Innovation Management. Focus: Exploitation Management for EU RTD

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1 Innovation Management Focus: Exploitation Management for EU RTD Dr. Petra Püchner Managing Director Steinbeis-Europa-Zentrum Stuttgart

2 Technology.Transfer.Application.

3 Facts & Figures (As of December 31, 2010) The following facts provide a snapshot of the expertise and resources we were able to make available to and with our clients in the year 2010: 810 Steinbeis Enterprises worldwide 124 Mio. EUR total turnover 689 professors, 1,410 employees, 3,301 contractors

4 Steinbeis-Europa-Zentrum Your partner for innovation in Europe Office of the Commissioner for Europe of the Minister of Economics Baden-Württemberg Economically independent transfer centre within the Steinbeis Network Budget 4 Mio. EUR, financing by projects (Project clients: EU, national und regional stakeholders)

5 SEZ Services

6 Your research is for Shelve life For society 6

7 INNOVATION WHAT IS IT? 7

8 Process of Innovation Consortium agreement Impact Exploitation Idea Researc h prototyp e demonst ration Market access IPR 8

9 Innovation is The introduction of new goods ( ), new methods of production ( ), the opening of new markets ( ), the conquest of new sources of supply ( ) and the carrying out of a new organization of any industry (Joseph Schumpeter) new products and processes and major technological modifications to products and processes. An innovation is considered performed if it is introduced to the market (product innovation) or implemented in the production process (process innovation). R&D represents only one of these activities and can take place during various stages of the innovation process. It can play not only the role of the original source of the innovation ideas but also the role of problem solution framework (OECD) 9

10 Innovation Technological innovations based on specific technology, invention, discovery Products Processes Service Innovation Financial / insurance Technology driven service innovation Social innovations in critical historic periods more important than technological ones (mail, educational system, social system, health care, ) Incremental or radical

11 Innovation is the answer to a market Market need Societal challenges Identified problems Market niche Not yet covered by available products/services etc Often no visible market pull until it is on the market 11

12 The problem with innovation People dont want it until they get to know it when it is there 12

13 Scene Setting Despite good R&D capacities in KETs, the EU is less successful in capitalising on these results. A more strategic approach is required to deploy these technologies in the EU. Communication on Key Enabling, Technologies Sept 2009 SME as partners in a RTD+I is not sufficient to solve this SME miss guidance during and after RTD+I projects

14 Key enabling technologies (KETs) EC communication 2009 in regards to products - Nanotechnology - Micro nanoelectronics - Photonics - Industrial biotechnology - Advanced materials - Advanced manufacturing Plus KETs in regards to services - ICT - Creative industries

15 Europe is still in the KETs race: patent activity Patentaktivitäten in Schlüsseltechnologien 2008 Shares of EPO/PCT patents by regions (percent) All KETs cumulated 45% 40% 35% 30% 25% East Asia Europe North America 20% 15% 10% 5% 0% '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), TKM 2011 RoW 2008 priority patents published

16 Problem: EU Patente ja, EU Produktion nein, Case Study: Li-ion battery production % % Li-ion battery cell production % share in 2008 Advanced Material Patent Share USA 1% 30% Europe 0% 31% Asia 87% 35% 12% Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), CGGC, Lithium-ion Batteries for Electric Vehicles : THE U.S. VALUE CHAIN, October % Others

17 Disconnection between patents share and manufacturing share Case Study: PV Cell production First Solar 12% % PV cell production share in 2009 % 27% Photonics Patent Share Europe 13% 29% Japan China/Taiwan 42% 42% 15% Asia Europe = 77 % of global market 18% 2% Others Source: Photon International Mars 2010, European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW) «JP Morgan, PV News, Oliver Wyman Analysis

18

19 Societal challenges = emerging industries / markets Health, demographic change and wellbeing Well being including Active Aging Climate action, resource efficiency and raw materials Sustainable development/ green economy Smart, green and integrated transport Sustainable mobility

20 Innovation management in EU RTD TECHNOLOGY EXPLOITATION / IMPLEMENTATION PLAN 20

21 Planning RTD Starting Point Result 1 Result 2

22 Planning RTD Starting Point Application / solution 1 Application / solution 2 Result 1 Result 2

23 The exploitation strategy and plan Description of exploitable results Market overview / trends / requirements Business opportunities / positioning Exploitation channels Way to the market Competitive analysis Exploitation action plan / timing 23

24 Market All possible application sectors and markets (sector, users, clients, geographical) Ship manufacturing or coffee machines? Regional, EU,. Priorisation of market Market size, market trends, competitors (market leaders, research leaders) Positioning (niche market or replacement Specific rules for this market (standards, barriers, ) Which alliances are needed to enter this market

