0
RAGU ATHINARAYANAN
ED MORRISON
FEBRUARY 11, 2014
ACCELERATING INNOVATION
PURDUE’S INNOVATION ACCELERATION NETWORK
1
The Purpose of the Presentation
Propose a pathway to monetize
Purdue’s assets in new ways
The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the...
The Gap in Purdue’s Innovation Ecosystem
9
8
7
6
5
4
3
2
1
Purdue Research System
Purdue TAP
Basic Technology
Research
Fea...
The Gap in National Innovation Ecosystem
Source: Conrady, C. and Carrick, G., !
“American Manufacturing Innovation Network...
The Gap in an International Context:The UK
Source: Hauser, H., The Current and Future Role of Technology Innovation Centre...
Filling the Gap: Expanding Market-Facing Research
Technology Readiness
Levels 1-5
MoneyTechnology
Technology Readiness
Lev...
Filling the Innovation Gap will strengthen horizontal ties across
Purdue’s colleges and vertical ties to the market econom...
Start-up firms
Investor networks
Colleges and
universities
Skilled talent
pool
Innovating
Growth
Companies
Provides ideas,
...
Purdue’s Startup Ecosystems
Purdue’s Startup Ecosystem
Technology Talent
Intellectual
Property
University Innovation Input...
Purdue’s Innovation Ecosystem
Small and Medium
Sized Companies
with Growth Potential
+
Bundled Innovation
Management Frame...
Ecosystem Strategic Focus Existing Anchors Primary Customers Outcome Metrics
Purdue
Entrepreneurship
Ecosystem
Producing s...
The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the...
Purdue Innovation Ecosystem: Fraunhofer as Partner
14
To determine how to fill the Innovation Gap, a Purdue team explored F...
Purdue Innovation Ecosystem: Fraunhofer as Partner
15
Applied
Research
Basic
Research
Predominantly public Predominantly
p...
16
n The world’s largest applied and most
successful applied technology agencies!
n Over 80 institutes and centers!
n M...
Fraunhofer: Groups,Alliances and Networks
60+ institutes organized into 7
Groups…!
Information and Communication
Technolog...
Design: !
The model of innovation of the
Fraunhofer Society can be described as a
network model,…The network, together
wit...
The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the...
The Central Idea: Achieve Scale with Coherence
Current Engagement System
a loose collection of components
Proposed Engagem...
The Innovation Acceleration Network
As the Innovation Acceleration Network establishes itself across campus, it will bring...
The Innovation Acceleration Network includes:!
• A core innovation lab; and!
• Multiple innovation labs (iLabs) for multip...
The Core Lab will provide:!
1. External linkages to Fraunhofer innovation
assets.-- With Fraunhofer build a shared pool
of...
Purdue iLabs provide industry partners with:!
1. Customized, agile innovation
infrastructure.-- Each iLab will design an
l...
Proposed Innovation Ecosystem
Core
innovation
lab
iLab
1
iLab
2
iLab
n
Fraunhofer
Licensing and
consulting fees
Innovation...
Scaling Purdue’s Innovation Acceleration NetworkRevenuesin$000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Year 1 Year 2 Yea...
The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the...
Launch of the Core Lab will take place in Year 1. Development of the Core Lab will
occur coincident with the development o...
Next Steps
The next steps to developing the Innovation
Acceleration Network include:!
• Workshop at Purdue.— Assemble a
co...
ThankYou
Ragu Athinarayanan!
Department Head, Technology Leadership and Innovation !
College of Technology!
rathinar@purdu...
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Accelerating Innovation at Purdue Presentation v3.1

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Accelerating Innovation at Purdue introduces some of the modifications Purdue has been developing for the innovation ecosystem at Purdue.

