1. 1 WIPO/INV/BEI/02/8 SECOND INTERNATIONAL FORUM ON CREATIVITY AND INVENTION A BETTER FUTURE FOR HUMANITY IN THE 21 ST CENTURY Beijing, May 23 - 25, 2002 WIPO/INV/BEI/02/8 SECOND INTERNATIONAL FORUM ON CREATIVITY AND INVENTION A BETTER FUTURE FOR HUMANITY IN THE 21 ST CENTURY Beijing, May 23 - 25, 2002 WEALTH CREATION THROUGH INVENTION, INNOVATION AND CREATIVITY Document presented by Vladimir Yossifov, Director, Division for Infrastructure Services and Innovation Promotion, World Intellectual Property Organization (WIPO), Geneva

2. 2 Creativity, Inventions and Innovation Sustained economic growth cannot be achieved through saving or investment, Sustained economic growth cannot be achieved through saving or investment, macroeconomic adjustment policy, macroeconomic adjustment policy, preferential taxes or subsidies unless these are accompanied by the myriad large and small inventions and discoveries, required to create greater value from natural resources preferential taxes or subsidies unless these are accompanied by the myriad large and small inventions and discoveries, required to create greater value from natural resources Paul Romer

3. 3 Technology, Innovation, Science and Development Ú Ú Technology is the systematic study of techniques for making and doing things (concerned with the fabrication and use of artifacts) Ú Ú Science is the systematic attempt to understand and interpret the world (it depends upon the skills of literacy and numeracy) Ú Ú Technology is as old as mankind, science developed with the development of civilization

4. 4 Technology, Innovation, Science and Development Ú Technological development and innovation is one of the most important factors for economic development Ú Long-term economic growth is the result of an increase and accumulation of technological knowledge Ú The contribution of raw materials, and/or labor, has steadily declined in providing that competitive edge to new products

5. 5 Technology and Innovation - The Never-ending Spiral n n From its beginning, Chinese civilization valued technological skill, e.g. hydraulic engineering, (survival depended on controlling the enriching but destructive floods of the Huang Ho (Yellow River)), the casting of iron, the production of porcelain,the manufacture of brass and paper, silk production, the magnetic compass or the waterpowered mechanical clock n n Western knowledge of silk working, the magnetic compass, papermaking, and porcelain were all derived from China (it took centuries before Europeans were able to produce anything of a similar quality)

6. 6 Factors and Conditions for an Innovative, Supportive and Enabling Environment 3 Education 3 Information and transfer of knowledge 3 Government policies, including tax policy, supportive legal and regulatory framework 3 Industrial, technological and R&D infrastructure 3 Efficient intellectual property system 3 Recognition & rewards 3 Company climate and culture 3 Work force and labor environment 3 Entrepreneurial spirit 3 Availability of funds and financial resources

7. 7 Creativity, Inventions & Innovation ` Countries & companies ` policies and priorities ` resource commitment ` enhancing creativity of staff and people ` promoting entrepreneurial spirit ` increasing productivity ` gaining competitive advantage ` generating wealth and improving comfort of life

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9. 9 Creativity and Invention -Challenge to Stability By nature man is torn between: Security where he seeks shelter Security where he seeks shelter Adventure where he takes risks Adventure where he takes risks Price for each contrasting outcomePrice for each contrasting outcome Assessed risksAssessed risks Being creative is risky - higher price, but also higher reward Being creative is risky - higher price, but also higher reward Ideas without risks are useless, while risks without ideas are stupid

10. 10 Creativity and Innovation -Challenge for Public Policy Makers ãFacilitate rather than regulate ãGive companies and entrepreneurs more freedom to experiment ãGuarantee a fair share of invention and innovation benefits to inventors and creators ãPositive attitude towards failures and risk ãTo encourage inventors and creators to join efforts with entrepreneurs in developing innovative ideas

11. 11 Inventions j Creating something new that did not exist before j New solutions to existing problems j Result of human creativity and curiosity j Successful inventions - demand driven

