The strategic meaning of Innovation Tommaso Foglia

The strategic meaning of Innovation Tommaso Foglia – INNOVA S. p. A. Suzhou - China, 17/03/2010

Tommaso Foglia • M. Sc. Engineer, Electrical Engineering – University of Bologna “Alma Mater” • 8 years experience in Innovation, Technology Transfer and R&D projects management (2002 - to date) • Coordinator of European Projects since 2004 Translation 2

Objectives of the Workshop • • • Innovation and Technology transfer in the practice How to formulate strategies for successful technology valorisation for SMEs TT models and cases How to develop abilities to turn technology into business value Approach: practical, based on cases, exercises, examples Translation 3

IT Innovation Services Technology Ventures Research & Development US FR Certified Research Laboratory (MUR) IT IT LXB IT IT PLANTAROM TRS OPT SENSOR TN IT IT IT ES 4 Media Pharma IT

Innovation - The technical meaning What is innovation? Any technical improvement to the status quo (Product, Process) but also… Organization: innovation keys (A. Read): – 1. Management support for an innovative culture – 2. Customer/market focus – 3. Communication/networking – 4. HR strategies that emphasize innovation – 5. Team structures – 7. Leadership, creative development, strategic posture, flexible structures, continuous improvement, and technology adoption. Translation 5

Innovation - The strategic meaning What are the strategic objectives and goals of innovation? • Any solution/project/undertaking aimed at increasing • • value for the business organization The less successful companies take a conventional approach: staying ahead of the competition. The high-growth companies seek to make their competitors irrelevant through a strategic logic called value innovation. Translation 6

Innovation - The strategic meaning What are the strategic objectives and goals of innovation? /2 You must examine radically what constitutes real value for customers by asking fundamental questions: what value offering need to be introduced or increased to meet customer needs? what value offerings can be reduced or eliminated, because they do not constitute real value for customers "The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed. " – Henry Ford Translation 7

Implications • Innovation is risky but necessary to improve competitiveness • Innovation is not for everyone • Innovation is not necessary linked to Technology • Translation 8

Implications • Innovation requires: – A clear definition of needs and value generated to costumers – A sound financial scheme: Innovation is expensive – A network of contacts: Innovation is confrontation – A constant knowledge monitoring and up date • Translation 9

Innovation - Why ? Because the world is changing (fast) • Nanotechnologies and Biotech prospects Zyvez: tools, instrumentation, and applications to serve the semiconductor and advanced research markets. Founded in 1997, Zyvex was the first molecular nanotechnology company. Translation 10

Innovation - Why ? Because the old tricks don’t work anymore Translation • NUOVA FIMA • DERBY 11

Innovation - Why ? It’s a big mistake saying that change must originate from the top Translation SILMET: how to deal with the internal resistance to change Translation 12

Innovation – Why patenting? • • The Patenting process The Patent granting explosion The Patent litigation explosion Patenting and Innovation Translation 13

Innovation - Why Patenting? • Gillette , 48 Patents in a Razor • Value? • Five times as many razor blades as anyone else Translation 14

Innovation as process to consolidate know-how Translation Researcher approach • Signals Segnali Data Dati Codification Codifica Co Objectivity Oggettività Information Informazione Know-how Conoscenza Strutturazione Concettualizzazione Structuring Conceptualisation & & definizione Definition generalizzazione Generalisation Action Azione Problem Solving Wisdom Saggezza Applicazione Application Creativity Individual ( lateral thought, , Analogic) • Group Brainstorming • Network Subjectivity Soggettività 15

Which innovative technologies? Translation Incremental technologies Impact on economic result Breakthrough technologies Technologies anticipating needs on the market, ex. : -New product functions -New business lines or new business models -Suppression of 1 or more productive factors Technologies running after the competition, ex. : -New products -TTM reduction Strategic objective: fast follower Strategic objective: leadership Adjustment technologies Technologies to comply with market and legislative standards, ex. : - New plants - Certification and quality control - Costs reduction Strategic objective: survival Investment in new technologies 16

Which SMES do innovate? Potential Impact on economic result Translation “Future” technology” Interval to innovate (follower) Interval to innovate (early adopter) “Running” technology “Emerging” technology Time 17

From Innovation to Technology Transfer: how to turn technology into business value Translation 18

Innovation positioning with respect to the Client business Basic Research Applied Research/ Innovation Product Development ”Upstream” approach or Technology Push Re-engineering process Production Marketing ”Downstream” approach or Market Pull Translation According to the followed approach, different modalities can prevalently emerge : Ø learning by doing (Prevalently Market Pull) Ø Productive know how (acquisition of technological capacity through adjustments and secondary engineering actions) Ø know why (development of an autonomous R&D activity) (Prevalently Technology Push) Ø Translation 19

Putting innovation to work Innovation as problem solving for the development of new products Translation How to solve a problem? Problem: take out the water without touching the glass Translation 20

Putting innovation to work Innovation as problem solving for the development of new products How to solve a problem? Problem : “I want a stronger table, but lighter” You are not the first to face such a “conflict of interest”. . . Translation 21

