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Collaborative Knowledge Networks for Physicians University of Hamburg Marketing and Innovation Prof. Dr. Thorsten Teichert von-Melle-Park 5 - D-20146 Hamburg fon: +49 40 42838 4643 - fax: +49 40 42838 5250 iploit AG Witikonerstrasse 80 - CH-8032 Zürich fon: +41443897575 - fax: +41443897579 OECD EXPERT WORKSHOP ON KNOWLEDGE MARKETS IN LIFE SCIENCES National Academy of Sciences, Washington, D.C., USA October 16, 2008 Iwan von Wartburg Managing Partner, iploit AG, Switzerland Senior Research Fellow, University of Hamburg, Germany

Collaborative Knowledge Networks for PhysiciansCollaborative Knowledge Networks for Physicians University of Hamburg Marketing and Innovation Prof. Dr. Thorsten Teichert von-Melle-Park

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Page 1: Collaborative Knowledge Networks for PhysiciansCollaborative Knowledge Networks for Physicians University of Hamburg Marketing and Innovation Prof. Dr. Thorsten Teichert von-Melle-Park

Collaborative Knowledge Networks forPhysicians

University of HamburgMarketing and InnovationProf. Dr. Thorsten Teichertvon-Melle-Park 5 - D-20146 Hamburgfon: +49 40 42838 4643 - fax: +49 40 42838 5250

iploit AGWitikonerstrasse 80 - CH-8032 Zürichfon: +41443897575 - fax: +41443897579

OECD EXPERT WORKSHOP ON KNOWLEDGE MARKETS IN LIFE SCIENCESNational Academy of Sciences, Washington, D.C., USAOctober 16, 2008

Iwan von WartburgManaging Partner, iploit AG, Switzerland Senior Research Fellow, University of Hamburg, Germany

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Agenda

► Knowledge characteristics of physicians as independent inventors having an impact on technological development

► Leveraging technological specialization of knowledge in knowledge communities / networks

► Collaborative knowledge networks: two examples in the field of surgery

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Physicians as independent inventors (1)

► Innovation is becoming increasingly open and democratized. (Chesbrough, 2003; von Hippel, 2005)

► Independent inventors appear to be an important source of breakthroughs and commercially attractive innovations in many industries (Amesse et al., 1991; Åstebro, 2003; Baldwin et al., 2006; Fleming, 2007; Lettl et al., 2006; Riggs and von Hippel, 1994; Spear, 2006).

► Capability: independent inventors’ ability to think outside the box

► Motivation: independent inventors’ benefits from inventing

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Physicians as independent inventors (2)

► Independent inventors’ motivation for voluntarily engaging in creative processes is typically a combination of the following motives:

► First, the inventors may simply enjoy the intellectual challenge of developing a novel solution to a problem (Harhoff et al, 2003a; Lakhani and Wolf, 2005).

► Second, they may be compelled by a need for a better solution (von Hippel, 2005).

► Third, they may be motivated by the prospect of gaining recognition from peers or signalling technical excellence to venture capitalists or potential employers (Lerner and Tirole, 2002).

► Fourth, they may see an incentive in the monetary rewards which may arise from patent licensing, consultancy or entrepreneurship (Åstebro and Dahlin, 2005; Spear, 2006).

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Physicians as independent inventors (3)

► The opportunity to borrow from many disparate fields, i.e. to reassemble knowledge from diverse technological fields in a novel fashion, is said to put independent inventors in an advantageous position to develop breakthroughs (Fleming, 2007; Shane, 2001; von Hippel, 2005).

The freedom to think 'outside of the box' allows independent inventors to experiment with previously unattempted combinations of technologies and components.

► Reasons for independent inventors’ ability to think outside the box:

► They do not have an explicit obligation to innovate and thus enjoy a high degree of autonomy in their inventive practice.

► They are often industry outsiders and therefore less entrenched in the existing assumptions, mental models and problem-solving paradigms of an industry.

► They are less prone to organizational inertia, and their solution space is less fettered by corporate policies, core competencies and core rigidities.

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Physicians as independent inventors (4)

► But does that also hold true for rather high-tech areas like medical equipment technologies? ► Who are the independent inventors in that particular technology

field?

► Do they contribute to technological progress?

► And, do they profit from knowledge diversity, i.e. ‘assembling’different knowledge areas?

