Embracing Open Innovation Platforms - Enterprise Europe Network (7 Dec 2012)


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Presentation made by Caroline Gray-Stephens, Head of Enterprise Europe Network-Scotland at BIP Asia 2012 hosted by the Hong Kong Trade Development Council (HKTDC), 7 December 2012.

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  • In his landmark book Open Innovation, Henry Chesbrough demonstrated that because useful knowledge is no longer concentrated in a few large organizations, business leaders must adopt a new, "open" model of innovation. Using this model, companies look outside their boundaries for ideas and intellectual property (IP) they can bring in, as well as license their unutilized home-grown IP to other organizations.   Technology or innovation acquisition enables companies to acquire new products and services without going through the expensive and risky stages of R&D. These technologies are usually found internationally from other companies and research centres, but of course can also be acquired from the home country. The most common forms are licensing, joint ventures and technical cooperation agreements.
  • Open innovation is about integrating external partners in the entire innovation process. This should happen not just in the idea or technology development phase but also in all other phases towards market acceptance. User-driven innovation is great as it directs your innovation efforts towards market needs. Open innovation takes you to the next step by providing more opportunities through external partners as you address those market needs. Other aspects of innovation strategies may be relevant as well, such as incremental versus radical innovations, the stage in the innovation process, and the stage in the product life cycle. One may assume a larger impact of inbound activities in the early innovation stages, since the earlier in the process, the larger the potential cost and time savings. It has been observed that open innovation practices at smaller companies are more common in the later innovation stages, especially the commercialization stage, suggesting that outbound activities are more effective at latter innovation stages when the company has something concrete to offer. Also, focussing on the depth and breadth of external search shows that external search depth is greatest early in the product life cycle, while in the latter stages innovative firms scan across a wider number of search channels.
  • External knowledge sourcing in terms is of inter-organisational and international cooperation is becoming more important for a number of reasons: shorter technology life cycles, emerging technologies with the potential to disrupt market leaders' positions, lack of internal capacity, soaring costs and risks associated with science based technology, increased rivalry between companies in their product markets, and the growing role of seed and venture capital to finance excellent business ideas. Equally importantly it is within the grasp of SMEs. Small companies can gain a lot by open innovation as both their resources and market reach are limited. Companies can enter new and emerging markets, internationalise and get technical and commercial assistance from innovation and technology developers without having to pay for it in advance. This model of open innovation is being increasingly used by organisations throughout the world, and while this model is a must for small enterprises, which usually lack knowledge of some sort to fully complete the innovation process, larger organisations too are moving away from their traditional R&D approach to a collaborative connect and develop (C&D) process.
  • The Enterprise Europe Network (EEN) brings together close to 600 business support organisations from  more than 50 countries, helping small companies to innovate and internationalise. Outside the EU, the Mediterranean and the Middle East, the Enterprise Europe Network is expanding in key international markets, with partners in Chile, China, Japan, Mexico, Russia, The Ukraine, South Korea and the United States. New branches are to open in India and Canada and a there is a recent reinforced presence in China (four new branches in Shanghai and Nanjing have brought China's total to 27). Our strapline is “ Connect, Innovate, Grow. ” Member organisations include chambers of commerce and industry, technology centres, research institutes and development agencies: they have been supporting local businesses for a long time. They know their clients' strengths and needs - and they know their network partners across the Globe. Members of the Enterprise Europe Network are linked up through powerful databases, sharing their knowledge and sourcing technologies and business partners across all Network countries. However, the Enterprise Europe Network is above all a people network, providing a local gateway for businesses to reach international partners and markets. They are our partners, when it comes to initiating contacts, linking clients, exchanging information – we do not need to be there, we have partners that speak the companies ‘ language, know the culture, have access to background information… Since 2008, the Enterprise Europe Network as a whole has: Published 31,000 partnering opportunities, Total estimated impact on sales growth: €450 mio
  • 1. Identify company needs Help define strategic direction of the company and its innovation and internationalisation approach: position now and vision for future Identify technology gaps if IP portfolio and internal capabilities understood 2. Consider potential solutions (internally & externally) Dependent on company size, shape and nature of business Explore different technology and market applications for both offers and requests Build collaboration profile and communicate ‘ needs ’ and offers via EEN databases and contacts): scouting for the right solution and partner   3. The right partnering strategy Type: joint development, in-licensing, acquisition, co-branding? Ensure partner is a strategic fit: eg help to qualify and vet potential partners Help build the relationships and provide support in the negotiation phase (help with follow up, IP, advice, access to finance if appropriate etc)
  • Just imagine You are a research institution has developed a technology industry could really benefit from “ who will be able to benefit – cross border? how to communicate my results?...” you are an SME and you have developed a new technology, something highly innovative (in a technological sense) but as you are a 10 people company, you neither have the contacts nor the ressources to go find out about potential international cooperation partners. so in a way „nobody in the whole wide world will get to know about it, let alone buy it Who might be interested in their technology? And how can I know that they are seriously interested? A good company?
