innovation ecosystems in europe: how boosting promising startups and smes

How Boosting Promising Startups and SMEs

Open Innovation Accelerator – Case Study

Difficulties Met in Russia

Филипп Жеффруа, Юлия Никулина 2015 г.

About Philippe GEFFROY PhD In Technology Assessment / MSc in Innovation Management/ MSc in Industrial process and Manufacturing Engineering

Experienced in Technology assessment, Scouting , Business Innovation development and Innovation Policies since 1998

In Russia Work with Russian clusters about internal organization (CMO), international promotion and development. References: Troitsk

(photonics), Ulyanovsk (aeronautic), Novosibirsk (IT and biotechs), Тоmsk (IT), Krasnoyarsk (Space), Khanty-Mansiysk (APG) and others.

Provide diagnostic and hands-on support to technoparks staff organization and specialized coaching for promising startups in the framework of the World Bank program to support Russian innovation system and Russian Venture Acceleration Network.

Business Development support to foreign companies (Aerospace, advanced composite material, Automotive, Railways, biotechs, etc)

Outsourcing of research programs and technical due diligence for industrials and M&A Consulting firms

In Europe

Work with main French, Belgium, British clusters and other on collaborative projects and business development,

Research outsourcing, Technology due diligence for large companies and commercialization from science results in EU countries and North Africa,

Provide Startups hands-on support to reduce time to market, (pre-industrialization stage)

Co-founder of an Open Innovation Accelerator (On Going)

PHG 2 November 20 2015

OPEN INNOVATION MODEL How it works ?

[email protected] 3 December 01 2015 ASI Moscow

Open Innovation Model Process (Example : NutrurEnergy Consulting Firm)


November 11 2013

Open Innovation Model Open Innovation Potential Benefits, costs and barriers


Open Innovation Model Exemple BizLab AIRBUS


Open Innovation Model Some Useful Ingredients


On the one hand ; the demand (Pull)

– SMES that want to overtake their R&D weaknesses

– Large enterprises with interests in disruptive technologies

– SMEs without R&D department

– Large enterprises with high-level of Marketing Staff

– …

On the other hand ; the offer (Push)

– Startups that want to faster go to market

– Scientifics who want selling/licensing sciences results

– Large enterprises that want selling/licensing their proprietary

technologies

– Startups that want to fine tune their idea/proof of concept

– ….

WHICH PLACE FOR INTERMEDIARIES IN THIS NEW APPROACH ?


Open Innovation Accelerator New Challenges for Intermediaries


Two-sided innovation intermediary platforms

The best innovation intermediaries are structured as an emerging form of broker that coordinates

the flow of innovation requests and solutions across distinct, distant and previously unknown

knowledge sources as well as provide managerial advise to internalize external sources of

knowledge.

In conclusion, theoretically for the most advanced, innovation intermediaries are a powerful force for

putting innovation needs and solutions within the reach of every company and entrepreneurial

scientist.

However, companies must ensure their collaboration with innovation intermediaries with an overall

innovation strategy. Companies’ internal organizations should make use of services and the growing

variety of intermediaries offering them.

The companies that will profit from open innovation are those that adapt their innovation processes

and organizational structure in line with the new opportunities offered by innovation intermediaries.

Open Innovation Accelerator New Challenges for Intermediaries - Example of private Incubator


Siemens Technology- to-Business Centre (TTB) is a private incubator that provides connectivity between entrepreneurs developing disruptive technologies in areas such as clean energy.

The benefits of this incubator for Siemens are:

– First it allows Siemens researchers in different business units to have a first- hand licensing and insight of potential technologies and identify potential suppliers.

– Second, it facilitates investments in spin-in technologies that currently do not have an established market but have the potential to have it in the near future.

Up to now, this initiative has produced around 15 spin-in Siemens technologies.

On the other hand, entrepreneurs receive: free allocation and support from internal project development managers, links and advice from business and research units.

Open Innovation Accelerator Kindly Reminder


OPEN INNOVATION ACCELERATOR INGREDIENTS FOR A SUCCESSFUL SET-UP - BEST PRACTICES-


CORE BUSINESS SECTORS, SEAD CONCEPT, LEAN STARTUP MODEL, PRIVATE OPEN INNOVATION ACCELERATOR, WORLDWIDE NETWORK


DEVELOP

Corporate R&D Network

Portfolio Push

Open Innovation Accelerator The Legitimacy


Proven experience in Scouting and Technology Transfer consulting - Staff must combine many

years experience in open innovation engineering (scouting, brokering, TT, coaching), and

generating outstanding ROI for clients.

Proven experience - Industry leaders such as Aerospace, Medical devices, Automotive,

Railways, and many others

Proven technical expertise - Staff must have direct technical expertise e.g. material science,

photonics, nanotechnology, biotechnology, IT, etc.

