The document discusses how open innovation through digital technologies and online collaboration can help solve major problems. It provides examples of open source software projects like Linux that attracted global participation to create a free operating system. Inducement prizes are also discussed as a method to spur open innovation by clearly defining goals and allowing maximum freedom in how teams achieve the goals. Open inducement prizes are highlighted as an effective approach that can educate the public and sustain long-term progress through sharing and collaboration among participants.

1. the great prize: open innovation glyn moody

2. once in a lifetime? global society is passing through a major transition

3. transition from analogue to digital vinyl LPs to CDs

4. video tapes to DVDs

5. books to ebooks *not* once in a lifetime

6. once in a *civilisation*

7. the digital world the passage from analogue to digital touches most facets of modern life

8. most evident in the realm of content – music, film, text

9. brings need to move from approaches based on scarcity to those based on abundance

10. digital abundance marginal cost of a digital copy is close to zero

11. today: €50 memory stick, capacity 32 Gbytes, stores 5,000 songs

12. tomorrow: €50 memory stick, capacity 32 Tbytes = 32,000 Gbytes, stores 5,000,000 songs Spotify: 13,799,112 tracks

13. digital knowledge day after tomorrow: able to put all recorded knowledge – text, sounds, pictures, video - on a memory stick

14. everyone with a smartphone can access *all* of it, anywhere

15. innovation driven not just by knowledge, but by connections

16. network effects – of knowledge, of knowers

17. ”analogue” innovation innovation in an analogue (pre-Web) world centralised

18. top-down

19. collaboration hard

20. not scalable The Mythical Man-Month (1975) : ”adding manpower to a late software project makes it later”

21. adding knowledge to traditional innovation makes it slower

22. ” digital” innovation new kind of innovation first appeared in the earliest digital domain: software

23. its birth and characteristics can be observed in the story of the free operating system, GNU/Linux

24. what's GNU? GNU born in 1984 at MIT

25. GNU is ”GNU's Not Unix” - a recursive acronym

26. one man's attempt to create a free version of the leading Unix operating system

27. a change of heart by 1991, GNU was still unfinished: it lacked a ”kernel” - the heart of the operating system

28. in March 1991, 21-year-old student Linus Torvalds started writing one ”just for fun” – in his Helsinki bedroom

29. key inflection was August 1991, when he opened up his ”Linux” project using the Internet

30. open innovation decentralised anyone, anywhere, could join in bottom-up people fed suggestions, problems and solutions to Linus collaboration easy Internet was more affordable scalable no formal training required – everything is out in the open

31. Linus' Law Eric Raymond: ”given enough eyeballs, all bugs are shallow”

32. different people approach a problem in different ways

33. adding more people increases the probability that someone’s approach will matched the problem in such a way that the solution is obvious (”shallow”) to that person

34. power, economy, reliability 91% of top 500 supercomputers run Linux 1% run Microsoft Windows Google runs its services on millions of servers running Linux so does Facebook, Twitter etc. Android mobile phone system runs on Linux 400,000 handsets activated daily

35. launched November 2007

36. open innovation projects open genomics Human Genome Project open access arXiv, Public Library of Science open content Wikipedia open data OpenStreetMap

37. motivating open innovation personal satisfaction ( aka ”fun”)

38. peer esteem

39. altruism

40. money but generally work is aligned with one or more of the above as well

41. crowdsourcing open problem-solving (2004) not formal projects

42. open call for solution

43. self-selecting group respond large-scale, loosely-specified, no reward – UK MPs expenses

44. smaller-scale, tightly-specified, payment by results – DesignCrowd

45. mixed specification and payment terms – Challenge.gov

46. inducement prizes (1) highly-directed, highly-rewarded, high-profile form of problem-based open innovation

47. Longitude Prize (1714) for simple way to determine ship's longitude £20,000 - determine longitude within 30 nautical miles (56 km)

48. worth €40 ,000,000 present-day money

49. won unexpectedly by clockmaker, John Harrison

50. inducement prizes (2) Orteig Prize (1919) for flying non-stop New York-Paris ($25,000) won by Charles Lindbergh 1927

51. 9 teams spent $400,000 instigated US aviation boom: 300% more applications for pilot's licence in 1927; 400% more licensed aircraft in 1927;air passengers went from 5,800 (1926) to 173,400 (1927) huge media event

52. inducement prizes (3) Ansari X Prize for building and launching a spacecraft capable of carrying three people to 100 kilometres above the earth's surface, twice within two weeks ($10 million) 26 teams spent more than $100 million trying to win prize

53. $1.5 billion dollars spent on private spaceflight industry

54. widespread publicity

55. inducement prizes (4) more X Prizes sequence 100 human genomes within 10 days or less, $10,000 per genome ($10 million)

56. launching, landing, and operating a rover on the lunar surface ($20 million)

57. improved point-of-care TB diagnostic suitable for the developing world

58. open inducement prizes (1) wide open Scotland's Saltire Prize - £10 million purse to reward wave and tidal energy breakthroughs: ”open to any individual, team or organisation”

59. 16 year-old Canadian won national science contest with drug cocktail for helping cystic fibrosis patients

60. largest pool of participants

61. open inducement prizes (2) big problems, loose solutions inspire *and* liberate

62. need clear end-points, ideally with milestones against which progress can be checked

63. need maximum freedom for achieving those milestones and the final result

64. open inducement prizes (3) transparent process participants can gain peer esteem and assume leadership roles

65. new communities can be created around problems

66. feedback from even wider circle of interested parties can be offered

67. provides broad educational benefits

68. open inducement prizes (4) clear social benefit taps into altruism

69. motivates people to participate

70. easier to create sustained media interest

71. public is more engaged with prize and participants

72. open inducement prizes (5) sharing encourage contestants to share results among themselves, through sub-prizes based on contributions, ”open source dividend” etc.

73. stops re-invention of the wheel

74. accelerates open innovation

75. adds to knowledge abundance

76. drives further open innovation

77. creates virtuous circle

78. the great prize: open innovation [email_address] @glynmoody on identi.ca/Twitter opendotdotdot.blogspot.com