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TePP OPEN INNOVATION NETWORK

A. S. Rao, Adviser,

Department of Scientific and Industrial Research, Govt. of India

(asrao@nic.in)http://indiainvents.blogspot.com/

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Shifting focus

DevelopedEconomy

DevelopingEconomy

Growth Intellectual Capital National Innovation System

High

Low

Innovation Capability

OSDD, RGIC, TePP Open Innovation

Risk-taking Capacity

TDDP, TDB, NMITLI, HGT, TePP,

Learning Capacity

Extramural Research

Absorption Capacity

TAAS

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Why do firm cooperate? To reduce transaction cost As a strategic tool For resource sharing.

Transaction costs are cost of using the market; costs thatstem from searching for a supplier/ customer, negotiationand drafting a contract, and finally from monitoring andenforcing it. Transaction cost theory was formulated byRonald H Coase in 1937 for which he was awarded Nobel.

Higher transaction costs forbid tapping too many smallpackets of knowledge.

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Typology of transactions

Clear Proprietary rights + standard technology = Horizontal technology transfer

Clear Proprietary rights + technology uncertainty= Vertical technology transfer

Appropriation uncertain + standard technology = Sponsored research

Appropriation uncertain + technology uncertainty = Networks/ in-house R&D

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Networks of innovators

Networks of innovators are another means by which, under conditions of technological and appropriation uncertainty, firms can ally themselves to create technological turbulence, a new market space in which to operate and eventually structure a new market.

The difficulties in appropriating an ill-defined and unstable knowledge makes a network alliance of component suppliers, assemblers and key customers an advantageous alternatives.

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Open Innovation Networks

Cherbourg defined open innovation as "... the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively.”

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P&G Connect + Develop

Procter & Gamble accelerated their internal research and development efforts by seeking and leveraging the ideas, talents and innovation assets of individuals, institutes and companies around the world. Through Connect + Develop, P&G built a global innovation network by identifying and connecting with the talents and technologies of today’s most prepared minds and capabilities.

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P&G success

Introduced Bounce, the world’s first dryer-added softener, after acquiring the product technology from the independent inventor who developed the innovative fabric-care solution.

By acquiring the newly introduced SpinBrush, P&G was able to bring a superior oral care brand to market quickly, without undertaking the time and expense of developing an entirely new product.

Several of Olay Skin Care products now utilize new consumer preferred pump dispensers originally developed by a European packaging products company. P&G led a collaborative improvement process to make the original pumps more effective prior to their launch in Olay’s North American markets.

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MiPlaza

MiPlaza, part of Philips Research, offers world-class industrial research facilities, services and expertise to outsiders to execute their research and development in the most effective way.

A wide range of facilities, equipment and support is offered by a staff of professional engineers and experts, including clean room facilities, thin-film process- and device development, material- and process analysis, test & measurement instrumentation, laboratories, measurement services.

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Three regimes at the same time

Control of strategic know-how and IP:Securing competitiveadvantage

Share own know-how and IP that is non-differentiating

Get access to non-differentiating know-how and IP of others

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Innocentive

Eli Lilly launched InnoCentive as a way to connect with people outside the company who could help in developing drugs and speeding them to market.

Dow Chemical's Dow AgroSciences unit turned to Lilly's InnoCentive Web site to solve a dozen research riddles. InnoCentive has signed up 30,000 scientists worldwide and pays bounties of up to $100,000 for solutions to problems posted on the site by Dow and other seekers.

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Nine Sigma

NineSigma partners with Global 1000 companies to transform their innovation capabilities by connecting them with the very best innovators from around the world.

Used by P&G, DuPont, GlaxoSmithKline, Kraft, General Mills, Unilever

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TeKScout

TekScout™ harnesses UTEK's relationships with over 2,000 universities, national labs and companies as well as thousands of individual scientists, or TekExperts, to work on the world's most challenging projects.

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Open Innovation Funnel

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TePP Network

Technopreneur Promotion Programme (TePP) is India's largest network program supporting independent innovators.

The network, with its 30 outreach centers spread across the country, provides grants, technical guidance and mentoring support to independent innovators.

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TePP Open Innovation Network

Supply side process established.Build demand side by linking `problem

owners’ with `Problem solvers’ using TePP Portal.

Need to train firms in problem definition/ segregation and IP management.

Need to augment data base of innovators.Promote `IP Auction sites’ and `sector

specific IP funds.

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Is it feasible???

Can independent innovators/ start-ups come with innovations that excite commercial firms?

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Yes. It is possible Innovator Ajee Kamat from Cochin, who worked for a long

period as Marine engineer, invested all his savings and developed an engine based on RVCR technology, which has potential to revolutionize engine technology. He has patented his concept both in India and abroad. Tata Motors have entered into a license agreement with the innovator to jointly develop the technology further and commercialise it.

Aurora Integrated Systems is a start-up from IIT, Kanpur working on developing indigenous technology, manufacturing and integrating state-of-the-art airborne systems with a focus on small Unmanned Aerial Systems (UAS). They are now supported and funded by the TATA group.

Kranti Kiran, taking a break from post graduate work at MIT focused on developing ClimaGear . The innovator received letter of intent from Tata Advanced Systems

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Conclusion

A shift is taking place from closed innovation to open innovation.

Create most ideas Vs Use most ideas. The lab is our world Vs World is our lab. TePP Network after establishing processes for

scouting, screening, evaluation, funding, patenting, development and commercialization is now extending the scope to bring TePP Open Innovation Network, India’s first.