspirations of younger generations. In this way, innovation is now anchored in territories to respond to disruptions in global value chains. Territorialized Production Chains (e.g., metal recycling or agricultural methanization) enable the relocalization of value added and the reduction of ecological footprints. Initiatives such as “Territoires zéro chômeur de longue durée” treat employment as a territorial “commons.” Cities become sites of distributed production through Fab Labs and third places, fostering urban circularity and the involvement of “prosumers.”
New Practices for Systemic Transitions
To succeed in these transitions, several innovative practices must be generalized. Social R&D, for example, unlike “traditional” technological R&D, aims to address societal challenges (precarity, disability) through applied and collaborative scientific approaches. Other approaches are also mobilized, such as design thinking and eco-design. By implementing one or several of these new approaches, the building and infrastructure sector is reinventing itself. For instance, raw earth construction requires architects to rethink design based on local subsurface resources, transforming excavation waste into a noble material. The expected impact is a massive reduction in the carbon content of infrastructures.
From another perspective, the various forms of AI are imposing new changes and considerations in innovation. Rather than banning Shadow AI (the use of AI by employees without the knowledge of managers or official guidelines), some firms are developing secure internal tools and massively training their workforce to turn a clandestine risk into a lever for responsible performance. An Augmented Economic Intelligence (AEI) is emerging, promoting human–machine cooperation in which AI automates the processing of massive data while humans contribute ethics and strategic judgment to improve performance from a global and systemic perspective.
Other practices also contribute to reshaping innovation systems. Science fiction is becoming a tool for strategic development and organizational foresight. Organizations (firms, armed forces, and other institutions) now use design fiction and red teaming to anticipate possible futures, test the social acceptability of technologies, and ensure alignment between technical progress and ethical reflection.
Psychosocial, Societal, and Geopolitical Dimensions
At the psychosocial level, digital technologies are transforming interactions: while serious games and wargames are becoming essential tools for training and foresight in both military and corporate contexts—alongside design fiction—the rise of solo play in video games raises concerns about the weakening of collective relational skills.
In this spirit of systemic representation and anticipation of change, new well-being indicators are emerging. Beyond GDP, the development of social health indicators (SHI) or the Human Development Index (HDI) is becoming essential to measure what truly “matters” and to steer a transition toward sobriety, or at least to counterbalance more traditional productivity indicators. As a result, organizations are on the verge of embracing a new paradigm of responsibility. Innovation should no longer be endured as a technical inevitability, but rather governed in a responsible, situated, and inclusive manner.
Universities, in particular, play a crucial role: they are no longer merely places of teaching, but catalysts of the “collective absorptive capacity” of territories and beyond, transforming academic research into responsible industrial solutions. One example is “blue innovation,” which is emerging as a vital response to protect ocean ecosystem services while developing sustainable exploitation of coastal and offshore marine resources.
The transformation of systems extends to even more specific geopolitical and sectoral spheres, redefining the very notion of power and resilience. In terms of technological sovereignty, the emergence of NewSpace marks a historic break with former state-led “whatever-it-takes” models, imposing a pragmatic innovation approach centered on drastically reducing the costs of space exploration. This quest for control, power, and efficiency is translating into the formation of a “club-based techno-nationalism,” particularly in strategic industries such as semiconductors and biotechnologies, where alliances of states now coordinate the protection and production of critical technologies within techno-political alliance networks.
In all cases, ongoing transformations cannot be understood without considering situated economic contexts with divergent social needs but shared economic, food, energy, and climate constraints. For developing countries, a fundamental overhaul of current production and innovation models is required to avoid being trapped in aid-dependent economies, increasing climate vulnerability, and abrupt technological shifts. For wealthy countries, reshaping their economies requires reconsidering the very definition of innovation. How should innovation be designed to maintain planetary habitability? And how can “sustainability” be embedded into technology, organization, institutions, and decision-making—and vice versa?