Foro Universidades: Buenas Prácticas en Transferencia de Conocimiento

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1 Foro Universidades: Buenas Prácticas en Transferencia de Conocimiento NEW WAY TO GET AND PROMOTE INNOVATION Salamanca, 8 de julio de

2 OPEN INNOVATION 1. Definition 2. Logics AGENDA 3. Closed Vs Open Innovation 4. Advantages EXAMPLES / Procter & Gamble VIRTUAL INNOVATION INTERMEDIARIES INNOGET web 2.0 1

3 What do these companies have in common? moving to an OPEN INNOVATION model 2

4 What is Open Innovation? Open Innovation was defined as the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively (H. Chesbrough, 2003) 3

5 What is Open Innovation? Traditionally companies worked under the term known as closed innovation where research projects were based on the company s internal knowledge and private resources. Under this classic model, projects can only start inside the company and end in its current marketplace 4

6 Other companies markets Internal Technology License, spin, diversify New Market External Technoogy Technology Internal/ external Technology Insourcing of external technologies Current Market Prof Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from Industrial R&D, 10th 5

7 What is Open Innovation? Some principals OI is a new approach to innovation where companies pass their boundaries to cooperate with external agents OI combines companies own knowledge with knowledge originated outside their organizations as to stimulate the innovation process Under the OI scheme, companies use internal and external channels to commercialize products and technologies 6

8 What is Open Innovation? 7

9 What is Open Innovation? The logic of Open Innovation Today good ideas are widely spread. Nobody has the monopoly of the ideas Being the first to discoverer does not guaranty a commercial success A suitable business model beats a better technology 8

10 What is Open Innovation? Closed vs Open Innovation 9

11 What is Open Innovation? Open Innovation advantages Reduce time and costs (R+D projects). Key point in many industrial sectors (Electronics, Telecom, software, pharmaceuticals, ) Capture solutions unfeasible for the company to develop due to lack of resources, time, knowledge, etc. Incorporate innovations from external organizations under the form of patents, technologies, ideas, product concepts (in licensing, in technology) Commercialize innovation generated within the organization (out licensing, out technology). Accessing channels to new markets. 10

12 What is Open Innovation? Here there are some examples 11

What is Open Innovation? A.G. Lafley (June 2000) inherited a company when the value of its shares had dropped to 50% of the value in less than six months. Lafley and his Chief Technology Officer, Mr.

13 What is Open Innovation? A.G. Lafley (June 2000) inherited a company when the value of its shares had dropped to 50% of the value in less than six months. Lafley and his Chief Technology Officer, Mr. Gil Cloyd, established some very ambitious objectives: We have to double the innovation capacity of our company without increasing costs. Half of the ideas we are going to use have to come from the outer market 12

14 What is Open Innovation? With the C+D P&G cooperates with companies, laboratories, research institutions, suppliers, universities, 80 investigators devoted to technological scouting Cooperation with competitors Connect and Develop Model 50% external innovations They use their platform for crowdsourcing i.e. obtaining feedback directly from the market and the consumers 13

15 What is Open Innovation? When the project started, P&G had 8200 people working at innovation, 7500 were employees, 400 suppliers and 300 free lance cooperators Today they have about people innovating for them, 7500 employees, 2000 suppliers and 7000 free lance partners Their best known successful products are those developed under the Connect & Develop program such as the Crest Spin Brush 14

16 What is Open Innovation? Bibliography Open Innovation: The New Imperative for Creating and Profiting from Technology. Henry Chesbrough. Harvard Business School. Open Business models: how to thrive in the new innovation landscape. Henry Chesbrough. Harvard Business School Wikinomics: La nueva economía de las multitudes inteligentes. Don Tapscott/ Anthony D. Williams Democratizing Innovation. Eric Von Hippel 15

17 What is Open Innovation? How to implement the Open Innovation in my organization? Internal factors: Creating an appropriate culture (Building OI teams, New Incentives, methods of control, ) Innovation model Introducing procedures (OI teams: Creating Innovation Network Innovation ecosystem, providing access to new tools, creation of new functions, ) Skills (Legal and IP issues, ability to draw up contracts, ability to communicate concepts and ideas, to negotiate and build networks, ability to understand the technology, financial and analytical skills) Motivating employees (demonstrating external ideas success, involving staff in early decision making, improving internal communication, ) External factors: how do I interact with the environment? 16