Putting innovation to work Innovation as problem solving for the development of new products How to improve a current product? Translation Look at evolution trends Translation 22

SME Innovation Strategy Case 1: the growth challenge Business has two functions, and two functions only: Marketing and Innovation Translation A certain world walks in Rossetti Translation GEOX breathes Translation 23

Putting innovation to work Innovation as problem solving for the development of new products Translation “How to do a better screw-driver? ” Making it more resistent. How? Making it more insulated. How? Making it more ergonomic. How? Making it more adaptable. How? Translation 24

The match between Technology and Strategy Translation 25

Case 1: the SME Strategy Formulation process SMES Challenges: Process and Product Innovation but, mostly, Organisational Innovation. Rome, Via Condotti Fall 2006 Translation 26

Case: example of organizational innovation Translation Central stock Major Acquisitions’ warehouse Me PS rch and isin G g T ech niq ue of r est ock ing PDV Standardized merchandising technique– optimal localization 27

SME Innovation Strategy Because you are not too small to do it. Translation Titanium Golfing Sunglasses These advanced unisex sunglasses weigh just 8 g. Brown shatter-proof and scratch-resistant lenses offer 100% UVA, B and C-protection. Incorporating “light Stabilising Technology” specially developed for golfers to enhance vision in frequently changing light intensity. 28

XEROS 29

The SME Networking • International competition drives companies to concentrate on core competencies. Large companies outsource specific activities to SMEs which tend to networking. • Increased growth in networks as a result of an increasingly knowledge-based economy (Collective Innovation Projects in France). • Renewed focus to de-internalisation, where noncore activities are placed outside the enterprise itself. • Translation 30

The European industrial districts • • • Craft skills, design and knowledge of local market are still the core of the craft based product innovations: food, textiles, leather, wood and metal products. Craft-based regions share embedded skills and market understanding. Industrial districts in Denmark, Northern Italy, Spain and Portugal: product innovations, low innovation cost. Translation 31

What is an industrial cluster? Clustering is a key to successful industrial development because of: a) Information spillovers (typically imitation) b) Specialization and division of labor among enterprises (low transaction costs due to proximity of transacting partners) c) Development of skilled labor (usually through poaching) Translation 32

Advantages of belonging to an international cluster • Better access to competent people and innovative ideas • Better access to specialized suppliers and demanding customers • Better access to frontier research and development • Better access to venture capital and competent investors • Lower transaction costs of doing business Translation 33

Innovation: what services to offer? Innovation is a business. . . But what can be sold? Translation 34

Innovation: the services • Client organisations are looking for an integrated approach - Need / Opportunity - Funding sources - Partners - Project generation / management - Exploitation / Technology marketing - Change management Translation 35

The role of Technology Intermediary Tech. Audits/Watch Identification of needs Capitalisation Partnership RESEARCH Development Partnership M A R K E T Market Pull Venture Capital Partner Search Project Generation Exploitation / IPR Technology Push Process change BPR “Revolution Services” Organisational change 36

Thanks for your attention! Tommaso Foglia (t. foglia@innova-eu. net) INNOVA S. p. A. Via Giacomo Peroni, 386 - 00131 Rome - Italy Tel. : +39 06 40040358

Innovation in textiles – Case studies Tommaso Foglia – INNOVA S. p. A. Suzhou - China, 17/03/2010

Table of contents: • Case studies of innovations in the textile sector • How to promote collaborations and Technology Transfer between European and Chinese organisations • Examples of EU-funded projects dealing with innovation in textiles Translation

Case studies of innovations in the textile sector Translation

Case 1: ENVIRONMENTALLY FRIENDLY UPHOLSTERY Kvadrat - http: //www. kvadrat. dk/ WATERBORN Design: JEAN NOUVEL Translation • • • The aim: to develop a new material made of synthetic fibers that addressed the environmental concerns of Kvadrat. The solution: a unique polyurethane dispersed in only water to impregnate a fine-structured and very dense, non-woven fabric made of polyester and Nylon. Translation

Case 1: ENVIRONMENTALLY FRIENDLY UPHOLSTERY Kvadrat - http: //www. kvadrat. dk/ WATERBORN Design: JEAN NOUVEL • Translation • The result: reduced emissions of organic solvents (-92%). The content of organic solvents in the final product almost equal to zero No harmful and No unpleasant odours Further improvements: Jean Nouvel, an internationally renowned French architect, designed the structure, surface and colour palette of WATERBORN Translation • •

Case 2: AN INNOVATIVE ECO-BUSINESS MODEL IN TEXTILES EPEA INTERNATIONALE UMWELTFORSCHUNG GMBH http: //www. epea. com/ CRADLE TO CRADLE DESIGN INNOVATIONS – TOWARDS A CYCLE ECONOMY Translation • 1 € for a used T-Shirt / Translation

Case 3: MULTIFUNCTIONAL TEXTILE - CONDUCTIVE RIBBON by Ohmatex Translation http: //www. ohmatex. dk/ • A conductive ribbon to connect integrated electronics in clothing and electronic units in equipment • 100% washable and well suited to wearable electronic solutions. Translation Applications • Data/power transmission in textiles • As flexible cabling in almost any application • Translation Collaboration with ESA