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  1. 1. RAGU ATHINARAYANAN ED MORRISON FEBRUARY 11, 2014 ACCELERATING INNOVATION PURDUE’S INNOVATION ACCELERATION NETWORK 1
  2. 2. The Purpose of the Presentation Propose a pathway to monetize Purdue’s assets in new ways
  3. 3. The Innovation Gap at Purdue! Strengthening Purdue’s Innovation Ecosystem! ! The Fraunhofer Connection ! Insights from the Global Leader in Applied Research! ! Purdue’s Innovation Acceleration Network! Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways! ! Launching the Network ! Defining “next steps” to implementation Overview
  4. 4. The Gap in Purdue’s Innovation Ecosystem 9 8 7 6 5 4 3 2 1 Purdue Research System Purdue TAP Basic Technology Research Feasibility Research Technology Development Technology Demonstration System & Subsystem Development System Test, Launch & Operations Technology Readiness Levels Time to Market Mid term: 6-18 months Short term: 0-6 months Long term: 18-48 months Gap
  5. 5. The Gap in National Innovation Ecosystem Source: Conrady, C. and Carrick, G., ! “American Manufacturing Innovation Network” Structural problem requires a structural solution Universities, NSF Centers, Federal Labs • High-risk research • Long time horizon • Not focused on shop floor implementation Industry, NIST MEP • Incremental improvement • Off the shelf technology • Short time horizon Time to deployment TechnicalInnovation Best Practices Basic Research/ Education Manufacturing Technology Innovation Missing Middle • Manufacturing technology innovation, maturation, commercialization, insertion • Medium time horizon • High impact The Gap
  6. 6. The Gap in an International Context:The UK Source: Hauser, H., The Current and Future Role of Technology Innovation Centres in the UK (2010). The Gap
  7. 7. Filling the Gap: Expanding Market-Facing Research Technology Readiness Levels 1-5 MoneyTechnology Technology Readiness Levels 5-9 Purdue’s Research System Purdue’s Engagement System Government funds this part of the cycle Industry funding drives this part of the cycle The Gap is here
  8. 8. Filling the Innovation Gap will strengthen horizontal ties across Purdue’s colleges and vertical ties to the market economy:! Filling the Gap: Horizontal andVertical Connections Filling the Gap x.y <process name> <process name> Strengthen vertical ties with industry Strengthen horizontal ties across Purdue 9 8 7 6 5 4 3 2 1 Basic Technology Research Feasibility Research Technology Development Technology Demonstration System & Subsystem Development System Test, Launch & Operations Technology Readiness Levels Engineering 133.4 Agriculture 61.6 Science 61.6 Health 26.7 Veterinary 13.4 Pharmacy 11.6 Technology 9.4 Liberal Arts 5.7 Education 3.7 ResearchFocus AppliedBasic Market Economy Purdue's Engagement System: Engaged Research Purdue's Extramural Research Awards, 2011-2012 (in $millions) Other 18.6 Purdue's Research System: Academic Research
  9. 9. Start-up firms Investor networks Colleges and universities Skilled talent pool Innovating Growth Companies Provides ideas, incubators and smart people Provides capital and expertise Recruits smart people Recruits and trains smart people Provides network and mentoring to start-ups Provides R&D partners Recruits and supplies smart people Provides investment and generates wealth Provides technology support and training Accelerates new venture investment Source: Ed Morrison Universities Operate Within Ecosystems Startup Ecosystem Innovation Ecosystem
  10. 10. Purdue’s Startup Ecosystems Purdue’s Startup Ecosystem Technology Talent Intellectual Property University Innovation Inputs + Business Model and Lean Start-up Frameworks + Business Formation and Support Networks = More Growth Spin-out Companies
  11. 11. Purdue’s Innovation Ecosystem Small and Medium Sized Companies with Growth Potential + Bundled Innovation Management Frameworks and Tools + Purdue and Corporate Partner Teams Existing Existing New New Technology Markets Efficiency Innovation - Market Penetration Sustaining Innovation - Product Extension Transformative Innovation - Product Market Diversification Sustaining Innovation - Market Extension = More Growth Accelerating innovation among Indiana companies Purdue’s Innovation Ecosystem
  12. 12. Ecosystem Strategic Focus Existing Anchors Primary Customers Outcome Metrics Purdue Entrepreneurship Ecosystem Producing start-ups from Purdue technology Purdue Foundry Purdue research faculty Number of Purdue start-ups Purdue Innovation Ecosystem Accelerating innovation in existing companies using technology and innovation management tools Purdue TAP ! Purdue Extension! High growth SMEs and Consortia of industrial firms facing a common innovation challenge Revenues coming from improved and new products and services Two Purdue Ecosystems for Development Purdue’s Innovation Ecosystem Purdue’s Startup Ecosystem Purdue Foundry Purdue Research Foundation Discovery Park Purdue TAP Purdue Extension
