3 Chapter Objectives Explain product and technology life cycles Examine the nature of researchDiscuss the nature of creativityDescribe the legal means to protect a person’s ideas
4 Product Life Cycle Identification of need (consumer) Product planning (marketing analysis, feasibility)Product researchProduct designProductionProduct evaluationProduct use & logistic support (consumer)
5 Technology Life Cycle Market Volume Time Technology Development ApplicationLaunchApplicationGrowthMatureTechnologySubstitution/Obsolescence
6 Nature of R&DOur hope is that there will be full employment, and that the production of goods and services will serve to raise our standard of living…Surely we will not get there by standing still, merely by making the same things we made before and selling them at the same or higher prices. We will not get ahead in international trade unless we offer new and more attractive and cheaper products…There must be a stream of new scientific knowledge to turn the wheels of private and public enterprise.--Vannevar Bush, 1945
7 Nature of R&DResearch: systematic, intensive study directed toward fuller scientific knowledge of the subject studied.Basic research is devoted to achieving a fuller knowledge or understanding of the subject under studyApplied research is directed toward the practical application of knowledgeDevelopment is the systematic use of scientific knowledge directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.
8 Estimated R&D expenditures and share of world total, by region: 2002 Science and Engineering Indicators 20081
9 Total R&D share of GDP 1981–2006SOURCE: Organization for Economic Co-operation and Development, Main Science and Technology Indicators (2006). Science and Engineering Indicators 20081
10 Nondefense R&D share of GDP 1981–2006 SOURCE: Organization for Economic Co-operation and Development, Main Science and Technology Indicators (2006). Science and Engineering Indicators 20081
14 National R&D expenditures, by character of work, and basic research, by performer and source of funds: 20061
15 New Product Strategies First-to-marketFollow-the-leaderMe-tooApplication engineering
16 Reasons for Corporate Research to Fail Not applicableNot enough patienceFailure in technology transfer
17 Selecting R&D Projects 60 ideas12 worthy of preliminary evaluation6 potential products3 prototypes2 products for full production & marketing1 product with market success
18 Initial Screening Checklist Simple payback time Net Present Worth Maximum expenditure justifiedEmj = Fc Ft P= Pcommercial success Ptech. success NPW
19 Initial Screening (Checklist) Technical factorsResearch direction and balanceTiming of R&D and market developmentStability of the potential marketPosition factorMarket growth factors for the productMarketability and compatibilityProducibilityFinancial factorsPatentability & need for continuing defensive research
20 Initial Screening Process Prepare the MatrixCriteriaReference ConceptWeightingsRate ConceptsScale (+ – 0) or (1–5)Compare to Reference Concept or ValuesRank ConceptsSum Weighted ScoresCombine and ImproveRemove Bad FeaturesCombine Good QualitiesSelect Best ConceptMay Be More than One or NoneBeware of Average Concepts
21 Things to RememberThe goal of concept selection is not to Select the best conceptThe goal of concept selection is to Develop the best conceptSo remember to combine and refine the concepts to develop better ones!
22 CREATIVITY Nature of Creativity: Creativity is the ability to produce new and useful ideas through the combination of known principles and components in novel and non-obvious ways.
23 Models for problem solving: Trial and error.Planning/decision-making process (analytical reasoning)Creative process
24 Creative process Preparation Frustration and incubation Structure the problemCollect all available informationUnderstand relations and effectsSolve sub-problems, andExplore all possible solutions and combinations that may lead to a satisfactory solution.Frustration and incubationInspiration or illuminationVerification
25 Brainstorming and Other Techniques for Creativity
26 Brainstorming Modern method for "organized ideation" First employed in the West by Alex Osborne in 1938The essence of brainstorming is a creative conference, ideally of 8 to 12 people meeting for less than an hour to develop a long list of 50 or more ideas.Suggestions are listed without criticism, one visible idea leads to others.At the end of this session participants are asked how the ideas could be combined or improved.Organizing, weeding, and prioritizing the ideas produced is a separate, subsequent step.
