Unleashing IP to create the EU Mittlestand

Transcription

1 Unleashing IP to create the EU Mittlestand Will Hutton Big Innovation Centre June 14 th 2016

2 Commonplace truths The future is about know-how The rise and rise of GPTs Intangible assets prime driver of growth Incumbents always have bias to current business model Start-ups and scale-ups key to incorporating new technologies and forming core of vibrant mittelstand. The future is micro Pre-requisite better valuation of IP, unblocking conservative finance and purposeful companies Fundamental to growth and political legitimacy of contemporary capitalism

3 The challenge - a short history of general purpose technologies (GPTs)

4 Twenty-first century prospects? Grand Challenges The mobile phone Nanotechnologies Energy from fusion Advanced materials Carbon sequestration Space Manage the nitrogen cycle Water Health informatics Durable customised infrastructure Customised medicine The brain Cyberspace security Enhance virtual reality Personalised learning

5 Intangibles bigger than tangibles Nesta 2011 Source: National Academies in the US EU COINVEST and Haskel et al

6 Innovation, intangible assets and intellectual property are vital for growth Innovative firms: 22 % more likely to be high growth than non-innovative firms High growth firms: 74% more intangible assets and intellectual property on their balance sheet than nonhigh growth firms.

7 Potential sectors largely IP driven Average life expectancy of S and P 500 company 45 yrs in years today Manuservices in aerospace, pharmaceuticals, defence, high tech engineering( cars, chemicals) Low carbon economy energy production, energy efficiency, green manufacturing plus associated services Life sciences Creative and cultural industries design, electronic/digital media and publishing, games High tech and business services computer, business to business services Caring and servicing the newly young old

8 Open innovation as driver of deep change Unknown unknowns all around nor reduceable to mathematical probabilities Business models under constant attack and revision There must be risk pooling and joint problem solving Ecosystem, interdependence and trust both for business to business and business to consumer Business purpose, participative organisations, committed owners, hi-trust workforces and collaborative culture Transparency, Accountability and Openness indispensable

9 The role of purposefulness is to serve value generation Economic growth is closely associated with firms computational capacity to confront complexity and creatively gather necessary information. No one individual or organisation possesses the relevant know-how to respond effectively to all business challenges. Trust -rather than contracts and markets is critical to deploying vast quantities of knowledge, which in turn, permits larger networks and more sophisticated forms of value creation. All this is enabled by the pursuit of a clearly defined visionary corporate purpose, which sets out how the company will better peoples lives and encourages stakeholders to internalise the behaviours it wants to create and sustain.

10 Ways of Creating Meaning Sub-type Definition Companies Values Dangers / Issues Universalization To allow everyone to experience what the few have Google IKEA Kingfisher Tata Walmart Fairness Equality What do you do when you achieve your aim? Innovation Fresh challenge Excellence Global responsibility Human values To go where no one has gone before To challenge complacency and the big guys To strive for perfection in one s art To do business in a way that is sustainable and ethical To do business in a way which recognises the humanity of employees, suppliers and customers ARM Holdings Illumina Samsung Tesla Motors Ovo Energy Motif Investing Uber Under Armour Apple Bang & Olufsen BBC BMW HBO In-N-Out Burger Centrica GSK Nationwide Nestlé Statoil John Lewis Lush Southwest Airlines Starbucks Toyota Pioneering spirit Underdog empathy Achievement Drive Community spirit Human concern How to keep innovation engine going while making discoveries What happens when you become big yourself? Does not inspire everyone because of narrowness People can question authenticity and realism Potential conflict with profitability

11 What to do? Markets for IP/know-how but easier said than done Incumbents want the market to stay imperfect Crucial role of trust Pavillions Finance needs to be IP savvy IP reporting, accounting standards, preparedness of investment readiness IP Exchange and Quantiply