14
IP-Based Open Innovation in Multiple Industries MPI Spring Symposium May 25, 2006 Michael Kayat [email protected] 617 460 0366

IP-based Open Innovation in Multiple Industries · IP-Based Open Innovation in Multiple Industries MPI Spring Symposium May 25, 2006 Michael Kayat [email protected] 617 460 0366

Embed Size (px)

Citation preview

IP-Based Open Innovation in Multiple Industries

MPI Spring SymposiumMay 25, 2006

Michael Kayat

[email protected] 460 0366

© 2006 Michael Kayat UTEK-EKMS, Inc.

Innovate Or Else…..

World is becoming “flat” and populated with knowledge-based economies

Markets in most industries are becoming fragmented and segmented

Difference between products and services is “blurring”

Competitive strategy: low cost to differentiation

Innovation = invention + commercialization

“It’s not the strongest of the species who survive, but theones most responsive to change” – Charles Darwin

© 2006 Michael Kayat UTEK-EKMS, Inc.

Innovation is Hard

Only 1 in 10 enterprises experience acceptable innovation success rates but still hit/miss

Occasional spectacular innovation successes

50% of US enterprise R&D budgets “wasted” in failed innovations – about $100 billion per year

After years of cost-cutting to maintain profits, many enterprises have reduced “R” productivity

Increased competition puts pressure on “invent it ourselves” innovation to sustain revenue growth

Innovation needs “fuel” and “guidance”

© 2006 Michael Kayat UTEK-EKMS, Inc.

Innovation Value Gaps

Industry Average R&D Intensity

Innovation Value Gap Variations

Bio-pharma 17% 50 - 200%

Chemicals 3% 100 - 500%

Industrial Machinery

3% 100 - 700%

Medical Devices

8% 85 - 500%

Innovation Value Gap = Differences between amounts of R&D invested and market values created

R&D Intensity = Percentage of annual revenues invested in R&D Source: CPA

© 2006 Michael Kayat UTEK-EKMS, Inc.

Innovation and Strategic IP ManagementUtilizing effective Intellectual Property (IP) management can provide innovation with:

– Fuel– Direction– Coordination

IP assets comprise patents, trademarks, copyrights, technology know-how, designs, formulae, trade secretsIP analysis can provide quantitativeinformation on:

– Corporate strategy– Competitive analysis– New market and product opportunities

High value, high protection IP portfolio critical

© 2006 Michael Kayat UTEK-EKMS, Inc.

Product Creation Process and IP

Marketcompetitor& technologyintelligence

Product &

technicalmaintenance

ProgramManagement

Innovation & idea management

Technology resource development

Product/marketstrategy

Productplanning

Technologystrategy

Technologyplanning

Intellectual property properly leveraged throughout the Product Creation Process (PCP) can be used to attain competitive advantage.

Project Selection

IP

IP

IP

IP

IP

IP

IP

© 2006 Michael Kayat UTEK-EKMS, Inc.

Open Innovation Model

After Professor Henry Chesbrough, UC Berkeley

© 2006 Michael Kayat UTEK-EKMS, Inc.

IP Strategy for Open Innovation Cost centered Revenue centered

Value extraction Value creation

Limit competitors• Blocking patents• Picket fence patents (design freedom)• Create standards• Maintain exclusive position

Protect intangibles

• Blocking patents (avoid litigation)• In-license complementary IP

Leverage full potential of IP• Licensing (core and non-core IP)• Spin outs• Joint ventures• Strategic alliances

Establish income revenue stream• Licensing (non-core IP)

Proactive

Reactive

© 2006 Michael Kayat UTEK-EKMS, Inc.

IP ProcessIP Strategy

IP Process Improvement

IP Ideation & Invention

Concept patents

IP AnalysisPatent Mining

IP Landscape Analysis

Technology Valuation

Patent Analytics

Advanced IP Analysis Tools

IP Deal-MakingIP Commercialization

In-Licensing, Out-Licensing & Cross Licensing

Strategic Partnerships,Spin-offs, Joint Ventures,Mergers & Acquisitions

IP Portfolio Optimization

Methodology for Strategic IP Management

© 2006 Michael Kayat UTEK-EKMS, Inc.

TQM for IP Management

IP

R&D

Product Development

CorporateDevelopment

Technology Management

Business Unit

Division

DivisionIn-licensing

from Enterprise Partner(s)

Out-licensing to Enterprise

Partner(s)

In-licensing from University

or Small Company

Legal

© 2006 Michael Kayat UTEK-EKMS, Inc.

IP Management System

Obtain technology/IPinternally

Business strategy& tactics

-------------------------------Product/market matrix

Patenting criteria and decision process

InnovationProcess

Store Value

Extraction

Patent portfolio database

Competitiveassessment

Valuation of innovation opportunity

Value extractiondecision process

Obtain technology/IPexternally

Strategic Positioning

Assess need and sourcefor new innovation

Portfoliomaintenance

© 2006 Michael Kayat UTEK-EKMS, Inc.

Technology/Platform Portfolio MappingW

eak

Wea

kTe

nabl

eTe

nabl

eFa

vora

ble

Favo

rabl

eSt

rong

Stro

ngD

omin

ant

Dom

inan

t

BaseBase KeyKey PacingPacing

LowLow Competitive ImpactCompetitive Impact HighHigh

Low

Low

Com

petit

ive

Posi

tion

Com

petit

ive

Posi

tion

Hig

hH

igh

Current Level of Effort: 1 5 32

None Low Medium High

2

10

13

14

16

22

23

24

2526

27

1

3

4

5

6

9

12

15

182019

Add New Technologies

© 2006 Michael Kayat UTEK-EKMS, Inc.

Open Innovation in Multiple IndustriesIndustry CompaniesBio-pharma Amgen

MerckPfizer

Computers/Electronics HP LG Electronics

SonyConsumer Products Dow

Proctor & GambleUnilever

Semiconductors CiscoIntel

Philips

© 2006 Michael Kayat UTEK-EKMS, Inc.

Q&A

Michael Kayat, Ph.D.PresidentUTEK-EKMS, Inc.+1 617 460 0366 (cell)[email protected](AMEX:UTK)