heptech workshop on open innovation
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HEPTech Workshop on Open Innovation. Introduction to the Open Innovation Model: What, why and trend. The Open Innovation model Trends and benefits Open?. Content. The open innovation model. B. Denis – EC DG JRC Unit A4 / CERN KT group. Innovation. Research. Development. License in. - PowerPoint PPT PresentationTRANSCRIPT
HEPTech Workshop on Open Innovation
Introduction to the Open Innovation Model:What, why and trend
B. Denis – Bucharest 7th October 2013
Content
• The Open Innovation model
• Trends and benefits
• Open?
B. Denis – EC DG JRC Unit A4 / CERN KT group
The open innovation modelB. Denis – EC DG JRC Unit A4 / CERN KT group
InnovationResearch Development
B. Denis – EC DG JRC Unit A4 / CERN KT group
License in
License out
Buy
Cross-licenseSell
Open innovationB. Denis – EC DG JRC Unit A4 / CERN KT group
Open Innovation: The new imperative for creating and profiting from technology,
H. Chesbrough 2003
Open Innovation
Increasing role of Intellectual Property
Increasing role of Public Research
B. Denis – EC DG JRC Unit A4 / CERN KT group
CERN and HEP Community
Buy
Industry
PP institute
CERN
B. Denis – EC DG JRC Unit A4 / CERN KT group
Knowledge transfer
License out
Collaborative R&D
B. Denis – EC DG JRC Unit A4 / CERN KT group
Trends and benefitsB. Denis – EC DG JRC Unit A4 / CERN KT group
Managing open innovation in large firms
Survey Report Executive survey on open innovation 2013H. Chesbrough, US Berkerley
S. Brunswicker, Fraunhofer Institute for Industrial Engineering
Emailed survey on open innovation to senior executives at the headquarters of more than 2840 large and stock market listed firms, in Europe and US, with revenues annually in excess of US$250 million and more than 1000 employees
B. Denis – EC DG JRC Unit A4 / CERN KT group
Definition
“… the purposive use of inflows and outflows of knowledge to accelerate innovation in one’s own market, and expand the use of internal knowledge in external market respectively.”
B. Denis – EC DG JRC Unit A4 / CERN KT group
Adoption of open innovation across different industries
100
80
60
40
20
0
Manufact.(low-tech)
Finance,Insurance,Real EstateServices
Transp.Communi.Electric, gas & sanitary
Mining & construction
Manufact.(medium-low tech)
Manufact. (medium-high tech)
Whosales, trade & retail
Manufact.(high-tech)
40%
55%
69%
80%
82%
83%
86%
91%
Average = 78
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Modes of open innovation
Inbound
Outbound
Pecuniary Non-pecuniary*
Direction
Financial flows
IP in-licensing
Contracted R&D services
Specialized openInnovation intermediaries
Idea & start-up competitions
Supplier innovation awards
University research grants
Joint-venture activities
Spin-offs
Corporate business incubation
Selling market-ready products
IP out-licensing
Customer & consumer Co-creation
Crowdsourcing
Publically fundedR&D consortia
Informal networking
Participation in standardization (public standards)
Donations tocommons
or nonprofits
B. Denis – EC DG JRC Unit A4 / CERN KT group * Without full compensation
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Type of knowledge
Disembodied IPR-based mechanisms:•IP licensing•IP rights pooling agreement•Sale of assignment•Franchise agreement•Know-how contract
Sourcing solutions:•Service and consultancy purchase agreement•Consultancy services•Research service
Embedded knowledge transactions:•Transfer of rights to IP and other knowledge-based capital through M&A•Acquisition of equipment•Material / data transfer agreements
Co-development:•Co-development programmes•Research joint venture•Research alliances•Private-public partnerships•Secondments•Hiring of R&D personnel•Network membership agreement
Existing knowledge Prospective knowledge
Source: Knowledge Networks and Markets, OCDE STI Policy Papers, No7, 2013
B. Denis – EC DG JRC Unit A4 / CERN KT group
Importance (inbound practices)
Customer and consumer co-creation
Informal networking
University research grants
Publically funded R&D consortia
Contracting of external R&D service providers
not important
highly important
1 72 3 4 5 6
4.43
4.38
4.19
3.82
3.73
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Importance (inbound practices)
Idea and start-up competitions
IP In-licensing
Supplier innovation awards
Crowdsourcing (unknown problem solvers)
Specialized services open innovationintermediaries
not important
highly important
1 72 3 4 5 6
3.71
3.37
2.66
2.64
2.34
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Importance of open innovation partners
Internal employees
Customers
Universities
Suppliers
Indirect customer or final customer
Public research organizations
not important
highly important
1 72 3 4 5 6
5.54
5.17
4.88
4.51
4.30
4.22
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Importance of open innovation partners
Entrepreneurs and start-ups
Contracted R&D service providers
External consultants
Competitors
Restricted communities
Open (unrestricted) communities
not important
highly important
1 72 3 4 5 6
3.82
3.82
3.67
2.54
2.47
2.13
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Strategic objectives
Establishing new partnerships
Exploring new technological trends
Identifying new business opportunities
Accelerating time to complete R&D
Mitigating risks of innovation projects
Identifying new business opportunities
Reducing R&D costs per project
not important
highly important
1 72 3 4 5 6
5.42
5.35
4.84
4.67
4.24
3.96
3.65
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Pecuniary aspects
On balance, firms take more “freely revealed” information from others than they provide to others. Firms are “net-takers”.
