1. Chapter 9 Managing the Research Function

2. Advanced Organizer

3. Chapter Objectives Explain product and technology life cycles
Examine the nature of research
Discuss the nature of creativity
Describe the legal means to protect a person’s ideas

4. Product Life Cycle Identification of need (consumer)
Product planning (marketing analysis, feasibility)
Product research
Product design
Production
Product evaluation
Product use & logistic support (consumer)

5. Technology Life Cycle Market Volume Time Technology Development
Application
Launch
Application
Growth
Mature
Technology
Substitution/
Obsolescence

6. Nature of R&D
Our 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&D
Research: 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 study
Applied research is directed toward the practical application of knowledge
Development 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 2008 1

9. Total 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 2008 1

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 2008 1

11. National R&D by funding sector 1953–2006

12. Federal R&D budget authority, by budget function: 1980–2008

13. National R&D by performing sector 1953–2006

14. National R&D expenditures, by character of work, and basic research, by performer and source of funds: 2006 1

15. New Product Strategies
First-to-market
Follow-the-leader
Me-too
Application engineering

16. Reasons for Corporate Research to Fail
Not applicable
Not enough patience
Failure in technology transfer

17. Selecting R&D Projects
60 ideas
12 worthy of preliminary evaluation
6 potential products
3 prototypes
2 products for full production & marketing
1 product with market success

18. Initial Screening Checklist Simple payback time Net Present Worth
Maximum expenditure justified
Emj = Fc  Ft  P
= Pcommercial success  Ptech. success  NPW

19. Initial Screening (Checklist)
Technical factors
Research direction and balance
Timing of R&D and market development
Stability of the potential market
Position factor
Market growth factors for the product
Marketability and compatibility
Producibility
Financial factors
Patentability & need for continuing defensive research

20. Initial Screening Process
Prepare the Matrix
Criteria
Reference Concept
Weightings
Rate Concepts
Scale (+ – 0) or (1–5)
Compare to Reference Concept or Values
Rank Concepts
Sum Weighted Scores
Combine and Improve
Remove Bad Features
Combine Good Qualities
Select Best Concept
May Be More than One or None
Beware of Average Concepts

21. Things to Remember
The goal of concept selection is not to Select the best concept
The goal of concept selection is to Develop the best concept
So 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 problem
Collect all available information
Understand relations and effects
Solve sub-problems, and
Explore all possible solutions and combinations that may lead to a satisfactory solution.
Frustration and incubation
Inspiration or illumination
Verification

25. Brainstorming and Other Techniques for Creativity

26. Brainstorming Modern method for "organized ideation"
First employed in the West by Alex Osborne in 1938
The 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 solution
This "cycle continues until a useful idea clicks."
 "And-also" Method
Person 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 will
tolerate idiosyncrasies,
remove as much routine regulation and reporting as feasible,
provide support personnel and equipment as required, and
recognize 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 individual
Entrepreneur - the person who "carries the ball"
Gatekeepers - bring in essential information
Program managers - who manage without inhibiting
Sponsor or Champion - the person, often in senior management, who provides financial and moral support

36. Protection of Ideas
Patents
Copyrights
Trade secrets, and
Trademarks and other marks

37. Patent An exclusive property right to an invention
Issued by the Commissioner of Patents and Trademarks, U.S. Department of Commerce
Limited to the "claims" of the patent

38. Classifications of patents
Utility
Design
Plant

39. Utility Patent
For a process, machine, article of manufacture, composition of material, or any improvement thereof
For 20 years from date of filing
Cannot be obtained on laws of nature, methods of doing business, scientific principles, or printed matters
Conditions to be patentable, the invention must be
new or novel,
useful or have utility, and
non-obvious

40. Design Patent
On new, original, and ornamental design of an article of manufacture
For 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 and
Reduction 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 Conception
A 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.S
Japan
Germany
U. Kingdom
France
Taiwan
Canada
S. Korea
Italy
Switzerland
Sweden

47. Companies with Most Patents 2008
IBM
Samsung 3515
Canon 2114
Microsoft
Intel
Matsushita 1745
Toshiba 1609
Fujitsu 1494
Sony HP
Hitachi 1313
Micron 1250
Seiko 1229 GE
Fujifilm 869
Ricoh 857
Infineon-G 814 LG TI
Honda 747
Siemens-G
Hon Hai-T 719
Denso 708
Cisco
Broadcom 643
Honeywell 629
Nokia-F 608
Silverbrook-A608
Sharp 603
NEC

48. Companies with Most Patents 2007
IBM
Samsung 2723
Canon 2047
Matsushita 1972
Intel
Toshiba 1734
Microsoft 1662
Micron 1484
HP 1470
Sony 1454
Siemens 1432
Hitachi 1381
GE 1369
Fujitsu 1293
Seiko 1205
Infineon 847
Denso 753 TI
Ricoh
AT&T 726
LG 682
Nokia 679
Honda 677
Fujifilm 660
Sun Micro 658
Koninklijke 654
Sharp 646
Motorola 631
Honeywell 605
DuPont 601

49. Companies with Most Patents 2006
IBM
Samsung 2453
Canon 2378
Matsushita 2273
HP 2113
Intel 1962
Sony 1810
Hitachi 1749
Toshiba 1717
Micron 1612
Fujitsu 1513
Microsoft 1463
Seiko 1205
GE 1051
Fuji Photo 918
Infineon 904
Koninklijke TI
Siemens
Honda 836
Sun Micro 776
Denso 770
NEC 744
LG 695
Ricoh 695
Sharp 692
Kodak 688
Broadcom 660
Cisco 649
Bosch 648

50. Top 10 Companies with Patents
2004
IBM
Matsushita 1934
Canon 1805
HP 1775
Micron 1760
Samsung 1604
Intel 1601
Hitachi 1514
Toshiba 1310
Sony 1305
2005
IBM
Canon 1828
HP 1797
Matsushita 1688
Samsung 1641
Micron 1561
Intel 1549
Hitachi 1271
Toshiba 1258
Fujitsu 1154
2006
IBM
Samsung 2453
Canon 2378
Matsushita 2273
HP 2113
Intel 1962
Sony 1810
Hitachi 1749
Toshiba 1717
Micron 1612

51. Top 10 Companies with Patents
2001
IBM
NEC 1953
Canon 1877
Micron 1643
Samsung 1450
Matsushita 1440
Sony 1363
Hitachi 1271
Mitsubishi 1184
Fujitsu 1166
2002
IBM
Canon 1893
Micron 1833
NEC
Hitachi 1602
Matsushita 1544
Sony
GE 1416
HP 1385
Mitsubishi 1373
2003
IBM
Canon 1992
Hitachi 1893
Matsushita 1786
HP 1759
Micron 1707
Intel 1592
Koninklijke 1353
Samsung 1313
Sony 1311

52. The Patent Scorecard™ 2008 – Universities
Univ. of California
MIT
Cal. Tech
Stanford
Rice
Univ. of Texas
New York University
University of Central Florida
Univ. of Wisconsin
Harvard

53. Trademarks and Other Marks
Service marks
Certification marks
Collective marks

54. Trademarks
A 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 Marks
A service mark is associated with services rather than goods.
Certification marks
A 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 marks
A 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 Marks
Starting 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. Copyrights
Copyright 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 works
Pictorial works
Motion Pictures/Videos
Sound Recordings

59. Copyrights
A 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. Copyrights
For 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 Secrets
Trade 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 Technologies
Key Technologies
Pacing 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 products
Research 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 audits
Weighted averages of costs and objectives
Project profiles

66. Support for R&D
Technician 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&D
Technical 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.