27 Brainstorming "Tear-down" Approach Used by two people. The first person (person A) must disagree with the existing solution to a problem and suggest another approach;Next, person B must disagree with both ideas and suggest a third;Then person A must suggest yet another solutionThis "cycle continues until a useful idea clicks." "And-also" MethodPerson A suggests an improvement on the subject under study; person B agrees, but suggests a further improvement; this sequential improvement "continues until a sound solution is reached."
28 Group technique by W. J. Gordon A team explores the underlying concept of the problem.The method encourages finding unusual approaches by preventing early closure on the problem.A team of six meeting for about a day on a problem.
29 "Attribute listing" approach (for individuals) A person lists attributes of an idea or item,Then concentrates on one attribute at a time to make improvements in the original idea or item.
30 "Forced relationship" approach (for individuals) It tries to generate new ideas by creating a "forced relationship" between two or more usually unrelated ideas or items.
31 “Mindmapping” Write the main topic in the center. Think main factors, ideas, concepts, or components directly related to the main topic.Concentrate on the sub-headings, and identify related issues. Additional branches can be added.Repeat for all sub-headings, and sub-sub-headings.Connect related ideas and concepts. Review, organize, and revise.Write-up.
32 Characteristics of Creative People Self-confidence and independence.Curiosity.Approach to problems.Some personal attributes.more comfortable with things than people,have fewer close friends, and are not "joiners."have broad intellectual interests.enjoy intellectual games, practical jokes, creative writing, and are almost always attracted by complexity.
33 Providing a Creative Environment Creative people are most effective in an org. that willtolerate idiosyncrasies,remove as much routine regulation and reporting as feasible,provide support personnel and equipment as required, andrecognize and reward successes.
34 Creativity and Innovation Invention (the creative process) produces ideas.the process of innovation reduced invention to practice and use.
35 5 kinds of people needed for technological innovation Idea generator - the creative individualEntrepreneur - the person who "carries the ball"Gatekeepers - bring in essential informationProgram managers - who manage without inhibitingSponsor or Champion - the person, often in senior management, who provides financial and moral support
36 Protection of IdeasPatentsCopyrightsTrade secrets, andTrademarks and other marks
37 Patent An exclusive property right to an invention Issued by the Commissioner of Patents and Trademarks, U.S. Department of CommerceLimited to the "claims" of the patent
39 Utility PatentFor a process, machine, article of manufacture, composition of material, or any improvement thereofFor 20 years from date of filingCannot be obtained on laws of nature, methods of doing business, scientific principles, or printed mattersConditions to be patentable, the invention must benew or novel,useful or have utility, andnon-obvious
40 Design PatentOn new, original, and ornamental design of an article of manufactureFor a term of 14 years.Not concerned with how the article of manufacture was made and how it was constituted, but with how it looks.
41 Plant Patent For 20 years For plants when asexually reproduced, With the exception of tuber-propagated plants or plants found in the uncultivated state
42 Establishing patent rights Conception andReduction to practice.In US, if the first to conceive makes a reasonable, diligent effort to reduce the invention to practice, he or she will receive the patent, even if someone else actually reduces it to practice earlier. In almost all other countries, patents are awarded to the first person to file, rather than the first to conceive.
43 Proof of ConceptionA written disclosure of the invention should be made as soon after conception as possible.A disclosure's primary purpose is to prove the date of conception where there is question of invention.The disclosure should include sufficient description and sketches to describe fully what has been conceived.The disclosure should be witnessed by at least two persons who fully understand its content.
44 Diligence to “reduce to practice” To demonstrate diligence to "reduce to practice," a written record of developmental activities should be maintained in a bound notebook.Daily entries are encouraged.Each page should be signed and witnessed in proximity to the entries on that page.Each entry should be made in chronological order.Notebook pages should be consecutively numbered, with all entries made in ink.If an error is made in an entry, it should not be erased: it should be crossed out.All entries should be made by the inventor in his/her own handwriting.
