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The number of theories of innovation systems has grown considerably over the past two decades and several innovation system approaches have been developed. The focus of most has been on the development of technological innovations which create economic value. However, addressing macro-level societal problems – sociotechnical and environmental challengesin which the production, dissemination and use of social and technical knowledge and technology can potentially resolve the problem – has been overlooked. The present study argues that in order to resolve such problems, a combination of technical innovations (covering the technological aspects of the problem) and social innovations (covering the social aspects of the problem) are required.Instead of focusing on the development of a particular technology or industry, an innovation system must focus on solving problems; it must utilize technical innovations alongside economic and social innovations to do so. To this end, the present study highlights the need for a framework for the analysis of macro-level societal problems by reviewing innovation systems literature and proposes a new approach named "Problem-oriented innovation systems". We conceptualize this approach based on event history analysis and through case study of the US air pollution problem and the way it was successfully resolved by using technical and social innovations.The results show that a problem-oriented innovation system has eight functions: System monitoring and guidance, technical and social knowledge creation, technical and social entrepreneurship, knowledge dissemination, collaboration and synergy, public awareness, standardization and resource mobilization. Finally, a framework for analyzing the innovation process is proposed to solve the macro-level societal problem. This approach can be used to solve global problems such as global warming and climate change which ask for collaboration among different countries.

The number of theories of innovation systems has grown considerably over the past two decades and several innovation system approaches have been developed. The focus of most has been on the development of technological innovations which create economic value. However, addressing macro-level societal problems – sociotechnical and environmental challengesin which the production, dissemination and use of social and technical knowledge and technology can potentially resolve the problem – has been overlooked. The present study argues that in order to resolve such problems, a combination of technical innovations (covering the technological aspects of the problem) and social innovations (covering the social aspects of the problem) are required.Instead of focusing on the development of a particular technology or industry, an innovation system must focus on solving problems; it must utilize technical innovations alongside economic and social innovations to do so. To this end, the present study highlights the need for a framework for the analysis of macro-level societal problems by reviewing innovation systems literature and proposes a new approach named "Problem-oriented innovation systems". We conceptualize this approach based on event history analysis and through case study of the US air pollution problem and the way it was successfully resolved by using technical and social innovations.The results show that a problem-oriented innovation system has eight functions: System monitoring and guidance, technical and social knowledge creation, technical and social entrepreneurship, knowledge dissemination, collaboration and synergy, public awareness, standardization and resource mobilization. Finally, a framework for analyzing the innovation process is proposed to solve the macro-level societal problem. This approach can be used to solve global problems such as global warming and climate change which ask for collaboration among different countries.

Stanford is a quintessential entrepreneurial university, encouraging firm formation from existing knowledge that the university aggregates as well as new knowledge that it creates. Its founders implanted an academic institution, with scholarly and entrepreneurial ambitions, on a ranch where cattle still graze in the upper campus. In contrast to MIT's founding role in Boston, infusing new technology into an old industrial region's firms, Stanford assisted industrial development in an agricultural region and its industrial interlocutors raised the technical level of the university in mutually beneficial symbiosis (Lecuyer, 2007). The theory and practice of how to “make over” a university into an entrepreneurial actor has come to the forefront of academic and policy attention, internationally, with the European Union sponsoring development of the U-Multirank tool that includes the phenomenon (Van Vught and Ziegele, 2012) and a Brazilian post-graduate student project part of the ITHI Global Entrepreneurial University Metrics (GEUM) initiative that produced a dedicated entrepreneurial university metric (Nerves and Mancos, 2016). As an academic institution propelled to the forefront of global rankings (O'Malley, 2018), while helping create the world's leading high-tech region, Stanford University is in a radically different position from its late 19th century developing region origins. Should Stanford respond to dramatic shift in status and fortune by reverting to an Ivory Tower mode in response to critics who label it “Get Rich U.” (Auletta, 2012)? Or, should it double down on its entrepreneurial heritage and forge more extensive ties to Silicon Valley and other innovation hubs? In 2011, then Stanford President John Hennessy responded to former New York Mayor Bloomberg's request for proposal (RFP) for a university to establish an entrepreneurial campus. Intrigued by the prospect of engaging with the city's financial, art and media complexes, Stanford invested one million dollars in proposal development but eventually withdrew its bid in the face of faculty opposition to diversion of resources as well as Cornell University's munificent counter-offer in alliance with Israel's Technion (Hennessy, 2018). Instead, Hennessy inaugurated a program with an altruistic bent, funding international scholars who will, after pursuing advanced degrees at Stanford, “drive progress for humanity rather than for a select few.” Doubtless, these nascent social entrepreneurs will internalize Silicon Valley's optimistic ideology. Success, as well as entrepreneurial exuberance, creates blinders that suppress disconcerting events, at least temporarily. In the late 00's, generating 7–9 start-ups per annum, the highest rate of any university, Stanford ignored flaws in its technology transfer process that inhibited greater attainment. The research question generated may be stated as follows: how is a hidden innovation gap recognized and resolved? An attitude of, “if it's not broken don't fix it” had taken hold rather than the converse “If it's working well make it better.” Inventions that were too early-stage to be licensed and required translational research or a start-up, languished. The first author faced a dilemma in presenting such less than stellar results from a 2005 study of Stanford's Office of Technology Licensing (OTL) to the Dean of Research, its sponsor: how could such an analysis be taken seriously in the face of overweening achievement? The Dean's response was that, “OTL is not on our radar, they make more money each year.” Nevertheless, neophyte academic entrepreneurs had independently come to a similar conclusion as ours and were impelled to act. Their initiatives are the subject matter of this article. Skeptical of Stanford's relevance to aspiring universities, Jacob et al. (2003) hold that, “The reality of building an entrepreneurial university… is an arduous task for which there is no blueprint.” Yet, a potentially replicable organizational design may be discerned by changing the focal point from Silicon Valley's efflorescence to Stanford's entrepreneurial dynamic. The article proceeds as follows. Section 2 outlines a theoretical framework for the entrepreneurial university and reviews its literature. Section 3 presents a research design to investigate the “paradox of success,” its causes and cures. Section 4 presents a series of initiatives instituted to enhance the Stanford Innovation System. Section 5 formulates an organizational change thesis, linking design thinking to Institution Formation Sociology and social with technological innovation. Section 6 proposes policy measures to improve the Stanford Innovation System in particular and the entrepreneurial university model, in general. Finally, Section 6 sums up research insights, notes study limitations and outlines future research.

