Strategies for competitive clusters in « Open Innovation » world Florin Paun Deputy Director...

Strategies for competitive clusters in « Open Innovation » world

Florin PaunDeputy Director Industrial Innovation

ONERA - ‘The French Aerospace Lab’®

© - Florin Paun, 2015 Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.

Fundamentals : Innovation

What is the INNOVATION? INNOVATION = CREATIVITY + VALUE« Successful Exploitation of a New Idea » E. von Hippel, Harvard, MIT

What means VALUE ?

Commercial, Capital, Access to Resources (Capacities), Human Capital

Material vs Intangible Assets (IP?,… Information?,

Stress Avoidance?,…)

© - Florin Paun, 2015, Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.

Dynamic Capabilities- A. Sen

TM rights Know-how

Direct- see RyanAir Non direct- see electric cars plug

Fundamentals : Innovation

« Successful Exploitation of a New Idea » E. von Hippel, Harvard, MIT

What means COLLABORATIVE INNOVATION?

Same Process … not alone

Someone else for getting together to create value by :

producing NEW IDEAs

EXPLOITING with SUCCES while sharing RISK sharing BENEFITS


Challenges- Concomitancy and Innovation OccurrenceInnovation Distribution Channel ; Study case – Commercial Aircraft

Passenger

Airline

Aircraft Manufacturer

Development Office

Corporate Research Center

R&D Centers (Applied R&D)

Universities (Basic R&D)

ßValue input (100)

Air France, Lufthansa...

Airbus, Boeing,... (<7)

Deciders for Technology(System architect) Technology providers

Onera, DLR, Universities

Vertical competitionHorizontal competition

Critical - Strategic Partnership (IP exclusivity) Competitive Advantages (quality, costs, time,

IP exclusivity)

historically


Challenges - Concomitancy and Innovation OccurrenceFondamentals – from Value Distribution Channel

maintenance

Services

Low Cost Pax Charter

Pax

Cargo

Str. Partner.Co-Dev.

Tiers 1

R&D

Passenger

Airline

Dev.

Basic R&D

Tiers 1

R&D

Technology Innovation

auto

mot

ive

automotive

Ene

rgy

To Value Distribution Tree To Value Distribution Interconnected “Mangrove Forest”

T I C


ClusterPass.Airline-100Airport-2Airplane-7Maint. -23R&D -0.6Public-0.06VAT-???

How to…? - Concomitancy and Innovation OccurrenceFondamentals – from Value Distribution Channel

Life in Mangrove Forest

-How to see beyond your « radar » the emergent technologies impacting yourbusiness core faster then your own product/service development time?

Sentinels vs Predators Detecting and Closing deals 10x faster

-First in Market and take it all ?! a new world of Instruments vs Rules are you ever really sure you’re not infringing others IP? build Value Proposition based on IP strategy not only portofolio…

-How to distribute the created Value Track and Deal the related IP

- With whom? Hybrid Humans!


Prof Henry Chesbrough UC Berkeley. Open Innovation : Renewing Groth From Industrial R & D, 10th Annual Innovation

Convergence, Minneapolis Sept 27, 2004

How to…? Winning Speed Open Innovation


dealdeal

deal

deal

dealdeal

Open Innovation ≠ Open bar sur la PI Deals & Deal Makers- Detecting & Transactionning the IP ; Tech Scouters, Jurists, Buyers, Managers,…

In Practice : How to proceed and with whom?How and What to Deal?

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Tools to accelerate

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Accelerate Using of “Time 2 market – Complexity” Limit whileGetting outside the Open Innovation Funnel

Time to Market

Pro

du

ct C

om

ple

xity

(C

ost

s)

Research

Results

Bio-geneticsPharmacy

Aerospace and Defence

Automotive

Sof

twar

e D

evel

opm

ent

Info

rmat

ion

and

Tel

ecom

mun

icat

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Agro-food

IndustriesEnergy

Electronics

Main Industrials innovation limitSME’s innovation follow-up limit

Start-up innovation follow-up limit

Diagram by R Stephan UTC

Limits by Authors

(Multi) National Strategic

Program Support

© - Florin Paun 2015Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.

SMEs – good vectors for technology demonstration in all domains Disruptive/Radical Innovation Get out of its sector, addressing reduced T2Mkt domains

Leosphere

First Sales

Commercialisation ;Marketing, Promotion...

