1 of intellectual property and innovative developmentCommercialization of intellectual property and innovative development
2 CONCEPTS AND DEFINITIONSInnovation commercialization is to be considered as a integral process or flow which has a specific goal (a deal) and running due to the elements (resources, relations) joined into a single innovation ecosystem.
3 CONCEPTS AND DEFINITIONSInnovation commercialization is to be considered as a integral process or flow which has a specific goal (a deal) and running due to the elements (resources, relations) joined into a single innovation ecosystem. Innovative activities infrastructure is a set of structures that contribute to the implementation of innovative activities including the provision of services for innovative products creation and commercialization. Innovation ecosystem is the whole complex of actors that interact in the process of commercialization of innovations and their relationships accumulating human, financial and other resources for intensification, optimization and enhancing the efficiency of innovations commercialization. Commercialization of Innovation is a single process of transformation of the flow of ideas, developments or competencies into assets in the form of projects and the subsequent sale transactions of the created assets.
4 2.Actors interacting in the process of innovation commercialization. ENHANCEMENT OF THE INNOVATION ECOSYSTEM OPERATION The definitions given above allow determining 4 major measurement variables of innovation ecosystem: 1.A goal-oriented process: innovation ecosystem is built around the process of innovations commercialization resulting in the introduction of a product to the market. 2.Actors interacting in the process of innovation commercialization. 3.Relations between the actors. 4.Environment which provides resources for the actors of innovation commercialization.
5 CHALLENGE: COMMERCIALIZATION IS NOT A GOALOVERCOMING BARRIERS TO INNOVATION AND TECHNOLOGY COMMERCIALIZATION SUCCESSFUL INNOVATION ECOSYSTEM FOCUSES ON THE INNOVATIONS COMMERCIALIZATION STABLE INNOVATION ECOSYSTEM IS A PRIORITY OF ECONOMIC POLICY BARRIERS TO BE OVERCOME : Low demand for new breakthrough solutions from large companies. Equipment purchase is financed as purchase of innovations. Lack of coordination in the federal public policy tools supporting innovations, double financing of some kinds of projects and lack of financing of the others. Contradictions between certain goals of new programs implemented at the state level and the goals of innovative development. The formalism of goal-setting and reporting. Outdated and inconsistent methodological approaches both to business introduction and financing. CHALLENGE: COMMERCIALIZATION IS NOT A GOAL
6 OVERCOMING BARRIERS TO INNOVATION AND TECHNOLOGY COMMERCIALIZATIONINNOVATION DEVELOPMENT PROVIDES A CONSISTENT, CONTINUOUS CONVERSION OF IDEAS INTO DEALS: THE INPUT FLOW OF TEAMS’ IDEAS, DEVELOPMENTS AND COMPETENCIES CONVERT INTO ASSETS, AND THEN THESE ASSETS ARE SOLD. BARRIERS TO BE OVERCOME : Funding from the state, which is due to the large public projects focused on the "idea startup“. Reconsideration of the key university performance indicators aimed at publication activity growth and other research results at the expense of innovation. After the initial development it is not interesting and/or unprofitable to do the final step, i.e. seek ways of production and introducing a prototype. CHALLENGE: THE WORK IS NOT AIMED AT COMMERCIALIZATION. THE DEVELOPMENT RESULTS DO NOT BECOME AN ASSET. AS A RESULT, THE PROJECT FAILS.
