This document discusses intellectual property, innovation, and entrepreneurship. It begins by defining innovation as the creation of new ideas or processes that lead to economic or social change. It then discusses different types of innovation such as incremental versus radical innovation. The document also covers topics like new product development strategies, intellectual property protection, competitive advantage, obstacles to innovation, and factors that determine the success of new products. Overall, the document provides an overview of key concepts related to innovation and intellectual property from developing new ideas to commercializing products and protecting intellectual creations.
2. FROM INVENTION TO
INNOVATION
While invention depends upon
creativity,
successful technological
innovation requires integrating
new knowledge with multiple
business functions.
3. INNOVATION – WHAT
IS IT?
The creation of new ideas/processes
which will lead to change in an
enterprise’s economic or social
potential
[P. Drucker, ‘The Discipline of Innovation’,
Harvard Business Review, Nov-Dec, 1998,
149]
4. WHAT IS INNOVATIVE
THINKING?
A means of generating innovation to achieve two objectives that are
implicit in any good business strategy:
make best use of and/or improve what we have today
determine what we will need tomorrow and how we can best
achieve it, to avoid the "Dinasaur syndrome«
Innovative thinking has, as a prime goal, the object of improving
competitiveness through a perceived positive differentiation from
others in:
Design/Performance
Quality
Price
Uniqueness/Novelty
6. How to classify newness and
degree of innovation and what to
focus on:
• New to the firm?
• First in the market?
• First in the world?
• Incremental or radical
Innovation
7. THERE ARE SEVERAL TYPES OF NEW PRODUCTS.
SOME ARE NEW TO THE MARKET, SOME ARE NEW TO
THE FIRM, AND SOME ARE NEW TO BOTH. SOME ARE
MINOR MODIFICATIONS OF EXISTING PRODUCTS
WHILE SOME ARE COMPLETELY INNOVATIVE
9. MARKETING
PRINCIPLES…….
• Identify opportunities and threats
• Identify customer needs
• React to a competitive environment
• Careful planning to make a New or improved product
• Use the 4 P’s….
Product service
Price
Promotion
Place (distribution)
• Retain flexibility to react to changes
10. THE DEVELOPMENT OF TECHNOLOGY:
FROM KNOWLEDGE GENERATION TO
DIFFUSION
Basic
Knowledge
Invention Innovation Diffusion
IM ITATION
ADOPTION
Supply side
Demand side
11. INNOVATION PROCESS
The adoption of an
innovation by similar firms
Usually leads to product or
process standardization
Products based on imitation
often are offered at lower
prices but with fewer
features
Invention
Innovation
Imitation
12. THE INNOVATION
PROCESS
An innovation starts as an idea/concept that is refined
and developed before application.
Innovations may be inspired by reality (known
problem). The innovation (new product development)
process, which leads to useful technology, requires:
Research
Development (up-scaling, testing)
Production
Marketing
Use
Experience with a product results in feedback and
leads to incrementally or radically improved
innovations.
13. TRANSLATION OF A CREATIVE IDEA
INTO USEFUL APPLICATION
Analytical
Planning
Organizing
Resources
Implementation Commercial
Application
To Identify:
Product Design
Market Strategy
Financial Need
To Obtain:
Materials
Technology
Human Resources
Capital
To Accomplish:
Organization
Product Design
Manufacturing
Services
To Provide:
Value to Customers
Rewards to Employee
Revenue to Investors
Satisfaction of Founders
The Innovation
Process
14. THE PROFITABILITY OF INNOVATION
• Legal protection
• Complementary
resources
• Ease of imitation
of technology
• Lead time
Profits
from
Innovation
Value of an
innovation
Innovator’s
ability to
appropriate
value from an
innovation
15. Value
Appropriatio
n from
Innovation
Barriers to
Integration
Different
Time
Interpersona
l
Different Goal
Formality of
Orientation
Orientation
Orientatio
n
Structur
e
Facilitators of
Integration
Shared Values
Leaders’ Vision
Effective
Budget
Allocation
Communicatio
Appropriating Value from
Innovation
Cross-Functional
Integration/
Design Teams
Time to
Market
Product
Quality
Creation of
Customer
Value
17. NEW PRODUCT
DEVELOPMENT
Stages in a New Product Development process:
• Idea Generation
• Idea Screening
• Concept Development and Testing
• Business Analysis
• Beta Testing and Market Testing
• Technical Implementation
• Commercialization
18. TECHNOLOGY ADOPTION – DIFFUSION OF
INNOVATION
Early
Adopters
Innovators
Laggards
Early
Majority
Late
Majority
Take up Rate
Time
Innovators: venturesome; greatest need
Early adopters: opinion leaders; needs driven
Early majority: deliberate
Late majority: skeptics
Laggards: traditionalists; suspicious
19. NEW BUSINESS MODELS
EMERGE
Then…
One Integrated
Company
Now…
Many Distributed Companies
Product
Development
Cycle
Product
Development
Tool
Companies
Testing
Services
CRO’s CRM’s
22. WHAT INVESTORS LOOK
FOR?