  13. 13. The Innovation Gap at Purdue! Strengthening Purdue’s Innovation Ecosystem! ! The Fraunhofer Connection ! Insights from the Global Leader in Applied Research! ! Purdue’s Innovation Acceleration Network! Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways! ! Launching the Network ! Defining “next steps” to implementation Overview
  14. 14. Purdue Innovation Ecosystem: Fraunhofer as Partner 14 To determine how to fill the Innovation Gap, a Purdue team explored Fraunhofer as a model. ! ! Now the largest applied research organization in Europe! Applied research, technology licensing (e.g., mp-3 format), and spin-out companies! Similar to (but about 10X the size of) SRI International (formerly Stanford Research Institute)
  15. 15. Purdue Innovation Ecosystem: Fraunhofer as Partner 15 Applied Research Basic Research Predominantly public Predominantly private Characteristics of Research Funding Federal/
 German Länder Institutes
 HGF WGL Universities
 Industry (internal and external expenditures)
 
AiF MPG HGF! Hermann von Helmholtz-Gemeinschaft! WGL! Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz! AiF!Arbeitsgemeinschaft industrieller Forschungsvereinigungen! MPG! Max-Planck-Gesellschaft Source:: Fraunhofer The Gap
  16. 16. 16 n The world’s largest applied and most successful applied technology agencies! n Over 80 institutes and centers! n More than 22,000 employees: 4,000+ PhD’s! n An annual research volume of €1.9 billion! n 70% of this research revenue competitive and market-facing. ! n 30% is contributed by government in the form of matching funds. München Holzkirchen Freiburg Efringen-
 Kirchen Freising Stuttgart Pfinztal KarlsruheSaarbrücken St. Ingbert Kaiserslautern Darmstadt Würzburg Erlangen Nürnberg Ilmenau Schkopau Teltow Oberhausen Duisburg EuskirchenAachen St. Augustin Schmallenberg Dortmund Potsdam Berlin Rostock Lübeck Itzehoe Braunschweig Hannover Bremen Bremerhaven Jena Leipzig Chemnitz Dresden Cottbus Magdeburg Halle Fürth Wachtberg Ettlingen Kandern Oldenburg Freiberg Paderborn Kassel Gießen Erfurt Augsburg Oberpfaffenhofen Garching Straubing Bayreuth Bronnbach Prien Hamburg Leuna Fraunhofer: Global leader in applied research
  17. 17. Fraunhofer: Groups,Alliances and Networks 60+ institutes organized into 7 Groups…! Information and Communication Technology! Life Sciences! Microelectronics! Light & Surfaces ! Production ! Materials and Components ! Defense and Security Multiple Alliances… Adaptronics Ambient Assisted Living Building Innovation Digital Cinema E-Government Energy Food Chain ManagementAdditive Manufacturing Cloud Computing Advancer Nanotechnology Simulation Optic Surfaces Photocatalysis Polymer SurfacesCleaning Technology Water Systems Traffic and Transportation Vision Automobile Production Lightweight Structures Embedded Systems And global networks…
  18. 18. Design: ! The model of innovation of the Fraunhofer Society can be described as a network model,…The network, together with a strong reputation, makes it fairly easy for small and big firms to establish a contact with the Society. ! Drivers: ! The Fraunhofer model allows the organization to set up new institutes where it sees a new market demand. Åström, Eriksson, Niklasson and Arnold, International Comparison of Five Institute Systems (2008) Fraunhofer: Design and drivers “ “ “ ” ”
  19. 19. The Innovation Gap at Purdue! Strengthening Purdue’s Innovation Ecosystem! ! The Fraunhofer Connection ! Insights from the Global Leader in Applied Research! ! Purdue’s Innovation Acceleration Network! Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways! ! Launching the Network ! Defining “next steps” to implementation Overview
  20. 20. The Central Idea: Achieve Scale with Coherence Current Engagement System a loose collection of components Proposed Engagement System achieve scale with more coherence and better communication Purdue’s Innovation Ecosystem Purdue Innovation ! Acceleration Network
  21. 21. The Innovation Acceleration Network As the Innovation Acceleration Network establishes itself across campus, it will bring coherence, speed, and “link and leverage” opportunities to expand industrial investment in Purdue’s market-facing research. Purdue Core Innovation Lab (Core Lab) (iLab) 1 iLab 2 iLab n Innovation Acceleration Network with Market-Facing Innovation Disciplines University and College Centers Unviersity Unviersity Unviersity University College 1College 1 College 2College 2College 2 Colleges and Departments College College College College 1 Departments Existing Engagement Networks Purdue Extension Purdue TAP
