1. Hybridize Market Pull with Technology Push approaches
Practices and Actors of Eco-Innovation -
SMEs and their “Relational Asymmetries” with other Actors
“Demand Readiness Level” (DRL) scale
as new tool to
Hybridize Market Pull with Technology Push approaches
PhD. Florin Paun
Deputy Director “Industrial Innovation”, ONERA – The French Aerospace Lab TM
ANR - ERANET Workshop
Paris, 8th of February 2011

2. Innovation = Successful Exploitation of a New Idea (von Hippel)
Eco – innovation ?
« Eco-innovation is the production, application or exploitation of a good, service,
production process, organisational structure, or management or business method that is
novel to the firm or user and which results, throughout its life cycle, in a reduction of
environmental risk, pollution and the negative impacts of resources use (including energy
use) compared to relevant alternatives »
(Kemp und Pearson, 2008, Final report MEI project about measuring eco-innovation.
Innovation = Successful Exploitation of a New Idea (von Hippel)
Eco-Innovation - Innovation + reducing the use of resources
 Economically and Environmentally Sustainable
 What about Social Sustainability ?!
e.g. Is the Wind Energy Business Model sustainable by
subsidies (for ever) or by the right price on the CO2?
… or the Photo Voltaic for individuals in France
(taxes reduction + solar kwh pricing)
… why not solar pricing for renewable fuels (made from
recycled CO2 + electrolysed H2 with solar electricity)
in spite of stocking CO2 ?! (Paun, F., 2010 “Sustainable CO2 Integration”)
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3. Innovation models
Linear Process focused on individual process, activities or components
 concept (Schumpeter)  entrepreneur as driving force (Myer, Freeman)
 R&D push (Abernathy, Utterback)  User (Lead) as Innovator (von Hippel)
 Co-innovation (Shapiro)
Integrated and Systematic Process
 coordination and relationship between participants (Hardy, Iansiti, Chen)
 innovative management (Tucker) – R&D + others/ organizational,
systematical, continual opportunism/ every member involvement
TOTAL INNOVATION MANAGEMENT – 3 Totalities Model (Xu)
Existing mechanisms must facilitate bridges
Inter and Intra Totalities to create a complete
cycle  Innovation Occurrence
Importance of the “Helicopter View”
Build at each level an ideas receptive system
- Identify barriers  build facilitating bridges
All elements
All individuals
All domains,
time, spaces
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)

4. A practical guide to innovate?
- The importance of a highly collaborative process
- Identifying barriers  mostly related to asymmetries between actors
 but also structural  role of regulators
- Building « bridges » inter and intra of each of the 3 totalities
- favour the « good merits » and banish the « bad merits » (Stiglitz, Scott)
- compensate or reduce the identified existing asymmetries
To eco-innovate
+ measure the effects on the resources (material and immaterial): “good merit”
To Sustaining the eco-innovation system
+ measure the social impact (good merit)
All the actors and domains could be part of eco-innovation processes
ANR - ERANET Workshop, Paris, 8th of February 2011
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5. “Time 2 market – Complexity” Barrier
 Industrial Groups to innovate?! SMEs? Disruptive, Radical, Incremental?
Main Industrials innovation limit
(Multi) National Strategic
Program Support
Aerospace and Defence
Information and Telecommunication
SME’s innovation follow-up limit
Product Complexity (Costs)
Electronics
Automotive
Start-up innovation
follow-up limit
Bio-genetics
Pharmacy
Software Development
Agro-food Industries
Chemistry and Oil
Research Results
R Stephan Université Technologique de Compiègne
Time to Market
SMEs – good vectors for technology demonstration in all domains
Disruptive/Radical Innovation  Get out of its sector, addressing new domains
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6. + SMEs to do demonstrators ? How? Strong existing Asymmetries 1 2 3 4 9
Technology Readiness Level:
PROCESS AND ACTORS
I I I I I I I
Dedicated Structures
Public Research
Carnot Institutes
Some Public R&D
mainly Carnots
Need for
Collaborative
Tools
Market Actors
SME
Development
SME with
Offices
R&D capacities
ASSYMETRISES MANAGEMENT during the whole process:
“Financial Risk” A
“Cultural” A.
“Technology” A.
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
ANR - ERANET Workshop, Paris, 8th of February 2011
Time
R & T
R & D
Industrialisation
Commercialisation
Distribution
Promotion
Investment in R&T
Death Valley
Equity Gap
First Sales +

7. Example: Onera– Tech SMEs Charter
Develop the collaboration between Onera and the SMEs by :
Favouring the acces of the SME to the aerospace R&D results,
Presenting an innovative offer to the industrial groups, (TRL 6-7)
Enhancing the opportunities for the Onera’s R&D results to reach the market
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8. Partnership topics Collaborative R&D contracts :
- addressing all type of private or public R&D call for tenders, all domains, all times, all markets (geographical);
- all configurations - supplier or associate - envisaged;
- IP co-sharing based on related contributions
Studies/expertise for the SME :
- directly financed by the SME
- Onera’s support for public innovation finance
- expertise : RDT, CREATI (PARTECH) and regional actors DRIRE, CRITT…
- R&D : OSEO, ADEME (energy), la DGA-PME (Defence or Dual projects)…
Product / Tech Demonstrators Developpement in Risk and Benefice Sharing :
ONERA’s contribution carried on Risk sharing basis  Onera’s ROI based on commercial exploitation by the SME
Technology or Knowledge Transfert Agreements :
licensing taking into account the treasury specific need for a SE or a Start-up
Scientist migration from Onera to the SME’s development team :
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)

9. Early Stage Results with SME / Start-ups
Fogale nanotech
Thin Layers Capacitive Sensors
Acoustic Signature
Software for Targeting
and Scoring System
Pressure Sensitive
Paintings
See and Avoid
System
Medical
Imagery
“Wind” Lidar
Wireless Home
Distress Surveillance
EM Synthetic
environment
US machining
ONERA’s software
Crack propagation
monitoring device
Keopsys LASERS
LASER Interferometer
Life Science Microscopy
bio-medical
Prosthesis
in Porous Ti
Accelerometers
MEMS
UAV landing
NHEOLIS
Individual Wind Mills
© - Onera, 2009,
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10. Conclusion – Need to change the reference system!
Towards a « HYBRIDISATION of MktPull vs TechPush approaches » (Paun, F., 2010)
“What is the TRL level”
- Customer Voice are sunken inside the TRL scale an our minds are Technology Push driven.
- Why not referring to a scale related to the Degree of Maturity for the Expression of a Need by a
customer on a given market including the lead markets for eco-innovation?
- Why not define this scale and plot it in a reverse manner related to the classic TRL scale?
DR Level
Description for the “Demand Readiness Level” (Paun, F., 2011)
Description TRL level
TR Level 1
Occurrence of a Feeling of “something is missing” on the market 2
Identification of a specific need
Market certification and sales authorisation 9 3
Identification of the expected functionalities for the new Product/Service
Product Industrialisation 8 4
Quantification of the expected functionalities
Industrial Prototype 7 5
Identification of the systemic capabilities (including the project leadership)
Field demonstration for the whole system 6
Translation of the expected functionalities into needed capabilities to build the response
Technology development
Definition of the necessary and sufficient competencies and resources
Laboratory demonstration
Identification of the Experts (R&T) possessing the competencies
Research to prove feasibility
Building the adapted Research Projects to find answers to the expressed need on the market
Applied research
Fundamental research
 Ask for Projects which are searching for this matching on Eco-Innovation Lead Markets
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)