OpenOpen InnovationInnovation –– TurningTurning ResearchResearch andand IdeasIdeas intointo BusinessBusiness

Why Creativity and Innovation – and connecting Universities to Business and the Community are keys to Economic and Social Development And Examples of Open Innovation in Practice

Butterfield Enterprise Innovation Day 21st April 2010

Professor Alan Barrell – Entrepreneur in Residence – Centre for Entrepreneurial Learning Judge Business School Cambridge - Laurea University of Applied Sciences Helsinki- Visiting Professor - University of Bedfordshire Some of the “Hats I wear” (or have worn)

12 years in Industrial 5 Years in Venture Capital electronics – DOMINO plc – Cambridge Gateway Fund

And ALWAYS – “in, out and around” the NHS A Preview • Some Definitions – Creativity and Innovation • Our Context – a World of Dynamic Change • Mindset – What we think determines what we are and what we do – the Entrepreneurial Mindset • Role Models and Case Histories – so “what’s NEW about Innovation”? • Converging Technologies and Open Innovation • Cultural Diversity and Innovation • Open Innovation Campuses – Real and Virtual • The Nokia, Philips and Unilever examples • Symbiosis and Innovation – Small can definitely be beautiful – and large can be flexible. • Innovation and a balanced society – Academia, Business and Policy Makers – in bed together! My Definitions

•• CREATIVITYCREATIVITY –– TheThe abilityability toto developdevelop newnew ideasideas andand discoverdiscover newnew waysways ofof lookinglooking atat problemsproblems andand opportunitiesopportunities

•• INNOVATIONINNOVATION –– TheThe abilityability toto applyapply creativecreative solutionssolutions toto problemsproblems andand opportunitiesopportunities toto enhanceenhance oror enrichenrich peoplespeoples liveslives

•• CreativityCreativity isis THINKINGTHINKING –– InnovationInnovation isis DOINGDOING –– discussdiscuss ifif youyou wishwish !! OurOur WorldWorld –– OurOur ContextContext–– doesdoes mymy EyeEye onon TheThe WorldWorld seesee muchmuch CHANGECHANGE takingtaking placeplace ?? The Changing Horizon – the DynamismDynamism and VelocityVelocity of Change….

Organisations Environment Issues

Technology The death of deference

Globalisation New employment patterns Global Dynamics – where is a lot of the positive change happening ? – somewhere EAST of here!

• Two fifths of the Worlds people live in the two fastest growing large economies – China and India • Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia • Growth in Asia is far ahead of Europe. • Dynamic Growth in Manufacturing Base • CASH is in place in the Asian economies – as well as brainpower- China has US$ 2 Trillions + of reserves • Labour and Material cost advantages +++++ • Asia and The Americas – power and influence…. Changes in Industrial Structure - UK % of Total Employment - UK Government Foresight Report 2001

100 90 80 70

60 Manufacturing 50 All Services 40 30 20 10 0 1971 1981 1991 2001 2011 Changes in Industrial Structure - Europe % of Total Employment

100 90 80 70

60 Manufacturing 50 All Services 40 30 20 10 0 1971 1981 1991 2001 2011 Manufacturing has MigratedMigrated !! The West’s Competition ??

Courtesy of Asia Pacific Foundation Sticking to those old ideas of Competition and Protection – “Today’s Proudest Peacock could be Tomorrow’s Feather Duster” – “Look out UK plc and The West!” CRISIS????? or OPPORTUNITY!!!!! 危机

MINDSETMINDSET cancan makemake THETHE DIFFERENCEDIFFERENCE –– betweenbetween GOODGOOD TIMESTIMES ANDAND BADBAD TIMESTIMES INNOVATION,INNOVATION, INNOVATION,INNOVATION, INNOVATION!!INNOVATION!!