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Physicians as independent inventors (5)

► Lettl et al. 2008 investigate the role of independent inventors’ prior knowledge characteristics on the technological impact of their patented inventions in the medical equipment industry.► Technological impact: How often does the patented technology serve as a

foundation for later inventions? patent citation measure (citations received)► Knowledge characteristics:

► Diversity: Technological diversity, or the breadth of technological knowledge, allows creativity and generates new perspectives and insights by a blending of prior knowledge from different fields. patent citation measure (direct citations made)

► Specialization: Cumulativeness relates to specialization, or depth of knowledge within a given field. patent citation measure (direct and indirect citations made)

► Independent inventors are identified by matching assignee and inventor fields on patent documents. Manual check: More than 90% of the independent inventors are physicians.

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1681 patent families in thefield A61B17 published between1980 and 2005 and primarilyassigned to IPC patent subclassA61B17 (‚surgical instruments, devices or methods‘)

Manual coding:

-Independent inventors: 205 patent families belonging to 174independent inventors

-Corporate inventors: 1476 patent families belonging to 496 companies

Data and independent inventor identification

Physicians as independent inventors (6)

Source: Lettl et al., 2008

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Physicians as independent inventors (7)

Prior Knowledge Baseapplied to Invention

Source of InventionTechnological Impact

of InventionIndependent / Corporate

Inventors

SpecializationDiversity

H1/H2Marginal Returns

Research Framework

Source: Lettl et al., 2008

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Physicians as independent inventors (8)

Source: Lettl et al., 2008

Quantile plots of the technological impact of corporate and independent inventors

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Physicians as independent inventors (9)

Source: Lettl et al., 2008

Interaction effect of the source of invention and technological specialization/diversity on technological impact

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Physicians as independent inventors (11)

► Overall, our results indicate that on average independent inventors generateinventions of lower technological impact than their corporate counterparts.

► Independent inventors apply a significantly more diversified base of priorknowledge to inventions than corporate inventors.

► There are no significant differences in the degree of specialization betweenindependent inventors and corporate inventors.

► High-impact independent inventors apply high degrees of specialization and low degrees of diversity, while low-impact independent inventors apply lowdegrees of specialization and high degrees of diversity.

► To sum up, the more independent inventors apply a high degree of specialization and a low degree of diversity, the more capable they are of reaching the same level as or even outperforming corporate inventors.

Source: Lettl et al., 2008

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Agenda

► Knowledge characteristics of physicians as independent inventors having an impact on technological development

► Leveraging technological specialization of knowledge in knowledge communities / networks

► Collaborative knowledge networks: two examples in the field of surgery

Page 14: Collaborative Knowledge Networks for PhysiciansCollaborative Knowledge Networks for Physicians University of Hamburg Marketing and Innovation Prof. Dr. Thorsten Teichert von-Melle-Park

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Knowledge communities / networks (1)

► Independent inventors who specialize in a certain technological fieldhave a higher likelihood of becoming embedded and being awardedlegitimacy in communities of peer specialists.

► Independent inventors have often been stereotyped as lone 'garage' inventors (Fleming, 2007).

► Recent work indicates that many independent inventors are embeddedin social networks of individuals who share an interest in a specifictopic or field (Antorini, 2005; Baldwin et al., 2006; Franke and Shah, 2003; Jeppesen and Frederiksen, 2006; Lettl et al., 2006; Luethje et al., 2005).

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Knowledge communities / networks (2)

► Knowledge communities are partly informal networks of individualswho share an interest in a certain topic or field.

► Communities therefore center on a specific field and both attract and generate specialists (peers) in that field.

► Within peer communities, individuals voluntarily share experience and knowledge, exchange ideas and innovative artefacts, and providefeedback on posted ideas or solutions.

(Brown and Duguid, 2001; Hienerth and Lettl, 2008; Perry-Smith and Shalley, 2003; von Hippel, 2007).

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Knowledge communities / networks (3)

► Independent inventors who participate in communities are able to leverage resources and processes to add to the value of their personal expertise:► They acquire state-of-the-art knowledge and learn about trends and

important issues in the field.

► Their ideas and solutions are given feedback from the community (peerreview).

► Collaborative filtering and rigorous selection for promising ideas: Community-embedded independent inventors are thus able to make betterchoices as to which ideas and novel combinations are worth advancing(Hienerth and Lettl, 2008; Fleming, 2007; von Hippel, 2007).

► Stronger and faster dissemination of ideas and solutions increases thelikelihood that their inventions will be cited in future work (Fleming, 2007).

Source: Lettl et al., 2008

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Knowledge communities / networks (4)

Technological specialization of independent inventors‘ knowledge as a prerequiste forthe generation of inventions with a strong

technological impact

Expert knowledge community / network+

+

In sum, community embeddedness as a cause and/oreffect of technological specialization enablesindependent inventors to gain access to processesand resources which corporate inventors typically find in the corporate context.

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Knowledge communities / networks (5)

► Knowledge networks advance professional practice and inventiveprogress in technology fields that are based on and apply theknowledge practiced in the knoweldge community.