  • You describe what you offer / are looking for. You Publish your own Technology Offer/Request, anonymously on an online database We promote your offer / request anonymously in over 40 countries to find cooperation partners! Automatic matching of offers and requests and ealert to your dekstop You ’ ll receive approx. 4-15 expressions of interest WE help to qualify the EOIS and the potential partners Answer to Technology Offer/Request Can also conduct one off searches of the database
  • In Summary technology transfer can be a quicker, less risky more cost effective way of developing new products and services and getting them to market
  • Orthos Limited specialises in developing technologies to help re-grow human bones. They were looking to identify Universities across Europe with which to work in a bid to source new technologies. They contacted their EEN office (SW England) who helped pull together a profile which was published on the database. Colleagues in Catalonia (Spain) were in touch with CREB who have developed and patented a self-setting and injectable calcium phosphate foam. An agreement was signed which gives Othos exclusive rights to the Spanish and European patents. In addition Othos also invested a further €200k enabling them to exploit the technology commercially for bone regeneration and to develop the next generation of orthobiological devices which reduce the risks of surgery and allows for a rapid patient recovery. The patent agreement gives Orthos exclusive rights to exploit the university ’ s technology with CREB benefiting by receiving royalties on the sale of any Orthos device which uses their technology. Orthos signed the agreement through EEN ’ s Partner Alert Service. : “ Orthos is a prime example of how a company can benefit from exploiting international academic research. We have strong links with universities across our partner countries and strive to increase collaborative research and development across all sectors by putting companies and academics in contact with each other. ”
  • Giltech is a specialist co-development partner that works with customers around the globe to help differentiate their products through the creation of bespoke formulations of its biodegradable and controlled release technologies. They offer their portfolio of innovative, patented and licenced technologies and are constantly on the lookout for the right commercial partners to help drive forward business opportunities. They approached EEN Scotland who published a collaboration profile on the database. IMV is a long established French company, and the first French centre for the artificial insemination of cattle. They were looking for innovative and sustainable solutions for their insemination devices. Through the help of the EEN colleagues in France they identified Glitch as a possible partner, but wanted more information on the company to ensure they were the right fit. EEN France asked EEN Scotland to produce a due diligence report on Giltech, which we commissioned. This provided IMV with the necessary information to have the confidence to go ahead with the deal, and a two year agreement has been signed to develop controlled release and biodegradable applications with reproductive technologies
  • Cruse Leppelman is a German company which manufactures and sells non-contact quality control systems, mainly for food packaging and labelling. They were looking for new customers and approached their German EEN office, who released a technology profile in the EEN database. In this case a response came very quickly from the EEN partner in Malta, reveling interest from an unexpected source: Playmobil Malta, maker of the eponymous brand of figurines. Matthias Fauser, Playmobil Malta ’ s chief operations officer, thought the toymaker could make use of Cruse Leppelman ’ s innovation for its own production line – ensuring that every figurine leaves the factory with the signature smile and everything else in the right place. Although workers currently do visual spot checks about every 100th piece, it is not a fool-proof system – hence, the interest in automation. “ A technology-driven company like ours is always on the lookout for new developments, ” says Fauser. “ We count on the Enterprise Europe Network to keep us informed of new innovations, even ones not yet on the market. ” Playmobile malta tested the system for optical quality controlof their toy figures initially, and now uses it sucessfully. “ Bringing companies together who might otherwise never have crossed paths is what the Network does best, ” notes Brigitte Tanti, Malta ’ s Network coordinator. “ It is a winning formula. ”
  • Finally, what will be the future of open innovation? My prediction is that we should not be surprised to learn that within a decade, the term will fade away. Not because the concept has lost its usefulness, but, on the contrary, because it has been fully integrated in innovation management practices. Which organization can afford to assume it has nothing to learn nor gain from the rest of the world. : open innovation is on its way to become innovation.