TheThe WorldWorld becamebecame FlatFlat ...... Thomas Friedman innovation is not bound by borders

60 trillion $ EU - U.S

EU

EU - U.S – Asia - BRIC Market Value - Value Market GDP

1900 2000 year

0.5 bi 1 bi 2 bi customers ““BrainBrain CirculationCirculation”” –– forfor joinedjoined upup thinkingthinking andand liveslives

“Brain Circulation Across Borders and Functions” “Open Innovation Thinking”

No doubt about a National Innovation Policy in the UK David Sainsbury was a key Champion and consulted widely

So what’s special about OPEN INNOVATION ? ‘Open innovation’

• “[..] inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation [..].” • Chesbrough, H., W. Vanhaverbeke, and J. West, eds. Open Innovation: Researching a New Paradigm. 2006, Oxford University Press.

www.ifm.eng.cam.ac.uk/ctm/teg/openinnovation.html Open Innovation: What is it? • What: – Shift from so-called closed innovation processes towards open way of innovating (Chesbrough: Open Innovation:The New Imperative for Creating & Profiting from Technology) – i.e. Creating innovative products and service through open collaboration – Collaboration in sharing content, data, ownership for joint innovation – Diverse teams: professionals, consumers, clients, communities, disciplines.. • Why: – Increased mobility of specialists - knowledge now outside large research labs – New knowledge flows between companies – New opportunities for spin-offs / new licensing agreements – New and diverse innovation and supply chain – Shift towards shorter research / production cycles in media industries – Rise of the consumer as co-creator (PPP) Open Innovation: Benefits and Issues • Benefits – Far greater scale, frequency, innovation potential than closed process – Transcends and transforms fixed patterns and structures – Stimulates transfer of people, capital, goods, services, ideas, knowledge – End product closer to user base - consumer as co-creator – Move to develop new forms of shared Intellectual Property

• Issues – Need to identify trusted and dependable peers and partners – Need to transcend and transform fixed patterns and structure – Need to integrate different methodologies – Need to maintain own identity with shared ownership – Need to maintain privacy and security – Need for practical examples

Three Converging Revolutions Three Pervasive Technology Platforms

BIO TECH Pharmaceuticals Genomics INFO TECH Diagnostics Bioinformatics Hardware Research/Info Proteomics Software Tools Communications Industrial Biosensors Biochips Bioelectronics Nanodevices Microfluidics Nanosensors Nanobiotechnology Nanoelectronics Drug Delivery NANO TECH Electrical Structural Biomedical Energy & Environment

Open Innovation enables transfer of tacit knowledge Proximity of Learning, Research and Practical Application “The Innovation Campus”

R&D Education

Applications

Where open innovation, symbiosis, synergy and new companies can thrive Importance of intermingling Open Innovation needs Provision of space to support serendipity, collaboration, networking

The Hauser Forum With open innovation, ideas and partners can be anywhere .. Philips & HiTech Campus Eindhoven Unilever and Colworth Park Sumitomo Chemical, CDT and Cambridge • Inkjet cluster strong in Cambridge • CU spin-out CDT developed ecosystem of partners (locally and internationally) to develop P-OLED displays using inkjet technologies • Sumitomo Chemical was long-term development partner then acquired CDT. THE EINDHOVEN -LEUVEN - AACHEN TRIANGLE

A European “Super” – Region Three Science Cluster Centres – Multiplying Global Influence – Cross Border Open Innovation 1 1 – – Global Global d d .and .and … … Populations 0.5 Populations 0.5 – – Mindset Mindset million common million common Size without Borders – Size – – Companies Minds Minds • Knowledge Centers • Entrepreneurs & Role Models • Money • Capital Markets • Infrastructure • Cluster Policy • Presence of International •Networks • Government • Quality of Life Scale Scale *

