creating abundance in the global innovation econ curtis carlson

The way we work is our most important innovation

Creating Abundance in the Global Innovation Economy

Dr. Curtis R. Carlson President and CEOSRI International

November 1, 2012

SRI’s Innovation Model

World’s first virtual computer assistant

Computer speech recognitionMinimally invasive virtual surgery

$26B $7.5B

Our Challenge

abundant freedomabundant

technologyabundant labor

abundant land abundant trade

abundant natural resources

abundant energy

Our Economy is Stuck

1970 1990 2010 2030

Drowning in Debt

#1 39%

wastecorruption

World’s Worst Business Taxes

USA #1 2008

USA #5 2011

Rapidly Declining Competitiveness

USA # 7 2012

California – Best to Worst

every week

Not wanted

H-1B: America’s “Genius Card”

outcomes = 0

spending >2X

1970 1980 2000 20101990

Educational Results

It Gets Worse

8x more likely to go to jail

America

Students

Poor Performance

1960 1970 1980 1990 2000 2010 20202030

Companies Going Away– Faster

More Myspace Layoffs

Expected This Week

Oracle buys Sun Microsystems

Google buys Motorola mobile phone division for $12.5bn

Brutal Corporate Reality"Every CEO will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation. But if you go into an organization and ask people to describe their innovation system, you get blank looks. They have none."

Worldwide Standards

most mediamost politiciansmost educators

they believe in scarcity…

protectionismlooking inward – not outward

not adapting

pessimism

this is not a zero sum gamewe can thrive

we have the knowledge

I believe in abundance …

… but we must innovate abundantly

We Have Been Here Before

nothing seems to be working; it’s time to pay attention again

we need a new way of working

but now based on the FUNDAMENTALS of INNOVATION

Global Innovation

Economy

also = intense competition

rapid, exponential improvementunlimited opportunities

huge markets

Exponential ImprovementIdeas and bits; not just atoms and muscle

Monkey

1920 198019601940 20202000

Multiprocessor Lizard

Human10 9

After Hans Morevac

Speed/CostMIPS for $10001997 dollars

Unlimited Opportunities

Additive manufacturing Energy

Cloud, Internet, and mobile devices

Healthcare; regenerative medicine

Digital, on-line education

Social media

Huge Untapped Markets

Innovation Fundamentals

high-value innovation is our only path to

environmental

sustainability

securityprosperity

socialresponsibility

“Build a better mousetrap, and the world will beat a path to your door.” Ralph Waldo Emerson

U.S. Patent Office issued > 6,000 mousetrap patents, however, only two have had real

success!

Classic Tech Push

creativity and imaginationinvention and IP

teamwork entrepreneurship

technical and business skills

these are all inputs

Innovation is Not Just…

Definition of Innovation

Creation and delivery of new customer value in the marketplace with a

sustainable business modelfor the enterprise producing it

successful innovation is not: the result of luck or a lone genius

it is a discipline

best teamsimportant global opportunities

complete ecosystem and supportive culturesupportive government policies

compelling, defensible product & business model

value creation best practices

Innovation Fundamentals

MarketSuccess

SRI’s Five Disciplines of InnovationImportant Customer & Market NeedsProcess of Value Creation

Innovation Champions

Innovation Teams

Organizational Alignment

Disciplines are multiplicative

Top 10 Business

Book of the Year

start overC

new knowledg

important need

Value Creation Is a Process

$ make a profit

Value Propositions

ApproachNeed

Benefits/costsCompetition or alternatives

important customer

N A B/$ C

Almost All Presentations

Hard lesson: value creation can only be understood by doing it

Value Creation Forums: Intense Iteration

Convenience

PDAsCD Walkman

Color TV

B&W TV

iPhone

Morita-san and Jobs Got It

shirt pocket radio

Progression of Value

experiences

emotions

products

services

commodities

IndustryGovernmentUniversities

Not Small Companies – New Ones!

Established

- 1.2%New

best teams?important global opportunities?

complete ecosystem and supportive culture?supportive government policies?

compelling, defensible product & business model?value creation best practices?

National Laboratory Report CardMajor role in national security; but how about

commercialization?

Failure increases dramatically as innovation activities move away from the fundamental’s of innovation

Projects – Not ProgramsJust giving researchers money to do good is rarely

effective

Speech translation Computer personal assistant

GPS Internet

• DARPA mostly uses the Silicon Valley innovation model

• Paradigm shifting technologies• 240 employees• $3.2B budget/year• Other U.S. R&D organizations adding DARPA-like agencies

University “Tech Transfer”Must bridge the entire R&D spectrum

Fundamental Science

Basic Research

Applied Research

Product Development Production

University R&D

Tech transfer

office

New companies

and licenses

Value Creation CentersMust bridge the entire R&D spectrum

Fundamental Science

Basic Research

Applied Research

Product Development Production

University R&D

Value creation center

New companies

and licenses

Girls Middle School

Kindergarten to Grad School

we have an abundance of opportunities …

the best time ever …

we have the knowledge …

transform education

use innovation fundamentals

Play to Win …

recruit talent

incentivize new company formation

exceed world standards

To Create High-Paying, Meaningful …

environmental sustainability

security

prosperity

social responsibility

thank you for your attention

discussion

Dr. Curtis R. Carlson curt.carlson@sri.com

650 859 2878

creating abundance in the global innovation econ curtis carlson

defensible

business model

innovation

creation

amp

fundamentals

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