STC 383 KNOWLEDGE

1
STC 383KNOWLEDGE TECHNOLOGY TRANSFER AND
ADOPTIONaka Knowledge, Innovation Technology
Transfer, Diffusion and Adoption

• Theory and Practice

2
STC 383 Session 1 Agenda

• Detailed Introduction to STC 383
• Definitions of KTT
• Introduction to Modeling
• Discussion of RD as a precursor to KTT and of
  Sourcing RD for innovation initiatives.
• 2 Breaks 245 and 415

3
STC 383 Teaching Team

• Dr. David Gibson, Director, Research Programs,
  Fellow, IC2 MSSTC Faculty world traveler,
  boating and lighthouses, practices yoga, dancing
  and music, plays the guitar, and dear pet, Helen
  
• Ms. Meg Wilson, IC2 Fellow MSSTC Faculty, globe
  traveler, weaver, gardener, gourmet cook. Perfect
  spouse, Fred Chriswell.
• Darius Mahdjoubi, UT Austin Ph.D. Candidate,
  (Topic Atlas of Innovation). P.E. MSSTC TA
  Member, Association of Professional Engineers
  Ontario. Hobbies Travel, Swimming, Mountain
  Climbing, Classic Music, Cartography.

4
Course Overview

• STC 383 will introduce you to
• state-of-the-art theory and practice on knowledge
  and technology transfer (KTT) and adoption,
• focused on transfer and adoption of knowledge
  technology across organizational boundaries,
• including business, academia, and government at
  regional, national, and international levels of
  analysis.

5
Course Overview

• STC 383 will introduce
• established and innovative models
• concepts and best practices of innovation and
  knowledge management
• organization behavior
• governmental policies and
• communication theory
• as all pertain to knowledge technology
• transfer, adoption, and diffusion.

6
Course Overview

• Course efforts will focus on analyzing the
• barriers, challenges, facilitators and metrics on
• knowledge/technology transfer and adoption
• through
• Intrapreneurship, entrepreneurship, spin-outs and
  spin-ins.
• Industry, government, and academic organizations
  including RD consortia, national labs and
  university research centers
• Regional and global implications of
  knowledge/technology transfer and application in
  the digital age

7
STC 383 Sessions

• 1 Overview Introduction to RD (Wilson)
• 2 KTT Modeling Critical Success Factors
  (Gibson)
• 3 KTT and Marco Issues The Context of
  Innovation (Gibson)
• 4 Innovation Policies Public and Private
  (Wilson)

8
STC 383 Sessions

• 5 KTT Support Structures Incubators and
  Benchmarking (Wilson Gibson)
• 6 KTT and Global Perspectives (Gibson)
• 7 University Research Commercialization
  Processes (Wilson)
• 8 Consortial And National Laboratory
  Commercialization Processes (Wilson)
• 9 Indirect Policies Affect on KTT and Course
  Wrap-up (Wilson)

9
Assignments and Grading

• Overall Class Participation (including Blackboard
  discussions critiques, chats, teamwork, and
  other contributions to class success)
• Critique of Readings 1
• Critique of Readings 2
• Individual KTT Model
• Team KTT Model
• Analysis of Direct Government Policy
• Ideal Path Analysis
• Final KTT Model

• 15
• 7
• 8
• 10
• 15
• 15
• 15
• 15

10
Assignments and Due Dates

• Individual KTT Model June 24
• Critique of Readings July 8
• Team KTT Model July 11
• Analysis of Direct Government Policy Aug 22
• Critique of Readings 2 Aug 28
• Ideal Path Analysis Sept 16
• Final KTT Model Sept 16

11
First Assigment Looming...

• Individual KTT Model This model should be
  developed as a power point or word document,
  identifying key elements of your own work or
  professional experience with a KTT effort and
  should include a brief ranked list of barriers,
  challenges and facilitators.

12
Housekeeping

• Syllabus READ IT Use It
• Filenames crucial
• Team assignments STC383 team name assignment
  name. Example STC383 GroupW final KTT model
• Individual assignments STC383 last name
  assignment name. Example STC383 Wilson
  Individual KTT model

13
Housekeeping

• Filenames Use em!
• Evaluations Do em!
• Assignments Email em!
• New Info Post em!
• Questions Ask em!
• Suggestions Make em!
• Late Assignment (points) Lose em!