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N Open Innovation is at the heart of Open Innovation is at the heart of Joe Marks Hermann Hauser Hermann Hauser Active Book Hermann Hauser Hermann Hauser Martin JacksonCavenish Charles SmithCambridge 3G David Cleeveley Tenison EDA Chris Curry Kinetics Peter Wynn Mike Muller Andy Hopper Entertainment Hermann Hauser Stephen Ives Harlequin David Greaves S t eve F urber On-Line EO Incorporated Chris Wade Hermann Hauser Sophie Wilson Robert Swann Robert Sansom Peter Wynn IXI Ltd Hermann Hauser Mike Muller Jack Lang Hermann Hauser NetChannel Cambridge University Tudor Brown Cambridge David Cleeveley Cambridge Angels Alex van Someren Flow of people is key Sir Alec Broer Network Jack Lang Nigel Brown Confidential Laurence Garrett CPU Acorn Stan Boland Hermann Hauser Simon Knowles Olivetti Chris Curry Icera ANT Element 14 General Information ARM Electronic Share System(GIS) Alex van Someren Simon Segars Hermann Hauser Stan Boland Orbis Information (E* Trade) Nicko van Someren Hermann Hauser ART Jack Lang Simon Knowles Cambridge Ring Robin Saxby Peter Wynn Olivetti Inskis Research Ltd Hermann Hauser Jamie Urquhart Daniel Hall Ray Anderson Hermann Hauser Andy HoppernCipher IQ B io Mike Muller Adrian Wrigley Daniel Hall Richard Friend Andy Hopper Mike Muller Hermann Hauser Tudor Brown Hermann Hauser Hermann Hauser Sir Alec Broer Hermann Hauser Chris Keightley Peter Wynn Simon Segars Andy Hopper Chris CurryTORUS Stephen Ives Duncan Stewart Hermann Hauser Plastic Logic Hermann Hauser Hermann Hauser Herman Hauser Richard Friend IPV (Telemedia Peter WynnCDT Nigel Berry Systems Ltd) Stephen Ives Amadeus Capital Duncan Stewart Ives & Cos Ray Anderson Partners Andy HopperAspectives Hermann Hauser CCL Entropic Virata Hermann Hauser Stephen IvesTrigenix Stephen Ives CSR Phil O' Donovan Hermann HauserAT &T Qudos Haroon Ahmed Ray AndersonLtd Ray Anderson Professor Steve Young James Collier Smartner Andy Hopper Hermann Hauser Lawrence Garrett Hermann Hauser Glenn Collinson Charles Cotton Andy HopperAdaptive Broadband Hermann Hauser Hermann Hauser Martin Jackson Michael Ledzion John Paul Auton Cambridge Broadband Polight Stephen Elliot Lawrence Garrett Cambridge Arakis (Sirus Technologies Real VNC Hermann Hauser Internetworking Pharmaceuticals) Globespan Andy Hopper Andy Hopper Chris Keightley Duncan Stewart Apama Virata Andy Hopper Andy Harter Hermann Hauser Tom Saylor Abcam Jonathan Milner John Bates Hermann Hauser Tristan Richardson Peter Wharton Peter Wynn Cambridge David Cleevely Andy Hopper CellCentric Conexant James Weatherall Peter Wynn Andy Richards Theranostics Hermann Hauser Hermann Hauser David Cleevely Hermann HauserArtimi Professor Azim Surani Jonathan Milner Level 5 Network Ubisense David Baker David Knowles David Cleevely Daniolabs Pete Steggles Mark Moore Hermann Hauser Hermann Hauser Andy Hopper Andy Hopper Jack Lang Ivan Petyaev Paul Goldsmiths Gosurprise Bango.net Charles Cotton Andy Ward Phico Andy Richards Sonial ShahNujira Ray AndersonTherapeutics Hermann Hauser Hermann Hauser Tim Haynes Hermann Hauser Cogniscience Martin WilsonTeraView David CleevelyCellmania Heather Fairhead Duncan Barclay Ronjon Nag Hermann Hauser Creature Labs Stephen Furber Shane Flint Mike Pepper Hermann Hauser Movement of people Hermann Hauser Don Arnone Ray Anderson Investee companies through VC firm Hermann Hauser Gameplay Solexa Q-Communications The people highlighted who are associated with University of Cambridge Shankar Balasubramanian (former/current researchers, faculty, staff or students) Mark Bernstein David Klenerman Tony Quested Hermann Hauser Tim Rink Kate Quested Mark Carthy Hermann Hauser Copyright – Y.M.Myint ‐ [email protected], CambridgeCambridge alwaysalways hadhad greatgreat ScienceScience andand ScientistsScientists andand EngineersEngineers……..