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Measuring open innovation
Share of external innovation contributions for R&D projects
Cost/benefit of innovation partners
Number of innovation partners
Revenue from results of open innovation launched within a time period
Budget invested in open innovation projects
Number of new technology areas identified each year
highlydissatisfied
highly satisfied
1 72 3 4 5 6
4.39
4.38
4.10
3.82
3.59
3.59
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Measuring open innovation
Number of patent filed and granted
Cost for inward licenses
Patent utilization ratio
Percentage of ideas funded
Revenue from outwards licenses
highlydissatisfied
highly satisfied
1 72 3 4 5 6
4.39
4.38
4.10
3.82
3.59
B. Denis – EC DG JRC Unit A4 / CERN KT group
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Satisfaction with open innovation
50
40
30
20
10
0
1 2 3 4 5 6 7
4.62
15.4%
18.5%
44.7%
9.23%
7.69%
B. Denis – EC DG JRC Unit A4 / CERN KT group
highly dissatisfied highly satisfied
Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013
Open?B. Denis – EC DG JRC Unit A4 / CERN KT group
B. Denis – EC DG JRC Unit A4 / CERN KT group
Open Source
Open Innovation
Open Science
Open Access
Definition
o.pen |ˈōpən|
adjective
1 allowing access, passage; not closed or blocked up open
2 exposed to the air or to view; not covered
3 officially admitting customers or visitors; available for business
4 frank and communicative; not given to deception or concealment
5 freely available or accessible; offered without restriction
6 with no restrictions on those allowed to attend or participate
B. Denis – EC DG JRC Unit A4 / CERN KT group
Open source
• Innovation jointly developed by different contributors available royalty free to anyone and without significant restrictions on how they are to be used.
• Possible restriction is that derivative work also has to be provided on the same basis.
• Examples: Open source software, Open source hardware
B. Denis – EC DG JRC Unit A4 / CERN KT group
Open = 5. freely available or (source code) accessible;6. with no (significant?) restrictions on those allowed to attend or participate.
Open Science
Norms:
-Originality
-Communalism
-Universalism
-Disinterestedness
-Skepticism
Priority system
Incentives
Sharing results
Cumulativeness
Quality of research
B. Denis – EC DG JRC Unit A4 / CERN KT group
The Sociology of Science, R. Merton, 1973
Open = 4. frank and communicative; 5. freely available or accessible;6. with no restrictions on those allowed to attend or participate.
Open Access
• The practice of providing unrestricted access via the Internet to peer-reviewed scholarly research. It is most commonly applied to scholarly journal articles, but it is also increasingly being provided to theses, book chapters and scholarly monographs (Wikipedia)
Open = 5. freely available or accessible;
Open innovation
o.pen |ˈōpən|
adjective
1 allowing access, passage; not closed or blocked up open
2 exposed to the air or to view; not covered
3 officially admitting customers or visitors; available for business
4 frank and communicative; not given to deception or concealment
5 freely available or accessible; offered without restriction
6 with no restrictions on those allowed to attend or participate
B. Denis – EC DG JRC Unit A4 / CERN KT group
??
Thank you…B. Denis – EC DG JRC Unit A4 / CERN KT group