2. The Purpose of the Presentation
Propose a pathway to monetize
Purdue’s assets in new ways
3. The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the Global Leader in Applied Research!
!
Purdue’s Innovation Acceleration Network!
Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways!
!
Launching the Network !
Defining “next steps” to implementation
Overview
4. The Gap in Purdue’s Innovation Ecosystem
9
8
7
6
5
4
3
2
1
Purdue Research System
Purdue TAP
Basic Technology
Research
Feasibility Research
Technology
Development
Technology
Demonstration
System & Subsystem
Development
System Test, Launch
& Operations
Technology Readiness Levels
Time to Market
Mid term:
6-18 months
Short term:
0-6 months
Long term:
18-48 months
Gap
5. The Gap in National Innovation Ecosystem
Source: Conrady, C. and Carrick, G., !
“American Manufacturing Innovation Network”
Structural problem requires
a structural solution
Universities,
NSF Centers,
Federal Labs
• High-risk research
• Long time horizon
• Not focused on
shop floor implementation
Industry,
NIST MEP
• Incremental improvement
• Off the shelf technology
• Short time horizon
Time to deployment
TechnicalInnovation
Best
Practices
Basic Research/
Education
Manufacturing
Technology Innovation
Missing Middle
• Manufacturing technology
innovation, maturation,
commercialization, insertion
• Medium time horizon
• High impact
The Gap
6. The Gap in an International Context:The UK
Source: Hauser, H., The Current and Future Role of Technology Innovation Centres in the UK (2010).
The Gap
7. Filling the Gap: Expanding Market-Facing Research
Technology Readiness
Levels 1-5
MoneyTechnology
Technology Readiness
Levels 5-9
Purdue’s Research System
Purdue’s Engagement System
Government funds
this part of the cycle
Industry funding drives
this part of the cycle
The Gap is here
8. Filling the Innovation Gap will strengthen horizontal ties across
Purdue’s colleges and vertical ties to the market economy:!
Filling the Gap: Horizontal andVertical Connections
Filling
the Gap
x.y
<process
name>
<process
name>
Strengthen
vertical ties
with industry
Strengthen
horizontal
ties across
Purdue
9
8
7
6
5
4
3
2
1
Basic Technology
Research
Feasibility Research
Technology
Development
Technology
Demonstration
System & Subsystem
Development
System Test, Launch
& Operations
Technology Readiness Levels
Engineering
133.4
Agriculture
61.6
Science
61.6
Health
26.7
Veterinary
13.4
Pharmacy
11.6
Technology
9.4
Liberal
Arts
5.7
Education
3.7
ResearchFocus
AppliedBasic
Market Economy
Purdue's Engagement System:
Engaged Research
Purdue's Extramural Research Awards, 2011-2012 (in $millions)
Other
18.6
Purdue's Research System: Academic Research
9. Start-up firms
Investor networks
Colleges and
universities
Skilled talent
pool
Innovating
Growth
Companies
Provides ideas,
incubators
and smart people
Provides capital
and expertise
Recruits
smart people
Recruits and
trains smart people
Provides network
and mentoring to
start-ups
Provides
R&D partners
Recruits and
supplies
smart people
Provides
investment
and generates
wealth
Provides technology
support and training
Accelerates
new venture
investment
Source: Ed Morrison
Universities Operate Within Ecosystems
Startup Ecosystem
Innovation Ecosystem
10. Purdue’s Startup Ecosystems
Purdue’s Startup Ecosystem
Technology Talent
Intellectual
Property
University Innovation Inputs
+
Business Model and
Lean Start-up Frameworks
+
Business Formation and
Support Networks
=
More Growth
Spin-out Companies
11. Purdue’s Innovation Ecosystem
Small and Medium
Sized Companies
with Growth Potential
+
Bundled Innovation
Management Frameworks
and Tools
+
Purdue and
Corporate
Partner Teams
Existing
Existing
New
New
Technology
Markets
Efficiency
Innovation
-
Market Penetration
Sustaining
Innovation
-
Product Extension
Transformative
Innovation
-
Product Market
Diversification
Sustaining
Innovation
-
Market Extension =
More Growth
Accelerating innovation
among Indiana companies
Purdue’s Innovation Ecosystem
12. Ecosystem Strategic Focus Existing Anchors Primary Customers Outcome Metrics
Purdue
Entrepreneurship
Ecosystem
Producing start-ups from
Purdue technology
Purdue Foundry Purdue research
faculty
Number of Purdue
start-ups
Purdue
Innovation
Ecosystem
Accelerating innovation in
existing companies using
technology and innovation
management tools
Purdue TAP !
Purdue Extension!