14
Keys to Class Success

• Active Participation in class and online
• Active blackboard use for class integration
• Sharing knowledge and experiences
• Creative Modeling
• Knowledge Integration

15
Integrated Courses

• The courses of MSSTC are integrated They are
  interwoven to elucidate the deep and broad
  concept of commercialization of technological
  innovation.
• The courses of MSSTC - unlike conventional
  academic programs such as MBA or MS - are not
  parallel courses with substantial overlaps and
  holes.

How might we model this difference?
16
MBA Courses
17
MSSTC Courses
1st Trimester
2st Trimester
3st Trimester
TEAMS
TEAMS
TEAMS
18
MSSTC Students Need to be able to

• become familiar with the integrated process of
  commercialization of technological innovation.
• analyze and develop models to explore, explain
  and organize the integrated process of
  commercialization of technological innovation.
• work in team-organization that are needed for the
  integrated process.
• analyze cases proper for the integrated process.

19
You Need to be able to

• develop strategies that nurture the integrated
  process of technology commercialization and share
  and integrate this vision in internal reports
  (strategies).
• develop, as external reports (business plans)
  that let you acquire the support needed for the
  development of a technology commercialization.
• develop presentations (elevator pitch, VC
  presentation) to secure the financial and
  administrative support needed for the development
  of a technology commercialization.

20
Models and Integration

• Developing shared views is essential for the
  team- members to transcend geographic zones,
  professional backgrounds and modes of learning
  and to follow the path of integrate courses.
• Proper models play a key role in creating and
  developing shared views and in sustaining the
  integration inside teams, companies, courses, etc!

21
Modeling Fundamentals

• Models can show
• Actors, stakeholders, key players
• Actions, reactions, process flows
• Timing Relationships between and among actors,
  factors and actions.

22
The Commercialization Process
Source Vijay Jolly. Commercializing New
Technologies
23
Jollys Model of Technology Commercialization
Sub-Processes Building the Value of a New
Technology
Venture Analysis
Tech Assessment
Business Plan
3. Incubate to define
Commercializability
1.Imagine the dual (techno-market) insight
9. Sustain commercialization
2. Mobilize Interest and endorse-ment
8. Mobilize complimentary assets for delivery
4. Mobilize resource for Demo
6. Mobilize market constituents
7. Promote adoption
Bridges Mobilizing the Stakeholders
Source Jolly, Vijay. 1997. From Mind to Market.
24
A Global Challenge
Education
Mechanisms
Creativity
Innovation
T2
Metrics
Processes
Government
Industry
25
Two Basic Forms of Technology Transfer to
Commercial Applications
private sector federal labs universities consortia
private sector federal labs universities consortia
1
process application RD/Mfg. Marketing/Sales
corporate labs
ROI
2
start-upcompany
spin-out technologies
technologyincubator
26
What do we mean by all of this

• What do you think knowledge is?
• What do you think innovation is?
• What do you think RD is?
• What do you think technology is?

27
Darius View of Knowledge, Innovation and
Technology
Technological Innovation
INNOVATION
Market Innovation
KNOWLEDGE
Organizational Innovation
TECHNOLOGY
Creativity and Human Innovation
28
Components of Knowledge?(Webster Leif Edvinsson
and Michael S. Malone, Intellectual Capital,
1997)

• factual information used as a basis for
  reasoning,and calculation
• the communication or reception of knowledge or
  intelligence
• knowledge obtained from investigation, study, or
  instruction
• intelligence, news

Data Information
29
Definitions/Concepts to Think About and to
Discuss
Knowledge

• the fact or condition of knowing something with
  familiarity gained through experience or
  association
• acquaintance or understanding of science, art,
  or technique
• the fact or condition of being aware of something

30
Views on Innovation and Knowledge
Innovation is the ability to build on previous
knowledge and generate new knowledge. Leif
Edvinnson
Successful innovation depends on converting
knowledge flows into goods and services. Debra
Amidon
Knowledge creation is the key source of
innovation in any company. George von Krogh
31
Definitions/Concepts to Think About and to
Discuss
Technology

