Open Innovation: Attraction not Promotion

1
Open Innovation Attraction not Promotion

• Michael J. Martin
• President, TechTransfer Associates
• NCET2 Webinar September 16, 2006

2
Attraction not Promotion

• Promotion of Research Competencies by
• Publications, Trade Shows (All things to all
  People)
• Alumni Relations Help the Alma Mater or the old
  mentor.
• Attract OI Businesses by offering
• Targeted Solutions with a Business Case
• Working with business IP in Research Agreements,
  Gap , Incubators,
• Form Strategic Relationships with Targeted
  Corporations

3
Is Open Innovation Real?

• Financial Drivers
• Decline in r D as of sales
• Increase in market value of intangible assets
• Organizational Drivers
• Fast to Market real value of time
• CEO commitment IP/Innovation Strategy
• NO geographical barriers to innovation Flat
  World

4
Barriers for University/Federal Labs to respond
to Open Innovation

• Non profit research agenda set by grantee not by
  market
• Early stage, disparate, technical solutions with
  out business case
• Limited or no funds for external validation of
  business case
• Limited or no credibility with business
  development

5
81 use Prequalified Sources How to get on List

• Position as Interested in doing Business with
  Business Return phone calls.
• Identify technology needs of OI company
• Position on Time Horizon of Opportunity

6
Open Innovation Getting on ListPresent Business
Case

• Some evidence of solving customer problem
  preferably prototype (scale up)/Incubators with
  and without walls
• Demonstrate market understanding, including
  regulatory impact
• Inclusion of business development investment when
  valuing license
• Credible business review (Venture Capitalist,
  Angel, Alumni, Consultant)

7
Open Innovation Tools to Get on List

• Inventor(s) willing and able to move to applied
  phase
• for prototype
• Government (SBIR, Ben Franklin, etc.)
• University gap
• Develop performance data
• Consortium test beds
• CRADAs with government labs
• Community Colleges Technical Curriculum
• MBA Business Plan Competition/Interns

8
Open Innovation Computer Tools to Get on List

• Business Intelligence System
• A Proprietary Expert Software Platform
• Easy to Use QA Process that profiles the
  Technology with out the need for any
  Confidential Information
• A smart system that continually learns from its
  users
• Creates credibility by being able to provide
  Expert Business Development Information without
  having to become a Business Development Expert
• Partnering Web Sites
• Vortal (A private online portal where parties can
  anonymously assess technologies and / or
  partnerships for specific synergy)
• General Matching, need strong key words.

9
Open Innovation Tools to Get on List - Start
ups

• SBIR Phase I Commercial Review (www.nsf.gov/eng/ii
  p/sbir/commreviews.jsp )
• Management team with game plan
• Credible business review (VC, Angel, Banker,
  SBIR)
• Appropriate role for Inventor
• Letter from Stake Holder

10
Benefits of Open Innovation to the
University/Federal Lab

• Positions invention in commercial / business
  development terms
• Establishes potential for strategic relationship
  for entire university/federal lab
• Contributes to economic competitiveness of US