1. Strategies for Innovation Sourcing 30 August 2007 Paul McGowan Center for Innovative Technology Herndon, VA pmcgowan@cit.org / 703-689-3070 Strategies for Innovation Sourcing

2. 2 CIT accelerates the next generation of technology and technology companies Our objective is to be nationally recognized as the premier provider of services that accelerate technology development Corporate Mission

3. 3 Agenda Critical Questions CIT Connect Overview Case Studies Next Steps

4. 4 Critical Questions: What are your sources of innovation? How are you taking advantage of new sources of R & D Investment ? How are you navigating the innovation bazaar? How do you – cost effectively - reach potential solutions that may not know about you?

5. 5 The Innovation Sourcing Challenge There is not a shortage of ideas. The challenge is in finding the good ones and the right ones … Case Study 1: -6,000 ideas yielded 100 marketable ideas (Consumer Products) Case Study 2: -3,000 candidates yielded 15 applicable technologies (Intelligence Agency) … and quickly bringing them into the government sector

6. 6 The Importance of Innovation Sourcing Continues to Grow Innovation is migrating from government/corporate labs to small businesses U.S. Industrial R&D Spending by Size of Enterprise Num of Employees

7. 7 CIT Connect Act as an Innovation Intermediary for specialized technology markets –Our customers are developing very specialized systems –Typically Government and high technology industries –A range of technologies (not all IT) Facilitate access to innovation outside of customers’ normal R&D supply chains –Leverage CIT’s relationships with small businesses, universities, domain experts, government research labs –Support customers’ technology insertion efforts –CIT serves as a trusted neutral party: long-established non-profit Structured primarily as a fee-based service –Direct sales to technology consumers –Partnering with system integrators for technology insertion within large development efforts –Secondary focus on supporting small technology businesses (generally supported by 3 rd party)

8. 8 What’s the value? Acceleration of technology adoption –Maintenance and diffusion of knowledge about novel technologies via innovation networks –Brokering between providers and consumers Planning and decision support for technology adoption –Technology intelligence and forecasting –Vendor evaluation, risk management –IP Analysis Delivery of new cost / performance capabilities –Technology shaping

9. 9 1. Requirements Definition & Future Visioning 3. Technology & Business Classification & Assessment 5. Initiate Technology Assimilation 2. Technology Sourcing & Identification 4. Develop Technology Recommendations Connect Process

10. 10 CIT Select Credentials Analysis of 3,000 technology companies across 4 target interest areas Development of specific research capabilities in Forensic Science Governor’s conference on campus security for Virginia colleges and universities Development of a research framework and market analysis for Biometrics Management of CPP program for selected SBIR companies Program Management of Innovative Coastal Observation project leveraging unmanned vehicles and internet data access

11. 11 Case Study: Conductive Inks Client Goals: Technology Landscape assessment supporting rapid operational prototyping Broad picture for multiple operational applications Results: Successful execution 26 applicable companies 34 additional relevant technologies IP landscape Schedule: Project Characteristics: Well defined technology area Applied structured Connect process Executed by Connect team, leveraging internal and external resources 2 wks8 wks Req’ts Sourcing Analysis Report

12. 12 Case Study: NTIP Client Goals: Technology Analysis for multiple IT requirements “Over the transom” approach with little visibility into end use Results: Initial universe of 3000+ companies 16 companies invited for further talks by the customer 6 directly into procurement Schedule: Project Characteristics: Multiple Technology Areas Applied structured Connect process Wide ranging sources of innovation 6 mo Req’ts Sourcing Analysis Report Review

13. 13 Case Study: DARPA MPP Client Goals: Support high potential companies in transition from R&D to Development Results: Current effort Six companies identified to date for inclusion Schedule: Project Characteristics: Diverse Technology Areas Manufacturing technology support Competitive intelligence Market identification Define repeatable process 12 mo Req’ts Sourcing Analysis Report

14. 14 Case Study: ONR Rapid Tech Transition Client Goals: Assess state-of-the-market in portable physical screening systems Results: Identified 20 ‘best fit’ technologies Outlined relevant Intellectual Property / Patent landscape Schedule: Project Characteristics: Examine complete systems Determine relevant components Raised awareness of USMC preferred approach 15 days Req’ts Sourcing Analysis Report

15. 15 Case Study: Campus Security Alert Systems Client Goals: Consolidate and rank requirements across over 60 Virginia Universities Source, analyze and rank potential solution providers Results: Developed standard, common and divergent requirements Developed detailed database on over 100 solutions and campus solutions Screening process for solutions Schedule: Project Characteristics: Representative client survey Source relevant knowledge capital Categorize and rank requirements Develop analysis model and framework for solution providers 24 days Req’ts Sourcing Analysis Report