  • Embracing Open Innovation Platforms - Enterprise Europe Network (7 Dec 2012)

    1. 1. Embracing Open Innovation Platforms Title Sub-title the smart people work for us. We need to work “Not all with smart people inside and outside the company. » ChesbourghPLACE PARTNER’S European Commission LOGO HERE Enterprise and Industry
    2. 2. Open Innovation Title of the presentation | Date |2 IP in-sourced for development Products in-sourced for scale-up Technology spin-outsIn-sourcedIdeas and technologies IP licensing Front End Product Development Product Launch Innovation Discovery Market Diagram courtesy of Mike Addison, P&G
    3. 3. Why Technology Transfer ? Title of the presentation | Date |3 Because the wheel should not be invented twice! Ways to innovation …..1) In-house Research 3) Technology Transfer Resources: Time - • Results already exist Money - Staff - … • Timeline and costs well predictable2) Contract Research • Selection from several Costs – Time horizon - solutions Success? Technology transfer is used too little to access innovations more quickly and reliably
    4. 4. Enterprise Europe Network: A Title of the presentation | Date |4Platform for Technology Transfer • 50 Countries • 600 partner organisations • 6000 specialist advisors • Potential access to 20 million EU SMEs • Largest business and TT network and database in the world: 23,000 live profiles Integrated Innovation Support Programme (IISP) 4
    5. 5. The TTT process in the EEN Title of the presentation | Date |5 Connecting people Contract Negotiation Follow-up IPR Connecting R&D providers and seekersPreparation Dissemination Brokerage Personal Technology of Partner of Partner Events Contact Mission Searches Searches • Personal contact to EEN? • Clients • Sincere interest in technology offer/request High potential clients • Communication skills (English, personality, …) Promotion Collaboration Presentation Warm/Cold www Stakeholders Events callings
    6. 6. Dissemination of project ideas, technology Title of the presentation | Date |6 offers and requests via the EEN Dissemination of Partner Searches Technology Offer / Request (Anonymous, EEN Client 2 one page only) Database 1 600 (AT) 1 180 000 (EU) 400 Sectors 2 2 2 3 31 Profile (Offer/ Request)2 Dissemination in 50 countries 3 Replies (EoIs)
    7. 7. Co-operation Profiles Title of the presentation | Date |7 Preparation of Partner SearchesTechnology ProfileOne page only (~2 hours)Type of co-operation- R&D, technical co-operation- Production, Sales, Licencing Dissemination 50 Countries ~ 180 000 High-tech Players  Companies EoI (Reactions)  R&D institutions  Technology Centers < 2 Months  Universities ~ 4 - 8 (Offers) ~ 10 -15 (Requests)
    8. 8. Technology Transfer? Title of the presentation | Date |8 An alternative solution to solve problems? In-house Contract Technology Research Research TransferTime to market ~ 1-3 Years ~ 1-3 Years 4-12 monthsRisk High Medium LowAlternative solutions No No SeveralCosts assessable ? ? Yes
    9. 9. Title of the presentation | Date |9The Bones Of A great Deal: Orthos (UK) and CREB (SP):Exclusive Patent License Agreement• Orthos: bone restoration specialist• CREB: Biomedical Engineering Research Centre with patents in self-setting and injectable calcium phosphate foam• Orthos granted exclusive rights to EU and Spanish patents• CREB: 3%-7% of generated income once introduced to EU market (where 1 million bone generative surgeries take place p.a for cancer and osteoporosis)
    10. 10. Title of the presentation | Date |10Giltech’s (UK) French Connections with IMVTechnologies (FR)• Giltech: biodegradable and controlled release technologies using glass and plastic• IMV: artificial insemination of cattle• EEN provide also a due diligence report on Giltech for IMV, providing them the confidence to go ahead with the deal• Two year agreement to develop controlled release and biodegradable applications with reproductive technologies, and discussing other opportunities. “In terms of the target market, we couldn’t have chosen a better partner.” Giltech
    11. 11. Title of the presentation | Date |11Precision Smiles for Playmobile Faces:Cruse Leppelman(DE) - Playmobile (Malta)• Cruse Leppelman: automated quality control systems for food packages and labels• Playmobile (Malta): maker of toy figurines• Playmobile saw the potential for using the technology in its own production line: ensuring that every figurine leaves the factory with the same signature smile, and everything is in the right place• Testing now taking place in Malta with very promising results
    12. 12. Please keep in mind…. Title of the presentation | Date |12 1 Get results faster with Technology Transfer www.enterprise-europe-scotland.com2 (23,000 cooperation possibilities)
    13. 13. Title of the presentation | Date |13In SummaryIt is Spotting Gaps and Developing Trust It is not Black Magic Integrated Innovation Support Programme (IISP) 13
    14. 14. Keep Networked and Informed … http://portal.enterprise-europe-network.ec.europa.eu/ Search…http://portal.enterprise-europe-network.ec.europa.eu/services/technology-transfer Ask…caroline.gray-stephens@scotent.co.uk