Possibilities and Benefits of International Collaboration for Innovative Companies Martin Wassell...

Possibilities and Benefits of Possibilities and Benefits of International Collaboration for International Collaboration for

Innovative CompaniesInnovative Companies

Martin Wassell

Managing DirectorEuropean Institutes

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

Early Marke

t

Death Valley

Bowling Alley

Tornado Main Street (Early)

Main Street (Mature)

Main Street (Declining)

Fault Line

End Of Life

Indefinitely Elastic Middle Period

Frontier Research

ApplicationInnovation

ProductInnovation

ProcessInnovation

Value ChainInnovation

Business ModelInnovation

StructuralInnovation

Time

Revenue G

row

th

What is an Innovative Company?What is an Innovative Company?

1

23

4

Young Innovative Company (YIC) – less than 15 years old and spend at least 15% of expenditures on R&D

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

Why Collaborate ….. Internationally?Why Collaborate ….. Internationally?

Access the best suppliers,

distributors and customers?

Develop product, process

and service solutions?

Scale up to access markets

National and International?

Maximise product

lifespan and profit?

International expertise for concept

Development and market compliance

International markets through

large customers, best suppliers and dist.

Best in class R&D and technology

development

Customer, supplier and distribution

Networks for rapid market access

Extended product, process or service life

market acceptance and penetration

Innovation Barriers International Benefits?

Access the best suppliers,

distributors and customers?

Develop product, process

and service solutions?

Scale up to access markets

National and International?

Maximise product

lifespan and profit?

International expertise for concept

Development and market compliance

International markets through

large customers, best suppliers and dist.

Best in class R&D and technology

development

Customer, supplier and distribution

Networks for rapid market access

Extended product, process or service life

market acceptance and penetration

Access the best suppliers,

distributors and customers?

Develop product, process

and service solutions?

Scale up to access markets

National and International?

Maximise product

lifespan and profit?

Select the best opportunity

and balance risk/reward?

Access the best suppliers,

distributors and customers?

Develop product, process

and service solutions?

Scale up to access markets

National and International?

Maximise product

lifespan and profit?

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

CooperationCooperation€€32,36532,365

CapacitiesCapacities€€4,2174,217JRCJRC

€€1,7511,751

IdeasIdeas€€7,4607,460

EuratomEuratom€€2,7512,751

PeoplePeople€€4,7284,728

€1.4Bn1. Thematically unrestricted2. 100% cost reimbursed3. Excellent cash flow

€1.4Bn1. Thematically unrestricted2. 100% cost reimbursed3. Excellent cash flow

FP7 An Opportunity for CollaborationFP7 An Opportunity for Collaboration

6,050

1,935

9,110

3,500

2,300

1,900

4,180

6102,780 Health

Food

IST

NMP

Energy

Envt

Transport

SSH

Sec and Space

Open InnovationOpen Innovation …and the Smart Use of Public …and the Smart Use of Public FundingFunding

Developing the Value of New

Ideas

95% of Costs Paid for by

the EC

International Distribution

Network

Creation of Full Value

Chain

1 2 3 4 5 6

Access to World Class

R&D Resources

Develop Key Customer

Relationships

The DNA of Successful International Business The DNA of Successful International Business DevelopmentDevelopment

How This Programme Supports How This Programme Supports International CollaborationInternational Collaboration

Developing the Value of New

Ideas

95% of Costs Paid for by

the EC

International Distribution

Network

Creation of Full Value

Chain

1 2 3 4 5 6

Access to World Class

R&D Resources

Develop Key Customer

Relationships

How This Programme Supports How This Programme Supports International CollaborationInternational Collaboration

The DNA of Successful International Business The DNA of Successful International Business DevelopmentDevelopment

CustomersCustomers

CompetencesCompetences

Developing The Value of New Ideas!Developing The Value of New Ideas!

QualityQuality

CostCost

DeliveryDelivery

PerformancePerformance

FlexibilityFlexibility

FunctionalityFunctionality

Customer RelationshipCustomer Relationship

Developing The Value of New Ideas!Developing The Value of New Ideas!

EC funding is about creating sales, wealth …and high value jobs!