• technical language
• applied science
• a technical method of achieving a practical
  purpose
• totality of the means employed to provide objects
  necessary for human sustenance and comfort

32
Human Capital The combined knowledge, skill,
innovativeness, and ability of the companys
individual employees to meet the task at hand -
including company values, culture, philosophy.
Human capital cannot be owned by the
company Wetware/tacit knowledge/intangibles/ k
now-how
33
Structural Capital The hardware, software,
databases, organizational structure, patents,
trademarks, and everything else of organizational
capability that supports employee
productivity Customer capital and
relationships Everything left in the office when
the employees go home (unlike Human Capital)
can be owned and traded Codified knowledge.
34
Intellectual Capital Human brainpower, brand
names, intellectual property that is protected,
trademarks, Assets often/traditionally valued as
zero on the balance sheet
Human Structural Intellectual Capital Capit
al Capital
(Leif Edvinsson and Michael S. Malone,
Intellectual Capital, 1997)
35
The Knowledge-Based Economy
KNOWLEDGE

• books
• discs
• goods

talent skills know-how
36
Technology Transfer the adoption of knowledge
(commercialization and processes)
A (the?) new source of wealth is
information/knowledge applied to work to create
value
Walter Wriston, The Twilight of Sovereignty, 1992
37
Technology Transfer Was Is ?

• Prime the RD pump.
• Over the wall.
• Part of a serial process (linear, sequential,
  ordered).
• Involves a deliverable productthe more fully
  formed the better.
• Expert to usertechnology marketing.
• Trickle out over time.

38
Technology Transfer Perspectives
Joint Venture
Technology Integration
Product Launch
RD
Prototype Development
Investment of Time and Resources
Product Licensing
IP Protection
Seminars, workshops, conferences
Trade shows, Invention Fairs
Most Passive
Most Active
Information Transfer
Knowledge Capture and Protection
Application Development
Commercialization Productization
39
Commercialization Utilization Deployment
Application
Technology Transfer

• The Adoption of Knowledge

Other Relevant Labels

• Management of Innovation
• Diffusion of Innovation

• Management of Technology
• Knowledge Management

40
Technology Transfer Definitions...

• "The business transactions or processes, such
  as patent licenses or start-up companies, by
  which innovations are moved from one place (such
  as a university), development stage or
  application to another place (such as a company)
  for a commercial purpose. (We include defense
  conversion as a special case under this
  definition.)
• Michael Odza, Celebrating ten years of assisting
  tech transfer professionals via Technology Access
  Report and Intellectual Property Advice (for
  researchers)

41
Another Definition...

• "Technology transfer - the dissemination of all
  the information necessary so that one party may
  duplicate the work of another party. The
  information is of two types, technical
  (engineering, scientific, standards) and the
  second is procedural (legal, non-disclosure
  agreements, patent rights, licensing). Andy
  Gluck

42
Another

• Technology transfer is an umbrella term that
  encompasses the range of processes from most
  passive to most active info transfer (what
  universities do so well) intellectual property
  protection (allows for legal transfers)
  technology development lassoing resources
  technology integration and technology adoption
  through to the sale of new or innovative products
  or processes based on a new application of
  scientific knowledge or technology (and
  increasingly on innovative business structures).
  Meg Wilson on former Pax Website

43
and.

• Technology Transfer The range of processes, from
  knowledge transfer to product or process
  commercialization, that facilitate the
  development and adoption of knowledge and
  technology.
• Meg Wilson on former Pax Website

44
Perspectives on RDPublic Private

45
Basic research is what I am doing when I dont
know what I am doing Werner Von Braun
46
Perpetual Tension...

• Vannevar Bush believed that Basic research leads
  to new knowledge. It provides scientific
  capital. It creates the fund from which the
  practical applications of knowledge must be
  drawn
• He also cited a perverse law that applied
  research invariably drives out the pure.