45 USPTO patent applications, by region/country:1985–2005
46 Patent Counts by Country U.SJapanGermanyU. KingdomFranceTaiwanCanadaS. KoreaItalySwitzerlandSweden
52 The Patent Scorecard™ 2008 – Universities Univ. of CaliforniaMITCal. TechStanfordRiceUniv. of TexasNew York UniversityUniversity of Central FloridaUniv. of WisconsinHarvard
53 Trademarks and Other Marks Service marksCertification marksCollective marks
54 TrademarksA trademark is "used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured or sold by others."The trademark is protected by federal statutes and registered with the Patent and Trademark Office."" or the notice "Reg. U.S. Pat. and TM Off." should be used with registered trademarks and "" or "Trademark" with non-registered marks.
55 Service MarksA service mark is associated with services rather than goods.Certification marksA certification mark indicates that the marked goods or services meet standards or services established by the mark's owner, for example, Underwriters Laboratories, Good Housekeeping.Collective marksA collective mark identifies members of a group such as an organization, union, or association, for example, "CPA", used to indicate members of the Society of Certified Public Accountants
56 Registration of MarksStarting 11/16/1989, application for mark can be made before any use has taken place.Most states have their own trademark law, in addition to the federal law.
57 CopyrightsCopyright is a bundle of rights to reproduce, derive, distribute, perform, & display an original creative work.A copyright protects expressions, not ideas. A potentially patentable idea expressed in a copyrighted text may be used by others.A copyright is a grant, by the United States, to an author for the right to exclude others (for a limited time) from reproducing his/her work.A copyright is owned by the individual author except in the case of a “work for hire”, whereby the employer owns the copyright (17 USC 201a-b)
58 Types of Copyrights Literary works Musical works Dramatic works Choreographic worksPictorial worksMotion Pictures/VideosSound Recordings
59 CopyrightsA copyright generally prevents reproduction of a copyrighted work for the life of the author, plus 70 years.“Work for hire” copyright lasts for 120 years from the date of creation, or 95 years from first publication.
60 CopyrightsFor works created after 1989, copyright notices are not necessary (although they are recommended).The copyright notice has three elements: (1) the copyright symbol , the word "copyright," or the abbreviation "copr."; (2) the year of first publication; and (3) the name of the copyright owner.A copyright notice can appear any place in or on the work as long as it can be readily seen.Copyright registration is not a condition for protection but is a prerequisite for an infringement suit.Copyrighted material is registered with the copyright office at the Library of Congress.
61 Trade SecretsTrade secrets have no precise definition, but to be protected by the courts, they must be secret, substantial, and valuable.The secret can be almost anything as long as it is not generally known in the trade or industry to which it applies.A trade secret provides its owner with a competitive advantage. It may be a formula, process, know-how, specifications, pricing information, customer lists, supply sources, merchandising methods, or other business information. It may or may not be protected by other means.Trade secrets have no time limitations.
62 Comparison of Means of Protecting Ideas Many ideas that are protected as trade secrets cannot be patented.On the other hand, an item that is patentable can theoretically be protected as a trade secret.If the idea can be easily discovered through reverse engineering, however, a patent is the only practical choice for protection.
63 R&D and Business Strategy Technology strategy should encompass research, product and process development, and manufacturing engineering.Base TechnologiesKey TechnologiesPacing Technologies
64 Evaluating R&D Effectiveness Ratio of research costs to profits.Percentage of total earnings due to new products.Share of market due to new productsResearch costs related to increases in sales.Research costs ratio of new and old sales.Research costs per employee.
65 Evaluating R&D Effectiveness Ratio of research costs to overhead expenses such as administrative and selling costs.Cash flows (continuing evaluation of the pattern of outflows for research expense and actual and projected inflows from resulting revenue).Research auditsWeighted averages of costs and objectivesProject profiles
66 Support for R&DTechnician support to carry out repetitive testing and other functions not requiring a graduate engineer or scientist.Shop support of mechanics, glassblowers, and carpenters to produce test and research equipment based on researchers' sketches.A technical library with technical information specialists conversant in the fields of the company's interest and willing and able to suggest sources to researchers and structure and run searches in the appropriate data bases for them.
67 Support for R&DTechnical publication support, including typing, editing, and graphical support to simplify researchers' production of reports, technical papers, and presentations. A flexible, responsive system for approving and acquiring equipment as needed by researchers. Ample computer facilities conveniently available to researchers, and programming assistance to provide consultation and programming to those researchers not wishing to do it themselves.
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