Track 2: Leading Innovation Creating an Innovation Culture J. Richard Schorr Consultant Past President – MetaMateria Partners LLC

About MetaMateria Partners Started July 2002 with 3 people Profitable growth to 40+; funding from government and industry for technology & product development Emphasis Nanomaterials use for better products Energy, Environmental, Construction markets: $300B + More than 20 product applications Problem Commercial use of technology takes too long Approach Accelerate technology application using core capabilities; Partner with Industry & Universities Partners NanoDynamics Inc. and over 25 companies and some 10 Universities, including Ohio State

Started July 2002 with 3 people

Profitable growth to 40+; funding from government and industry for technology & product development

Emphasis Nanomaterials use for better products Energy, Environmental, Construction markets: $300B +

More than 20 product applications

Problem Commercial use of technology takes too long

Approach Accelerate technology application using core capabilities; Partner with Industry & Universities

Partners NanoDynamics Inc. and over 25 companies and some 10 Universities, including Ohio State

Innovation Development at MetaMateria Guiding Principles Find People who can Solve Problems Want to understand why technology works Willing to work on technology application –not science Stay alert for Opportunities - Beware of Paradigms Encourage the Sharing & Nurturing of Ideas Use Teamwork – of individuals with different backgrounds – both technical & experience Focus on using technology to Improve Products Create synergistic opportunities through Collaborations

Guiding Principles

Find People who can Solve Problems Want to understand why technology works Willing to work on technology application –not science

Stay alert for Opportunities - Beware of Paradigms

Encourage the Sharing & Nurturing of Ideas

Use Teamwork – of individuals with different backgrounds – both technical & experience

Focus on using technology to Improve Products

Create synergistic opportunities through Collaborations

Problem Solving Encourage staff to understand why technology & products work Form Teams, give clear objectives , and continually encourage and expect results from these teams Manage to avoid “common think” – challenge individuals who want to follow the crowd – encourage “out-of-the-box” thinking Challenge negative thinking – ask for alternative approaches No such word as “can’t” – anything is possible, just have to figure out how it can be done Look outside your industry for new ideas

Encourage staff to understand why technology & products work

Form Teams, give clear objectives , and continually encourage and expect results from these teams

Manage to avoid “common think” – challenge individuals who want to follow the crowd – encourage “out-of-the-box” thinking

Challenge negative thinking – ask for alternative approaches

No such word as “can’t” – anything is possible, just have to figure out how it can be done

Look outside your industry for new ideas

Opportunites are always there Be Outcome Oriented - get the team to initially focus on desired outcomes & remind them when bogged down Xerox story – a technological or marketing innovation? I nventor: Chester Carlson; Product Development: Battelle; Commercialization: Haloid-Xerox Aniline Dyes – German chemists in England working on a synthetic quinine from coal tar discovered aniline dyes. Beware of Paradigms A set of assumptions, concepts, values and practices that constitute a way of viewing reality for the community that shares them Swiss Watch Industry story (over 75 watch companies) 1969 : 65% world market; 80% of profits 1979: 10% market share - how did this happen?

Be Outcome Oriented - get the team to initially focus on desired outcomes & remind them when bogged down

Xerox story – a technological or marketing innovation? I nventor: Chester Carlson; Product Development: Battelle; Commercialization: Haloid-Xerox

Aniline Dyes – German chemists in England working on a synthetic quinine from coal tar discovered aniline dyes.

Beware of Paradigms A set of assumptions, concepts, values and practices that constitute a way of viewing reality for the community that shares them

Swiss Watch Industry story (over 75 watch companies)

1969 : 65% world market; 80% of profits 1979: 10% market share - how did this happen?

Paradigm Shift a change in basic assumptions Concept of what makes a watch is good product example of Paradigm Shift Steven Covey example: While traveling in a subway, a man gets in with his two sons. The sons are running all over the place bothering the people, this continues, so he finally gets irritated enough to ask the father why he doesn't do something to control his kids. The father replies, "We just got back from the hospital where their mother died. I don't know how to handle it and I guess they don't either.“ Suddenly you see everything differently. That is the power of a paradigm shift. They are the same kids yelling and screaming in the subway, but you look at them and understand them in a different way.

Concept of what makes a watch is good product example of Paradigm Shift

Steven Covey example:

While traveling in a subway, a man gets in with his two sons. The sons are running all over the place bothering the people, this continues, so he finally gets irritated enough to ask the father why he doesn't do something to control his kids. The father replies, "We just got back from the hospital where their mother died. I don't know how to handle it and I guess they don't either.“

Suddenly you see everything differently. That is the power of a paradigm shift. They are the same kids yelling and screaming in the subway, but you look at them and understand them in a different way.

Sharing & Nurturing Ideas Ideas are precious – like the Tolkein’s Ring (Lord of Ring) FIRST - Ideas need to be shared, communicated Can’t be used if they aren’t first known Alexander Fleming Story of Penicillin Discovered 1929, Rediscovered 1940 SECOND - Ideas need to be nurtured They are fragile when they are young “ An idea is like a new-born baby” Many are willing to tell you why it won’t work Some will want to take the idea for their own Need to support the developer of the idea

FIRST - Ideas need to be shared, communicated

Can’t be used if they aren’t first known

Alexander Fleming Story of Penicillin

Discovered 1929, Rediscovered 1940

SECOND - Ideas need to be nurtured

They are fragile when they are young

“ An idea is like a new-born baby”

Many are willing to tell you why it won’t work

Some will want to take the idea for their own

Need to support the developer of the idea

Universities for New Knowledge Tap into knowledge base at universities Fundamental understandings evolve from universities Best faculty are repositories of knowledge - but they are also very busy, engage them through projects Universities contain creative minds they need and want to understand & communicate new knowledge Outstanding characterization equipment exists to study properties, behavior, structure of materials/devices Faculty rarely have much industrial experience or understand demands that exist within a company Actively manage university projects When possible scope work to avoid patentable areas Schedule regular meetings/phone calls around project goals/progress Obtain 1 st rights to all patentable technology If licensing existing patents – minimize royalties until commercial sales

Tap into knowledge base at universities Fundamental understandings evolve from universities

Best faculty are repositories of knowledge - but they are also very busy, engage them through projects

Universities contain creative minds they need and want to understand & communicate new knowledge

Outstanding characterization equipment exists to study properties, behavior, structure of materials/devices

Faculty rarely have much industrial experience or understand demands that exist within a company

Actively manage university projects

When possible scope work to avoid patentable areas

Schedule regular meetings/phone calls around project goals/progress

Obtain 1 st rights to all patentable technology

If licensing existing patents – minimize royalties until commercial sales

Conclusions & Summary Find & support staff who question the status quo Organize multidisciplinary project teams with focused goals and challenge them to come with ideas and experiments to explore merit of idea. Encourage them to think outside the box – from being too influenced by paradigms Nurture ideas from your staff & give credit where due Seek new opportunities outside your industry

Find & support staff who question the status quo

Organize multidisciplinary project teams with focused goals and challenge them to come with ideas and experiments to explore merit of idea. Encourage them to think outside the box – from being too influenced by paradigms

Nurture ideas from your staff & give credit where due

Seek new opportunities outside your industry