Novelty; world-class; evidence of commercial
interest; clear path to market
Unencumbered, or encumbered by reasonable
conditions (Equity, royalties)
Protection (Non-disclosure agreements,
Patents, Designs, Brands, Copyright)
IP protected by one or more Patents is the IP
required to implement the business plan
“Freedom to Operate”
23. INNOVATION,
INTELLECTUAL PROPERTY
AND POVERTY REDUCTION
Critical Ingredients for Innovation:
• Intellectual Capital
• Human Capital
• Financial Capital
• Proximity
• Social Network Capital
24. COMPLEMENTARY RESOURCES
Bargaining power of owners of complementary resources
depends upon whether complementary resources are
generic or specialized.
Manufacturing Distribution
Service
Complementary
technologies
Other
Other
Marketing
Finance
Core
technological
know-how
25. Risk &
Return
Competing
Resources
Examples
Licensing
Outsourcing
certain
functions
Strategic
Alliance
Joint
Venture
Internal
Commercialization
Small risk, but
limited returns
also (unless
patent position
very strong
Limits
investment, but
dependence on
suppliers &
partners
Benefits of
flexibility;
risks of
informal
structure
Shares
investment &
risk. Risk of
partner
conflict &
culture clash
Biggest risks &
benefits.
Allows complete
control
Few Allows outside
resources &
capabilities
To be accessed
Permits pooling of the
resources/capabilities of
more than one firm
Substantial
resource
requirements
Konica
licensing its
digital
camera to
HP
Pixar’s movies (e.g.
“Toy Story”)
marketed &
distributed by
Disney.
Apple and
Sharp build
the
“Newton”
PDA
Microsoft
and NBC
formed
MSNBC
TI’s
development of
Digital Signal
Processing
Chips
Alternative Strategies for Exploiting Innovation
26. UNCERTAINTY & RISK MANAGEMENT IN TECH-BASED INDUSTRIES
Sources of
uncertainty
Technological
uncertainty
Selection process for standards and
dominant designs emerge is complex
and difficult to predict, e.g. future of 3G
Customer acceptance and adoption rates
of innovations notoriously difficult to
predict, e.g. PC, Xerox copier, Walkman
Market
uncertainty
Strategies for
managing risk
Cooperating with lead users
early identification of customer requirements
–assistance in new product development
Flexibilility
—keep options open
—use speed of response to adapt
quickly to new information
—learn from mistakes
Limiting risk exposure
—avoid major capital commitments
(e.g. lease don’t buy)
—outsource
—alliances to access other firms’
resources & capabilities
—keep debt low
29. THE “ RIGHT” INNOVATIVE
PRODUCT?
The right product is one that becomes available
at the right time (i.e., when the market needs it),
and is better and/or less expensive that its
competition.
To have the right product, therefore, one must:
Predict a market need
Envisage a product whose performance and
capability will meet that need
Develop the product to the appropriate time
scale and produce it.
Sell the product at the right price
30. Timely
Difficult for
competitors to imitate
Commercially exploitable
with present capabilities
Innovation and Competitive
Advantage
Competitive
Advantage
Provides significant
value to customers
31. STRATEGIC
ENTREPRENEURSHIP AND
INNOVATION
Entrepreneurship is concerned with:
The discovery of profitable opportunities
The exploitation of profitable opportunities
Firms that encourage entrepreneurship are:
Risk takers
Committed to innovation
Proactive in creating opportunities rather than
waiting to respond to opportunities created by
others
32. ENTREPRENEURSH
IP
Creativity is at the heart of entrepreneurship, enabling entirely new
ways of thinking and working.
Entrepreneurs identify opportunities, large or small, that no one else
has noticed.
Good entrepreneurs also have the ability to apply that creativity—
they can effectively marshal resources to a single end.
They have drive—a fervent belief in their ability to change the way
things are done, and the force of will and the passion to achieve
success.
They have a focus on creating value—they want to do things better,
faster, cheaper.
And they take risks—breaking rules, cutting across accepted
boundaries, and going against the status quo.
