1. Knowledge Economy Forum IV
Peter Lindholm
Innovation Policy, Innovation infrastructure & commercialisation of scientific results
Knowledge Economy Forum IV
Istanbul, March 2005

2. An Innovation Policy

3. An Innovation Policy (1)
AGREEING on such a policy is the key building block for future success at a national level.
Generally speaking, the design of a policy is not over difficult.
It should focus on a vision of GDP growth spanning from existing scientific potential and potential to be built.
It takes into account benchmarking indictors and maps the reality of existing scientific and business « talents ».

4. An Innovation Policy (2)
What is more complex is that
Policy-makers,
R&D institutions,
Research staff, and
The business community
Develop a « sincere » consensus about becoming a knowledge-based economy, or at minima, about generating a significant part of the GDP from knowledge.

5. An Innovation Policy (3)
Such an agreement is key, but not easy to obtain and implies change management for each stakeholder:
Policy-makers need to agree on spending in R&D and innovation. Spending will have an effect only if they are significant. This implies policy choices!
R&D organisations and researchers need to accept playing a role in economic development and introduce management systems allowing the selection of R&D themes that serve economic growth (incremental or brake-through technologies).
The business community has to become more innovative, less dependant from technologies bought from the shelf and start a dialog with scientists.

6. An Innovation Infrastructure

7. An Innovation Infrastructure (1)
As for the Innovation policy, tools exist and are well known. Some minimum elements will comprise:
The legal and regulatory environment (including for IP),
Innovation centres/ Commercialisation centres,
Free Trade Zones of science,
Spin-off programmes for technology-based companies,
A series of public-private funds,
Mechanisms dedicated to inward investments,
Mapping of competencies,
Etc etc.

8. An Innovation Infrastructure (2)
Some very much needed ingredients:
It is a long-term business
Key to everything are the competencies of staff in charge
Each infrastructure must have measurable targets
PPPs are good vehicles but at early stages public funding must be available
It is not necessary to multiply the number of innovation organisations
A strict, independent monitoring (not audit) is essential

9. Commercialisation of Scientific Results

10. Commercialisation of science (1)
Commercialisation has little to do with scientific excellence, it is about money
More than one Beneficiary (researchers, institutions, local authorities, State)
Commercialisation is about skills
No magic “Graal” in this business

11. Value creation through the innovation lifecycle
R&D Organisations
Course of
exploitation
Capital inflow from
exploited research
(added funds for further research)
Research Projects
> Spin-outs
> Start-ups
> Licensing
Intellectual Property
“Archives” = Negative Inflow

12. Patent Exploitation
“A patent is an article of trade, not an academic award”
Systematic selection of ideas and inventions aiming to assess exploitability
Only inventions with believed potential to successfully compete on the market are supported
Out of these the most promising projects are singled out and concentrated upon
One reason is:
only 20% of all claimed patents are subject to Intellectual
Property Rights (IPR) and are effectively in use.
25 % state of the art => no patent
5 % unrealisable
10 % other solution
10 % not marketable
30 % patentable but not in use
Exploitability is the decisive factor for activities. If an invention is not exploitable even on a long-term perspective there is no use to research its patentability.

13. Commercialisation of science (2)
Evaluating the existing potential of « objects » to be commercialised?
Willingness of players to enter into a strong commercialisation process
Availability of resources and competences to start the process

14. Necessary Ingredients (1)
A portfolio of many researchers to ensure a permanent deal-flow of innovations
Experience shows that a minimum portfolio of 1 to 1,500 researchers is needed to sustain a proper commercialisation team

15. Necessary Ingredients (2)
A strong consensus between the different stakeholders
Commercialisation of public research is a complex process that often « hearts » researchers’ culture. Gaining support from researchers, heads of departments, chancellors is an absolute necessity

16. Innovation Evaluation
Innovation value is determined through a dual-screening process
Invention
1st
“rough” screening
2nd
“detailed” screening
Patent /
Exploitation
“Gut feeling”
Experience
Early indicators
Exploitation screening
Market research / Market studies
Research / Exploring potential industrial partners
Feasibility studies
Calculations
Determination of the price on the market
Survey and verification of exploitation possibilities
Patentability screening
Patent research national / international
Determining the novelty value of the invention

17. Necessary Ingredients (3)
Agree on measurable targets
Turnover
Start-ups
Growth of existing companies
Joint-ventures
Research contracts

18. Necessary Ingredients (4)
Time
Time to find out what can be commercialised and under which form
Time to convince researcher to participate actively in the process
Time to find customers
Time to close deals

19. Necessary Ingredients (5)
Attract Competences
Commercialisation implies a team of efficient, fast, flexible and very motivated individuals with inter-cultural skills
Need of enough people to cover all commercial aspects
Capacities to speak to research teams AND international companies

20. Necessary Ingredients (6)
Proactivity
Visit all R&D teams
Create trust
Maintain continuous links
Focus on group of R&D teams willing and able to enter the process
Attract the other teams with a case by case approach

21. Necessary Ingredients (7)
Being international
Benchmark research offers towards other European teams
Establish links with customers based on needs and not location
Create networks across the world

22. Necessary Ingredients (8)
Stop « Fairy Tailing »
The stock on the shelf is rarely of high value
Other research teams do similar things
Companies do not always look for state of the art research, they search for technologies immediately usable

23. Expected Outputs

24. Expected Outputs (1) Increase GDP and Generate income for Companies
Researchers
Research teams
Research Institutions
The investors (public & private of the PPP)

25. Developing Centres of Excellence
Expected Outputs (2)
Developing Centres of Excellence
Based on market needs, favouring the creation of new centres of excellence in horizontal research fields
Entering international programmes (FP6 from EU, etc.)

26. Expected Outputs (3) Develop an entrepreneurial spirit to
Help researchers becoming more opened to the usage of their work
Favour the creation of a large number of start-ups

27. Expected Outputs (4)
Facilitate the development of the National Innovation System
Help firms able and willing to access innovations
Help clarifying the dilemma between basic research versus innovation & technology

28. Expected Outputs (5) Create a strong image Helps attracting resources
Supports the growth and competitiveness
Attracts demands from local and international businesses