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GES 2011 vanhaverbeke
 

GES 2011 vanhaverbeke

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How public policy can help SMEs in learning from good open innovation practices.

How public policy can help SMEs in learning from good open innovation practices.

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    GES 2011 vanhaverbeke GES 2011 vanhaverbeke Presentation Transcript

    • Enabling the silent revolution of open innovationin low-tech SMEs?
      Wim Vanhaverbeke
      Hasselt University - Belgium
      Esade Business School - Spain
      Vlerick Leuven Gent Management School - Belgium
      1
      GES 2011, Kiel
      October 6, 2011
    • What is Open Innovation?
      “Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively.”
      Chesbrough, Vanhaverbeke, WestOpen Innovation: Researching a New Paradigm
      (OUP, 2006)
    • Outside in :
      Filling the gaps with external technology
      Internal
      Technology
      Base
      New
      Market
      Current
      Market
      External
      Technology
      Base
      Technology in-licensing
      External research projects
      Technology
      acquisition
      Venture investing
      R
      D
      Source: H. Chesbrough, Sloan Management Review, Spring 2003
    • Inside out OI: Profiting from others’ use of your technology
      Other Firm’s
      Market
      Licensing
      Internal
      Technology
      Base
      Technology Spin-offs
      New
      Market
      Current
      Market
      External
      Technology
      Base
      R
      D
      Source: H. Chesbrough, Sloan Management Review, Spring 2003
    • Some observations
      Open innovation is a booming research area
      Main focus on:
      • High-tech industries
      • Large manufacturing (and now also services) companies
      • What do we know about open innovation in SMEs:
      • Few articles published so far
      • A few case studies or some survey based evidence
      • No systematic analysis yet of OI in low-tech SMEs
      5
    • Some observations
      Introducing OI in low and medium tech SMEs is important:
      SMEs are responsible for a large part of employment in manufacturing and services industries
      SMEs are the drivers of the employment growth
      Most of them face increasing pressures of globalization and commoditization of their products
      New ways to explore differentiation of product / services, or trying out experience based competitive advantages
      SMEs usually do not have internal resources to make these changes – OI is required
      SMEs are focused on day to day operations. Learning about strategic changes and OI should be practical and time efficient
      6
    • CURANA
      7
    • Curana: Combining innovation and industrial design
      8
      The old situation:
      Steel mudguards and fenders
      Belgium as market (10 million inhabitants)
      Family owned business
      Challenge:
      Growing economies of scale and globalization of the industry
      Strategic change:
      differentiation through innovation
      or price competition with low-cost import
    • Curana: B"Lite: Mudguard of Curana
      9
    • Combination of internal and external knowledge
      • Curana: customers + steel bending
      • external design company and polymer extrusion manufacturer
      Coordination with lead-customers (bicycle manufacturers) in exchange of an exclusive deal that is limited in time (Batavus and Sparta)
      IPR
      Progressively increasing the ecosystem of innovation partners:
      • Locus of innovation is in the network: viability of the network determines the health of your company
      • Network as enabler: rapidly changing designs and use of new materials – competitive advantage
      • Economic strength ≠ f(firm size)
      • Network management becomes a crucialnetwork
      A new management mindset is necessary to realize this
      10
      Curana: innovation combined with industrial design in low-tech markets
    • 11
      Curana: Impact of OI on revenuesandprofits
    • Curana: Open BM innovation in a stepwise way
      12
      OEM
      ODM
      OSM
      OBM
      >
      >
      >
      Original
      Design
      Manufacturer
      • price setting
      • design driven
      • addedvalue
      Original
      Equipment
      Manufacturer
      • pricepressure
      • technologydriven
      • noaddedvalue
      Original
      Strategic
      Management
      • visiondriven
      • proactive design
      solutions
      • Innovative
      Original
      Brand
      Management
      • image driven
      • reliability&
      authenticity
      • market pull from
      customers
    • How to enable the silent revolution?
      Speeding up the learning of good practices in low-tech SMEs?
      13
    • How do SMEslearn?
      What does not work?
      Explanations of academia and consultants
      Most government led initiatives to stimulate entrepreneurship
      FP7 programs are to slow and too bureaucratic for most SMEs
      What works?
      Stories of entrepreneurs that have been successful
      Talking to other entrepreneurs with similar ambitions
      Share experiences and learn from them
      Some local innovation networks do nice work
      14
    • Problemsandfinding a way out
      • Local innovation network initiatives
      • 60 km action radius
      • Non- or semi professional coaches
      • Few good local cases, few managers as speakers
      • Reinventing the wheel problem!
      • High set up costs!
      • How to drastically improve the situation?
      • There are many excellent cases in Europe / world
      • Make a YouTube like movies (10-15 min) about these companies with subtitles in English
      • Put these movies on the web together with a syllabus and some (open) innovation management tools – feedback Web 2.0!
      Huge impact on the number of companies that learn OI practices and strong improvement in the quality of learning
      15
    • www.exnovate.org
      16