creating abundance in the global innovation econ curtis carlson

SRI International© 2012 SRI International

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

http://www.lawrence.edu/


SRI’s Innovation Model

World’s first virtual computer assistant

Computer speech recognitionMinimally invasive virtual surgery

$26B $7.5B

2


Our Challenge


abundant freedomabundant

technologyabundant labor

abundant land abundant trade

abundant natural resources

abundant energy


Our Economy is Stuck


1970 1990 2010 2030

500%

400

300

200

100

0

?

Drowning in Debt


#1 39%

wastecorruption

World’s Worst Business Taxes


USA #1 2008

USA #5 2011

Rapidly Declining Competitiveness

USA # 7 2012


FOR

LEASE

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

China

Students


Poor Performance


Year

s on

S&P

500

7060

50

4030

20

100

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

http://www.dailymail.co.uk/


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…


fear

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

10 -9

10 6

10 3

1.0

10 -3

10 -6

1900

Monkey

1920 198019601940 20202000

Multiprocessor Lizard

Worm

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

7.5%


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


Time

B

Valu

e

start overC

new knowledg

e A

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

Perc

eptu

al q

ualit

y

HDTV

PDAsCD Walkman

Color TV

B&W TV

FM

AM

iPod

iPhone

iPad

Morita-san and Jobs Got It

shirt pocket radio


Progression of Value

$11B

$560B

experiences

emotions

products

services

commodities


IndustryGovernmentUniversities


Not Small Companies – New Ones!

Established

- 1.2%New

+ 3%


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

48

http://js3.top-10-list.org/wp-content/uploads/2009/12/The-Internet.jpg

http://css.top-10-list.org/wp-content/uploads/2009/12/GPS.jpg

http://js3.top-10-list.org/wp-content/uploads/2009/12/Speech-translation.jpg







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


Jobs

To Create High-Paying, Meaningful …

environmental sustainability

security

prosperity

social responsibility


thank you for your attention

discussion

Dr. Curtis R. Carlson [email protected]

650 859 2878

mailto:[email protected]

mailto:[email protected]