33. ENTREPRENEURSH
IP
Defining entrepreneurship is difficult because there is no
universal, clear-cut definition of the term. In its most basic
sense, entrepreneurship is manifest in a business venture
when an individual is able to turn a novel idea into a
profitable reality. In practice, however, entrepreneurship is
more multifaceted, ranging from operating a small business
in one’s own home, to bringing a national franchise to a
small town, to turning a new and unique idea into a high-
growth company. Entrepreneurship can involve starting a
business that brings a new store to main street, offering a
product or service previously unavailable to a community, or
acquiring an existing business that has had a long-standing
presence in a community and helping it evolve to reflect
one’s own vision and personality.
34. ENTREPRENEURSH
IP
The word entrepreneurship literally means, "to take or
carry between" in the sense of an economic transaction;
to be a market-maker. It does not literally convey the
notion of innovation that we commonly associate with the
term.
Joseph Schumpeter (1883-1950), one of the more well
known theorists on entrepreneurship, defined an
entrepreneur as one who reorganizes economic activity in
an innovative and valuable way. That is, an entrepreneur
is one who engages in a new economic activity that was
previously unknown. An entrepreneur is a risk taker
because being innovative means there are few rules or
history for guidance.
35. ENTREPRENEURSH
IP
Entrepreneurship is the process of creating or seizing an
opportunity, and pursuing it regardless of the resources
currently controlled.
The Webster’s Third New International Dictionary defines an
entrepreneur to be “one who organizes, owns, manages, and
assumes the risks of a business”
36. ENTREPRENEURSH
IP
The entrepreneur shifts resources out of an area of lower and into an area
of higher productivity and greater yield.
[J. B. Say, French economist, circa 1800]
Entrepreneurship is creative destruction. Dynamic disequilibrium brought
on by the innovating entrepreneur, rather than equilibrium and optimization,
is the norm of a healthy economy and the central reality of economic theory
and practice. [Joseph Schumpeter, Austrian economist, 1911]
The entrepreneur searches for change, responds to it, and exploits it as an
opportunity. Innovation is the specific tool of entrepreneurs, the means by
which they exploit change as an opportunity for a different business or a
different service
[Peter Drucker, 1985]
37. ENTREPRENEURSH
IP
Entrepreneurship drives innovation, competitiveness, job creation
and economic growth.
It allows new/innovative ideas to turn into successful ventures in high-
tech sectors and/or can unlock the personal potential of
disadvantaged people to create jobs for themselves and find a better
place in society.
38. ENTREPRENEURSH
IP
Entrepreneurship, in small business or large, focuses on "what
may be" or "what can be".
One is practicing entrepreneurship by looking for what is
needed, what is missing, what is changing, and what
consumers will buy during the coming years.
39. ENTREPRENEURSH
IP
Entrepreneurs have:
A passion for what they do
The creativity and ability to innovate
A sense of independence and self- reliance
(Usually) a high level of self confidence
A willingness and capability (though not necessarily capacity or preference) for taking
risks
40. ENTREPRENEURSH
IP
Entrepreneurs do not (usually) have:
A tolerance for organizational bureaucracies
A penchant for following rules
A structured approach to developing and implementing ideas
The foresight to plan a course of action once the idea is implemented and established
42. MAJOR FACTORS
DETERMINING SUCCESS OF A
NEW PRODUCT IN THE MARKET
The product provides functional advantages
Lower price for comparable product
More attractive design (look)
Reputation of brand
Easy access: Available in the main retail shops
Consistent product quality
Excellent after-sales services
46. INTELLECTUAL PROPERTY
QUESTIONS
Intellectual Property (IP) Issues/questions during New Product
Development (NPD):
Can the innovation be legally protected? For how long?
How does one protect an innovation from imitators? How much
will it cost? When to protect? Do you need to rely on an IP
expert?
The answers are complicated by the fact that one or more types
of legal frameworks may be used to protect a particular
innovation, product, process, or creative work. These include
trade secrets, trademarks, designs, patents, and copyright.
It is necessary to know which are applicable and when each is
appropriate. This varies somewhat from jurisdiction to
jurisdiction. The advice of a lawyer that specializes in these
matters is essential
47. INTELLECTUAL PROPERTY
QUESTIONS
•It is necessary to know which types
of intellectual property rights (IPRs)
are applicable and when is each
type of IPR appropriate. This varies
somewhat from one country to
another.
•The advice of an IP lawyer is
desirable if not essential.
