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

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. www.merit.unu.edu\MEI) 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”) 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.)

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.)

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 © - 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.)

“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 ANR - ERANET Workshop, Paris, 8th of February 2011 5 © - 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.)

+ SMEs to do demonstrators ? How? Strong existing Asymmetries 1 2 3 4 3 4 6 7 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 +

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 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.)

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.)

Early Stage Results with SME / Start-ups http://innovationhub.onera.fr 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, Ce document et l’information contenue sont la propriété de l’ONERA. Toute reproduction est interdite sans l’accord de l’ONERA. 9

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.)