1. Sandipan Basu Founder & MD, NoahsAArk Technology Solutions Pvt. Ltd.
Managing Intellectual Property Assets for Enhancing the Competitiveness of SMEs
Sandipan Basu
Founder & MD,
NoahsAArk Technology Solutions Pvt. Ltd.

2. From Invention to Innovation
While invention depends upon creativity,
successful technological innovation requires integrating new knowledge with multiple business functions. 20

3. Innovation – What is it?
The creation of new ideas/processes which will lead to change in an enterprise’s economic or social potential
[P. Drucker, ‘The Discipline of Innovation’, Harvard Business Review, Nov-Dec, 1998, 149]

4. What is Innovative Thinking?
A means of generating innovation to achieve two objectives that are implicit in any good business strategy:
make best use of and/or improve what we have today
determine what we will need tomorrow and how we can best achieve it, to avoid the "Dinasaur syndrome« 
Innovative thinking has, as a prime goal, the object of improving competitiveness through a perceived positive differentiation from others in:
Design/Performance
Quality
Price
Uniqueness/Novelty

5. Obstacles to Successful Innovation
Competitive position
Market judgement
Technical performance
Manufacturing expertise
Financial resources

6. Innovation
How to classify newness and degree of innovation and what to focus on:
New to the firm?
First in the market?
First in the world?
Incremental or radical innovation?

7. There are several types of new products
There are several types of new products. Some are new to the market, some are new to the firm, and some are new to both. Some are minor modifications of existing products while some are completely innovative

8. Product Development Strategies
Old Product
New Product
Old
Market
Market Penetration
Product Development
New Market
Market Development
Product Diversification

9. Marketing principles…….
Identify opportunities and threats
Identify customer needs
React to a competitive environment
Careful planning to make a New or improved product
Use the 4 P’s….
Product service
Price
Promotion
Place (distribution)
Retain flexibility to react to changes

10. The Development of Technology: From Knowledge Generation to Diffusion
IM ITATION
Supply side
Basic Knowledge
Invention
Innovation
Diffusion
Demand side
ADOPTION 3

11. Innovation Process The adoption of an innovation by similar firms
Invention
The adoption of an innovation by similar firms
Usually leads to product or process standardization
Products based on imitation often are offered at lower prices but with fewer features
Innovation
Imitation

12. The Innovation Process
An innovation starts as an idea/concept that is refined and developed before application.
Innovations may be inspired by reality (known problem). The innovation (new product development) process, which leads to useful technology, requires:
Research
Development (up-scaling, testing)
Production
Marketing
Use
Experience with a product results in feedback and leads to incrementally or radically improved innovations.

13. Translation of a Creative Idea into Useful Application
The Innovation Process
Translation of a Creative Idea into Useful Application
Organizing Resources
Commercial Application
Analytical Planning
Implementation
To Accomplish:
Organization
Product Design
Manufacturing
Services
To Provide:
Value to Customers
Rewards to Employee
Revenue to Investors
Satisfaction of Founders
To Obtain:
Materials
Technology
Human Resources
Capital
To Identify:
Product Design
Market Strategy
Financial Need

14. The Profitability of Innovation
Value of an innovation
Legal protection
Complementary
resources
Ease of imitation of technology
Lead time
Profits from Innovation
Innovator’s ability to appropriate value from an innovation 7

15. Appropriating Value from Innovation
Barriers to Integration
Different Time
Interpersonal
Different Goal
Formality of
Orientation
Structure
Facilitators of Integration
Shared Values
Leaders’ Vision
Effective
Budget Allocation
Communication
Time to Market
Product Quality
Creation of Customer Value
Cross-Functional Integration/
Design Teams
Value Appropriation from Innovation 27

16. Product Life Cycle
Maturity
Decline
Sales
Growth
Introduction
Time

17. New Product Development
Stages in a New Product Development process:
Idea Generation
Idea Screening
Concept Development and Testing
Business Analysis
Beta Testing and Market Testing
Technical Implementation
Commercialization

18. Technology Adoption – Diffusion of Innovation
Innovators: venturesome; greatest need
Early adopters: opinion leaders; needs driven
Early majority: deliberate
Late majority: skeptics
Laggards: traditionalists; suspicious

19. New Business Models Emerge
Then…
One Integrated Company
Now…
Many Distributed Companies
Product Development Cycle
Product Development
Tool Companies
Testing Services
CRO’s
CRM’s

20. New Regional Model Emerge
Then…
Manufacturing
Research
Development
Trials/Testing
Services
Self-contained regional clusters
Region A
Region E
Region B
Region F
Region D
Region C
Region G
Now…
Specialized, networked regions