48. BACKGROUND
In September 2000, the WIPO Assemblies approved the creation of
“a substantial new program of activities, focusing on the IP-related
needs of SMEs worldwide”
SMEs Division established in October 2000
Nine professionals and three administrative staff in the SMEs
Division of WIPO
51. (1) DEMYSTIFICATION
(STUDIES)
National Studies (on IP and SMEs)
completed or under way in Argentina, Bhutan,
Mongolia, Nepal, Philippines, Sri Lanka,
Tanzania, Sierra Leone, Romania, Chile,
Colombia, Costa Rica, El Salvador, Honduras
and Paraguay, Egypt, Morocco, Lebanon
WIPO Survey of IP Services to Tenants of
European Technology Incubators
Norwegian SMEs and the IPR system
52. (1) DEMYSTIFICATION
(GUIDES)
WIPO/ITC Guide on Marketing of Crafts and Visual
Arts; Role of Intellectual Property; A practical guide
WIPO/ITC Guide on Secrets of Intellectual
Property: Guide for Small and Medium Sized
Exporters
WIPO/ITC Guide on Exchanging Value: Negotiating
Technology Licensing Agreements - A Training
Manual
ITC Guide on Exporting Automotive Components
ITC Guide on Pharmaceutical SMEs (Forthcoming)
55. (1) DEMYSTIFICATION
(GUIDES)
Translation and/or customization: Under
way, with funding from several sources, in
the following countries: Algeria, Argentina,
Australia, Canada, Czech Republic,
Egypt, Estonia, Hungary, Italy, India,
Israel, Kenya, Lebanon, Malaysia, Malta,
Mongolia, Morocco, New Zealand,
Philippines, Poland, Slovakia, Spain,
Tanzania, Tunisia, Vietnam
16 Countries members of the OAPI
56. (1) DEMYSTIFICATION
(EVENTS)
Special programs, seminar and workshops organized by
the SMEs Division in Geneva in partnership with selected
associations and organizations (IASP, INSME, IPI, MOST,
WASME)
Annual WIPO Forum on IP and SMEs for IP Offices of OECD
Countries
57. (1) DEMYSTIFICATION
(EVENTS)
WIPO-Italy Forum on Textile
and Clothing Industries of
the Mediterranean Basin
Countries (Prato, Italy -
December 2003)
Participants from Algeria,
Cyprus, Egypt, Jordan,
Israel, Lebanon, Malta,
Morocco, Palestine, Syria,
Tunisia, Turkey
58. (1) DEMYSTIFICATION
(WEBSITE)
The Website of the SMEs Division is in six
UN languages (English, French, Spanish,
Arabic, Russian and Chinese)
More than 60,000 pages viewed every month
in 2004
Contents include sections such as IP for
Business, IP and E-Commerce, Activities,
Best Practices, Case Studies and
Documents
60. (1) DEMYSTIFICATION
(NEWSLETTER)
Monthly e-newsletter in the 6 UN
languages (Free)
Content includes articles, updates
with information, links and
documents
Launched in August 2001
Total number of subscribers:
>19,000
61. (1) DEMYSTIFICATION
(CD-ROM)
50,000 copies of the SMEs Division CD-ROM distributed to
SME support institutions, IP Offices and others worldwide
Marketing and customization
E-learning CD ROM (in partnership with KIPO: “IP
Panorama”)
SAARC CD-ROM (in preparation)
62. (1) DEMYSTIFICATION
(ARTICLES)
Some articles recently published:
What to do if you are accused of copyright
infringement
Tapping into Patent Information: a buried treasure
International trade in technology – licensing of
know-how and trade secrets
Intellectual Property and E-commerce: how to take
care of your business’ website
Offshore outsourcing and IP
Savvy marketing: merchandising of IP rights
63. (2) NEW AUDIENCE
Bringing IP issues to SME events
Bringing new business perspective to IP
events
New partnership: Open door policy
IGOs, government focal points, SME
support, training and financial institutions,
chambers of commerce and industry, SME
associations, SME research institutions,
private sector institutions, universities,
etc...
64. (3) NEW AREAS
Creative Industries
IP for financing (venture capital, securitization)
Accounting and valuation of IP assets
IP Asset Management, IP Due Diligence and IP Audit
Fiscal policies and IP (tax incentives for R&D
activities, patenting, licensing etc.)
IP services to SMEs by incubators, technology parks,
chambers of commerce and SME associations
IP needs of SMEs in agriculture, biotechnology,
handicrafts, software, textiles, etc
66. (5) E-SERVICES
Web site content
SME mail
E-mail newsletter
Distance learning
(proposed)
Discussion forum
(proposed)
67. (6) PARTNERSHIP
National and Regional IP Offices
National SME focal points in government,
private sector
Chambers of Commerce and Industry
SME Associations; Cooperatives
Incubators, Science Parks, Technology Parks
Universities; R & D Institutes
Private Sector Consultants
SME Finance Institutions (including venture
capitalists)
Other UN Agencies (ITC, ILO, UNIDO, AfDB)