Proven network - Managed network of R&D Directors and Marketing Directors + extended

academia worldwide network

Proven Process :

SCREEN

PROs, BSIs Network

EVALUATE

Project maturity Promoter Profile Proximity to Market

ACCELERATE

Faster solution brought to

Market

Open Innovation Accelerator The Comfort Zone


Open Innovation Accelerator Core Competencies Nucleus : Example on some KETs


Open Innovation Accelerator Well Known the key Markets (Overall Trends, Niche,)


Transports (aerospace, automotive, railway)

Energy (renewable, energy saving, etc.)

Life and Health Sciences ( Medical devices, Medical Diagnosis, Personalized

medicine, ..)

Security (optronic and signal treatment, photonics technologies)

Internal Process Case 1 Scouting ; From the Client Needs (Pull approach).


Unique Selling Proposition.

Internal Process The BDP Case 1 Scouting ; From the Client Needs (Pull approach).


INNOVATION

SCOUTING

Public and private research, inventors, IP portfolio

Initial selection (100->50) : pool of opportunities

First evaluation of opportunity: area of application /markets,

target/economic, potential/regional or national/international priority

OPPORTUNITY

SELECTION Technological maturity : TRL Scale (Technology Readiness Level)

Cost to market vs Time to market

2nd selection (=50>5) for “project” step : more in depth evaluation

PROJECT

DEVELOPMENT

Product development roadmap, market study, IP assessment

Technology Trasnfer

Business Model

Funding strategy

BUSINESS

LAUNCH Partners & shareholders selection

Team build-up

Operation start

A 18 to 36 + Months Process

OIA Exit

Internal Process The BDP Case 2 ; Open Innovation Model + Lean Startup


INNOVATION

SOURCING

Public and private research, inventors, IP portfolio

Initial selection (10) : pool of opportunities

First evaluation of opportunity: area of application /markets,

target/economic, potential/regional or national/international priority

OPPORTUNITY

SELECTION Technological maturity : TRL Scale (Technology Readiness Level)

Cost to market vs Time to market

2nd selection (8 TRL 5-6) for “project” step : more in depth evaluation

PROJECT

DEVELOPMENT Product development roadmap, market study, IP pending

Business Model

Funding strategy

BUSINESS

LAUNCH

Startup creation

Partners & shareholders selection

Team build-up

Operation start OIA Exit

Target !!! a 18 Months Process to go market

Internal Process The BDP Case 2 ; Lean Startup in a Nutshell


“The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration”

Eliminate Uncertainty : Create order not chaos by providing tools to test a vision continuously

(PDCA)

Work Smarter not Harder : Enlisting early adopters, adding employees to each further experiment

or iteration, and eventually starting to build a product.

Develop a Minimum Viable Product (MVP) : The first step is figuring out the problem that needs

to be solved and then developing an MVP to begin the process of learning as quickly as possible (5W).

Validate learning by production of high quality goods. When you focus on figuring the right

thing to build-the thing customers want and will pay for-you need not spend months waiting for a

product beta launch

An other and more realistic definition of startup could be : "a human institution designed to

create a new product or service under conditions of extreme uncertainty"

Internal Process Competencies and Contributors summarized


INNOVATION

SOURCING

Gold-digger Researcher, inventor Domain experts IP specialist

OPPORTUNITY

SELECTION Technology expert Labs for testing Market study expert

PROJECT

DEVELOPMENT

Project manager / Business developer Pré-Industrial/Manufacturing expert Industrial / Manufacturing Expert Financial expert : funding, business plan

BUSINESS

LAUNCH HR specialist for team build-up Go-to-market specialist

Key Point 1 Sourcing ; The Network


Professional / business networking is about (e.g. TTOs, BSIs such as cluster,

technopark association, alumni in the companies, …):

Focused on professional/business issues

Structured around individuals representing their (private or public) organization rather than themselves

Oriented towards specific professional domains , with activities favoring research, technical or business collaborations

Services provides hands on support to SMEs and Start ups

Community platform ) : researchers, corporations, partners, private equity funds, entrepreneurs,…

Key Point 2 Skills in Technology Assessment

[email protected] 24

December 01 2015 ASI Moscow

OPPORTUNITY

SELECTION Technological maturity : TRL Scale (Technology Readiness Level) Cost to market vs Time to market

The Innovation Phase

Key Point 2 Skills in Technical Due Diligence


Objectives : Is there ;

- Any competitor(s) ? Many ? - Many competitors but I have a competitive advantage ? - No competitors ? I have a Doubt !!! - Competitors but there is a niche.

Key Point 2 Example of Competitive Advantages on a radar figure


Key Point 3 Evaluate; Market research and Market Analysis


Planning to enter a business venture without performing Market Research and Market Analysis,

is like going to an unknown destination without a map: hazardous !