7 OVERCOMING BARRIERS TO INNOVATION AND TECHNOLOGY COMMERCIALIZATIONExperts united in the networks of collaboration and ensuring the continuity of the process of innovation commercialization are the actors of successful innovation ecosystem BARRIERS TO BE OVERCOME : When signing up new orders from large companies administrative resources play an important role. Research teams and not the representatives of innovation infrastructure promote their own developments. Lack of communication between industry and development teams in universities. Divisions of universities innovation infrastructure are not focused on solving marketing tasks. CHALLENGE: LACK OF MARKETING IN UNIVERSITIES AND SCIENTIFIC RESEARCH CENTRES
8 OVERCOMING BARRIERS TO INNOVATION AND TECHNOLOGY COMMERCIALIZATIONSuccessful innovation ecosystem provides a consistent, continuous conversion of ideas into deals: the input flow of teams’ ideas, developments and competencies convert into assets, and then these assets are sold. BARRIERS TO BE OVERCOME : A university and a scientific research institution patent as much results of intellectual activities as possible and after patent registration the process stops. A system of transferring a copyright under a license agreement to a third legal person (not the author of a patent) is poorly developed. The main purpose of intellectual property is reporting on grants, federal targeted programmes, public funding programmes: patent acquisition means success. The conversion of patents into projects does not affect the career at universities and research centers and is not considered as a key goal. The licensing mechanism is not familiar and understandable; it is easier to order R&D. Obstacles in the work with the foreign companies: foreign companies are interested in international patents, but there is lack of them. CHALLENGE: INNOVATIONS AND TECHNOLOGIES DO NOT END UP WITH A DEAL
9 CHALLENGES: THERE IS LACK OF DEMAND FOR INNOVATIONSOVERCOMING BARRIERS TO INNOVATION AND TECHNOLOGY COMMERCIALIZATION Experts united in the networks of collaboration and ensuring the continuity of the process of innovations commercialization are the actors of successful innovation ecosystem BARRIERS TO BE OVERCOME : Various Russian branches of industry rely on the state order, so they are outside the competitive environment. There are no business processes reviewing, adjusting and implementing third-party developments. There is lack of resources for the implementation of third-party developments – there is lack of investment programs, but there are funds. There are no "road maps " of technologies and products development in modern Russian companies. Generally companies are searching for competencies but not developments. There is lack of funds for R & D. CHALLENGES: THERE IS LACK OF DEMAND FOR INNOVATIONS
10 OVERCOMING BARRIERS TO INNOVATION AND TECHNOLOGY COMMERCIALIZATIONINTERACTION BETWEEN UNIVERSITIES, RESEARCH CENTERS AND INDUSTRY – LACK OF COMMUNICATION The gap in communication is due to: Low and transparent motivation of industry to the introduction of new technologies. Lack of actual processes understanding of development implementations in industry at universities. Lack of venues and forms of communications between industry and teams at universities and SIE. Broken communication with the developers at universities and research centers. Companies are basically looking not for development and but for competence. The lack of R & D funding. NEED TO CREATE AN ENVIRONMENT TO INTERACT
11 In 100 universities there are : 42 centers for innovation management; INNOVATION INFRASTRUCTURE – CHAIN OF OPEN COMMERCIALIZATION Over the last 5 years there is development and 64% growth of innovation infrastructure . In 100 universities there are : 42 centers for innovation management; 42 business-incubators; 34 centers for technology transfer; 408 scientific and educational centers. Centres associated with marketing and commercialization are much inferior to development infrastructure . INTERNAL INNOVATION INFRASTRUCTURE IS NOT ENOUGH FOR FULL COMMERCIALIZATION OF INNOVATIONS – THE EFFECTIVENESS OF ECOSYSTEM DECREASES.
12 DEVELOPMENT OF INNOVATION INFRASTRUCTURE – COMMERCIALIZATION BARRIERS OVERCOMING IT IS NECESSARY TO MAKE INNOVATION COMMERCIALIZATION THE ORGANIZATIONAL GOAL 1.It is necessary to consider innovation ecosystem as an instrument of company, University and enterprise development , including scientific programmes or rating Tools: - Declaration of commitment to innovations at the highest level of company management; - KPI system (Key performance indicators) related to innovation commercialization . 2.To formulate the strategy of technology commercialization Tools: commercialization strategy. 3.To ensure that the commercialization process of innovation-without breaks! - Phase diagram of organizational innovation ecosystem . - Identification of key processes. 4.To engage leaders (or take on the role of technology transfer leader) - Management and informal leaders involvement. - Regional elites involvement.
13 DEVELOPMENT OF INNOVATION INFRASTRUCTURE – COMMERCIALIZATION BARRIERS OVERCOMING NEED TO DEVELOP NETWORKS 5.To develop a wide network of interaction: industry, venture partners, and universities. Tools: - Personal involvement of leadership in relation development . -Employees directly developing networks, technological brokers. - Partnerships, consortia and joint projects. - Shaping a shared vision: joint arrangements etc. - Tools for managing networks. 6.To rely on support of authorities, to participate in Federal and regional programs. - GR (government relations). - Subsidies, Federal and regional programs of funding and development. 7. To interact with alumni as agents of influence and sources of successful examples (suitable for use by universities). - Maintain database of graduates/workers. - Community management graduates. - Implementation of "success stories".
14 DEVELOPMENT OF INNOVATION INFRASTRUCTURE –COMMERCIALIZATION BARRIERS OVERCOMING NEED TO ENSURE THE QUALITY OF ENVIRONMENT 8. Formal institutions encouraging commercialization. Tools: - KPI system (Key performance indicators) and incentives for employees developing technology transfer. - Effective system of work with the IP is advantageous both to developers and University. - Reduction of bureaucratic barriers hindering the inflow of venture capital investment and overloading the reporting. 9. Informal institutions: cultural development of entrepreneurship. - Internal marketing. - Innovative study. - Dissemination of "success stories". - Educational programmes, seminars, events. - Introduction of modern project management practices.
