Oral presentation of paper for the 21st COBEM

1. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
Fabiano Armellini – Escola Politécnica da USP/BRAZIL
Paulo Carlos Kaminski – Escola Politécnica da USP/BRAZIL
Catherine Beaudry – École Polytechnique de Montréal/CANADA
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2. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
• Part of a collaborative research project between Escola Politécnica da USP and École Polytechnique de
Montréal on open innovation (OI) in the aerospace industry;
• Research project aims to verify whether openness practices are a trend in more conservative and
traditional high-tech industry sectors, such as aerospace;
• Research methodology includes a survey questionnaire that inquires companies about many of the
practices that are part of the scope of study of open innovation;
• Aerospace companies in Brazil (São Paulo) and Canada (Québec) are being interviewed since
October/2010 for later analysis;
• This paper is part of the literature review performed for establishing the boundaries of research;
• It departs from an initial discussion on the concept of the word “idea”, followed by a literature review on
knowledge management concepts and traditional classification of R&D activities (according to OECD
manuals) to derive a product development framework suitable for open innovation.
CONTEXT OF RESEARCH PAPER
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3. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
• “Idea” comes from the Greek word ιδέα
(idéa) or έ (eidéa), whose root is
 (eidos), which stands for “image”;
• In Classical Philosophy, the term is used to
designate representations (images) of
existing things;
• Nowadays, though, the word “idea” has
many different and equivocal meanings
other than that. Instead, it may also stand
for:
• Notion or opinion;
• Suggestion;
• Concept;
• Anything that comes into one’s mind
• In innovation and product development
texts, “idea” is a word often used but
rarely defined....
A DISCUSSION ON THE CONCEPT OF THE WORD “IDEA”
For this research project:
“Knowledge” is an intellectual asset that can be found in many
different levels of maturation:
Idea is the element that allows “knowledge” maturation:
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Datum
Information
Knowledge
Technology
Products / processes
“Ideas are creative impulses that allow the
combination of existing data, information,
knowledge and technologies into new knowledge,
technologies, products and/or processes.”

4. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
• Product development is regarded as a business
process, i.e., it is a flow of activities that can be:
• Formalized;
• Measured;
• Managed;
• Optimized.
• Examples of frameworks:
• Evans (1959)
• Cooper (1986)
• Clarke et Wheelwright (1993)
• Xerox Co. (1996) apud Chesbrough (2003)
• Existing frameworks normally do not
systematically look outside firm’s
boundaries
A QUICK REVIEW ON PRODUCT DEVELOPMENT FRAMEWORKS
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5. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
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“Open Innovation is a paradigm that assumes that firms
can and should use external ideas as well as internal
ideas, and internal and external paths to market.”
(CHESBROUGH, 2003)
“Three core open innovation processes: (1) The
outside-in process: Enriching the company’s own
knowledge base through the integration of suppliers,
customers and external knowledge sourcing can
increase a company’s innovativeness. (2) The inside-out
process: earning profits by bringing ideas to market,
selling IP and multiplying technology by transferring
ideas to the outside environment. (3) The coupled
process: coupling the outside-in and inside-out
processes by working in alliances with complementary
partners in which give and take is crucial for success.”
(GASMANN et ENKEL, 2004)
Not a theory, not a tool... A new way to see innovation

6. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
Starting framework: tripartite division of R&D as
proposed by Frascati manual (OECD, 2002):
Basic research aims the achievement of new
knowledge:
HOW CAN WE INCORPORATE COLLABORATION TO PRODUCT DEVELOPMENT?
Applied research aims the discovery of practical
application for available knowledge (new
technologies):
Finally, development aims the application of
technologies into new or improved products and/or
processes:
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Basic
Research
Applied
Research
Experimental
Development
Pre-production
Development
Development
Basic research
information
data
knowledge
Applied research
knowledge
information
data
technology
Development
knowledge
information
data
technologies
product

7. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
PRODUCT DEVELOPMENT FRAMEWORK
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8. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
As a linear framework, this conceptual model incurs
the limitation of this kind of models, not
representing feedbacks that can happen in the
knowledge maturation process in all steps of the
funnel. Secondary knowledge and technologies can
and are generated, for instance, during
development.
It is a fact that research also makes use of
technologies, for example, those incorporated into
the equipments used for research purposes. Those
technologies are not represented in the framework,
which constitutes another limitation of the model.
Nevertheless, the framework presented previously
has the advantage of successfully representing the
mainstream of knowledge maturation within the
PDP.
One additional benefit of this model id that is allows
the identification of the three core processes within
open innovation within the funnel.
LIMITATIONS AND ADVANTAGES OF THE CONCEPTUAL MODEL
Indeed:
• An outside-in process happens when knowledge
and/or technologies enter a firm’s funnel. It is
normally formalized by licensing or other
intellectual property (IP) agreements or by an
acquisition;
• An inside-out process happens when knowledge
and/or technologies leaves a firm’s funnel to be
used by another firm. Likewise, it is normally
formalized by licensing or other IP agreements or
by selling;
• A coupled process happens when collaboration
arrangements uses knowledge and/or
technologies from two or more institutions, with
benefit to all institution funnels. It is formalized by
mutual collaboration agreements, and likewise by
licensing or other IP agreements. 8 / 10

9. COB04851
IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT
DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION
Brown, S.L.; Eisenhardt, K.M. (1995) “Product development:
past research, present findings and future directions”,
Academy of Management Review, Vol. 20, No. 2, pp. 343-78.
Chesbrough, H.W. (2003) “Open innovation: the new imperative
for creating and profiting from technology”, Harvard Business
School Press.
Clark, K.B.; Wheelwright, S.C. (1993) “Managing new product
and process development – text and cases”, Harvard
Business School, The Free Press.
Cooper, R.G. (1986) “Winning at new products – accelerating
the process from idea to launch”, Addison-Wesley.
Cooper, R.G.; Edgett, S.J.; Kleinschmidt, E., 2001. “Portfolio
management for new products”, 2nd edition, Basic Books.
Evans, J.H., 1959. “Basic design concepts”, American Society
of Naval Engineering Journal, November, 1959, pp.671-8.
Gassmann, O.; Enkel, E., 2004. “Towards a theory of open
innovation: three core process archetypes”, Proceedings of
the R&D Management Conference, Lisbon, Portugal, July 6–
9, 2004.
Krishnan, V.; Ulrich, K.T., 2001. “Product development
decisions: a review of the literature”, Management Science,
Vol. 47, No.1, pp.1-21.
Liyanage, S.; Greenfield, P.; Don, R., 1999. “Towards a fourth
generation R&D management model – research networks in
knowledge management”, International Journal of Technology
Management, Vol. 18, Nos. 3-4, pp.372-93.
Loch, C.H; Kavadias, S. (eds.), 2008. “Handbook of new
product development management”, Elsevier.
OECD, 2002. “Frascati manual: proposed standard practice for
surveys on research and experimental development”, 6th
edition, Organization for Economic Co-operation and
Development.
OECD; EUROSTAT, 1997. “Oslo manual: guidelines for
collecting and interpreting innovation data”, 3rd edition,
Organization for Economic Co-operation and Development.
Veybel, L.; Prieur, P., 2003. “Le knowledge management dans
tous ses états - La gestion des connaisances au service de la
performance”, Éditions d'Organisation.
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10. COB04851
THANK YOU!
Acknowledgments: