ip strategies in « open innovation » world

IP Strategies in « Open Innovation » world

Florin Paun

Deputy Director Industrial Innovation

ONERA - ‘The French Aerospace Lab’®

© - Florin Paun, 2015

Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.

Fundamentals : Innovation

What is the INNOVATION?

INNOVATION = CREATIVITY + VALUE

« Successful Exploitation of a New Idea » E. von Hippel, Harvard, MIT

What means VALUE ?

Commercial, Capital, Access to Resources (Capacities), Human Capital

Material vs Intangible Assets (IP?,…

Information?,

Stress Avoidance?,…)

Monetising? Implement Mechanisms producing Recursive Causalities (E. Morin)

on the 4 value related categories (e.g. stress avoidance create time)

© - Florin Paun, 2015,


Dynamic Capabilities- A. Sen

TM

Direct- see RyanAir

Non direct- see electric cars plug

Fundamentals : Innovation

« Successful Exploitation of a New Idea » E. von Hippel, Harvard, MIT

What means COLLABORATIVE INNOVATION?

Same Process … not alone

Someone else for getting together to create value by :

producing NEW IDEAs

EXPLOITING with SUCCES while

sharing RISK

sharing BENEFITS



Challenges- Concomitancy and Innovation Occurrence Innovation Distribution Channel ; Study case – Commercial Aircraft

Passenger

Airline

Aircraft Manufacturer

Development Office

Corporate Research Center

R&D Centers (Applied R&D)

Universities (Basic R&D)

ßValue input (100)

Air France, Lufthansa...

Airbus, Boeing,... (<7)

Deciders for Technology

(System architect)

Technology providers

Onera, DLR, Universities

Vertical competition

Horizontal competition

Critical - Strategic Partnership (IP exclusivity)

Competitive Advantages (quality, costs, time,

IP exclusivity)

historically



Challenges - Concomitancy and Innovation Occurrence

Fondamentals – from Value Distribution Channel Low Cost

Pax Charter

Pax

Cargo

Str. Partner.

Co-Dev.

Tiers i

R&D

Passenger

Airline

Dev.

Basic R&D

Tiers j

R&D

Technology Innovation

To Value Distribution Tree

To Value Distribution Interconnected “Mangrove Forest”

T I C



How to…? - Concomitancy and Innovation Occurrence

Fondamentals – from Value Distribution Channel

Life in Mangrove Forest

- How to see beyond your « radar » the emergent technologies impacting your

business core faster then your own product/service development time?

Sentinels vs Predators

Detecting and Closing deals 10x faster

- First in Market and take it all ?!

a new world of Instruments vs Rules

are you ever really sure you’re not infringing others IP?

build Value Proposition based on IP strategy not only portofolio…

- How to distribute the created Value

Track and Deal the related IP

- With whom? Hybrid Humans!



Prof Henry Chesbrough UC Berkeley. Open Innovation :

Renewing Groth From Industrial R & D, 10th Annual Innovation

Convergence, Minneapolis Sept 27, 2004

How to…? Winning Speed Open Innovation



deal deal

deal

deal

deal deal

Open Innovation ≠ Open bar sur la PI Deals & Deal Makers - Detecting & Transactionning the IP ; Tech Scouters, Juristes, Acheteurs, Managers,…

In Practice : How to proceed and with whom?

How and What to Deal?

Pro

f H

en

ry C

he

sb

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gh

UC

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no

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n :

Ren

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roth

Fro

m In

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str

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& D

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An

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nn

ova

tio

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Con

ve

rge

nce

, M

inn

ea

polis

Se

pt 2

7, 2

00

4

Tools to accelerate

9

Accelerate Using of “Time 2 market – Complexity” Limit while

Getting outside the Open Innovation Funnel

Time to Market

Pro

du

ct

Co

mp

lexit

y (

Co

sts

)

Bio-genetics

Pharmacy

Aerospace and Defence

Automotive

Info

rmation a

nd

Tele

com

munic

ation

Diagram by R

Stephan UTC

Limits by Authors

© - Florin Paun 2015


SMEs – good vectors for technology demonstration in all domains

Disruptive/Radical Innovation

Get out of its sector, addressing reduced T2Mkt domains

Leosphere

First Sales

Commercialisation ;

Marketing, Promotion...

Investment

+ Time (TRL)

Death Valley

Nombre d’Idées

1000 100

10

2-3

1

1 Potentiel

Product

Fondamentals : Positioning on the TRL

Risk Level

Entre-Intra

Preneur

“Best Technology

Values Nothing

without the right

Carrier” R Katz

In Practice : How to proceed and with whom?

Collaborative Innovation Create value together with the others

- How many of you have R&D partners bring New Ideas in TechPush

- How many of you have dedicated efficient tools for EIS (VIE) bring New Ideas

in MarketPull

- How many of you have Strategic Road Maps? Yours or Customers’?

- if they fail in their predictions?

- How many of you have active Procurement Management within the Supply Chain?

- Risk Sharing & Ideas? Benefits?

- How many of you have an efficient tool to involve other SMEs ≠ Supply Chain

- How to “see” beyond your own “perception” ?

- How many of you posses or share Tools like : Incubators, Corporate Venture Capital,

SME Cluster Supply Chain?

Large Industrials out of Road Map Technology Scouting global

disruptions, other domains,…

TRL

1 2 9

SME SME with Develop. Offices

SME with R&D capacities

Large Industrials within Strategic Road Map

Start-up Start-up on niched market

Venture on big markets

Proof of Concept

Technology Démonstrator

Pu

blic R

&D

Ap

plie

d R

&D

, C

arn

ot,

Fra

un

ho

fer…

I I I I I I I

IRT Large indust. et suppliers

SATT Venture/Licence.

ONERA-Tech/Capital Parteneurial Ecosysteme

Venture/Licence for Large Ind.

& TPE/Start-up for niche

© -

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ur.

Gates to get into the Open Innovation Funnel – TRL Positionned

Confidentiel

Inputs ; R&D consortium (R&D) ; R&D contracts (R&D, methods + supply?) ;

Venture/Licence (Program Manager, Supply Chain)

ASYMETRIES to be Compensate

How to deal on the « IP Market Price » ? Excepting BioMed and ICT

1) Approach by the Costs

Dedicated Development expenses + margin+ (loss) if exclusivity or competition TT

Opportunity Sale 20-30% from expenses + margin + eventual loss

Price & Conditions (Sale vs Partnership) by approach 1

1) Approach by the market

1) Turnover (Estimated and Mkt studies and Business Plan – Csec)

2) Estimated Margin (15% for high tech – 6-9 % if Large Industrial)

3) IP priced at approximately 1/3 of the margin if exclusivity

4) Weighting the transferred IP rights within the full IP rights package

Price & Conditions (Sale vs Partnership) by approach 2

3) What the Client could really pay ?

- What is the cost (time & money) to develop elsewhere?

- Identify Criticity for your IP from technological discrimination perspective

- Price to negotiate between price 1 & 2 with eventual staging/options

- If impossibility ask yourself on the utility/necessity of the deal

- The answer will be provided by the Technological (non) Discrimination

Method to hybridise MktPull & TechPush “What is the TRL level ?”

- Customer Voice are sunken inside the TRL scale and our minds are Technology Push driven.

- Why not referring to a scale related to the Degree of Maturity for the Expression of a Need by a customer?

Theorem : Invest in Projects which match at the DRL+TRL>9 !

DR Level Description for the Demand Readiness Level Description TRL level TR Level

1 Occurrence of a Feeling “something is missing”

2 Identification of a specific need Market certification and sales

authorisation

9

3 Identification of the expected functionalities for the new

Product/Service

Product Industrialisation 8

4 Quantification of the expected functionalities Industrial Prototype 7

5 Identification of the systemic capabilities (including the project

leadership)

Field demonstration for the whole

system

6

6 Translation of the expected functionalities into needed capabilities to

build the response

Technology development 5

7 Definition of the necessary and sufficient competencies and resources Laboratory demonstration 4

8 Identification of the Experts possessing the competencies Research to prove feasibility 3

9 Building the adapted answer to the expressed need on the market Applied research 2

Fundamental research 1



In Practice Onera’s developed Tools

DRL

TRL

9

9

R&T Interne

/

Externe avec

Contrôle PI

Investissement

en Démo Tech. sur

Licence Exclusive

ou PI propre

Venture/Licence/vente PI

+

TechTransfert Éventuel

SWOT Tech/Marché -

Recherche des Partenaires

Pour application/ventes -

Identifier des applications

Recherche

Applications- croisées

+

Promotion sur le marché PI

(Patent Troll, Tech

Platforms…)

Business

Plan/Model

Produit/Service

+

SWOT

Marché/Tech.

Licence

/

Spin-off

/

Start-up

3 Fonctionnalités

6 Capabilités

3 Démo Lab

6 Demo Cond Opér.

Lim

ite d

es V

ente

s

Activités relatives à

l’acteur exploitant

Activités relatives au

Laboratoire R&T

Transactions

Activités à faire

Limite des

Transactions

Limite entre le

TechPush - MktPull

Innovation Process Readiness Diagram©

© Copyright - Florin PAUN & Philippe RICHARD, 2011

How to invest? (Analyse with the use of DRL)

Making it simple ?!

Innovation typologies

We had : We complete by simplified IPRD©:

Old Technology New

Old

M

ark

et

New

Radical

Innovation

Radical

Innovation

Disruptive

Innovation

Incremental

Innovation

Low TRL High

Low

D

RL

H

igh

Market Pull

Driven

Innovation

Tech. Push

Driven

Innovation

Transaction

Driven

Innovation

“Miracle”

Unexpected

High Risk

Innovation

© Copyright - Florin PAUN, 2011

17

Risk sharing co-development contract French SME specificity : 95% < 50 employees

Low Business Angels activity and Venture Capital culture

Low SME cash disposal for technological development projects

Onera’s Proposed solution Risk sharing co-development contract

Product Business Plan analysis

Onera investment for its own working program

Financial return based on the Product success (≠ subsidies, licenses…)

Global benefit on the co-development Onera’s budget

Working Program- long term and high complexity scientist consequent involvement

Solution Scientist migration from ONERA to the SME development team

to compensate the socio-cultural asymmetry

Need to Measure the SME interest

- the best evidence > 5% of equity open for the scientist

Spin-off 4 Spin-in new Employees Onera’s Charter

In Practice Onera’s developed Tools

18

Assigning the role of “Cultural” Translator to the TTO Shifting the TTO mission from “Look to my baby” to “I’m here to help you

succeeding”

Shifting from Technology Push to Market Pull

Onera’s solutions to compensate / reduce the Asymmetries

Onera-SME collaboration Charter Main objectives :

- Favour access to Aerospace & Defence R&D results

- Favour emergence of innovative proposals

- Provide contract opportunities

- Complies with Onera’s mission provide economic

growth

CREATE “TRUSTFULL SPACES”

(by “cognitive proximity” [Uzunidis])

19

Fogale nanotech

Onera et l’Open Innovation avec des PME et Start-ups

91 - « Wind »

Lidar

31_EM

environment

simulation

91-LASER

Interferometer

Porous Ti bio-medical

prosthesis

Accelerometers

MEMS

Ship landing

For UAVs

91-Medical

Imagery

Ultrasounds machining

Capacitive sensors

78-ONERA’s software

Crack tracking

and detection

77-Projectile acoustic

signature

31- Pressure Sensitive

Paint

13- Green Aircraft/

Silent propeler

UAVs

NHEOLIS 13- Wind mill

Sense and avoid

Aviation system

Adaptive Optics from space to eyes

ABERNATHY, WJ., UTTERBACK, JM., 1975, “A dynamic model of process and product innovation”. Omega. 1975; 3(6): 639–56.

AIT-EL-HADJ, S., BRETTE, O., 2006, « L’apport de la science des systèmes techniques à la maitrise de la conception pour une systémique technologique

appliquée » in « Innovation, management des processus et création de valeur », pages 67-83.

CALAME, M., 2011, « Lettre ouverte aux scientifiques. Alternatives démocratique à une idéologie cléricale », pages 71-149

DENT ASSOCIATES, 2011, White Paper (http://www.dentassociates.co.uk/pdf/Technology%20and%20Market%20Readiness%20Levels.pdf )

ECOLE DE L’INNOVATION, 2011, « Innovation dans les PME : la maturité commerciale et technologique guide le choix du contrat de partenariat

technologique » in La lettre européenne de l’ANRT, Nr. 248, octobre, 2011

FLORIDA, R., & COHEN, W.M. (1999). "Engine or infrastructure? The university role in economic development", in L.M. Branscomb, F. Kodama, & R.

Florida (Eds.). Industrializing knowledge: University-industry linkages in Japan and the United States (pp. 589-610). Cambridge, MIT Press.

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http://ssrn.com/abstract=1763679

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ERANET Workshop, 8th of February 2011.

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