Lost at the Frontier, US Science and Technology
Policy Adrift, Deborah Shapley Rustum Roy, ISI
Press, 1985, pgs 14 15.
47
Science Policy Foundation and Features
Source Lost at the Frontier U.S. Science and
Technology Policy Adrift, Deborah Shapley/ Rustum
Roy
TechnologicalFruit Tree
ContemporaryBasic ScienceFloweringTree
Applied Science and Engineering


Skilled Labor
On the ShelfScience
Regional Planning
Instrumentation
Venture Capital
Public Support
48
RD Definitions

• Basic Research Objective
• Government/Academic to gain more comprehensive
  knowledge or understanding of the subject under
  study, without specific applications in mind
• Private Sector research that advances
  scientific knowledge but does not have specific
  immediate commercial objectivesmay be in fields
  of commercial interest.

49
RD Definitions

• Applied Research
• General Gaining the knowledge or understanding
  to meet a specific, recognized need.
• In Industry includes investigations oriented to
  discovering new scientific knowledge that has
  specific commercial objectives with respect to
  products, processes, or services

50
RD Definitions

• Development
• the systematic use of the knowledge or
  understanding gained from research directed
  toward the production of useful materials,
  devices, systems, or methods, including the
  design and development of prototypes and
  processes.

51
RD is the Key

• RD is the key precursor to technology knowledge,
  developments and commercialization.
• The source, sponsor, purpose, documentation and
  RD processes affect commercialization paths and
  thus need to be acknowledged and better yet, be
  understood.

52
US RD Funding by SourceMillions of Current
53
So What? Who Cares?
Billions

• 1. Your government spends of dollars
  on RD. So, you might care about that because
  they
• Are funding research in an area of your expertise
  and you need to keep up with the latest
  technology
• Are funding your competitor to do that research
  putting you at a disadvantage
• Have an open competition for performance of the
  RD and you might want to get funded to do that
  work (supports your agenda and gives you new
  funding)

54
More Reasons...

• You ...
• Are pumping millions of dollars into a new area
  of RD and it suggests a new market opportunity
  to you!
• Have developed a hot new technology and the
  government allows you to license needed
  integration components
• Need to procure services or RD efforts or
  components/equipment and you could get into the
  government procurement business or find RD
  partners.

55
Final Reasons...

• 2. Your government might provide tax credits
  for RD goes to your bottom line
• 3. Your government may regulate private RD
  (e.g. medical and pharmaceutical research) and
  you must operate under those regulations
• 4. Other governments may regulate that RD
  differently (e.g. less stringently) and it may
  provide you an opportunity to conduct RD less
  expensively and at lower risk initially or,
  conversely, may inhibit your ability to enter a
  market if the policy barriers are high.

56
Understanding How to Unlock RD Resources

• For any of this to happen, you need to
• Understand the Context, Players and Programs
• Understand the Processes
• Understand the Information Resources

57
Taking Advantage of RD Resources

• You also need to understand those factors as they
  relate to
• National, state/provincial, and local funding
  research organizations
• Agency/national mission-oriented RD
• University research structures, roles and funding
• Private RD investments and the role they play in
  national economies
• RD as a measure of competitiveness and economic
  health
• The relationship between RD and innovation (or
  lack thereof)

Sourcing RD....
58
Understanding How to Unlock RD Resources

• For any of this to happen, you need to
• Understand the Context, Players and Programs
• Understand the Processes
• Understand the Information Resources

59
1800 to 1940 Characterization

• Creation of the US University Land Grant System
  (Ag Engineering Morrill Act, 1862), and the
  general proliferation of universities in the US
  -- few academic institutions had any kind of
  scientific program until late in the 19th
  century.
• Dominance in Science and RD by European
  universities
• Independent inventors -- Angel funding (e.g.
  Tesla)
• Development of Corporate RD Labs (e.g.
  Westinghouse, Bell, Edison) there were 4 in the
  US in 1890 and 1030 by 1930
• Industrial funding of individual inventors and
  universities

60
RD And Science POLICY the CONTEXT

• Primary NEW 20th Century Player
• FEDERAL GOVERNMENTS
• WHY
• World War II
• Then the cold war
• Space Race

61
1940-present Characterized by Dramatic Changes

• Government funding grew phenomenally into
  todays multi Billion enterprise
• University RD industrially funded Research
  Centers were supplemented (sometimes
  supplanted) by government sponsored Scientific
  Centers of Excellence and support of individual
  principal investigators (PIs)

62
Three Competing RD Policy Models
63
Changes in 70-90s

• Industry funding surged into the 70s, 80s and
  90s. The mainstay players, manufacturers,
  declined in their RD investment while
  information-related technologies more than made
  up their decline in recent years.

