Innovation Across Borders - Session 5 rob ford

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Innovation Across Borders - Session 5 rob ford

  1. 1. OPEN INNOVATION – OPPORTUNITIES AND RISKS OF IP TRANSFER ACROSS BORDERS Robert D. Ford February 24, 2011 Innovation Across Borders Conference MaRS Centre, Toronto, Ontario
  2. 2. Gowlings <ul><li>One of Canada’s largest national law firms </li></ul><ul><li>750 professionals across 8 Canadian offices and Moscow and London </li></ul><ul><li>Cross-disciplinary: </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Advocacy </li></ul><ul><li>Corporate Finance </li></ul><ul><li>Licensing, Strategic Alliances and Joint Ventures </li></ul><ul><li>Mergers and Acquisitions </li></ul><ul><li>Regulatory, Government Relations and Product Liability services </li></ul>
  3. 3. <ul><li>Business Models for Technology Commercialization </li></ul><ul><li>CLOSED INNOVATION - ruled the 20th century </li></ul><ul><li>OPEN SOURCE - emerged early 1990s </li></ul><ul><li>OPEN INNOVATION - emerged mid-late 1990s </li></ul>
  4. 4. Closed Innovation <ul><li>20 th century “Big Business” model </li></ul><ul><li>based on internal / vertical commercialization </li></ul><ul><li>excludes external inputs ( except for institutional R&D ) </li></ul><ul><li>USA, early 1900s - Europe & Japan early 1950’s </li></ul><ul><li>heyday, 1950s-1980s ( Fortune 500 companies ) </li></ul><ul><li>Increasing DECLINE 1990s to present </li></ul>
  5. 5. Closed Innovation © Henry Chesbrough, 2003, “Open Innovation”
  6. 6. <ul><li>free re-distribution of software in source code form </li></ul><ul><li>shared rights to use the technology </li></ul><ul><li>collaborative further development & sharing of the technology </li></ul><ul><li>no monetary rewards to the innovators </li></ul><ul><li>Open Source IS NOT a sustainable business model </li></ul><ul><li>primarily used by electronic gaming industry & academia </li></ul>Open Source ( Principles )
  7. 7. <ul><li>mid-1990s – “Closed Innovation” biotechnology commercialization ran into court battles over IP </li></ul>Open Innovation (Drivers) <ul><li>internal projects dropped by Fortune 500 companies = layoffs and unemployment </li></ul><ul><li>unemployed highly trained personnel started companies </li></ul><ul><li>realization that ~90% of IP was not commercialized </li></ul>
  8. 8. Open Innovation (Drivers) <ul><li>explosion in electronic communications & media </li></ul><ul><li>powerful low cost/no cost internet search engines </li></ul><ul><li>appearance of fast-track commercialization clusters </li></ul><ul><li>evolution of “OPEN INNOVATION” commercialization </li></ul>2000’s
  9. 9. <ul><li>takes advantage of others’ knowledge, successes & IP </li></ul>Open Innovation (Principles) <ul><li>accelerates speed of commercialization </li></ul><ul><li>based on rapid diffusion – adoption – imitation </li></ul><ul><li>requires brokering of knowledge & IP & collaborations </li></ul>
  10. 10. Open Innovation (Principles) <ul><li>focus on extensive licensing: </li></ul><ul><ul><ul><li>licensing-in </li></ul></ul></ul><ul><ul><ul><li>licensing-out </li></ul></ul></ul><ul><ul><ul><li>cross-licensing </li></ul></ul></ul><ul><li>greatly expands value capture from protected IP </li></ul><ul><li>patents used as “currency” (not as barriers) </li></ul>
  11. 11. Open Innovation (How it works) © Chesbrough et al., 2006, “Open Innovation; Researching a New Paradigm””
  12. 12. The Panel <ul><li>Jennifer Thompson, V.P. Corporate Development & Investor Relations EnWave Corporation (TSX-V: ENW) </li></ul><ul><li>Dr. Yousef. Haj-Ahmad, M.Sc., Ph.D. President & CEO, Norgen Biotek Corp. </li></ul><ul><li>Mr. Martin Bonenfant, Intellectual Property Analyst, Medicago Inc. </li></ul>
  13. 13. The Discussion Questions <ul><li>How does one protect IP in a global economy? </li></ul><ul><li>What does one &quot;give&quot; and what does one &quot;take&quot; in global collaboration? </li></ul><ul><li>Examples of &quot;open innovation&quot; best practices for SMEs? </li></ul>

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