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Te Pp Open Innovation Network

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Te Pp Open Innovation Network

  1. 1. TePP OPEN INNOVATION NETWORK A. S. Rao, Adviser, Department of Scientific and Industrial Research, Govt. of India ( [email_address] ) http://indiainvents.blogspot.com/
  2. 2. Shifting focus Developed Economy Developing Economy Growth Intellectual Capital National Innovation System High Low Innovation Capability OSDD, RGIC, TePP Open Innovation Risk-taking Capacity TDDP, TDB, NMITLI, HGT, TePP, Learning Capacity Extramural Research Absorption Capacity TAAS
  3. 3. Why do firm cooperate? <ul><li>To reduce transaction cost </li></ul><ul><li>As a strategic tool </li></ul><ul><li>For resource sharing. </li></ul><ul><li>Transaction costs are cost of using the market; costs that </li></ul><ul><li>stem from searching for a supplier/ customer, negotiation </li></ul><ul><li>and drafting a contract, and finally from monitoring and </li></ul><ul><li>enforcing it. Transaction cost theory was formulated by </li></ul><ul><li>Ronald H Coase in 1937 for which he was awarded Nobel. </li></ul><ul><li>Higher transaction costs forbid tapping too many small </li></ul><ul><li>packets of knowledge. </li></ul>
  4. 4. Typology of transactions <ul><li>Clear Proprietary rights + standard technology = Horizontal technology transfer </li></ul><ul><li>Clear Proprietary rights + technology uncertainty= Vertical technology transfer </li></ul><ul><li>Appropriation uncertain + standard technology = Sponsored research </li></ul><ul><li>Appropriation uncertain + technology uncertainty = Networks/ in-house R&D </li></ul>
  5. 5. Networks of innovators <ul><li>Networks of innovators are another means by which, under conditions of technological and appropriation uncertainty, firms can ally themselves to create technological turbulence, a new market space in which to operate and eventually structure a new market. </li></ul><ul><li>The difficulties in appropriating an ill-defined and unstable knowledge makes a network alliance of component suppliers, assemblers and key customers an advantageous alternatives. </li></ul>
  6. 7. Open Innovation Networks <ul><li>Cherbourg defined open innovation as &quot;... the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively .” </li></ul>
  7. 8. P&G Connect + Develop <ul><li>Procter & Gamble accelerated their internal research and development efforts by seeking and leveraging the ideas, talents and innovation assets of individuals, institutes and companies around the world. Through Connect + Develop, P&G built a global innovation network by identifying and connecting with the talents and technologies of today’s most prepared minds and capabilities. </li></ul>
  8. 9. P&G success <ul><li>Introduced Bounce, the world’s first dryer-added softener, after acquiring the product technology from the independent inventor who developed the innovative fabric-care solution. </li></ul><ul><li>By acquiring the newly introduced SpinBrush, P&G was able to bring a superior oral care brand to market quickly, without undertaking the time and expense of developing an entirely new product. </li></ul><ul><li>Several of Olay Skin Care products now utilize new consumer preferred pump dispensers originally developed by a European packaging products company. P&G led a collaborative improvement process to make the original pumps more effective prior to their launch in Olay’s North American markets. </li></ul>
  9. 11. MiPlaza <ul><li>MiPlaza, part of Philips Research, offers world-class industrial research facilities, services and expertise to outsiders to execute their research and development in the most effective way. </li></ul><ul><li>A wide range of facilities, equipment and support is offered by a staff of professional engineers and experts, including clean room facilities, thin-film process- and device development, material- and process analysis, test & measurement instrumentation, laboratories, measurement services. </li></ul>
  10. 12. Three regimes at the same time Control of strategic know-how and IP: Securing competitive advantage Share own know-how and IP that is non-differentiating Get access to non-differentiating know-how and IP of others
  11. 13. Innocentive <ul><li>Eli Lilly launched InnoCentive as a way to connect with people outside the company who could help in developing drugs and speeding them to market. </li></ul><ul><li>Dow Chemical's Dow AgroSciences unit turned to Lilly's InnoCentive Web site to solve a dozen research riddles. InnoCentive has signed up 30,000 scientists worldwide and pays bounties of up to $100,000 for solutions to problems posted on the site by Dow and other seekers. </li></ul>
  12. 14. Nine Sigma <ul><li>NineSigma partners with Global 1000 companies to transform their innovation capabilities by connecting them with the very best innovators from around the world. </li></ul><ul><li>Used by P&G, DuPont, GlaxoSmithKline, Kraft, General Mills, Unilever </li></ul>
  13. 15. TeKScout <ul><li>TekScout™ harnesses UTEK's relationships with over 2,000 universities, national labs and companies as well as thousands of individual scientists, or TekExperts, to work on the world's most challenging projects. </li></ul>
  14. 16. Open Innovation Funnel
  15. 17. TePP Network <ul><li>Technopreneur Promotion Programme (TePP) is India's largest network program supporting independent innovators. </li></ul><ul><li>The network, with its 30 outreach centers spread across the country, provides grants, technical guidance and mentoring support to independent innovators. </li></ul>
  16. 19. TePP Open Innovation Network <ul><li>Supply side process established. </li></ul><ul><li>Build demand side by linking `problem owners’ with `Problem solvers’ using TePP Portal. </li></ul><ul><li>Need to train firms in problem definition/ segregation and IP management. </li></ul><ul><li>Need to augment data base of innovators. </li></ul><ul><li>Promote `IP Auction sites’ and `sector specific IP funds. </li></ul>
  17. 20. Is it feasible??? <ul><li>Can independent innovators/ start-ups come with innovations that excite commercial firms? </li></ul>
  18. 21. Yes. It is possible <ul><li>Innovator Ajee Kamat from Cochin, who worked for a long period as Marine engineer, invested all his savings and developed an engine based on RVCR technology, which has potential to revolutionize engine technology. He has patented his concept both in India and abroad. Tata Motors have entered into a license agreement with the innovator to jointly develop the technology further and commercialise it. </li></ul><ul><li>Aurora Integrated Systems is a start-up from IIT, Kanpur working on developing indigenous technology, manufacturing and integrating state-of-the-art airborne systems with a focus on small Unmanned Aerial Systems (UAS). They are now supported and funded by the TATA group. </li></ul><ul><li>Kranti Kiran, taking a break from post graduate work at MIT focused on developing ClimaGear . The innovator received letter of intent from Tata Advanced Systems </li></ul>
  19. 22. Conclusion <ul><li>A shift is taking place from closed innovation to open innovation. </li></ul><ul><li>Create most ideas Vs Use most ideas. </li></ul><ul><li>The lab is our world Vs World is our lab. </li></ul><ul><li>TePP Network after establishing processes for scouting, screening, evaluation, funding, patenting, development and commercialization is now extending the scope to bring TePP Open Innovation Network, India’s first. </li></ul>

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  • vaxelrod

    Jan. 28, 2010


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