12. 12 Inventions Few inventions Few inventions break-through - pioneering inventions –new industries –new business –new markets Most inventions - incremental development of technology Most inventions - incremental development of technology –improved quality –better performance –higher productivity –more customer satisfaction –reduced cost

13. 13 Innovation and the IP System 19th century - protection and promotion for inventors-entrepreneurs 19th century - protection and promotion for inventors-entrepreneurs 20th century - protection of corporate interests - anonymous inventors 20th century - protection of corporate interests - anonymous inventors 21th century - increased awareness will result in new empowerment of creative individuals and entrepreneurs 21th century - increased awareness will result in new empowerment of creative individuals and entrepreneurs

14. 14 Innovation ã Process - bringing an invention to market and users ã Innovation is planned - does not happen by chance ã Requires team work and cooperation inventors and researchers inventors and researchers process, product and design engineers process, product and design engineers lawyers and marketing specialists lawyers and marketing specialists financial and production managers financial and production managers sales, advertising and distribution specialists sales, advertising and distribution specialists entrepreneurs entrepreneurs

15. 15 Innovation ë Entrepreneur - play-maker ùbring together all those who make innovation a success ë Success function of ùcompetitive advantages offered by innovation ùsocial and economic environment open to change and progress ùgeneral attitude towards risk, failure, science and technology, invention and innovation

16. 16 Entrepreneurs are Characterized by: ë Ability to think, take risks and make decisions ë Independent, reflect and make their dreams to become reality ë Have a sense of inquiry ë Do not believe in inhibitions or limitation

17. 17 Obstacles to Innovation n Conservative and hierarchical structures hostile to innovation n New ideas threaten the profits of existing products and services n larger organizations tend to apply the NIH factor (NIH=Not Invented Here) to get rid of uninvited innovators (= troublemakers). n Often innovators do not get recognition, "but a R&D effort that fails is never forgotten" n Inventors not able to present ideas in business terms; many do not even see the business benefits of their ideas

18. 18 Obstacles to Innovation n n Innovators are seen as "irritating viruses" or troublemakers in the corporate environment. n n Companies ignore innovations when they do not fit into any of their existing business profiles n n The budget allocation process is designed to support existing businesses n n New ideas are eroded by subtle discouragement rather than by explicit vetoes (application of organizational antibodies to neutralize the irritating viruses): n n withholding of funding, n n general nay-saying, n n subtle signals that it might not be 'career smart' to associate with an innovation project"

19. 19 Conclusions All nations have a wealth of creative and inventive people, with a variety of cultures and experience All nations have a wealth of creative and inventive people, with a variety of cultures and experience One of the best ways to spark great new ideas is to give creators and inventors genuine opportunities to develop their ideas One of the best ways to spark great new ideas is to give creators and inventors genuine opportunities to develop their ideas Universities and R&D organizations to adopt active IP policies to lead the innovation process Universities and R&D organizations to adopt active IP policies to lead the innovation process Governments and policy makers to encourage and support creation of a climate favorable to invention, creativity and innovation Governments and policy makers to encourage and support creation of a climate favorable to invention, creativity and innovation

20. 20 Conclusions Invention will generate benefits if and when it goes through the innovation process to the market place Invention will generate benefits if and when it goes through the innovation process to the market place The innovation process may be long and requires a lot of expertise and resources The innovation process may be long and requires a lot of expertise and resources Governments should support and promote the creation of support services for innovation Governments should support and promote the creation of support services for innovation IPRs - a key to converting innovation into new opportunities for successful business IPRs - a key to converting innovation into new opportunities for successful business Innovation starts with a dream, and an entrepreneur may convert the dream into action and a real product Innovation starts with a dream, and an entrepreneur may convert the dream into action and a real product The way to success is paved by lessons from failures The way to success is paved by lessons from failures

21. 21 o Invention and Innovation need Imagination