The way we work is our most important innovation       Creating Abundance in the       Global Innovation Economy          ...
SRI’s Innovation Model                                     $26B                                    $7.5B    Minimally inva...
Our Challenge© 2012 SRI International          SRI International
abundant freedom                                       abundant technology                           abundant labor       ...
Our Economy is Stuck© 2012 SRI International                      SRI International
Drowning in Debt                                   500%                                   400                             ...
World’s Worst Business Taxes                               #1 39%                                   waste                 ...
Rapidly Declining Competitiveness                           USA #1     2008                           USA # 7             ...
California – Best to Worst                                            every week© 2012 SRI International                  ...
H-1B: America’s “Genius Card”© 2012 SRI International      SRI International
Educational Results                                          spending >2X                                         outcomes...
It Gets Worse                                     8x more likely                                      to go to jail© 2012 ...
Students     China      America© 2012 SRI International              SRI International
Poor Performance© 2012 SRI International                      SRI International
Companies Going Away – Faster                       70                       60    Years on S&P 500                       ...
Brutal Corporate Reality    "Every CEO will at least give lip service to    the idea that the world is moving faster and  ...
Worldwide Standards© 2012 SRI International                     SRI International
most media                           most politicians                           most educators© 2012 SRI International    ...
they believe in scarcity…© 2012 SRI International       SRI International
fear                             pessimism                            protectionism                     looking inward – n...
this is not a zero sum game                               we can thrive                           we have the knowledge© 2...
I believe in abundance …© 2012 SRI International     SRI International
… but we must innovate                 abundantly( ) SRI International© 2012                      SRI International
We Have Been Here Before© 2012 SRI International                  SRI International
nothing seems to be working; it’s                time to pay attention again                 we need a new way of working ...
Global Innovation                Economy© 2012 SRI International   SRI International
rapid, exponential improvement                            unlimited opportunities                                 huge mar...
Exponential Improvement                    Ideas and bits; not just atoms and muscle           9      10                  ...
Unlimited Opportunities        Healthcare;      Cloud, Internet, and               Social media   regenerative medicine   ...
Huge Untapped Markets                                  7.5%© 2012 SRI International                      SRI International
Innovation                       Fundamentals© 2012 SRI International         SRI International
high-value innovation is our only path to   prosperity                                 security                     enviro...
Classic Tech Push              “Build a better mousetrap, and the world will               beat a path to your door.” Ralp...
Innovation is Not Just…                             creativity and imagination                                 invention a...
Definition of Innovation          Creation and delivery of new customer             value in the marketplace with a       ...
successful innovation is not:                                 the result of luck                                 or a lone...
Innovation Fundamentals                                     best teams                            important global opportu...
SRI’s Five Disciplines of Innovation                  Important Customer & Market Needs                                   ...
Value Creation Is a Process                                                     C                                         ...
Value Propositions              important              customer      Need                            Approach             ...
Almost All Presentations                           N                  B/$ C© 2012 SRI International                       ...
Value Creation Forums: Intense Iteration                  Hard lesson: value creation can only                       be un...
Morita-san and Jobs Got It                                  HDTV    Perceptual quality                                    ...
Progression of Value   $560B                           emotions                                  experiences              ...
Industry                           Government                           Universities© 2012 SRI International              ...
Not Small Companies – New Ones!                             + 3%                                    Established           ...
National Laboratory Report Card   Major role in national security; but how about commercialization?                       ...
Projects – Not Programs       Just giving researchers money to do good is rarely effective     • DARPA mostly uses the Sil...
University “Tech Transfer”                           Must bridge the entire R&D spectrum                                  ...
Value Creation Centers                           Must bridge the entire R&D spectrum                                      ...
Girls Middle School© 2012 SRI International                         SRI International
Kindergarten to Grad School© 2012 SRI International                    SRI International
we have an abundance                             of opportunities …                            the best time ever …© 2012 ...
we have the knowledge …© 2012 SRI International                       SRI International
Play to Win …                             exceed world standards                                  recruit talent          ...
To Create High-Paying, Meaningful …                               prosperity                       environmental sustainab...
thank you for your attention                            discussion                              Dr. Curtis R. Carlson     ...
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Creating abundance in the global innovation econ Curtis Carlson

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  • When you start now by looking at the context that we are living in and the impact it has on America
  • America has more advantages than any land in the world. We have abundant freedom, etc.
  • It is sobering to realize that China has more honor students than we have students. Being in 1in million in China is not such a big deal
  • We must start by understanding the world we are now in. We call it the global innovation economy.100k going to BS to read about what it is aboutRather than doing it and getting involved—50X better300 page BP 5 yr plan when there are only 90 days of visibility into the marketIncubators in Nairobi, Shanghai, etc.