Investment

+ Time (TRL)

Death ValleyDeath Valley

Nombre d’Idées

1000100

10

2-3

1

1 Potentiel Product

Fondamentals : Positioning on the TRL

Risk Level

Entre-IntraPreneur

“Best TechnologyValues Nothingwithout the rightCarrier” R Katz

Large Industrials out of Road MapTechnology Scouting global

disruptions, other domains,…

TRL

1 2 9

SMESME withDevelop. Offices

SME withR&D capacities

Large Industrials within Strategic Road Map

Start-upIncubators, Business Angels

Start-up on niched market (VCapital)

Industrial Venture on big markets

Proof of Concept

TechnologyDémonstrator

Pu

blic

R&

D

Ap

plie

d R

&D

, Car

no

t, F

rau

nh

ofe

r…I I I I I I I

Technology Center (MktPull)Large indust. et suppliers

Support SME

SATT (TechPush) Venture/Licence.

ONERA-Tech/CapitalParteneurial Ecosysteme

Venture/Licence for Large Ind. & TPE/Start-up for niche

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Gates to get into the Open Innovation Funnel – TRL Positionned

Confidentiel

Inputs ; R&D consortium (R&D) ; R&D contracts (R&D, methods + supply?) ; Venture/Licence (Program Manager, Supply Chain)

In Practice : How to proceed and with whom?

Method to hybridise MktPull & TechPush “What is the TRL level ?” - Customer Voice are sunken inside the TRL scale and 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?

Theorem : Invest in Projects which match at the DRL+TRL>9 !

DR Level Description for the Demand Readiness Level Description TRL level TR Level

1 Occurrence of a Feeling “something is missing”

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

6 Translation of the expected functionalities into needed capabilities to build the response

Technology development 5

7 Definition of the necessary and sufficient competencies and resources Laboratory demonstration 4

8 Identification of the Experts possessing the competencies Research to prove feasibility 3

9 Building the adapted answer to the expressed need on the market Applied research 2

Fundamental research 1


In Practice Onera’s developed Tools

DRL

TRL

9

9

R&T Interne/

Externe avecContrôle PI

Investissement en Démo Tech. sur Licence Exclusive

ou PI propre

Venture/Licence/vente PI+

TechTransfert Éventuel

R&T

Non Compétitive

-Fondam

entale

SWOT Tech/Marché-

Recherche des Partenaires Pour application/ventes

-

Identifier des applications

Recherche Applications- croisées

+Promotion sur le marché PI

(Patent Troll, Tech Platforms…)

Business Plan/Model

Produit/Service+

SWOT Marché/Tech.

Licence/

Spin-off/

Start-up

3Fonctionnalités

6 Capabilités

Co-development

Partage de Risque et

des Bénéfices-R&D

Collaborative

3Démo Lab

6Demo Cond Opér.

Lim

ite d

es V

ente

s

Activités relatives àl’acteur exploitant

Activités relatives auLaboratoire R&T

Transactions

Activités à faire

Limite desTransactions

Limite entre le TechPush - MktPull

Innovation Process Readiness Diagram©

© Copyright - Florin PAUN & Philippe RICHARD, 2011

How to invest? (Analyse with the use of DRL)

15

Risk sharing co-development contractFrench SME specificity : 95% < 50 employeesLow Business Angels activity and Venture Capital culture Low SME cash disposal for technological development projects

Onera’s Proposed solution Risk sharing co-development contract Product Business Plan analysis Onera investment for its own working program Financial return based on the Product success (≠ subsidies, licenses…) Global benefit on the co-development Onera’s budget

Working Program- long term and high complexity scientist consequent involvementSolution Scientist migration from ONERA to the SME development team

to compensate the socio-cultural asymmetry

Need to Measure the SME interest- the best evidence > 5% of equity open for the scientist

Spin-off 4 Spin-in new Employees Onera’s Charter

In Practice Onera’s developed Tools

16

Assigning the role of “Cultural” Translator to the TTO Shifting the TTO mission from “Look to my baby” to “I’m here to help you

succeeding”

Shifting from Technology Push to Market Pull

Onera’s solutions to compensate / reduce the Asymmetries

Onera-SME collaboration CharterMain objectives :- Favour access to Aerospace & Defence R&D results- Favour emergence of innovative proposals- Provide contract opportunities- Complies with Onera’s mission provide economic

growth

CREATE “TRUSTFULL SPACES”(by “cognitive proximity” [Uzunidis])

17

Fogale nanotech

Onera et l’Open Innovation avec des PME et Start-ups

91 - « Wind » Lidar

31_EM environmentsimulation

91-LASERInterferometer

Porous Ti bio-medicalprosthesis

AccelerometersMEMS

Ship landing For UAVs

91-MedicalImagery

Ultrasounds machining

Capacitive sensors

78-ONERA’s software

Crack trackingand detection

77-Projectile acoustic signature

31- Pressure SensitivePaint

13- Green Aircraft/Silent propeler

UAVs

NHEOLIS 13- Wind mill

Sense and avoidAviation system

Adaptive Optics from space to eyes

ABERNATHY, WJ., UTTERBACK, JM., 1975, “A dynamic model of process and product innovation”. Omega. 1975; 3(6): 639–56.