21. Commercialization Model
Strategic Investment is the Foundation of a Successful Commercialization Model

22. What Investors Look for?
Novelty; world-class; evidence of commercial interest; clear path to market
Unencumbered, or encumbered by reasonable conditions (Equity, royalties)
Protection (Non-disclosure agreements, Patents, Designs, Brands, Copyright)
IP protected by one or more Patents is the IP required to implement the business plan
“Freedom to Operate”

23. Innovation, Intellectual Property and Poverty Reduction
Critical Ingredients for Innovation:
Intellectual Capital
Human Capital
Financial Capital
Proximity
Social Network Capital
It is a value-based competitiveness proposition.
The U.S. can no longer successfully compete on cost (primarily),
As an advanced industrial, if not post-industrial economy, it must compete on value—unique qualities of performance—rather than cost.
Innovation and entrepreneurship generate value that contributes to increases in productivity, which, in turn …

24. Complementary Resources
Distribution
Manufacturing
Finance
Service
Core
technological know-how
Complementary
technologies
Marketing
Other
Other
Bargaining power of owners of complementary resources depends upon whether complementary resources are generic or specialized.

25. Alternative Strategies for Exploiting Innovation
Outsourcing certain functions
Strategic Alliance
Joint Venture
Internal Commercialization
Licensing
Limits investment, but dependence on suppliers & partners
Benefits of flexibility; risks of informal structure
Shares investment & risk. Risk of partner conflict & culture clash
Biggest risks & benefits.
Allows complete control
Small risk, but limited returns also (unless patent position very strong
Risk & Return
Allows outside resources & capabilities
To be accessed
Few
Permits pooling of the resources/capabilities of more than one firm
Substantial resource requirements
CompetingResources
Konica licensing its digital camera to HP
Pixar’s movies (e.g. “Toy Story”) marketed & distributed by Disney.
Apple and Sharp build the “Newton” PDA
Microsoft and NBC formed MSNBC
TI’s development of Digital Signal Processing Chips
Examples

26. Uncertainty & Risk Management in Tech-based Industries
Selection process for standards and
dominant designs emerge is complex
and difficult to predict, e.g. future of 3G
Technological
uncertainty
Sources of
uncertainty
Market
uncertainty
Customer acceptance and adoption rates
of innovations notoriously difficult to
predict, e.g. PC, Xerox copier, Walkman
Cooperating with lead users
early identification of customer requirements
assistance in new product development
Strategies for
managing risk
Limiting risk exposure
—avoid major capital commitments
(e.g. lease don’t buy)
—outsource
—alliances to access other firms’
resources & capabilities
—keep debt low
Flexibilility
—keep options open
—use speed of response to adapt
quickly to new information
—learn from mistakes 14

27. Innovation risk
RISKS
COSTS
RESEARCH DEVELOPMENT COMMERCIALISATION

28. Mortality of New Product Ideas

29. The “ Right” Innovative Product?
The right product is one that becomes available at the right time (i.e., when the market needs it), and is better and/or less expensive that its competition.
To have the right product, therefore, one must:
Predict a market need
Envisage a product whose performance and capability will meet that need
Develop the product to the appropriate time scale and produce it.
Sell the product at the right price

30. Innovation and Competitive Advantage
Difficult for
competitors to imitate
Commercially exploitable
with present capabilities
Competitive
Advantage
Provides significant
value to customers
Timely 12

31. Strategic Entrepreneurship and Innovation
Entrepreneurship is concerned with:
The discovery of profitable opportunities
The exploitation of profitable opportunities
Firms that encourage entrepreneurship are:
Risk takers
Committed to innovation
Proactive in creating opportunities rather than waiting to respond to opportunities created by others

32. Entrepreneurship
Creativity is at the heart of entrepreneurship, enabling entirely new ways of thinking and working.
Entrepreneurs identify opportunities, large or small, that no one else has noticed.
Good entrepreneurs also have the ability to apply that creativity—they can effectively marshal resources to a single end.
They have drive—a fervent belief in their ability to change the way things are done, and the force of will and the passion to achieve success.
They have a focus on creating value—they want to do things better, faster, cheaper.
And they take risks—breaking rules, cutting across accepted boundaries, and going against the status quo.

33. Entrepreneurship
Defining entrepreneurship is difficult because there is no universal, clear-cut definition of the term. In its most basic sense, entrepreneurship is manifest in a business venture when an individual is able to turn a novel idea into a profitable reality. In practice, however, entrepreneurship is more multifaceted, ranging from operating a small business in one’s own home, to bringing a national franchise to a small town, to turning a new and unique idea into a high-growth company. Entrepreneurship can involve starting a business that brings a new store to main street, offering a product or service previously unavailable to a community, or acquiring an existing business that has had a long-standing presence in a community and helping it evolve to reflect one’s own vision and personality.