15 DEVELOPMENT OF INNOVATION INFRASTRUCTURE – COMMERCIALIZATION BARRIERS OVERCOMING NEED TO ENSURE THE QUALITY OF ENVIRONMENT 10.Network management interaction. Tools: Calendar is rich of events of different levels with industry and investors as guests and participants. - Maintenance of databases, analysis of networks. - Participation in network structures for technology transfer. 11.Creation of innovative infrastructure for the entire commercialization process. - Research infrastructure. - Prototyping centers, engineering centers. - Business infrastructure: incubators, technology parks, technology transfer centers, licensing offices, etc. 12.Student environment as a driver of entrepreneurship. - Internal marketing. - Student community. - Entrepreneurial programs and events.
16 OBJECTS OF INNOVATION INFRASTRUCTURECenter for implementation and commercialization - the element of innovation infrastructure enabling the movement (distribution, transmission) of information, rights and services designed to achieve the objectives of technological development. The center for collective use (CCU) – element of innovation infrastructure, property (usually on the basis of higher educational or research organizations), providing a regime of collective use of expensive, precision, scientific and technological equipment Business incubator – part of infrastructure, presented in the form of organizations established to support entrepreneurs at an early stage of their activities and to assist them in creating viable commercial products. Technology Park – infrastructure, which is a feature in a compact area organization that promotes the formation of regional innovation environment. Special economic zone of technology-innovative type (SEZ tit) - regional system of infrastructure to support innovations in engineering and technology, equipped with everything necessary for the establishment and development of small enterprises.
17 INNOVATION LIFECYCLE
18 IMPLEMENTATION OF LIFE CYCLE INNOVATION ON THE BASIS OF INNOVATIVE INFRASTRUCTURE
19 POSITIONING OF INNOVATION CENTERS WHAT ARE THEY FOR?The aim of TTC is to guide the developer through the most difficult stage of development from idea to product to the stage of "start-up" when his project can be called as a company. The interaction of TTC with partners is activities with real teams who know how to work productively and to be able to generate. TTC can take not only managerial but also entrepreneurial function in commercialisation of ideas and inventions. TTC on the basis of an idea can create a company to help developers to "package" their development into a real product that is understandable to the investor. TTC creates a deal flow (deal flow) for VC funds which practically do not work in Russia at the level of ideas and try to find projects on less dangerous level from the point of view of the investor when market product has already established. TTC is functioning on "pre-seed" phase , that is to seed investment in the company because of funding start-up stage, when the company has already had a prototype of the product or even the product itself
20 POSITIONING OF INNOVATION CENTERS WHAT ARE THEY FOR?Essential components of technology commercialization are "rules of the game"developed by partnership practice A targeted technology commercialization is aimed at finding partners and establishing technological cooperation between the interested parties (seller and buyer). Search for partners and establishing cooperation is achieved by mapping existing technology offers with identified market technology requests. Technological requests and offers of partners and customers are presented in the form of standardized questionnaires (technological profiles). Technological profile - description of offered or desired technology in a structured form that is compatible with the formats of technology transfer networks. RTTN - INTERACTIONSYSTEM OF TECHNOLOGY TRANSFER CENTERS
21 WHY DO COMPANIES NEED TECHNOLOGY COMMERCIALIZATION?TECHNOLOGY COMMERCIALIZATION ENABLES COMPANIES TO ENTER NEW STAGES OF DEVELOPMENTIN SHORT TERM Why technology commercialization can be useful: The company can not own efforts to develop innovative technology because of the lack of experience, highly qualified specialists, or the research base in this area. Development costs of technology can be higher than the cost of existing technologies; Research and development of new technology is always associated with great risks; Technology commercialization is essential in the emergence of new, market-changing, innovative technology, the company might not have time to develop analogue.
22 COMMERCIALIZATION STAGESTechnology commercialization can be realized by serial execution of following seven stages: Technology identification → Technology search → Choice of technology supplier → Talks → Contract signing → Transfer implementation → Launch and adaptation of technology. At work on technology commercialisation different specialists: engineers, economists, lawyers, marketers should be involved. The task of the project Manager is to coordinate the work of team at each stage of technology commercialization.
23 MAIN DOWNFALLS OF TECHNOLOGY COMMERCIALIZATION IN COMPANIESMain downfalls of technology commercialization include the following: Assessment is incorrect (e.g., poorly understood market); Lack of competent staff; Costs of commercialization are higher than planned. It is difficult to calculate future introduction profits ; Technology can become obsolete soon after introduction; Technology is too complex, which eventually is difficult to adapt to local conditions; Technology commercialisation ends with the equipment supply. Little attention is paid to training of personnel; In the early search stages it is not always possible to ascertain the quality of technology and competence of the developer. As a result, the acquired technology does not correspond to expectations of the buyer