► They therefore fulfill an important function as a driver for futurerelevant professional knowledge.

► How can they be implemented?

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Agenda

► Knowledge characteristics of physicians as independent inventors having an impact on technological development

► Leveraging technological specialization of knowledge in knowledge communities / networks

► Collaborative knowledge networks: two examples in the field of surgery

Page 20: Collaborative Knowledge Networks for PhysiciansCollaborative Knowledge Networks for Physicians University of Hamburg Marketing and Innovation Prof. Dr. Thorsten Teichert von-Melle-Park

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Example – AO foundation (1)

► The AO is a Swiss-based non-profit organization based on a network of surgeons who are committed to the study, practice, and teaching of AO (surgical) principles and their advancement in the field of trauma and musculoskeletal surgery.

► In 1958, thirteen surgeons came together to promote what was at the time a revolutionary idea—internal fracture fixation. The AO (Arbeitsgemeinschaft für Osteosynthesefragen) was founded in 1958 by a group of Swiss surgeons—Maurice E Müller, Robert Schneider, Hans Willenegger, and Martin Allgöwerwho were conducting research into bone healing, with particular reference to the influence of the mechanical environment of the fracture upon its healingpattern.

Source: www.aospine.org, www.aofoundation.org

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Example – AO foundation (2)

► When AO commenced in the 1950s, non-operative treatment was the unquestioned standard in fracture care. Early attempts at operative treatment had been made but usually produced unsatisfactory results.

► The founders of AO realized that this was due to unsuitable techniques and the poor quality of the available implants. In its early days, AO therefore focused on the mechanics of fixation, i.e. developing suitable implants and tools for rigid fixation.

► Soon, educational activities were started as a means for spreading this concept and teaching the necessary surgical techniques: From around1960, the AO promoted and organized the treatment of fractures withits own industrially produced and marketed plates, screws, and instruments.

Source: www.aospine.org, www.aofoundation.org

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Example – AO foundation (3)

► This early work laid the foundation for the current knowledge of thedirect and indirect healing of fractures, as well as the influence of rigidfixation upon the healing of non-unions.

► The AO’s classical landmark experiments are known to fracturesurgeons throughout the world.

► The aims of the AO pioneers were not to popularize the indiscriminateuse of surgical fixation, but rather to evaluate scientifically its place in the care of the injured and, where appropriate, to refine surgicalpractice so that the outcome for the victim of injury could be optimized.

Source: www.aospine.org, www.aofoundation.org

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Example – AO foundation (4)

► In 1984 the AO Foundation was formerly constituted to take responsibility forthe various commissions of: research, development, education, documentation, and international affairs.

► 1992 the entire Foundation moved to a custom built AO Center on the outskirtsof Davos, where it remains till today.

► Nowadays the AO represents a “Gold Standard”, delivering a win-win mergerof surgical practitioners, researchers, and industry to the benefit of patients.

► The AO today represents the world's leading knowledge organization in osteosynthesis with more than 5,000 surgeons, including an international faculty of over 3,000 in more than 100 countries.

► The AO organization works together with industry in the areas of research, development, education, and quality assurance in fracture treatment for thebenefit of fracture patients.

Source: www.aospine.org, www.aofoundation.org

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Example – AO foundation (5)

► In 2006 AO started the project „knowledge services“. Although the projectsuffered initial difficulties it turned out to be a highly successful endeavour: according to oral information by the AO CEO, Mr. Strasser, currently 20‘000 visitors a month make use of the codified knowledge offered by the platform in order to enhance their surgical practice.

► What makes it different from a simple, or even sophisticated, database is thefact that the knowledge ‚assets‘ are offered in an evidence based way.

► Surgeons can make use of the advice, i.e. actionable knowledge that a colleague provided for a similar ‚case‘ and that was enriched by the webteambased in Davos by providing additional (multimedia) content. More than fifty of the world’s most renowned surgeons from 20 countries are contributing to thisproject, making sure that the AO principles are followed while keeping in mindlocal realities.

Source: www.aosurgery.org

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Example – AO foundation (6)

► To understand the AO SurgeryReference, think of a hugeonline library where you canfind quick answers to clinicalquestions and where hundredsof surgical procedures aredescribed in text and images.

► Approaches and patientpositionings are shown, and decision making is supportedwith a huge evidence basecontaining the literature of thelast decade. AO SurgeryReference helps you make theright decisions.

Source: www.aosurgery.org

► On the Start page of theAO Surgery Referenceyou’ll see a skeleton.

► The anatomical areasavailable now arehighlighted. New anatomical areas arebeing added continuouslyat 2-month intervals.

