HEPTech Workshop on Open Innovation Introduction to the Open Innovation Model: What, why and trend B. Denis – Bucharest 7 th October 2013

HEPTech Workshop on Open Innovation

Introduction to the Open Innovation Model:What, why and trend

B. Denis – Bucharest 7th October 2013

Content

• The Open Innovation model

• Trends and benefits

• Open?

B. Denis – EC DG JRC Unit A4 / CERN KT group

The open innovation modelB. Denis – EC DG JRC Unit A4 / CERN KT group

InnovationResearch Development


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Open innovationB. Denis – EC DG JRC Unit A4 / CERN KT group

Open Innovation: The new imperative for creating and profiting from technology,

H. Chesbrough 2003

Open Innovation

Increasing role of Intellectual Property

Increasing role of Public Research


CERN and HEP Community

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Industry

PP institute

CERN


Knowledge transfer

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Collaborative R&D


Trends and benefitsB. Denis – EC DG JRC Unit A4 / CERN KT group

Managing open innovation in large firms

Survey Report Executive survey on open innovation 2013H. Chesbrough, US Berkerley

S. Brunswicker, Fraunhofer Institute for Industrial Engineering

Emailed survey on open innovation to senior executives at the headquarters of more than 2840 large and stock market listed firms, in Europe and US, with revenues annually in excess of US$250 million and more than 1000 employees


Definition

“… the purposive use of inflows and outflows of knowledge to accelerate innovation in one’s own market, and expand the use of internal knowledge in external market respectively.”


Adoption of open innovation across different industries

100

80

60

40

20

0

Manufact.(low-tech)

Finance,Insurance,Real EstateServices

Transp.Communi.Electric, gas & sanitary

Mining & construction

Manufact.(medium-low tech)

Manufact. (medium-high tech)

Whosales, trade & retail

Manufact.(high-tech)

40%

55%

69%

80%

82%

83%

86%

91%

Average = 78


Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

Modes of open innovation

Inbound

Outbound

Pecuniary Non-pecuniary*

Direction

Financial flows

IP in-licensing

Contracted R&D services

Specialized openInnovation intermediaries

Idea & start-up competitions

Supplier innovation awards

University research grants

Joint-venture activities

Spin-offs

Corporate business incubation

Selling market-ready products

IP out-licensing

Customer & consumer Co-creation

Crowdsourcing

Publically fundedR&D consortia

Informal networking

Participation in standardization (public standards)

Donations tocommons

or nonprofits

B. Denis – EC DG JRC Unit A4 / CERN KT group * Without full compensation


Type of knowledge

Disembodied IPR-based mechanisms:•IP licensing•IP rights pooling agreement•Sale of assignment•Franchise agreement•Know-how contract

Sourcing solutions:•Service and consultancy purchase agreement•Consultancy services•Research service

Embedded knowledge transactions:•Transfer of rights to IP and other knowledge-based capital through M&A•Acquisition of equipment•Material / data transfer agreements

Co-development:•Co-development programmes•Research joint venture•Research alliances•Private-public partnerships•Secondments•Hiring of R&D personnel•Network membership agreement

Existing knowledge Prospective knowledge

Source: Knowledge Networks and Markets, OCDE STI Policy Papers, No7, 2013


Importance (inbound practices)

Customer and consumer co-creation

Informal networking

University research grants

Publically funded R&D consortia

Contracting of external R&D service providers

not important

highly important

1 72 3 4 5 6

4.43

4.38

4.19

3.82

3.73



Importance (inbound practices)

Idea and start-up competitions

IP In-licensing

Supplier innovation awards

Crowdsourcing (unknown problem solvers)

Specialized services open innovationintermediaries

not important

highly important

1 72 3 4 5 6

3.71

3.37

2.66

2.64

2.34



Importance of open innovation partners

Internal employees

Customers

Universities

Suppliers

Indirect customer or final customer

Public research organizations

not important

highly important

1 72 3 4 5 6

5.54

5.17

4.88

4.51

4.30

4.22



Importance of open innovation partners

Entrepreneurs and start-ups

Contracted R&D service providers

External consultants

Competitors

Restricted communities

Open (unrestricted) communities

not important

highly important

1 72 3 4 5 6

3.82

3.82

3.67

2.54

2.47

2.13



Strategic objectives

Establishing new partnerships

Exploring new technological trends

Identifying new business opportunities

Accelerating time to complete R&D

Mitigating risks of innovation projects

Identifying new business opportunities

Reducing R&D costs per project

not important

highly important

1 72 3 4 5 6

5.42

5.35

4.84

4.67

4.24

3.96

3.65



Pecuniary aspects

On balance, firms take more “freely revealed” information from others than they provide to others. Firms are “net-takers”.



Measuring open innovation

Share of external innovation contributions for R&D projects

Cost/benefit of innovation partners

Number of innovation partners

Revenue from results of open innovation launched within a time period

Budget invested in open innovation projects

Number of new technology areas identified each year

highlydissatisfied

highly satisfied

1 72 3 4 5 6

4.39

4.38

4.10

3.82

3.59

3.59



Measuring open innovation

Number of patent filed and granted

Cost for inward licenses

Patent utilization ratio

Percentage of ideas funded

Revenue from outwards licenses

highlydissatisfied

highly satisfied

1 72 3 4 5 6

4.39

4.38

4.10

3.82

3.59



Satisfaction with open innovation

50

40

30

20

10

0

1 2 3 4 5 6 7

4.62

15.4%

18.5%

44.7%

9.23%

7.69%


highly dissatisfied highly satisfied


Open?B. Denis – EC DG JRC Unit A4 / CERN KT group


Open Source

Open Innovation

Open Science

Open Access

Definition

o.pen |ˈōpən|

adjective

1 allowing access, passage; not closed or blocked up open

2 exposed to the air or to view; not covered

3 officially admitting customers or visitors; available for business

4 frank and communicative; not given to deception or concealment

5 freely available or accessible; offered without restriction

6 with no restrictions on those allowed to attend or participate


Open source

• Innovation jointly developed by different contributors available royalty free to anyone and without significant restrictions on how they are to be used.

• Possible restriction is that derivative work also has to be provided on the same basis.

• Examples: Open source software, Open source hardware


Open = 5. freely available or (source code) accessible;6. with no (significant?) restrictions on those allowed to attend or participate.

Open Science

Norms:

-Originality

-Communalism

-Universalism

-Disinterestedness

-Skepticism

Priority system

Incentives

Sharing results

Cumulativeness

Quality of research


The Sociology of Science, R. Merton, 1973

Open = 4. frank and communicative; 5. freely available or accessible;6. with no restrictions on those allowed to attend or participate.

Open Access

• The practice of providing unrestricted access via the Internet to peer-reviewed scholarly research. It is most commonly applied to scholarly journal articles, but it is also increasingly being provided to theses, book chapters and scholarly monographs (Wikipedia)

Open = 5. freely available or accessible;

Open innovation

o.pen |ˈōpən|

adjective

1 allowing access, passage; not closed or blocked up open

2 exposed to the air or to view; not covered

3 officially admitting customers or visitors; available for business

4 frank and communicative; not given to deception or concealment

5 freely available or accessible; offered without restriction

6 with no restrictions on those allowed to attend or participate


??

Thank you…B. Denis – EC DG JRC Unit A4 / CERN KT group

Documents

HEPTech Workshop on Open Innovation Introduction to the Open Innovation Model: What, why and trend B. Denis – Bucharest 7 th October 2013