  • Huge global markets.This is the best time in history for making major contributions through innovation.http://www.reuters.com/article/2012/02/17/us-apple-china-idUSTRE81G08220120217http://www.bgr.com/2012/03/13/samsungs-smartphone-market-share-more-than-triple-apples-share-in-china/
  • Let’s start with the definition of innovation.
  • Our innovation processes became so well known that Our CEO co-authored a book to document our methodology a few years agoIt identifies 5 key factors- the 5 disciplines of innovation– as critical in the drive to achieve market successAnd this became a best seller and the basis for our coursework on making R&D work better for national labs and other technical organizations
  • Into the late 1980s the U.S. had the best government R&D funding programsNSF, NIH, DoEd, DoE, DARPA, ….Major trends in R&DImportance of multidisciplinary, collaborative projects is growing: today more the ruleInnovation programs, isolated from real customers, almost always failDARPADARPA employs Entrepreneurial InnovationOnly 240 employees$3.2B budget/yr or $13M/staff memberOther U.S. gov’t R&D organizations are adding DARPA-like elementsARPA-E, i-ARPA, and ARPA-Ed proposedThese programs depend on superb PMs, which are in short supplyNIH and NSF are yet to adapt but likely will
  • Create millions of jobsEliminate debt—only way to pay off the debt and if we are to address our social and environmental… obligations
  • Creating abundance in the global innovation econ Curtis Carlson

    1. 1. The way we work is our most important innovation Creating Abundance in the Global Innovation Economy Dr. Curtis R. Carlson President and CEO SRI International November 1, 2012© 2012 SRI International SRI International
    2. 2. SRI’s Innovation Model $26B $7.5B Minimally invasive virtual surgery Computer speech recognition World’s first virtual computer assistant© 2012 SRI International 2 SRI International
    3. 3. Our Challenge© 2012 SRI International SRI International
    4. 4. abundant freedom abundant technology abundant labor abundant land abundant trade abundant natural resources abundant energy© 2012 SRI International SRI International
    5. 5. Our Economy is Stuck© 2012 SRI International SRI International
    6. 6. Drowning in Debt 500% 400 300 ? 200 100 0 1970 1990 2010 2030© 2012 SRI International SRI International
    7. 7. World’s Worst Business Taxes #1 39% waste corruption© 2012 SRI International SRI International
    8. 8. Rapidly Declining Competitiveness USA #1 2008 USA # 7 #5 2011 2012© 2012 SRI International SRI International
    9. 9. California – Best to Worst every week© 2012 SRI International SRI International
    10. 10. H-1B: America’s “Genius Card”© 2012 SRI International SRI International
    11. 11. Educational Results spending >2X outcomes = 0 1970 1980 1990 2000 2010© 2012 SRI International SRI International
    12. 12. It Gets Worse 8x more likely to go to jail© 2012 SRI International SRI International
    13. 13. Students China America© 2012 SRI International SRI International
    14. 14. Poor Performance© 2012 SRI International SRI International
    15. 15. Companies Going Away – Faster 70 60 Years on S&P 500 50 40 30 20 10 0 1960 1970 1980 1990 2000 2010 2020 2030© 2012 SRI International SRI International
    16. 16. Brutal Corporate Reality "Every CEO will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation. But if you go into an organization and ask people to describe their innovation system, you get blank looks. They have none."© 2012 SRI International SRI International
    17. 17. Worldwide Standards© 2012 SRI International SRI International
    18. 18. most media most politicians most educators© 2012 SRI International SRI International
    19. 19. they believe in scarcity…© 2012 SRI International SRI International
    20. 20. fear pessimism protectionism looking inward – not outward not adapting© 2012 SRI International SRI International
    21. 21. this is not a zero sum game we can thrive we have the knowledge© 2012 SRI International SRI International
    22. 22. I believe in abundance …© 2012 SRI International SRI International
    23. 23. … but we must innovate abundantly( ) SRI International© 2012 SRI International
    24. 24. We Have Been Here Before© 2012 SRI International SRI International
    25. 25. nothing seems to be working; it’s time to pay attention again we need a new way of working but now based on the FUNDAMENTALS of INNOVATION© 2012 SRI International SRI International
    26. 26. Global Innovation Economy© 2012 SRI International SRI International
    27. 27. rapid, exponential improvement unlimited opportunities huge markets also = intense competition© 2012 SRI International SRI International
    28. 28. Exponential Improvement Ideas and bits; not just atoms and muscle 9 10 Human 6 Monkey 10 Multiprocessor 3 Lizard 10 1.0 Worm -3 10 -6 10 Speed/Cost MIPS for $1000 -9 1997 dollars 10 After Hans Morevac 1900 1920 1940 1960 1980 2000 2020© 2012 SRI International SRI International
    29. 29. Unlimited Opportunities Healthcare; Cloud, Internet, and Social media regenerative medicine mobile devices Additive Digital, on-line education Energy manufacturing© 2012 SRI International SRI International