Developing the Value of New

Ideas

95% of Costs Paid for by

the EC

International Distribution

Network

Creation of Full Value

Chain

1 2 3 4 5 6

Access to World Class

R&D Resources

Develop Key Customer

Relationships

Developing the Value of New

Ideas

95% of Costs Paid for by

the EC

International Distribution

Network

Creation of Full Value

Chain

1 2 3 4 5 6

Access to World Class

R&D Resources

Develop Key Customer

Relationships

The DNA of Successful International Business The DNA of Successful International Business DevelopmentDevelopment

How This Programme Supports How This Programme Supports International CollaborationInternational Collaboration

The Value PropositionThe Value Proposition

Develop the value & differentiation of new offering ideas

Provide access to experts to outsource/co-deliver the R&D

Develop your idea into a commercially validated prototype

Build new technical capabilities into your value chain

Develop new market access & customer relationships

Create 95% cost leverage for you with no dilution of IPR & equity

Cost Leverage PotentialCost Leverage PotentialWhen You Carry Out Part of the R&DWhen You Carry Out Part of the R&D

Smart Use of Public funding

R&D Partner 1University

R&D Partner 2

SME

R&D Partner 3

SME

R&D Partner 4Large Firm

R&D Partner 6

SME

R&D Partner 5

Research Inst

You

Total Project €3,500k costs €2,500k grant

71 % reimbursed

€500k costs €375k grant

75% reimbursed

€500k costs €375k grant

75% reimbursed€500k costs

€375k grant 75% reimbursed

€500k costs €375k grant

75% reimbursed

€500k costs €375k grant

75% reimbursed

€500k costs €375k grant

75% reimbursed

€500k costs €250k grant

50% reimbursed

R&D Partner 1University

R&D Partner 2

SME

R&D Partner 3

SME

R&D Partner 4Large Firm

R&D Partner 6

SME

R&D Partner 5

Research Inst

You

Total Project Effort Secured €3,500k

€155k of your costs, leverage €3,500k of R&D creating IPR for you at 95% leverage

Cost Leverage PotentialCost Leverage PotentialWhen You Outsource the R&DWhen You Outsource the R&D

Smart Use of Public funding

Supply Partner 1

SME

Supply Partner 2

SME

Supply Partner 3

SME

Customer Partner 4Large Firm

Distributor Partner 6

SME

DistributorPartner 5

SME

You

Total Project €1,500k costs €1,125k grant

75 % reimbursed

R&DR&DPerformer 1Performer 1Research InstResearch Inst

R&DR&DPerformer 1Performer 1Research InstResearch Inst

€1,125k grant pays R&D service provider costs

€375kof SME costs Split 7 ways

€53k each

R&D Partner 1University

R&D Partner 2

SME

R&D Partner 3

SME

R&D Partner 4Large Firm

R&D Partner 6

SME

R&D Partner 5

Research Inst

You

Total Project Effort Secured €3,500k

€80k of your costs, leverage €1,500k of R&D creating IPR for you at 95% leverage

R&DR&DPerformer 1Performer 1Research InstResearch Inst

R&DR&DPerformer 1Performer 1Research InstResearch Inst

EC Expertise

Control of IPR

Co-Investment

Route to Market

The Experts Available Through the The Experts Available Through the ProgrammeProgramme

No Cranks or Tyre Kickers!No Cranks or Tyre Kickers!

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

EurostarsEurostars

A Eurostars project European research and development projectAddress any technological area

• development of a new product, process or service

Collaborative – minimum of 2 participants from 2 different Eurostars participating countries

Main participant must be a research-performing SME from one of these countries

Project should be market-driven with a maximum duration of 3 years

Within 2 years of project completion• product of the research should be ready for launch onto the

market (except biomedical or medical projects, where clinical trials must be started within two years of project completion)

First deadline – 8th February 2008

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

“With this new alternative to invasive surgery, we see our market growing to over €100m. A key element of success was the access

to R&D skills that we don’t have internally.”

Andrew Lewis, Technical Director, Biocompatibles Ltd

Improved Functionality Improved Functionality Enables Pain ReliefEnables Pain Relief

Uterineartery

Polyvinyl Beads

Fibroid

Eluted drug

The project allowed us to investigate novel surface features to allow earlier product fixation resulting in the potential for implant longevity.

Alan Taylor CEO, Finsbury Ltd

Improved Product Function Improved Product Function Improves Patient OutcomeImproves Patient Outcome

This technology represents a major part of our product development programme for the next 10 years

Allen Ritchie VP R&D DePuy plc,

Decision Support Software Improves Decision Support Software Improves Flexibility For Orthopaedic ImplantsFlexibility For Orthopaedic Implants

AgendaAgenda

What is an Innovative Company?

Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration

International Collaboration for Innovation Framework Programme 7Eurostars

Case Studies

Questions

Thank YouThank You