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Is ‘Legal Innovation’ an oxymoron?

September 19, 2017

For this very first contribution for LegalBusinessWorld I would like to discuss the concept of Legal Innovation, which nowadays is probably a common term within Europe and the USA (less in’LatAm’), but in my opinion fails to have its concept fully grasped. After all, it is no secret that people tend to use business lingo so frequently that it becomes a buzzword. 

 

 

Talking about innovation per se is not an easy task, and surely it is not a matter that should be taken lightly, since doing so is the easiest way to trivialise its most important issues.  By the same token, it is less simple to speak about innovation in a generic fashion, as seen when the expressions “medical innovation”, “technological innovation” or even “legal innovation” are used. Why? Because the concept of innovation entails, as we shall see in a moment, the introduction of a new or “significantly improved” component over a particular activity. 

 

This being the case let us imagine for a second the following preposterous phrase: “I will significantly improve Medicine”. How so? Which part of the Medicine it is intended to improve? Medicine as a profession? Medicine education? The regulation of Medicine as a component of social implications? By using this example, we can establish the following: It is neither accurate nor real, to say something like: “we are going to be innovative in Law”, given that you are talking about everything and nothing at the same time. If a phrase like that is going to be used, a similar question arises: which area of the Law are you pretending to innovate? The exercise of the profession or Justice? Or perhaps legal education? 

Evidently, it is not convenient to talk about innovation in such generic terms, and for this reason we shall approach the main topic of this article on the three fronts that compose the economic development of a country: 1) innovation in the provision of legal services; 2) innovation in law education; and 3) innovation in Justice. 

Now, I am certain that each of these fronts can provide not one but several doctoral dissertations. With this in mind, we will talk about Legal Innovation throughout four issues: this first article, where I will introduce the general concept of innovation, and three subsequent issues where I will discuss each of the mentioned fronts. 

 

The General Concept of Innovation

To avoid building upon what has already been built, we shall take the concept suggested by the Organisation for Economic Cooperation and Development (OECD) and which can be found in the Oslo Manual, which is arguably the most important reference document regarding R+D. Concerning the concept of innovation, we can find in the mentioned document the following: 

 

“Innovation is the implementation of a new or significantly improved, product (good or service), or process, a new marketing method, or a new organisational method inbusiness practices, workplace organisation of the workplace or external relations… A common feature of an innovation is that it must have been implemented. A new or improved product is implemented when it is introduced on the market. New processes, marketing methods or organisational methods are implemented when they are brought into actual use in the firm’s operations.”

 

In this order of ideas, the Manual mentions that an innovative activity consists of:

 

“…all scientific, technological, organisational, financial and commercial steps which actually, or are intended to, lead to the implementation of innovations. Some innovation activities are themselves innovative, others are not novel activities but are necessary for the implementation of innovations. Innovation activities also include R&D that is not directly related to the development of a specific innovation.”

 

With these two concepts we can conclude this initial article with a couple of considerations: 

To innovate necessarily implies to make something new or take something that already exists and “significantly improve” it. Although I am not that comfortable with this last expression given that it leaves a wide space for interpretation, what is clear is that in order to innovate there must be a change from an

initial state to a secondary state, whether it be:

 

  1. a product or service, 

  2. a communication channel, 

  3. an organisational method, or

  4. an organisational joint area. 

 

If an organisation is doing something in order to change its current operation does not necessarily mean that it is “innovating”, meaning that it is possible that innovative activities might be carried out without having a clear picture of the innovations that are pretended to be introduced. To be able to claim that a Company is innovative, the results of its innovation projects must have been validated by their clients, and therefore the innovation projects must have generated some value for the organization. In other words, it is not an innovation if it is not implemented. 

 

These conceptual considerations are of the utmost importance since more often than not the innovation efforts, and more so in the legal profession, do not seem to have a clear aim, but rather they seem to be a patchwork of good intentions that in practice have little or no benefit at all for those who really need it: the Society, where more than half of the 113 countries evaluated in the Rule of Law Index scored 6 or less out of 10. 

 

Daniel Santiago is a Colombian attorney specialized in Innovation, Business Architecture, Project Management & Process Improvement applied to the Legal Services Industry. 

 

His articles and conferences about the future of legal services are well known in Latin America. Right now, Daniel is the Head of the Business Transformation Division on Gómez-Pinzón Zuleta Abogados, a Colombian top-tier Law Firm.

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