    30. 30. Huge Untapped Markets 7.5%© 2012 SRI International SRI International
    31. 31. Innovation Fundamentals© 2012 SRI International SRI International
    32. 32. high-value innovation is our only path to prosperity security environmental social sustainability responsibility© 2012 SRI International SRI International
    33. 33. Classic Tech Push “Build a better mousetrap, and the world will beat a path to your door.” Ralph Waldo Emerson U.S. Patent Office issued > 6,000 mousetrap patents, however, only two have had real success!© 2012 SRI International SRI International
    34. 34. Innovation is Not Just… creativity and imagination invention and IP teamwork entrepreneurship technical and business skills these are all inputs© 2012 SRI International SRI International
    35. 35. Definition of Innovation Creation and delivery of new customer value in the marketplace with a sustainable business model for the enterprise producing it© 2012 SRI International SRI International
    36. 36. successful innovation is not: the result of luck or a lone genius it is a discipline© 2012 SRI International SRI International
    37. 37. Innovation Fundamentals best teams important global opportunities compelling, defensible product & business model value creation best practices complete ecosystem and supportive culture supportive government policies© 2012 SRI International SRI International
    38. 38. SRI’s Five Disciplines of Innovation Important Customer & Market Needs Top 10 Business Book Process of Value Creation of the Year Innovation Champions Innovation Teams Organizational Alignment Market Disciplines are multiplicative Success© 2012 SRI International SRI International
    39. 39. Value Creation Is a Process C start over $ make a profit Value B important need new knowledge A Time© 2012 SRI International SRI International
    40. 40. Value Propositions important customer Need Approach Benefits/costs Competition or alternatives© 2012 SRI International SRI International
    41. 41. Almost All Presentations N B/$ C© 2012 SRI International SRI International
    42. 42. Value Creation Forums: Intense Iteration Hard lesson: value creation can only be understood by doing it© 2012 SRI International SRI International
    43. 43. Morita-san and Jobs Got It HDTV Perceptual quality iPad Color TV iPhone B&W TV PDAs CD Walkman FM iPod shirt pocket radio AM Convenience© 2012 SRI International SRI International
    44. 44. Progression of Value $560B emotions experiences services products $11B commodities© 2012 SRI International SRI International
    45. 45. Industry Government Universities© 2012 SRI International SRI International
    46. 46. Not Small Companies – New Ones! + 3% Established New - 1.2%© 2012 SRI International SRI International
    47. 47. National Laboratory Report Card Major role in national security; but how about commercialization? best teams? important global opportunities? compelling, defensible product & business model? value creation best practices? complete ecosystem and supportive culture? supportive government policies? Failure increases dramatically as innovation activities move away from the fundamental’s of innovation© 2012 SRI International SRI International
    48. 48. Projects – Not Programs Just giving researchers money to do good is rarely effective • DARPA mostly uses the Silicon Valley innovation model • Paradigm shifting technologies • 240 employees • $3.2B budget/year • Other U.S. R&D organizations adding DARPA-like agencies GPS Speech translation Internet Computer personal assistant48© 2012 SRI International SRI International
    49. 49. University “Tech Transfer” Must bridge the entire R&D spectrum Tech New University companies R&D transfer and licenses office Fundamental Basic Applied Product Production Science Research Research Development© 2012 SRI International SRI International
    50. 50. Value Creation Centers Must bridge the entire R&D spectrum Value New University creation companies R&D center and licenses Fundamental Basic Applied Product Production Science Research Research Development© 2012 SRI International SRI International
    51. 51. Girls Middle School© 2012 SRI International SRI International
    52. 52. Kindergarten to Grad School© 2012 SRI International SRI International
    53. 53. we have an abundance of opportunities … the best time ever …© 2012 SRI International SRI International
    54. 54. we have the knowledge …© 2012 SRI International SRI International
    55. 55. Play to Win … exceed world standards recruit talent transform education incentivize new company formation use innovation fundamentals© 2012 SRI International SRI International
    56. 56. To Create High-Paying, Meaningful … prosperity environmental sustainability social responsibility security© 2012 SRI International SRI International
    57. 57. thank you for your attention discussion Dr. Curtis R. Carlson curt.carlson@sri.com 650 859 2878© 2012 SRI International SRI International
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