PPT

1. 1
WIPO/INV/BEI/02/8
SECOND INTERNATIONAL FORUM ON
CREATIVITY AND INVENTION
A BETTER FUTURE FOR HUMANITY IN THE
21ST CENTURY
Beijing, May 23 - 25, 2002
WEALTH CREATION THROUGH INVENTION,
INNOVATION AND CREATIVITY
Document presented by Vladimir Yossifov, Director,
Division for Infrastructure Services and Innovation Promotion,
World Intellectual Property Organization (WIPO), Geneva

2. 2
Creativity, Inventions and Innovation
Sustained economic growth cannot be achieved through
saving or investment,
macroeconomic adjustment policy,
preferential taxes or subsidies unless these are
accompanied by the myriad large and small inventions
and discoveries, required to create greater value from
natural resources
Paul Romer

3. 3
Technology, Innovation, Science and
Development
 Technology is the systematic study of techniques for
making and doing things (concerned with the fabrication
and use of artifacts)
 Science is the systematic attempt to understand and
interpret the world (it depends upon the skills of literacy
and numeracy)
 Technology is as old as mankind, science developed with
the development of civilization

4. 4
Technology, Innovation, Science and
Development
 Technological development and innovation is one of
the most important factors for economic
development
 Long-term economic growth is the result of an
increase and accumulation of technological
knowledge
 The contribution of raw materials, and/or labor, has
steadily declined in providing that competitive edge
to new products

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Technology and Innovation - The
Never-ending Spiral
 From its beginning, Chinese civilization valued
technological skill, e.g. hydraulic engineering,
(survival depended on controlling the enriching but
destructive floods of the Huang Ho (Yellow River)),
the casting of iron, the production of porcelain,the
manufacture of brass and paper, silk production, the
magnetic compass or the waterpowered mechanical
clock
 Western knowledge of silk working, the magnetic
compass, papermaking, and porcelain were all derived
from China (it took centuries before Europeans were
able to produce anything of a similar quality)

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Factors and Conditions for an
Innovative, Supportive and Enabling
Environment
 Education
 Information and transfer of knowledge
 Government policies, including tax policy, supportive
legal and regulatory framework
 Industrial, technological and R&D infrastructure
 Efficient intellectual property system
 Recognition & rewards
 Company climate and culture
 Work force and labor environment
 Entrepreneurial spirit
 Availability of funds and financial resources

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Creativity, Inventions & Innovation
 Countries & companies
 policies and priorities
 resource commitment
 enhancing creativity of staff and people
 promoting entrepreneurial spirit
 increasing productivity
 gaining competitive advantage
 generating wealth and improving comfort of
life

8. 8

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Creativity and Invention -Challenge
to Stability
By nature man is torn between:
Security where he seeks shelter
Adventure where he takes risks
• Price for each contrasting outcome
• Assessed risks
 Being creative is risky - higher price, but also higher
reward
Ideas without risks are useless, while
risks without ideas are stupid

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Creativity and Innovation -Challenge
for Public Policy Makers
 Facilitate rather than regulate
 Give companies and entrepreneurs more freedom
to experiment
 Guarantee a fair share of invention and innovation
benefits to inventors and creators
 Positive attitude towards failures and risk
 To encourage inventors and creators to join
efforts with entrepreneurs in developing
innovative ideas

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Inventions
 Creating something new that did not
exist before
 New solutions to existing problems
 Result of human creativity and curiosity
 Successful inventions - demand driven

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Inventions
 Few inventions
break-through -
pioneering
inventions
– new industries
– new business
– new markets
 Most inventions -
incremental
development of
technology
– improved quality
– better performance
– higher productivity
– more customer
satisfaction
– reduced cost

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Innovation and the IP System
 19th century - protection and promotion for
inventors-entrepreneurs
 20th century - protection of corporate
interests - anonymous inventors
 21th century - increased awareness will result
in new empowerment of creative individuals
and entrepreneurs

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Innovation
 Process - bringing an invention to market and
users
 Innovation is planned - does not happen by
chance
 Requires team work and cooperation
inventors and researchers
process, product and design engineers
lawyers and marketing specialists
financial and production managers
sales, advertising and distribution specialists
entrepreneurs

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Innovation
 Entrepreneur - play-maker
 bring together all those who make
innovation a success
 Success function of
 competitive advantages offered by
innovation
 social and economic environment open to
change and progress
 general attitude towards risk, failure,
science and technology, invention and
innovation

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Entrepreneurs are Characterized by:
 Ability to think, take risks and make decisions
 Independent, reflect and make their dreams
to become reality
 Have a sense of inquiry
 Do not believe in inhibitions or limitation

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Obstacles to Innovation
 Conservative and hierarchical structures hostile to
innovation
 New ideas threaten the profits of existing products and
services
 larger organizations tend to apply the NIH factor
(NIH=Not Invented Here) to get rid of uninvited
innovators (= troublemakers).
 Often innovators do not get recognition, "but a R&D
effort that fails is never forgotten"
 Inventors not able to present ideas in business terms;
many do not even see the business benefits of their ideas

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Obstacles to Innovation
 Innovators are seen as "irritating viruses" or
“troublemakers” in the corporate environment.
 Companies ignore innovations when they do not fit into
any of their existing business profiles
 The budget allocation process is designed to support
existing businesses
 New ideas are eroded by subtle discouragement rather
than by explicit vetoes (application of organizational
antibodies to neutralize the irritating viruses):
 withholding of funding,
 general nay-saying,
 subtle signals that it might not be 'career smart' to
associate with an innovation project"

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Conclusions
 All nations have a wealth of creative and
inventive people, with a variety of cultures and
experience
 One of the best ways to spark great new ideas
is to give creators and inventors genuine
opportunities to develop their ideas
 Universities and R&D organizations to adopt
active IP policies to lead the innovation
process
 Governments and policy makers to encourage
and support creation of a climate favorable to
invention, creativity and innovation

20. 20
Conclusions
 Invention will generate benefits if and when it
goes through the innovation process to the
market place
 The innovation process may be long and
requires a lot of expertise and resources
 Governments should support and promote the
creation of support services for innovation
 IPRs - a key to converting innovation into new
opportunities for successful business
 Innovation starts with a dream, and an
entrepreneur may convert the dream into
action and a real product
 The way to success is paved by lessons from
failures

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Invention and Innovation need
Imagination