25 Market assessment Application fields Market sizes Which key players Which market is priority Because of low market barrie, market already known,..) Because of high return of invesment Fits to own strategy Is there a market niche

26 Market readiness Market readiness Is the market reade for this innovation? If yes, why.legal push, consumer demand,. If the development is too early for the market (often the case!) How to deal with this strategy How to get a Reference client What is missing in the market to get ready? Services? Market saturated no room for innovation? Nespresso example within Nestle Nevertheless a success! Premium Marketing, easy and trendy. Outsourcing as a company strategy to avoid huge losses

27 Market readiness of Product Time frame Prototype to demonstration (Technikum) to pilot application to 1st client Additional partners, which Steps after project end Further RTD Prototyp for firtst trial applications Financing? First customers, Observer Group How to involve them Market access in 2, 4 x years

28 Commercialisation and Market Deployment Commercialisation All the steps needed to get into the market Reference client (commercialisation started successfully ) Demonstration Project = reference client, who is funded for offering the first trial Market Deployment More than a first client Market Replication Additional markets in other geographical areas or market areas/sectors

29 Exploitation Management technology watch (competitors in research) Market watch IPR Strategy, regular updates Contractual arrangements within consortium, outside with externals Additional strategic partners (communication, involvement) All of this feeds into the deliverables Exploitation strategy, plan, roadmaps,.

30 SWOT in relation to Impact Wide application field High exploitation potentail Market / society need S W No exploitation partner yet Complex technology expensive Policy supports it Legislation asks for a solution Market ready O T Strong competitors Market not ready Technology not accepted

31 Activities in Impact / Exploitation Management Consortium Agreement Exploitation Board support Exploitation IPR Awareness and Training (WS) Technology Watch Market Watch Strategies Roadmaps/ Plans Partnersearch Contacts to user groups / clusters Further financing options Dissemination PR Strategies TO in BBS/BCD Brokerage Events Sector Groups

32 Technology implementation plan tool ROAD MAPPING 32

33 Technology roadmaps Technology strategic roadmaps, results of technology foresight and other studies performed often on the macro-economic level. at the EU level the Institute for Prospective Technology Studies in Sevilla ( Technology roadmaps are developed also within the framework of technology platforms of the 7-th EU Framework Programme for Research, Development and Demonstrations ( AEDS Jiří Vacek, KIP FEK UWB 33

34 Innovation Management for SME SME SUPPORT FOR INNOVATION 34

35 Zufallsinnovation How do SME innovate Product / process improvements (incremental) clients No systematic approach No long term strategy No technology foresight Most used technology watch: going to fairs/exhibitions of their sector More a product watch than a technology watch No cross-fertilisation from other sectors

36 The SME? on Innovation management Make it concrete Explain the benefits Include short term benefits Explain the outcomes

37 Internal management for innovation starts with promoters Role overcomes generates Expert Lack of knowlege Ideas, concepts, alternatives, information Power unwillingness Decisions on targets, budgets Process / Relation Missing links, missing relations, Relations, coordination, processes, networks

38 Solutions 1. Pragmatic innovation management get acceptance through target oriented activities/benefits 2. External network of promoters 1. Targeted support One gatekeeper for knowledge / Mentor Many experts inside and outside the sector (cross-cutting innovation, cross-industry knowledge,.

39 External support External Network of Promoters internal Role overcomes generates Expert Lack of knowlege Ideas, concepts, alternatives, information Power unwillingness Decisions on targets, budgets Process / Relation Missing links, missing relations, Relations, coordination, processes, networks

40 Networks of Technology and Expert Promotors in exchange with internal SME promoters Power Promoter External Network of promotors Internal Network Of technology People / promoters?

41 Managed by the Coach: acting also as Gatekeeper and as process promoter! Techn. A EU RTD B KET C 1. Rough by external promoter Network 2. Fine by external Mentor More fine by internal promoter Top Relevant Information to be processed to the power promoter via the technology promoters

42 Phase 1 Concept and Feasibility Company level: Vision Action Plan Project level Market Innovation Technology Watch Preparing next phase Phase 2 Demonstration, R&D,. Company level: Training Management support Project level Market deployment /commerciali sation Exploitation partners Preparing next phase Phase 3 Market access commercialisation Company level Training Management support Project level Investor + market readiness Access to investors + markets Knowledge +IP managem. Market access

43 Monitoring Risk Management Finance Knowledge Management Quality Management Controlling Project Management Contracts Reports Project Administration Subcontracts Business Plan IP Management Innovation Management Managerial Areas Communication Evaluation/Studies Internet Technology Watch Exploitation and Dissemination Plan Technology Marketing Promotional Material Corporate Identity European IPR Helpdesk (2012) 43

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