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GESTS423 Intellectual Property Management &

Technology Transfer Part I: Innovation: sources, drivers and models

Azèle Mathieu, PhD

February - June 2015

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RESEARCH BUSINESS

GESTS423 – Technology Transfer – © Azèle Mathieu

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RESEARCH BUSINESS

GESTS423 – Technology Transfer – © Azèle Mathieu

Innovation

• … is everywhere…on every mouth…

• Is it a buzzword?

• What does it cover?

• Why is it important?

• What is the place and the role of business developers in new systems of innovations?

• …

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GESTS423 – Technology Transfer – © Azèle Mathieu

Agenda

1) Definition

2) Sources

3) Models

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GESTS423 – Technology Transfer – © Azèle Mathieu

Why innovation is so important?

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Source: McKinsey Global Institute Analysis (2013)

GESTS423 – Technology Transfer – © Azèle Mathieu

What is innovation?

• Research may lead to innovation…or not…

• Sources of innovation are not restricted to research

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GESTS423 – Technology Transfer – © Azèle Mathieu

European paradox

… What has (not) changed in 30 years?

=> How to improve innovation and entrepreneurship?

GESTS423 – Technology Transfer – © Azèle Mathieu

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Innovation ≠ research

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Innovation goes far beyond Research & Development It goes far beyond the confines of research labs to users, suppliers and consumers everywhere – in government, business and non-profit organisations, across borders, across sectors, and across institutions.

Source: OECD

GESTS423 – Technology Transfer – © Azèle Mathieu

Innovation: concept of commercialisation

• Innovare: “to renew or to change”.

• Innovation management is seen as “the creation and capture of new value in new ways”

• “Innovation = the application of new ideas to the products, processes or any other aspect of a firm’s activities”

“Linked to the process of commercialization”

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Source: Rogers (1998)

GESTS423 – Technology Transfer – © Azèle Mathieu

What is innovation?

https://www.youtube.com/watch?v=oD7X3KvJAVk&feature=youtube

• Innovation = Invention x Commercialisation ( x value capture)

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Main types of innovation (1/2)

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GESTS423 – Technology Transfer – © Azèle Mathieu

Main types of innovation (2/2)

• https://www.youtube.com/watch?v=1mw_Uo5ba58

(with who I do not totally agree… )

Product

Process

Marketing

Organisational (Business Model Generation)

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Source: Oslo Manual

GESTS423 – Technology Transfer – © Azèle Mathieu

Different examples of business models

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Source: Harvard Business Review, What is a Business Model? (23/01/2015)

GESTS423 – Technology Transfer – © Azèle Mathieu

Classification of innovations

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Incremental: user experience does not change

Radical: user experience changes

GESTS423 – Technology Transfer – © Azèle Mathieu

Categories of innovations

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Kind of innovation Incremental innovation Radical innovation

New knowledge Low degree of new knowledge

High degree of new knowledge

Impact on the industry/the market

Does not radically change Does radically change/create

Technologies Existing technologies New, breakthrough technologies

Risk and uncertainty Low High

User experience Does not change Change

GESTS423 – Technology Transfer – © Azèle Mathieu

Disruptive innovation?

has to do with market/business phenomenon

has little to do with technology per se

may or may not represent a major technical breakthrough

Innovator’s dilemma

https://www.youtube.com/watch?v=DaKgMcFP4Mo

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GESTS423 – Technology Transfer – © Azèle Mathieu

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Source: MIT Sloan Management Review (2012)

Disruptive innovation from emerging countries?

The water wheel https://www.youtube.com/watch?v=ABJ41yVClvs

GESTS423 – Technology Transfer – © Azèle Mathieu

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Disruptive innovations?

The Internet in general:

– New ways of communicating

– Rearranged value chains

– Brought transparency to pricing

– Disrupted commercial relationships

– Created new customer expectations

– Made old business models obsolete

Other example:

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Source: McKinsey Global Institute Analysis (2013)

GESTS423 – Technology Transfer – © Azèle Mathieu

Different innovations, different impacts on the economy…

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Empowering innovation: - K; + jobs

Sustaining innovation: 0 K; 0 jobs Efficiency

innovation: + K; - jobs

Source: Christensen (2012)

GESTS423 – Technology Transfer – © Azèle Mathieu

Adoption of innovations may be more or less easy…

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Source: Chasm Institute

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How easy/difficult will the adoption of the new technology be?

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Source: Chasm Institute

GESTS423 – Technology Transfer – © Azèle Mathieu

Market Development Strategy Checklist

?

Processes of innovation (1/2)

• 2 extremes:

1. Technology Push

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Customer? Market?

€? …

GESTS423 – Technology Transfer – © Azèle Mathieu

Processes of innovation (2/2)

• 2 extremes:

2. Demand pull

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Resources?

Competencies? Profitable? Feasible?

…

?

Existing problems of potential customers = customer pain

GESTS423 – Technology Transfer – © Azèle Mathieu

Importance of testing

POC

Proof of Concept: it works !

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POB

Proof of Business : it sells and we make money out

of it

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Importance of Minimum Viable Product (MVP)

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GESTS423 – Technology Transfer – © Azèle Mathieu

Agenda

1) Definition

2) Sources

3) Models

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GESTS423 – Technology Transfer – © Azèle Mathieu

References (1/3)

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(2013). Big Bang Disruptions, Harvard Business Review

Chasm Institute. http://www.chasminstitute.com/METHODOLOGY/TechnologyAdoptionLifeCycle/tabid/89/Default.aspx

Chesbrough, H.W. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press.

Chesbrough, H.W. (2006). Open innovation: a new paradigm for understanding industrial innovation. In Chesbrough, H.W., Vanhaverbeke, W. and J. West (eds), Open Innovation:Researching a New Paradigm. Oxford University Press.

Christensen, C. (03/11/2012). A Capitalist’s Dilemma, Whoever Wins on Tuesday. The New York Times.

Cohen, W.M. and D.A. Levinthal (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), pp.128-152.

Europe Enterpise Network, http://een.ec.europa.eu/

GESTS423 – Technology Transfer – © Azèle Mathieu

References (2/3)

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Etzkowitz, H. and L. Leydesdorff (2000). The dynamics of innovation: from National Systems and “Mode 2” to a Triple Helix of university–industry–government relations, Research Policy, 29 (2), pp. 109-123.

European Communities – Gate 2 Growth (2002). A Guide to Financing Innovation.

Geuna, A. (2001). The Changing Rationale for European University Research Funding: Are There Negative Unintended Consequences? Journal of Economic Issues, 35 (3), 607-632.

McKinsey Global Institute (2013). Disruptive technologies: advances that will transform life, business and the global economy.

Mowery D.C., Nelson R.R., Sampat B.N. and A.A. Ziedonis (2001). The growth of patenting and licensing by U.S. universities: an assessment of the effects of the Bayh–Dole act of 1980. Research Policy, 30 (1), 99–119.

OECD - Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition.

GESTS423 – Technology Transfer – © Azèle Mathieu

References (3/3)

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Pavitt, K. (1980). Industrial R&D and the British economic problem. R&D Management, 10, 149.

Perkmann M. and K. Walsh (2008). Engaging the scholar: Three types of academic consulting and their impact on universities and industry. Research Policy, 37, 1884–1891.

Perkmann M. and K. Walsh (2009). The two faces of collaboration: impacts of university-industry relations on public research. Industrial and Corporate Change, 1-33.

Procter and Gamble, Connect + Develop http://www.pgconnectdevelop.com/home/pg_open_innovation.html

GESTS423 – Technology Transfer – © Azèle Mathieu