Stanford is a quintessential entrepreneurial university, encouraging firm formation from existing knowledge that the university aggregates as well as new knowledge that it creates. Its founders implanted an academic institution, with scholarly and entrepreneurial ambitions, on a ranch where cattle still graze in the upper campus. In contrast to MIT's founding role in Boston, infusing new technology into an old industrial region's firms, Stanford assisted industrial development in an agricultural region and its industrial interlocutors raised the technical level of the university in mutually beneficial symbiosis (Lecuyer, 2007). The theory and practice of how to “make over” a university into an entrepreneurial actor has come to the forefront of academic and policy attention, internationally, with the European Union sponsoring development of the U-Multirank tool that includes the phenomenon (Van Vught and Ziegele, 2012) and a Brazilian post-graduate student project part of the ITHI Global Entrepreneurial University Metrics (GEUM) initiative that produced a dedicated entrepreneurial university metric (Nerves and Mancos, 2016). As an academic institution propelled to the forefront of global rankings (O'Malley, 2018), while helping create the world's leading high-tech region, Stanford University is in a radically different position from its late 19th century developing region origins. Should Stanford respond to dramatic shift in status and fortune by reverting to an Ivory Tower mode in response to critics who label it “Get Rich U.” (Auletta, 2012)? Or, should it double down on its entrepreneurial heritage and forge more extensive ties to Silicon Valley and other innovation hubs? In 2011, then Stanford President John Hennessy responded to former New York Mayor Bloomberg's request for proposal (RFP) for a university to establish an entrepreneurial campus. Intrigued by the prospect of engaging with the city's financial, art and media complexes, Stanford invested one million dollars in proposal development but eventually withdrew its bid in the face of faculty opposition to diversion of resources as well as Cornell University's munificent counter-offer in alliance with Israel's Technion (Hennessy, 2018). Instead, Hennessy inaugurated a program with an altruistic bent, funding international scholars who will, after pursuing advanced degrees at Stanford, “drive progress for humanity rather than for a select few.” Doubtless, these nascent social entrepreneurs will internalize Silicon Valley's optimistic ideology. Success, as well as entrepreneurial exuberance, creates blinders that suppress disconcerting events, at least temporarily. In the late 00's, generating 7–9 start-ups per annum, the highest rate of any university, Stanford ignored flaws in its technology transfer process that inhibited greater attainment. The research question generated may be stated as follows: how is a hidden innovation gap recognized and resolved? An attitude of, “if it's not broken don't fix it” had taken hold rather than the converse “If it's working well make it better.” Inventions that were too early-stage to be licensed and required translational research or a start-up, languished. The first author faced a dilemma in presenting such less than stellar results from a 2005 study of Stanford's Office of Technology Licensing (OTL) to the Dean of Research, its sponsor: how could such an analysis be taken seriously in the face of overweening achievement? The Dean's response was that, “OTL is not on our radar, they make more money each year.” Nevertheless, neophyte academic entrepreneurs had independently come to a similar conclusion as ours and were impelled to act. Their initiatives are the subject matter of this article. Skeptical of Stanford's relevance to aspiring universities, Jacob et al. (2003) hold that, “The reality of building an entrepreneurial university… is an arduous task for which there is no blueprint.” Yet, a potentially replicable organizational design may be discerned by changing the focal point from Silicon Valley's efflorescence to Stanford's entrepreneurial dynamic. The article proceeds as follows. Section 2 outlines a theoretical framework for the entrepreneurial university and reviews its literature. Section 3 presents a research design to investigate the “paradox of success,” its causes and cures. Section 4 presents a series of initiatives instituted to enhance the Stanford Innovation System. Section 5 formulates an organizational change thesis, linking design thinking to Institution Formation Sociology and social with technological innovation. Section 6 proposes policy measures to improve the Stanford Innovation System in particular and the entrepreneurial university model, in general. Finally, Section 6 sums up research insights, notes study limitations and outlines future research.