34. Entrepreneurship
The word entrepreneurship literally means, "to take or carry between" in the sense of an economic transaction; to be a market-maker. It does not literally convey the notion of innovation that we commonly associate with the term.
Joseph Schumpeter ( ), one of the more well known theorists on entrepreneurship, defined an entrepreneur as one who reorganizes economic activity in an innovative and valuable way. That is, an entrepreneur is one who engages in a new economic activity that was previously unknown. An entrepreneur is a risk taker because being innovative means there are few rules or history for guidance.

35. Entrepreneurship
Entrepreneurship is the process of creating or seizing an opportunity, and pursuing it regardless of the resources currently controlled.
The Webster’s Third New International Dictionary defines an entrepreneur to be “one who organizes, owns, manages, and assumes the risks of a business”

36. Entrepreneurship
The entrepreneur shifts resources out of an area of lower and into an area of higher productivity and greater yield.
[J. B. Say, French economist, circa 1800]
Entrepreneurship is creative destruction. Dynamic disequilibrium brought on by the innovating entrepreneur, rather than equilibrium and optimization, is the norm of a healthy economy and the central reality of economic theory and practice. [Joseph Schumpeter, Austrian economist, 1911]
The entrepreneur searches for change, responds to it, and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service
[Peter Drucker, 1985]

37. Entrepreneurship
Entrepreneurship drives innovation, competitiveness, job creation and economic growth.
It allows new/innovative ideas to turn into successful ventures in high-tech sectors and/or can unlock the personal potential of disadvantaged people to create jobs for themselves and find a better place in society.

38. Entrepreneurship
Entrepreneurship, in small business or large, focuses on "what may be" or "what can be".
One is practicing entrepreneurship by looking for what is needed, what is missing, what is changing, and what consumers will buy during the coming years.

39. Entrepreneurship Entrepreneurs have: A passion for what they do
The creativity and ability to innovate
A sense of independence and self- reliance
(Usually) a high level of self confidence
A willingness and capability (though not necessarily capacity or preference) for taking risks

40. Entrepreneurship A tolerance for organizational bureaucracies
Entrepreneurs do not (usually) have:
A tolerance for organizational bureaucracies
A penchant for following rules
A structured approach to developing and implementing ideas
The foresight to plan a course of action once the idea is implemented and established

41. Entrepreneurial Success
1. People (Entrepreneur /Entrepreneurial Team)
2. Opportunity (Marriage of Market and
Product/Service)
3. Access to Resources (Land. Labor, Capital, Knowledge)
And the fit amongst these three elements

42. Major factors determining success of a new product in the market
The product provides functional advantages
Lower price for comparable product
More attractive design (look)
Reputation of brand
Easy access: Available in the main retail shops
Consistent product quality
Excellent after-sales services

43. Competitive Advantage
Criteria…
Low cost producer
Product differentiation
Niche market

44. An opportunity driven path to market- a different business design
Breakthrough
Innovation
Need two processes: NPD and NB(usiness)D
An opportunity driven path to market a different business design ? ?
New Product
Development
New Business
Development
New
Businesses
Innovative
New Products

45. Protection of IP Products Value adding Technologies Research
Ideas
Research
Technologies
Products
Confidentiality or Nondisclosure
Agreements (Trade Secrets)
Collaborative Research
Agreement
Utility models, Patents
Technology Licensing
Agreement, Branding

46. Intellectual Property Questions
Intellectual Property (IP) Issues/questions during New Product Development (NPD):
Can the innovation be legally protected? For how long?
How does one protect an innovation from imitators? How much will it cost? When to protect? Do you need to rely on an IP expert?
The answers are complicated by the fact that one or more types of legal frameworks may be used to protect a particular innovation, product, process, or creative work. These include trade secrets, trademarks, designs, patents, and copyright.
It is necessary to know which are applicable and when each is appropriate. This varies somewhat from jurisdiction to jurisdiction. The advice of a lawyer that specializes in these matters is essential

47. Intellectual Property Questions
It is necessary to know which types of intellectual property rights (IPRs) are applicable and when is each type of IPR appropriate. This varies somewhat from one country to another.
The advice of an IP lawyer is desirable if not essential.

48. Strategy 1. Demystification 2. New audience 3. New Areas 4. Proactive
5. E-Services
6. Partnership

49. Thank You