High growth SMEs
and Consortia of
industrial firms facing
a common innovation
challenge
Revenues coming
from improved and
new products and
services
Two Purdue Ecosystems for Development
Purdue’s
Innovation
Ecosystem
Purdue’s
Startup
Ecosystem
Purdue
Foundry
Purdue
Research
Foundation
Discovery
Park Purdue
TAP
Purdue
Extension
13. The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the Global Leader in Applied Research!
!
Purdue’s Innovation Acceleration Network!
Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways!
!
Launching the Network !
Defining “next steps” to implementation
Overview
14. Purdue Innovation Ecosystem: Fraunhofer as Partner
14
To determine how to fill the Innovation Gap, a Purdue team explored Fraunhofer as a
model. !
!
Now the largest applied research organization in Europe!
Applied research, technology licensing (e.g., mp-3 format), and spin-out
companies!
Similar to (but about 10X the size of) SRI International (formerly Stanford
Research Institute)
15. Purdue Innovation Ecosystem: Fraunhofer as Partner
15
Applied
Research
Basic
Research
Predominantly public Predominantly
private
Characteristics of
Research
Funding
Federal/
German
Länder
Institutes
HGF
WGL
Universities
Industry
(internal and
external
expenditures)
AiF
MPG
HGF! Hermann von Helmholtz-Gemeinschaft!
WGL! Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz!
AiF!Arbeitsgemeinschaft industrieller Forschungsvereinigungen!
MPG! Max-Planck-Gesellschaft
Source:: Fraunhofer
The Gap
16. 16
n The world’s largest applied and most
successful applied technology agencies!
n Over 80 institutes and centers!
n More than 22,000 employees: 4,000+
PhD’s!
n An annual research volume of €1.9 billion!
n 70% of this research revenue
competitive and market-facing. !
n 30% is contributed by government in
the form of matching funds.
München
Holzkirchen
Freiburg
Efringen-
Kirchen
Freising
Stuttgart
Pfinztal
KarlsruheSaarbrücken
St. Ingbert
Kaiserslautern
Darmstadt
Würzburg
Erlangen
Nürnberg
Ilmenau
Schkopau
Teltow
Oberhausen
Duisburg
EuskirchenAachen
St. Augustin
Schmallenberg
Dortmund
Potsdam
Berlin
Rostock
Lübeck
Itzehoe
Braunschweig
Hannover
Bremen
Bremerhaven
Jena
Leipzig
Chemnitz
Dresden
Cottbus
Magdeburg
Halle
Fürth
Wachtberg
Ettlingen
Kandern
Oldenburg
Freiberg
Paderborn
Kassel
Gießen
Erfurt
Augsburg
Oberpfaffenhofen
Garching
Straubing
Bayreuth
Bronnbach
Prien
Hamburg
Leuna
Fraunhofer: Global leader in applied research
17. Fraunhofer: Groups,Alliances and Networks
60+ institutes organized into 7
Groups…!
Information and Communication
Technology!
Life Sciences!
Microelectronics!
Light & Surfaces !
Production !
Materials and Components !
Defense and Security
Multiple Alliances…
Adaptronics
Ambient Assisted Living
Building Innovation
Digital Cinema
E-Government
Energy
Food Chain ManagementAdditive Manufacturing
Cloud Computing
Advancer
Nanotechnology
Simulation
Optic Surfaces
Photocatalysis
Polymer SurfacesCleaning Technology
Water Systems
Traffic and Transportation
Vision
Automobile Production
Lightweight Structures
Embedded Systems
And global networks…
18. Design: !
The model of innovation of the
Fraunhofer Society can be described as a
network model,…The network, together
with a strong reputation, makes it fairly
easy for small and big firms to establish
a contact with the Society.
!
Drivers: !
The Fraunhofer model allows the
organization to set up new institutes
where it sees a new market demand.
Åström, Eriksson, Niklasson and Arnold, International
Comparison of Five Institute Systems (2008)
Fraunhofer: Design and drivers
“
“
“
”
”
19. The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the Global Leader in Applied Research!
!
Purdue’s Innovation Acceleration Network!
Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways!
!
Launching the Network !
Defining “next steps” to implementation
Overview
20. The Central Idea: Achieve Scale with Coherence
Current Engagement System
a loose collection of components
Proposed Engagement System
achieve scale with more coherence
and better communication
Purdue’s Innovation Ecosystem
Purdue Innovation !
Acceleration Network
21. The Innovation Acceleration Network
As the Innovation Acceleration Network establishes itself across campus, it will bring
coherence, speed, and “link and leverage” opportunities to expand industrial investment in
Purdue’s market-facing research.