Ideas that Changed the World – but not historically to the great benefit of Cambridge, the Region or the Nation…. R&D alone doesn’t create wealth or social good.R&D is NOT innovation From The Importance University of Technology Laboratory Innovation to Product Centres in the Market

Critical Mass matters The “Translational Gap” – between R&D and Commercial Products. Bridging the Gap with TICs The model of ‘open innovation’ Research Development Commercialisation

IP in-licensing Products in-sourced (e.g. Co-branding) Company Boundaries Core Market Focus

Technology Spin-outs IP out-licensing

Ideas & Technologies

Docherty, M. (006), Primer on ‘Open Innovation’: Principles and Practice, pdma (Product Development and Management Association) Vision (April 006), pp.13‐17. Chesbrough, H. (003), Open Innovation: The New Imperative for Creating and Profiting From Technology, Boston: Harvard Business School Press.

Lam RESEARCH

STMicroelectronics IMECIMEC

ImecImecin in LeuvenLeuven ––Flanders Flanders RegionRegion andand thethe WorldWorld’s’s LargestLargest IndustryIndustry CommitmentCommitment toto SemiconductorSemiconductor ResearchResearch inin PartnershipPartnership ––Open Open innovationinnovation inin PracticePractice

Growing and Ageing Growing healthcare Population needs – reducing budgets

Innovation – the ONLY answer We are working We have a long to encourage way to go – but Open Innovation things are in the NHS moving. Will anything but INNOVATION fill the gap ? LetLet’’ss looklook atat THETHE HUMANHUMAN FACTORSFACTORS…….. Einstein on IMAGINATION….

“Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world”

Albert Einstein 1879 - 1955

Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein

What Innovation is NOT

7 Encouraging the Entrepreneurial Spirit and Mindset “You look at things and ask - why? but I dream of things that never were and ask - why not?”

Open Innovation encourages “Dreaming George Bernard Shaw of things that never were”…. From Ireland….

Seminal work at 25 Double Helix - DNA years old – “Discovery whilst Developing”

James Dewey Watson With Open Francis Innovation at Crick and The the Double Cavendish Helix Model Laboratories The Internet has REVOLUTIONISED Product Development and Innovation in many areas – Berners-Lee was an “open innovationist”

Innovation happens mostly with USERS not SUPPLIERS

Turning Education Student and Vision Innovation into Without Action Borders TheThe FirstFirst StudentStudent ledled InternationalInternational ConferenceConference inin FinlandFinland

Entrepreneurial Overlap – “Joined Up Thinking and Actions” – Coherence and Common Purpose – Essential Collaborations

EDUCATION & INDUSTRY RESEARCH & including Universities BUSINESS

GOVERNMENT National & Local

OpenOpen InnovationInnovation andand EntrepreneurshipEntrepreneurship inin PracticePractice –– FactorsFactors inin EconomicEconomic andand SocialSocial DevelopmentDevelopment

OpportunitiesOpportunities openopen toto ALLALL ofof usus willingwilling toto ChangeChange andand GrowGrow WorkingWorking togethertogether withwith OpenOpen MindsMinds –– Universities,Universities, Businesses,Businesses, PolicyPolicy MakersMakers

Alan Barrell – Entrepreneur in Residence Cambridge, Bedford, Helsinki and Xiamen InIn Pursuit ofof ExcellenceExcellence !!

““Excellence can be achieved, if we: Care more than others think is wise, Risk more than others think is safe, Dream more than others think is practical, Expect more than others think is possible..””

Deborah Johnson-Ross

Open Innovation is a proven pathway to Excellence ! ThankThank youyou forfor youryour attentionattention……..

More on my website –

www.alanbarrell.comwww.alanbarrell.com

EE--mailmail –– [email protected]@alanbarrell.com