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

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

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

2 Content The Open Innovation model Trends and benefits Open? B. Denis – EC DG JRC Unit A4 / CERN KT group

3 The open innovation model B. Denis – EC DG JRC Unit A4 / CERN KT group

4 Innovation Research Development B. Denis – EC DG JRC Unit A4 / CERN KT group

5 License in License out Buy Cross-license Sell Open innovation B. Denis – EC DG JRC Unit A4 / CERN KT group Open Innovation: The new imperative for creating and profiting from technology, H. Chesbrough 2003

6 Open Innovation Increasing role of Intellectual Property Increasing role of Public Research B. Denis – EC DG JRC Unit A4 / CERN KT group

7 CERN and HEP Community Buy Industry PP institute CERN B. Denis – EC DG JRC Unit A4 / CERN KT group

8 Knowledge transfer License out Collaborative R&D B. Denis – EC DG JRC Unit A4 / CERN KT group

9 Trends and benefits B. Denis – EC DG JRC Unit A4 / CERN KT group

10 Managing open innovation in large firms Survey Report Executive survey on open innovation 2013 H. Chesbrough, US Berkerley S. Brunswicker, Fraunhofer Institute for Industrial Engineering ed 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 B. Denis – EC DG JRC Unit A4 / CERN KT group

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

12 Adoption of open innovation across different industries Manufact. (low-tech) Finance, Insurance, Real Estate Services Transp. Communi. Electric, gas & sanitary Mining & constructi on Manufact. (medium- low tech) Manufact. (medium- high tech) Whosales, trade & retail Manufact. (high- tech) 40 % 55 % 69 % 80 % 82 % 83 % 86 % 91 % Average = 78 B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

13 Modes of open innovation Inbound Outbound Pecuniary Non-pecuniary* Direction Financial flows IP in-licensing Contracted R&D services Specialized open Innovation 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 funded R&D consortia Informal networking Participation in standardization (public standards) Donations to commons or nonprofits B. Denis – EC DG JRC Unit A4 / CERN KT group * Without full compensation Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

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

15 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 B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

16 Importance (inbound practices) Idea and start-up competitions IP In-licensing Supplier innovation awards Crowdsourcing (unknown problem solvers) Specialized services open innovation intermediaries not important highly important B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

17 Importance of open innovation partners Internal employees Customers Universities Suppliers Indirect customer or final customer Public research organizations not important highly important B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

18 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 B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

19 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 B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

20 Pecuniary aspects On balance, firms take more “freely revealed” information from others than they provide to others. Firms are “net- takers”. B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

21 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 highly dissatisfied highly satisfied B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

22 Measuring open innovation Number of patent filed and granted Cost for inward licenses Patent utilization ratio Percentage of ideas funded Revenue from outwards licenses highly dissatisfied highly satisfied B. Denis – EC DG JRC Unit A4 / CERN KT group Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

23 Satisfaction with open innovation % 18.5 % 44.7 % 9.23 % 7.69 % B. Denis – EC DG JRC Unit A4 / CERN KT group highly dissatisfiedhighly satisfied Source: Managing Open Innovation in Large Firms, H. Chesbrough, S. Brunswicker, 2013

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

25 Open Source Open Innovation Open Science Open Access

26 Definition o.pen | ˈ ōpən| 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 B. Denis – EC DG JRC Unit A4 / CERN KT group

27 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 B. Denis – EC DG JRC Unit A4 / CERN KT group Open = 5. freely available or (source code) accessible; 6. with no (significant?) restrictions on those allowed to attend or participate.

28 Open Science Norms: -Originality -Communalism -Universalism -Disinterestedness -Skepticism Priority system Incentives Sharing results Cumulativeness Quality of research B. Denis – EC DG JRC Unit A4 / CERN KT group 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.

29 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;

30 Open innovation o.pen | ˈ ōpən| 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 B. Denis – EC DG JRC Unit A4 / CERN KT group ? ?

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


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