► A click on the anatomicalarea of your interest will take you directly to a website dedicatedexclusively to thatanatomical region.

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Example – AO foundation (7)

Source: www.aosurgery.org

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Agenda

► Knowledge characteristics of physicians as independent inventors having an impact on technological development

► Leveraging technological specialization of knowledge in knowledge communities / networks

► Collaborative knowledge networks: two examples in the field of surgery

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Example – syndicom spineconnect (1)

► Syndicom was founded to enable communities and companies to seamlesslycollaborate and share knowledge, ultimately delivering innovative solutions to market in a more timely, creative and efficient way.

► In October 2005, the company launched its flagship product, the SyndicomSpineConnect platform, to enable spine surgeons to collaborate on difficult and unusual cases. In 2006 Syndicom delivered two new products built on itswidely embraced SpineConnect platform, ProductEdge and ResearchEdgePrivate Networks, and in 2007 launched TrialEdge and Technology Fellowships.

► Syndicom’s collaborative process is built on over 30 years of research byprofessors Raymond Miles (University of California, Berkeley), Charles Snow(Pennsylvania State University), and Grant Miles (University of North Texas).

Source: http://syndicom.com/

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Example – syndicom spineconnect (2)

► The Syndicom SpineConnect platform enables surgeons to collaborateon difficult and unusual cases, develop novel approaches to treatment, address the top challenges in spine healthcare, and createtechnological solutions that address voids in the current productmarket.

Source: http://syndicom.com/

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Example – syndicom spineconnect (3)

► Everyday, spineconnets‘ members are logging on to collaborate on cases, educate themselves, and make connections with theircolleagues. Syndicom’s SpineConnect community has:

► 800+ cases and 3800+ reviews posted

► 200,000+ visits

► Over 1000 members

► Over 30 different countriesrepresented

► 100+ groups formed

Source: http://syndicom.com/

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Thank you very much for your attention!

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Referenced Literature (1)

► Harhoff, D., Scherer, F. M., Vopel, K., 2003b. Citations, family size, opposition and the value of patent rights -Evidence from Germany. Research Policy 32, 1343-1363.

► Hienerth, C., Lettl, C., 2008: How user communities facilitate entrepreneurial processes: A conceptual analysis, Working Paper.

► Jeppesen, L.B., Frederiksen, L., 2006. Why Do Users Contribute to Firm-Hosted User Communities? The Case of Computer-Controlled Music Instruments. Organization Science 17(1), 45–63.

► Lakhani, K.R. and Wolf, R. (2005). Why hackers do what they do: Understanding motivation and effort in free/open source software projects. In J. Feller, B. Fitzgerald, S. Hissam, and K. Lakhani (Eds.), Perspectives on Free and Open Source Software. Cambridge, MA: MIT Press, 3-21.

► Lerner, J. and Tirole, J. (2002). Some simple economics of open source. Journal of Industrial Economics, 46(2), 125-156.

► Lettl, C., Herstatt, C., Gemuenden, H. G., 2006. Users' contributions to radical innovation: evidence from four cases in the field of medical equipment technology. R&D Management 36, 251-272.

► Lett, C., Rost, K., von Wartburg, I., 2008. Why are some independent inventors 'heroes' and others 'hobbyists'? The moderating role of technological diversity and specialization, Working Paper.

► Luethje, C., Herstatt, C., von Hippel, E., 2005. User innovators and "local" information: The case of mountain biking. Research Policy 34, 951-965.

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Referenced Literature (2)

► Perry-Smith, J. E., Shalley Ch. E., 2003. The Social Side of Creativity: A Static and Dynamic Social Network Perspective. Academy of Management Review 28, 89-106.

► Riggs, W., von Hippel, E., 1994. Incentives to innovate and the sources of innovation: The case of scientific instruments. Research Policy 23, 459-469.

► Shane, S. 2001. Technological opportunities and new firm creation. Management Science 47(2), 205-220.

► Spear, B., 2006. GB innovation since 1950 and the role of the independent inventor: an analysis of completed term patents. World Patent information 28, 140-146.

► Von Hippel, E., 2005. Democratizing innovation. MIT Press, Boston, MA.

► Von Hippel, E., 2007. Horizontal innovation networks – by and for users," Industrial and Corporate Change 16(2), 1-23.

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Physicians as independent inventors (10)

Source: Lettl et al., 2008

Prior KnowledgeBase of Invention

AdditionalTechnologicalSpecialization

Trajectory Riding

„Expert Mode“

Excellence in Problem Solving

„Professional Mode“

Frontier Bridging

„Expert Mode“

Trajectory Riding

„Hobbyist Mode“Additional

TechnologicalDiversity

Manufacturer User

Source of Invention