Many difficult decisions are to be made along the « bring innovation to market » road: market

research first, then market analysis will narrow the number of alternatives, like targeting

segments with too small potential, or projecting to offer a product that will be in low demand

The assessment of the overall potential of a innovation is very much determined by the correct

interpretation of market data (but of course not only) : false reasoning, or a wrong or

incomplete quantitative model,…can lead to totally non-desirable decisions or choices.

Finally, as the « owner » of a project has commonly a tendancy to over-estimate market potential

(and be very persuasive about it!), it is a key input in the overall assessment of a startup, that

will balance excessive optimism

Both there are recurring processes in order to achieve accurate quantitative and qualitative knowledge of the business

Key Point 4 Evaluate Promoter’s Profile and Staff if necessary at early stage (coach)


The type of support start-up businesses require may vary by the sector, the sophistication

of the entrepreneur (cultural back ground, what he really wants to do or not.), the back

ground of the region (is there a culture of enterprise or has employment traditionally been

based on working for the regions large companies?) and the economic climate.

The aim of any organisation created to support business start-ups is not only to guide the

entrepreneur through the process of starting a business but also to help the individual to

make an objective view as to the viability of the idea and the business model.

A particular attention must be paid with projects originating from research.

It is important to have a business-oriented team to take over and lead the game from the start: coaches, mentors or advisors can be most effective if the startup and its team are fully dedicated to the business.

Key Point 6 A method for Acceleration


Objectives are Technical risk mitigation and reduce time to market

Method

Roadmap with BRL level scale Radar

Model of Pitch

Key Point 6 A method for Acceleration / Focus on the Radar


Our Objectives Technical risk mitigation and reduce time to market

Method BRL

Roadmap with BRL level scale Radar

Model of Pitch

CASE STUDY Sourcing Estimation Acceleration (SEA) Program in Tunisia on Behalf of the EU Commission. March – September 2015


Overall process Results obtained


Among the Results Startup Bionic+

[email protected] 33 December 01 2015 ASI Moscow 5

LESSONS LEARNED IN RUSSIA From innovation policy dreams to the harsh reality of economy


In Short

Over the past twenty years+ all ingredients of an efficient innovation system were established

BUT

In 2014 it is not possible to state that the effectiveness of public spending is satisfactory

The World Bank August 2014 Moscow Conference


Incredible academic talents

Long lasting scientific policy

International relationships in key sectors

Money (complex to access, but existing)

Hard infrastructure all over the country with visible “hot spots” such as Saint-Petersburg

Continuous push on the innovation policy


A Large Variety of Well-Know Assets

A number of private initiatives emerge

Large firms start considering Russian innovations

Impact of foreign investors

Globalisation of more and more technology-based firms

Sectors such as internet and mobile applications


New Emerging Assets

Emerging Opportunities


Gate Keepers

Nuggets of gold with surprising opportunities

An abundance of low prospect startups, many supported by governments and donors

Gate Keepers in Russia


Some public programs have insight on their global competitiveness

Some private programs already have a track record

RVC

Skolkovo Foundation

Launch Gurus

For 3 years the GVAccelerator proved its effectiveness by launching 186 startups with a success rate over 35%. The graduates of the GVAccelerator attracted more than $ 25 million of venture and private investments, created more than 710 jobs and reached capitalization of over $130 million.

HOWEVER !


2012 Revenues


Researchers

Deceiving mobilization of the scientific communities with failure of commercialization of science (compared to potential)

Difficulties in "forcing" scientists to respond properly and in time to business needs.

Policy

Political choices rarely focused on “real business demands” + an over-concentration on foreign practices

A governmental policy focused on the RoI and not on economic impact (outputs versus outcomes)

No, or limited budgets allowing to prepare technologies to a level that is understandable and attractive to firms (very often, technology offers are still at a TRL 3 or 4).


Key Findings - 1

Intermediaries

Lack of understanding of how to assess the market value of technologies.

Difficulties assessing the work that needs to be carried out before a technology is presented to potential customers.

Problems in recruiting technology commercialization staff who have enough commercial skills and the proper networks in firms.

Lack of skills in carrying out techno-market intelligence (what are the real needs of firms).

Absence of understanding on how to address the innovation supply chains.

Lack of administrative flexibility/agility to meet demands from firms.

No, or limited capacities to assess needs of international players (lack of networks and lack of competencies).


Key Finding - 2

Heavily investing in Human Capital for innovation, commercialization of science and entrepreneurship

Helping Regions understanding and creating “Innovative Administrations”

Stimulating the demand side versus the supply side

Fine tune the balance between best practices and Russian creativity, in other words ; work harder and invent a model adapted to Russia


The “soft side” of innovation

СПАСИБО ЗА ВНИМАНИЕ!!!

Контакты: Юлия Никулина,

[email protected] +7 905 506 2211


mailto:[email protected]

innovation ecosystems in europe: how boosting promising startups and smes

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