  22. 22. The Innovation Acceleration Network includes:! • A core innovation lab; and! • Multiple innovation labs (iLabs) for multiple theme areas. ! This network would:! ! 1. Increase market-facing industry research in Discovery Park and across Purdue colleges and departments;! 2. Network more effectively to create an ecosystem with global partners conducting similar market-facing research;! 3. Create new multi-disciplinary learning opportunities for Purdue students locally and globally; The Innovation Acceleration Network Purdue Core Innovation Lab (Core Lab) Innovation lab (iLab) 1 iLab 2 iLab n
  23. 23. The Core Lab will provide:! 1. External linkages to Fraunhofer innovation assets.-- With Fraunhofer build a shared pool of tools, frameworks, and expertise. ! 2. Innovation acceleration across campus and Indiana.-- Link and leverage Fraunhofer assets around selective theme areas.! 3. New pathways for industry support.— Provide a new platform for collaborative research. Functions of the Core Lab iLab 3 iLab 2 Purdue Core Innovation Lab (Core Lab) iLab 1
  24. 24. Purdue iLabs provide industry partners with:! 1. Customized, agile innovation infrastructure.-- Each iLab will design an lean infrastructure to rapidly meet an industry research agenda; ! 2. Access to powerful innovation tools on demand.-- Each iLab will have a portfolio of the latest innovation tools, frameworks and training supported by the Core Lab;! 3. Access to researchers, faculty and students on demand.— Each iLab will be staffed by Purdue researchers, faculty and students with a background in the technologies of interest to the industry partner. The iLabsValue Proposition to Industry PPI core innovation lab Innovation lab 1 Innovation lab 2 Innovation lab 3 Industry support for iLabs will come in a variety of ways:! — Base funding commitments to each iLab! — Contract research! — Donations of equipment! — Unrestricted gifts from alumni
  25. 25. Proposed Innovation Ecosystem Core innovation lab iLab 1 iLab 2 iLab n Fraunhofer Licensing and consulting fees Innovation frameworks and tools Innovation support Industry partners Industry partners Fees Innovationsupport Fees Innovation support Fees Industry partners Industry partners Innovation support Fees Purdue Innovation Ecosystem
  26. 26. Scaling Purdue’s Innovation Acceleration NetworkRevenuesin$000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Number of iLabs Small ($100-200K) 2 5 10 15 25 Medium ($300-500K) 0 1 2 5 10 Large ($700-900K) 0 0 1 2 5 Core Lab ($1.5M-$3M) 1 1 1 1 1 • Potential Scale through franchising.— Deploying the network across campus and Indiana could increase industry support for Purdue research by $20 million to $25 million in 5 to 7 years.! • Timing.— Revenue generation will accelerate as the network grows.! • Drivers.— Success will depend on how many iLabs can be “franchised” by the Core lab.
  27. 27. The Innovation Gap at Purdue! Strengthening Purdue’s Innovation Ecosystem! ! The Fraunhofer Connection ! Insights from the Global Leader in Applied Research! ! Purdue’s Innovation Acceleration Network! Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways! ! Launching the Network ! Defining “next steps” to implementation Overview
  28. 28. Launch of the Core Lab will take place in Year 1. Development of the Core Lab will occur coincident with the development of the first iLab. Configuration and launch of iLabs will be flexible, driven in part by industry expressions of interest. Launching the Network: Strawman Schedule Year 1 Year 2 Year 3 Core Lab iLab 1 iLab 2 iLab 3 iLab 4 iLab 5 iLab 6 iLabs 7-13
  29. 29. Next Steps The next steps to developing the Innovation Acceleration Network include:! • Workshop at Purdue.— Assemble a core team to review this presentation and develop a set of detailed outcomes to engage with Fraunhofer.! • Workshop at Fraunhofer.— Conduct a 1.0 to1.5 day workshop at Fraunhofer: ! • Develop detailed specifications for Core Lab and iLab.! • Draft agreement with Fraunhofer IAO on design and management of the Network.! • Preparation of detailed prospectus.— Prepare a business plan and investor prospectus for the Network.
  30. 30. ThankYou Ragu Athinarayanan! Department Head, Technology Leadership and Innovation ! College of Technology! rathinar@purdue.edu! ! Ed Morrison! Regional Economic Development Advisor! Purdue Center for Regional Development! edmorrison@purdue.edu!
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