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The Role of Open Innovation in
Value Creation and Value
Capturing
Kjell-Håkan Närfelt
Chief Strategy Officer, VINNOVA
Sweden
Slide 1
Slide 2
Some Words About
Myself and VINNOVA…
Slide 3
Slide 4
Äijävaara, 100 km north of the Arctic Circle
Slide 5
Slide 6
Slide 7
VINNOVA develops
Sweden’s innovation
capacity for
sustainable growth
VINNOVA is
Sweden’s
innovation agency
Slide 8
VINNOVA’s role
Connect, Catalyse & Stimulate
Slide 10
Sweden –
an Innovation Perspective
Sweden vs. Thailand
513 000 km2
64 million people
450 000 km2
9 million people
We have been successful in creating multinational companies
Swedish innovations
Swedish research
and innovation in figures
Slide 14
Innovation Union
Scoreboard 20104
Global Competitiveness
Index 2010/20114
1. Switzerland 1. Switzerland
2. Sweden 2. Sweden
3. Denmark 3. Singapore
4. Finland 4. USA
5. Germany 5. Germany
6. United Kingdom 6. Japan
7. Belgium 7. Finland
8. Austria 8. Netherlands
9. Netherlands 9. Danmark
10. Ireland 10. Canada
3.6% of GDP equivalent to annual
R&D investment in Sweden
Sources: 1SCB (forecast for 2009) 2VINNOVA 2010 3SCB (forecast for 2009) 4Innovation Union Scoreboard
2010, The Global Competitiveness Report 2010-2011
Equivalent to 3.6% of
Sweden’s GDP for
2009 invested in R&D.3
GDP
(billion
SEK)
112
Total Swedish
R&D1
29.5
Total
government
R&D2
2.1
VINNOVA’s
grants to R&I
Will high R&D spenditures
guarantee future success?
Slide 16
Foldit game leads to AIDS
research breakthrough
In a matter of 10 days,
gamers were able to do
what biochemists have
been trying to do
for a decade: decipher the
structure of a protein
called retroviral
protease, an enzyme that
is key to the way HIV
multiplies.
17
AstraZeneca cutting 2,200 R&D jobs,
slashing neuroscience in restructuring
"We've made an active choice to stay in
neuroscience though we will work very differently
to share cost, risk and reward with partners in
this especially challenging but important field of
medical research,".
"The creation of a virtual neuroscience iMed will
make us more agile scientifically and financially -
we will be able to collaborate flexibly with the
best scientific expertise, wherever it exists in
the world.“
Martin Mackay, AstraZeneca’s R&D chief
Press releases 2 Feb 2012
Slide 18
Why does old models of
innovation fail?
Knowledge monopolies are
broken Slide 19
Entreprenaurship – a new way of
living for many
Slide 20
Availability of capital for new ventures
Slide 21
Increasing external options for R&D
results
Slide 22
Cost and compexity of innovation
is increasing rapidly
Slide 23
Innovation - a new political approach to
solve societal challenges Slide 24
OECD Innovation Strategy
Slide 25
The Story of
Treehotel
26
Slide 27
Kent and Britta Lindvall
The Tree Lover
28
a movie by Jonas Selberg Augustsén
29
It is not only about developing new products and services
”New value creation, not new creations”
Innovation?
The Innovation Challenges?
We need a broader view on
innovation
Based on Innovation Radar
WHAT?
HOW?
WHERE? WHO?
Offering
Innovations
Customer
Innovations
Operational
Innovations
Eco-system
Innovations
Traditional
value creation
New areas for
value creation
We need to improve our
Innovation Management skills
Slide 33
Innovation-
strategy
Innovation-
processes
Organisation
& Leadership
& Culture
The Management Challenge?
34
Innovation-
strategy
Innovation-
processes
Organisation
Leadership
& Culture
Operational
strategy
Day-to-day
Operations
Execute! Search & Learn!
Production of Goods and Services Value creation which delights customers
Effective Innovation requires collaboration and
co-creation between customers and suppliers!
We need to strengthen innovation driven
collaboration across disciplines, sectors
and organizational boundaries
We need to stimulate demand and use of innovations. It is essential for national growth!
Focus on innovation procurement!
SBRI, UK - Handhygiene
37
The ability to import and apply externally developed knowledge and technology is key to innovation driven growth!
We need to balance the production of
knowledge and technology with the
import of it!
Slide 39
What has Open Innovation
to do with all this?!
Slide 40
Open Innovation is about value
creation and value capturing
using collaboration and co-
creation with external partners
Open Innovation – a strategic
view
The use of
external talent, ideas, assets, inventions and innovations in renewing your and your partner’s businesses
internal assets in business collaborations with external partners which diversifies your business to new markets and new fields of value creation
Slide 41
Challenge driven
competitions and
procurement
processes
What Can Governments Do?
44
Establish
innovation
infrastructures
supporting Open
Innovation
Open up IP and
data to
innovators and
entreprenaurs
Triple helix-based nodes in regional
innovation system
43 Business Incubators, 33 Science
Parks
Focus on processes,
commercialization and renewal of
businesses
5000 growth companies with 72000
knowledge workers
Swedish Incubators & Science Parks
Aspects of Open innovation in Swedish Science Parks
Challenges to
network
Utilizing the
“crowd”
Utilizing their
network
Challenges looking
for a solution
Research looking
for an application Ideas for
comerzialisation
Public idea
contests
Open
Ideabanks
Open innovation at Ideon Science Park
Facts about
Ideon Science Park
• Est 1983
• 300 companies
• Regional network node
Focus areas:
• ICT
• Life Science
• Cleantech
Challenges to network - case Inwido
Inwido – producer of doors and windows adressed challenges
to the Ideon network. Incremental and radical ideas
developed during the process!
Open innnovation at Norrköping Science Park
Facts about
Norrköping science Park
• Est 2001
• 100 companies
• Regional network
node
Focus areas:
• Visualization
• Printed Electronics
• Interactive services
Ideas for commersialization – case Virtual autopsy table
Virtual autopsy table combining ideas from front edge
research with ideas from clinical experience. Commersialized
by the company Sectra.
Process innovation: Virtual prototyping, Siemens Turbo Machinery
Co-creation: case Siemens
Some last guidelines…
Open Innovation is about openness - internally first
Open Innovation is about mutual trust and win-win
solutions
Open innovation is about sharing visions – like any
innovation process, start with the end
Open innovation is about co-creation – use
intermediaries if necessary to manage and facilitate
networking
Avoid legal, confidentiality and IP issues during ”court
time” – all events and initial contacts in the early
stages should take place in the ”public domain”
Slide 52
Thanks for Your Attention!