innovator network analysis to amp up innovative organizations

© 2016 Virtual Coast Associates, Inc. / Venture Isles, LLCCollabriousTM

Innovator Network Analysis to Amp Up Innovative Organizations

Product Camp 2016

by Clyde Hanson & David Quimby

1

4 Technology classes by color of line

Dots are inventors,

lines are collaborations

Inventor collaboration network visualizations for 2 Medical Device Companies in 2010

CollabriousTM

Innovation is becoming more important for organic growth.

2© 2016 Virtual Coast Associates, Inc. / Venture Isles, LLC

CollabriousTM

Innovators will grow and prosper.Others will be left behind.


CollabriousTM

But what if you could…

… test your readiness for an innovation growth strategy?

… quantify efficiency in converting technical expertise into enterprise value?

… benchmark to the innovator value-creation factors of competitors?


CollabriousTM 5© 2016 Virtual Coast Associates, Inc. / Venture Isles, LLC

Collabrious Value Proposition Enterprise Value Growth by Curating Innovator Collaboration

Grow Enterprise Value

New metrics Improve

competitive intelligence

and management

of technologists

Innovation-led organic

growth of margins,

revenue & market share

Inventor Collaboration

Networks revealed & measured

Networks vary in focus

between workgroup &

firm-wide collaboration

Collabrious™ Inventor Collaboration Network Analysis


Patents are innovations with value potential

80% of corporate

patents have Co-inventors

Some Co-inventors have multiple

patents

Who has collaborated with whom

can be mapped and

quantified

Most influential inventors

may not have the most patents

Collaboration network data

modeled & visualized by Collabrious

Network attributes

predict higher value creation per

inventor

Proactive management of

collaboration networks creates

more value


Inventor Collaboration Networks matter because…

• Their attributes are statistically correlated with higher enterprise value per inventor

• Innovation best practices highlight role of collaboration

• The insights are actionable & have high leverage

• It’s common sense so it gains advocates at all levels

Nice theory, but so what?


•

Collabrious™ Value Creation Factor The productivity of an inventor network in converting technical

expertise into enterprise value through collaboration.

Multiple network

attributes used in Value

Creation Factor

Enterprise value increases by $9 Billion for each 0.02

standard deviation increase of the Value Creation Factor for a

company at the mean enterprise value

($128 Billion)

Collaboration yields more

than the sum of individual creativity

Co-inventor networks can be

managed to increase value of innovative output without adding to

headcount

© 2015 Virtual Coast Associates, Inc. / Venture Isles, LLC 9CollabriousTM

Innovator Network Size

Valu

e Cr

eatio

n Fa

ctor Sector

The Collabrious Value Creation Factor combines network metrics to predict variance in enterprise value per inventor for 2,000 firms not used to calibrate the model.

Decade of Data Used to Build Value Creation Factor Model

Aggregate enterprise value $7.4 trillion (54 public firms underlying Collabrious model)


Model explains 44% of variation in enterprise value.

Statistically significant at 0.1%, a very high confidence level. It is very unlikely that this correlation is due to chance.

Collabrious Model


Valu

e Cr

eatio

n Fa

ctor

Value Creation Effectiveness byTechnology Group & Inventor Network Size


KEYChemical11 Agriculture, Food, Textiles12 Coating13 Gas14 Organic Compounds15 Resins19 MiscellaneousComputer & Communications 21 Communications22 Computer Hardware & Software23 Computer Peripherals24 Information Storage25 Electronic business methods & softwareDrugs & Medical31 Drugs32 Surgery & Med Inst.33 Genetics39 MiscellaneousElectrical41 Electrical Devices42 Electrical Lighting43 Measuring & Testing44 Nuclear & X-rays45 Power Systems46 Semiconductor Devices49 MiscellaneousMechanical51 Mat. Processing & Handling52 Metal Working53 Motors & Engines + Parts54 Optics55 Transportation59 MiscellaneousOthers61 Agriculture, Husbandry, Food62 Amusement Devices63 Apparel & Textile64 Earth Working & Wells65 Furniture, House Fixtures66 Heating67 Pipes & Joints68 Receptacles69 Miscellaneous

Oil & Gas

Computer Hardware & Software

CommunicationsSemiconductor devices

Drugs

Power systems

Organic compounds

Genetics

Surgery & Med Inst.


Collabrious™Value Creation Factor

The Value Creation Factor (VCF) varies between competitors with same size networks—evidence that management matters.

In this period, Medtronic had a higher VCF than Boston Scientific and Scimed, even though its network is larger.

Median

Higher value creationLarge inventor base

Median

Lower value creation,

Smaller inventor base


Valu

e Cr

eatio

n Fa

ctor

Medical Devices 2010


Taking Action

1. How could you put this data on innovator collaboration networks to use?

2. What are the obstacles to collaboration?3. Where would you start?

CollabriousTM


Taking Action

1. Compare to competitors VCF & networks2. Analyze the clustering, connectedness and

component metrics of the networks3. Examine network visualization

CollabriousTM


Collabrious™ patent analytics delivers more accurate, universal & cost effective coverage than workforce

surveys as the data source for Social Network Analysis of innovator collaboration to amp up

growth in enterprise value

[email protected]@virtualcoast.com

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