AIT-EL-HADJ, S., BRETTE, O., 2006, « L’apport de la science des systèmes techniques à la maitrise de la conception pour une systémique technologique appliquée » in « Innovation, management des processus et création de valeur », pages 67-83.

CALAME, M., 2011, « Lettre ouverte aux scientifiques. Alternatives démocratique à une idéologie cléricale », pages 71-149

DENT ASSOCIATES, 2011, White Paper (http://www.dentassociates.co.uk/pdf/Technology%20and%20Market%20Readiness%20Levels.pdf )

ECOLE DE L’INNOVATION, 2011, « Innovation dans les PME : la maturité commerciale et technologique guide le choix du contrat de partenariat technologique » in La lettre européenne de l’ANRT, Nr. 248, octobre, 2011

FLORIDA, R., & COHEN, W.M. (1999). "Engine or infrastructure? The university role in economic development", in L.M. Branscomb, F. Kodama, & R. Florida (Eds.). Industrializing knowledge: University-industry linkages in Japan and the United States (pp. 589-610). Cambridge, MIT Press.

LEVY, M., JOUYET, JP., 2006, “L’économie de l’immatérielle, la croissance de demain”, Rapport de la Commission sur l’économie de l’immatériel

MANKINS, JC., 1995, “Technology readiness levels, a white paper”, April 6. Advanced Concepts Office, Office of Space Access and Technology, NASA

MORIN, E., 1990, Science avec conscience (Science with a conscience), Paris, Fayard, 1982, new modified edition.

PAUN, F., 2011a, ‘Demand Readiness Level’ (DRL): A New Tool to Hybridize Market Pull and Technology Push Approaches – Introspective Analysis of the New Trends in Technology Transfer Practices (February 18, 2011). Springer Encyclopedia, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1763679

PAUN, F., 2011b, « From managing information asymmetries towards systemic asymmetries approach in technology transfer and innovation strategies: An economic analysis of the SME strategy at ONERA –the French Aerospace Lab », IUP Journal of Knowledge Management, Vol.IX, No 4, October.

PAUN, F., 2011c, Demand Readiness Level as equilibrium tool for the hybridization between Technology Push et Market Pull approaches: ANR - ERANET Workshop, 8th of February 2011.

PAUN, F., 2012, « The Demand Readiness Level Scale as New Proposed Tool to Hybridize Market Pull with Technology Push Approaches in Technology Transfer Practices » in Technology Transfer in a Global Economy, Springer series: International Studies in Entrepreneurship, vol 28, 397 p.

PAUN, F., Von TUNZELMAN, N. RICHARD, P., 2012, « Transferring New Dynamic Capabilities to SMEs: The Role of ONERA – The French Aerospace LabTM in Promoting Asymmetries Management » (February 18, 2011). Available at SSRN: http://ssrn.com/abstract=1763708

SCHUMPETER, J. A., 1911, “The Theory of Economic Development”, Harvard University Press, Cambridge, MA.

STIGLITZ, J., WEISS, A., 1992, “Asymmetric information in credit markets and its implications for macroeconomics”, Oxford Economic Papers, 44, 694-724.

VEBLEN, T., 1914, “The Instinct of Workmanship, and the State of the Industrial Arts”, New York, Augustus Kelley, 1963.

WATTS, D. J., STROGATZ, S. H., 1998, “Collective dynamics of ‘small-world’ networks”, Nature 393, 6684.

WEBER, A., 1909/1929, “The Theory of Industrial Location”, Chicago, University of Chicago Press.

WHEATLEY, M. J., 2001, “Innovation means relying on everyone’s creativity”, Retrieved November, 2002

XU, Q. et al., 2007, “TIM (Total Innovation Management) – A new paradigm of innovation management in the 21st Century”, Journal of Technology Transfer, 32 (1-2), 9-25.

ZIMMERMANN, J.-B., 2002, “Grappes d’entreprises et petits mondes (Company clusters and small worlds”, Revue Economique, 53 (3), 517-524

http://www.dentassociates.co.uk/pdf/Technology%20and%20Market%20Readiness%20Levels.pdf

http://ssrn.com/abstract=1763679

http://ssrn.com/abstract=1763708

Thank you for your attentionQ&A

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