Open Innovation and its Potential for Regional IP-Based Collaboration in the Development and Transfer of Technologies

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1 Open Innovation and its Potential for Regional IP-Based Collaboration in the Development and Transfer of Technologies National Seminar on Intellectual Property (IP) Management and Commercialization of IP Assets Dr. Ali Jazairy Tehran X.2012 Head, Innovation and Technology Transfer Section, WIPO

2 What is Networked (Open) Innovation Open innovation is the osmosis and reverse osmosis of knowledge across the porous membrane separating an organization and its environment It can be promoted through a variety of arrangements. These may encompass more traditional models, such as licensing (of, inter alia, patents, utility models, trademarks, copyrights, industrial designs and trade secrets), subcontracting, R&D collaborative contracts and joint ventures. Other options include Internetenabled trends that foster customer driven innovation including, inter alia, crowd-sourcing, ideas competitions, creative commons and open source software. Reference: Project Document for Rec Ali Jazairy

3 Networked Innovation: Identifying Who Knows How The question is not anymore to know how but to know who knows how

4 Is the World Flat or Spiky? Is the world flat (Thomas Friedman s book: The World is Flat) or is it a level-playing field? In the beginning of the 21 st century, the world s urban population exceeded the rural population for the first time

5 BRICS and the World s Burgeoning Cities By 2015, 9 out 10 most populated cities will be in the developing world Reference: De Graaf (2008), Zwingle (2002)

6 Relative Population by 2050

7 Evolution of Firms Outsourced R&D Reference: European Commission, Annual Digest of Industrial Research (Brussels, 2005).

8 Scanning of new technologies Prototypes Funnel Model: Three Archetypes of Open Innovation Outside-In Process: Integrating outside Knowledge, Customers and Suppliers Inside-Out Process: Bringing Ideas to market, selling/licensing IP, and multiplying technology Development Product Development Commercialization Adapted from Gassmann, O. and Enkel, E., Towards a Theory of Open Innovation. Coupled Process: Coupled inside-out and outsidein processes, working in alliance with complementarities Porous membrane 2012 Ali Jazairy

9 Text Economic Pressures on Innovation and Business Models of Open Innovation Shorter product life on the market Spin-off Sale/divesture New revenue Revenues Costs 0 Own market revenue Internal development costs Own market revenue Internal development costs Licensing Own market revenue Internal/ external development costs Reference: Adapted from Chesbrough, H., Open Business Models (Harvard, 2006). Rising costs of innovation Closed Innovation Before Closed Innovation Today Cost and time savings from leveraging external development Open Innovation 2012 Ali Jazairy

10 Networked Innovation Examples Innocentive ( connects seekers, those with challenging research problems, with solvers, those proposing inventive solutions Yet2 ( locates the innovation that one needs and places innovations that one wants to sell, license, or leverage Ideaken ( enables enterprises when they need to collaborate to innovate, with employees, customers, research vendors, and academia or with the global pool of talent Living Labs ( develops and offers a gradually growing set of networked services to support the "Innovation Lifecycle" for all actors in the system: end-users, SME s, corporations, public sector and academia. NineSigma ( Engages networks of innovators to solve targeted problems P&G Connect & Develop ( Locates external ideas to combine with internal R&D Energy Innovation NW (Kaufman) ( Network of researchers, financiers, etc. for energy solutions Innotribe ( Connects start-up innovators to investment entities Cisco I-Prize ( Open web competition for the best solution won by the Rhinnovation Team of 5 students from Technological University in Monterrey, Mexico Open Xerox ( Web site where Xerox displace new products related to web applications and web services for testing, comments and licensing

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14 Networked Innovation in Energy In 1970s, Buckminster Fuller imagined a global energy network to connect the world s disparate electrical production facilities and distribution networks, predicting dramatically enhanced efficiencies Reference: Buckminster Fuller (1983)

15 Two Distributed Networked Alternative Energy Systems Desertec Project Zeechract Project Both the Desertec and Zeekracht project masterplans are based on the concept of networked innovation

16 Global Energy Grid 40 years after Fuller, at a moment when mature IT revolution overlaps with burgeoning EST revolution, sustainable energy production is possible Reference: Buckminster Fuller (1983)

17 Phase II: Glocalization Innovation in the West, defeatured and adapted to local needs From Globalization to Reverse Innovation Phase I: Globalization Innovation occurs in the West, distributed globally Phase III: Local Innovation Innovation in emerging country for emerging country Frugal or reverse innovation understates the revolution underway Firms in emerging markets are leapfrogging to latest technologies Phase IV: Reverse Innovation Innovation in emerging country for the world Technologies are cheaper and better than rich-country models 2012 Ali Jazairy

18 Summary Mission: To foster global indigenous capacity for technological innovation and dissemination of technology and knowledge, particularly in developing countries, and make them conducive to economic growth Objectives: In the context of the rapidly changing landscape of the knowledge economy, the objectives of the program on innovation are to promote better awareness and understanding on a world-wide basis of the process of innovation, to broaden cost-effective access, acquisition and indigenous generation of intellectual property in developing countries, and finally to develop networked innovation systems Networked innovation offers opportunities with the sharing of risk, cost, and IP through strategic R&D alliances Routine business for technology transfer for developing countries is not sufficient and new IP management methods may be needed Advanced capacity-building for technology transfer and licensing negotiations could be provided by WIPO 2012 Ali Jazairy

19 Networked Innovation

20 very much! Thank you for your attention Dr. Ali Jazairy Head, Innovation and Technology Transfer Section, WIPO