Purdue
Core
Innovation
Lab
(Core Lab)
(iLab)
1
iLab
2
iLab
n
Innovation Acceleration Network
with Market-Facing
Innovation Disciplines
University
and College
Centers
Unviersity
Unviersity
Unviersity
University
College
1College
1
College
2College
2College
2
Colleges and
Departments
College
College
College
College 1 Departments
Existing
Engagement
Networks
Purdue
Extension
Purdue
TAP
22. The Innovation Acceleration Network includes:!
• A core innovation lab; and!
• Multiple innovation labs (iLabs) for multiple
theme areas. !
This network would:!
!
1. Increase market-facing industry research in
Discovery Park and across Purdue colleges and
departments;!
2. Network more effectively to create an
ecosystem with global partners conducting
similar market-facing research;!
3. Create new multi-disciplinary learning
opportunities for Purdue students locally and
globally;
The Innovation Acceleration Network
Purdue Core
Innovation Lab
(Core Lab)
Innovation
lab
(iLab)
1
iLab
2
iLab
n
23. The Core Lab will provide:!
1. External linkages to Fraunhofer innovation
assets.-- With Fraunhofer build a shared pool
of tools, frameworks, and expertise. !
2. Innovation acceleration across campus
and Indiana.-- Link and leverage Fraunhofer
assets around selective theme areas.!
3. New pathways for industry support.—
Provide a new platform for collaborative
research.
Functions of the Core Lab
iLab
3
iLab
2
Purdue Core
Innovation Lab
(Core Lab)
iLab
1
24. Purdue iLabs provide industry partners with:!
1. Customized, agile innovation
infrastructure.-- Each iLab will design an
lean infrastructure to rapidly meet an
industry research agenda; !
2. Access to powerful innovation tools on
demand.-- Each iLab will have a portfolio
of the latest innovation tools, frameworks
and training supported by the Core Lab;!
3. Access to researchers, faculty and
students on demand.— Each iLab will be
staffed by Purdue researchers, faculty and
students with a background in the
technologies of interest to the industry
partner.
The iLabsValue Proposition to Industry
PPI core
innovation lab
Innovation
lab
1
Innovation
lab
2
Innovation
lab
3
Industry support for iLabs will come in a variety
of ways:!
— Base funding commitments to each iLab!
— Contract research!
— Donations of equipment!
— Unrestricted gifts from alumni
26. Scaling Purdue’s Innovation Acceleration NetworkRevenuesin$000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Year 1 Year 2 Year 3 Year 4 Year 5
Year 1 Year 2 Year 3 Year 4 Year 5
Number of iLabs
Small ($100-200K) 2 5 10 15 25
Medium ($300-500K) 0 1 2 5 10
Large ($700-900K) 0 0 1 2 5
Core Lab ($1.5M-$3M) 1 1 1 1 1
• Potential Scale through
franchising.— Deploying the
network across campus and
Indiana could increase
industry support for Purdue
research by $20 million to
$25 million in 5 to 7 years.!
• Timing.— Revenue
generation will accelerate as
the network grows.!
• Drivers.— Success will
depend on how many iLabs
can be “franchised” by the
Core lab.
27. The Innovation Gap at Purdue!
Strengthening Purdue’s Innovation Ecosystem!
!
The Fraunhofer Connection !
Insights from the Global Leader in Applied Research!
!
Purdue’s Innovation Acceleration Network!
Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways!
!
Launching the Network !
Defining “next steps” to implementation
Overview
28. Launch of the Core Lab will take place in Year 1. Development of the Core Lab will
occur coincident with the development of the first iLab. Configuration and launch of
iLabs will be flexible, driven in part by industry expressions of interest.
Launching the Network: Strawman Schedule
Year 1 Year 2 Year 3
Core Lab
iLab 1
iLab 2
iLab 3
iLab 4
iLab 5
iLab 6
iLabs 7-13
29. Next Steps
The next steps to developing the Innovation
Acceleration Network include:!
• Workshop at Purdue.— Assemble a
core team to review this presentation and
develop a set of detailed outcomes to
engage with Fraunhofer.!
• Workshop at Fraunhofer.— Conduct a
1.0 to1.5 day workshop at Fraunhofer: !
• Develop detailed specifications for Core
Lab and iLab.!
• Draft agreement with Fraunhofer IAO on
design and management of the
Network.!
• Preparation of detailed prospectus.—
Prepare a business plan and investor
prospectus for the Network.
30. ThankYou
Ragu Athinarayanan!
Department Head, Technology Leadership and Innovation !
College of Technology!
rathinar@purdue.edu!
!
Ed Morrison!
Regional Economic Development Advisor!
Purdue Center for Regional Development!
edmorrison@purdue.edu!