18 How do we capture / sell innovation? Traditional system: Companies invest time and efforts to contact with external knowledge suppliers Traditional intermediaries who help companies to contact external knowledge suppliers (Technology brokers, Universities, Incubators, Innovation agencies, technology parks, Government agencies, 17

19 Innovation intermediaries > Virtual innomediaries Web communities specialized in innovation become a meeting point for companies and available external knowledge Dinamism Low cost Geographic globality Finding new applications for existing technologies All knowledge areas: connection into unknown technologies and industries. In-license, co-develop, out-license, acquiere external technologies opportunities 18

20 What is Open Innovation? SOME VIRTUAL INTERMEDIARIES Innocentive ( Technology demands > Challenges +reward ($) Seekers + solvers Ninesigma ( Technology demands Seekers + solution providers Yourencore (yourencore.com) Yet2 ( > OPEN INNOVATION TODAY 19

21 08/07/2010 INNOGET (C) 20

A space for collaboration and connection between these groups, where each user participates by choosing its role: Open

22 Open Innovation portal through which companies and Research Partners (research centers, scientists, university researchers and technology companies) from around the world interact to develop and share R&D projects and innovations. A space for collaboration and connection between these groups, where each user participates by choosing its role: Open Company and/or Research Partner. Connection tools Challenge Innovation box in Innovation box out Challenge Ibox in Ibox out 21

23 Innoget vs. other OI Marketplaces Technology need Capturing innovation Selling innovation Challenge Result Proposals Ibox in Result Inventions Ibox out Result Request for Information Challenges Ibox in Ibox out Free service Other OI Marketplaces 22

24 innoget.com EU market: first Open Innovation portal Launch date: July 2009 Community: >2.700 registered users Number of companies using our services: > 150 Positive evolution of the website (number of visits, conversions, average visit time, page rank, etc.) International markets: expansion process to non EU, USA, Japan, south America, (agreements, agents, ) > 30% international companies 23

25 Services innoget.com IBox in: Posting an IBox in companies can get ideas, patents, and innovative products and technologies from an international network of experts IBox out: posting an IBox out organizations divulge their patents, technologies and innovative products to set up collaborative projects and/ or commercial agreements with other organizations Challenges (technology demands) : posting Challenges allows companies to receive proposals to their technology needs from an international network of experts 24

26 Ibox in 08/07/2010 A unique tool to get ideas, patents, innovative products and technologies from an international network of experts INNOGET (C) 25

27 Ibox out A unique tool to promote your patents, technologies and innovative products to set up collaborative projects and/ or commercial agreements with other organizations 26

28 Challenges Posting Challenges allows companies to receive proposals to their technology needs from an international network of experts 27

29 Guided tour Challenges IBox in innoget.com IBox out 28

30 29

31 Leading clients/ Companies Palau Pharma Pharmaceuticals Bioiberica Pharmaceuticals Genetrix Biotechnology Oryzon Genomics Biotechnology Air Products Chemicals Vofadone Communications Orange Communications CAPSA Food & Beverages Grupo Leche Pascual Food & Beverages Panrico Food & Beverages Damm Food & Beverages APC Europe Food & Beverages Indo Healthcare Roca Sanitario Bulk & Materials 08/07/2010 Fluidra INNOGET Water (C) 30

32 (January 2010) 31

33 (January 2010) 32

34 innoget.com 33

35 Research Partners/ Country (January 2010) Visitors Evolution Countries Research Partners Evolution Countries Profile Domains of knowledge 34

36 Research Partners/ Profile (January 2010) Visitors Evolution Countries Research Partners Evolution Countries Profile Domains of knowledge 35

37 Research Partners/ Domains of Knowledge (January 2010) Visitors Evolution Countries Research Partners Evolution Countries Profile Domains of knowledge 36

38 Leading clients (Research centers) 37

39 Leading clients (Spin off s) 38

40 Leading clients (PCT s) 39

41 Open Innovation OI as a competitive need vs former competitive advantatge. Intermediaries The role of Innovation Intermediaries as a powerful factor for allowing companies/ organizations to get external knowledge and technologies MUCHAS GRACIAS!! 40

OPEN INNOVATION AS A STRATEGIC MODEL OF MODERN BUSINESS

OPEN INNOVATION AS A STRATEGIC MODEL OF MODERN BUSINESS Nataliia Revutska, Assistant Prof. Taras Shevchenko National University of Kyiv, Ukraine Abstract The paper considers the characteristics of two