64
Shares of national RD expenditures, by source of
funds 1953-2000
65
Changes in 70s and 80s

• The 1970-1990s have seen an inventor/
  entrepreneur resurgence and a major shift from
  general manufacturing-based businesses to
  technology service, information and advanced
  manufacturing businesses.
• We also see an explosion of innovative RD
  support structures such as science RD parks
  and technology incubators.

66
Privatization Policy Impacts

• Federal Governments in many countries have been
  THE primary source of RD
• Centralized government
• Government owned industries and utilities

Privatization in the 80s and 90s has led to an
explosion of industrial research and increase in
overall research in many developing and emerging
market countries
67
Global Trends 80s-90s

• Privatization promotes industry RD
• Cooperative Research programs in EU (now funding
  the 5th Framework) -- consortial research expands
  worldwide
• Japan RD enterprise expanded significantly.
• South Korea builds an RD infrastructure from
  scratch in 40 years
• Technopolis development becomes a conscious
  policy, globally

68
Private Sector Growth

• European Research Council endorsed EU target,
  recommending that businesses help increase RD to
  equal 3 of GDP in each member State by 2010.

69
Private Sector Perspectives

• Corporate RD labs now a vestigial part of former
  RD empires.
• RD moved to divisional responsibility -- RD
  seen as a tax on Divisions...
• Outsourcing an increasing strategy for conduct of
  RD
• Joint ventures now common

70
What is the prospect for the 2000s?

• Continued erosion of public investments in RD?
• Less basic RD through companies more attention
  to applied research?
• Universities become the bastions of basic RD
  controversy explodes over their role in RD
• Private sector horns in on key RD areas formerly
  conducted wholly by public/university sources
• RD still seen as an engine to economic
  development (rightly or wrongly)
• New ethical issues arising to change landscape

71
Understanding How to Unlock RD Resources

• For any of this to happen, you need to
• Understand the Context, Players and Programs
• Understand the Processes
• Understand the Information Resources

72
Federal RD support, by performing sector
1953-2000
73
U.S., G-7, and OECD countries RD expenditures
74
Total RD as a percentage of GDP
75
RD as a of GDP
Australian Ministry for Industry Science and
Resources claims Australia has worlds 3rd
highest ratio, 1999
NSF National Patterns in RD Resources, 1998,
Science Indicators, 1998
76
Changes in share of Federal academic research
obligations, by field 1990-99
77
Industrial RD spending flows of U.S. and foreign
affiliates, by world region 1998
78
U.S. patents granted 198699
79
RD Spending by 5 major Latin American Countries,
1990, 1996
80
US Total Industrial RDBillions of Current

81
Selected US Industry Sectors
1996 Constant Billions
82
Understanding How to Unlock RD Resources

• For any of this to happen, you need to
• Understand the Context, Players and Programs
• Understand the Processes
• Understand the Information Resources

83
RD Sources/Indicators

• Data Sources NSF, OECD, UN, World Bank,
  country-by-country
• Indicators Ph.D. production, publications,
  patents filed, patents granted, educational
  science competitions, workforce data
• OTHER Sources and Indicators?

84
RD Programs

• Agencies NSF, DOD, EPA, NIH, etc.
• Private Sector Industry Roadmaps, special RD,
  Consortial RD
• Programs SBIR, ATP, Homeland Security, DARPA
  grants, EPCORE
• Processes Grants Contracts, appropriations
  program White Papers and Congressional Studies,
  RD procurement, SBIR/STTR partnering,
  state-level RD (e.g. Texas ARP and ATP
  programs)

85
Session Theses Wrap Up

• Modeling Concept and Practice
• Modeling integrates the two
• Modeling is a key methodology of the program
• KTT definitions are not static, nor understood
  uniformally
• RD is the precursor to technology and tracking
  it allows for more effective RD prospecting,
  forecasting, and sourcing which can lead to new
  and/or better KTT!