Case 3: MULTIFUNCTIONAL TEXTILE follow up ESA signed a contract with Ohmatex (23 November 2009)… http: //www. innovationintextiles. com/articles/307. php Translation … to develop an intelligent sock integrating near-infrared sensors and textile based EMG (Electro-Miography) electrodes to map the electrical and metabolic activity in leg muscles, to scientifically evaluate the efficacy of various training aids and astronaut workout methods. Translation

Case 4: PLASMA TREATMENT FOR TEXTILES G. Buyle - Nanoscale finishing of textiles via plasma treatment, 2008 The interaction of the active species in the plasma with the substrate can basically add something to the substrate or can remove something from the substrate. Translation

Case 4: PLASMA TREATMENT FOR TEXTILES Translation Common applications: i. imparting hydrophilic, hydrophobic and oleophobic properties ii. influence printability and dyeability iii. application of anti bacterial or fire retardant agents iv. antishrink treatment of wool v. Sterilisation Translation a untreated reference b after rendering permanently hydrophilic via plasma coating

Case 5: The first closed loop polyester recycling program for China http: //www. innovationintextiles. com/articles/230. php 22 September 2009, Osaka The Teijin Group in collaboration with Li Ning Company Limited has announced the first program in China for collecting and recycling used garments. Eco Circle is an environmentally friendly closed-loop system incorporating technology for the chemical recycling of polyester. Translation

The Seventh Framework Programme (FP 7) as a way to promote collaborations between European and Chinese organisations to foster Innovation and Technology Transfer Translation

What is the Seventh Framework Programme (FP 7)? § The Seventh Framework Programme (20072013) of the European Community for Research, Technological Development and Demonstration Activities § Budget: € 53. 2 billion § Building the Europe of Knowledge § The biggest Research Programme in the World § Translation

Framework Programme evolution – 7 th of a series started in the 80 s – FP 7 Budget greatly increased + longer term focus (2007 -2013) – Translation

FP 7 - Specific Programmes COOPERATION – Collaborative research 9 Thematic Priorities 1. 2. 3. 4. Health Food, agriculture and biotechnology (Knowledge-Based Bioeconomy) Textiles Information and communication technologies Nanosciences, nanotechnologies, materials and new Textiles production technologies Translation

FP 7 - Specific Programmes COOPERATION – Collaborative research 9 Thematic Priorities Energy 6. Environment (including climate change) 7. Transport (including aeronautics) 8. Socio-economic sciences and the humanities 9. Security and space Translation 5.

Examples of FP 7 funded projects dealing with Innovation in textiles Translation

BIOAGROTEX - http: //www. bioagrotex. eu/ Development of new high end textile products, based for 100% on natural fibers and bio-based or Biopolymers and with a tailored biodegradability Translation. Complete production chain: (Bio)Chemical Industry, Natural Fibres & Processing, Extrusion, Agrotextile producers, Biodegradation testing & knowledge management Translation

NATEX - http: //www. natex. eu/ Development of textiles from natural fibres that are suitable for use as high-strength reinforcing fabrics to produce structural composite materials and components. Translation Multidisciplinarity: o Biologists o Physicists o Chemists o engineering scientists Translation

SHOPINSTANTSHOE Development of a cost-effective footwear based on shape memory materials to provide an instant fitting personalization service at the retail shop for enhancing user's comfort Translation Exploitable results: o a shape memory alloy filament o a shape memory smart textile o a shape memory leather composite o a new personalization shop tool o a new customizable footwear upper Translation

CLEANCLOTH - http: //cleanclothproject. com/ Development of an antibacterial cloth based on microfibre a superior cleaning cloth with constant and continuous antibacterial effect Translation Image: Suat Eman / Free. Digital. Photos. net

Safe@Sea - http: //www. safeatsea-project. eu/ Protective clothing for improved safety and performance in the fisheries Translation. • New fabrics with improved tear strength and penetration of sharp objects • Materials with improved scratch and wear resistance • Self repairable materials • Innovative buoyancy solutions • Integration of sensors in the garments Translation

SONO - http: //www. fp 7 -sono. eu/ A pilot line of antibacterial and antifungal medical textiles based on a sonochemical process Translation An innovative technique to produce and deposit inorganic, antimicrobial nanoparticles on medical textiles, e. g. hospital sheets, medical coats and bandages. Translation

MODSIMTEX - http: //www. modsimtex. eu/ Development of a rapid configuration system for textile production machinery based on the physical behaviour simulation of precision textile structures Translation 1. Finite elements analytic (FEA) simulation system to predict precisely how textiles react to certain contour conditions (tension, flexion, filtration power, transpiration, barrier effects, etc. ) Translation 2. artificial-intelligence-based simulation system to overcome the limitations of the analytic model - Translation

DEPHOTEX - http: //www. dephotex. com/ Development of photovoltaic textiles based on novel fibres. Translation • novel fibres with conductive properties as substrate • materials and techniques for flexible photovoltaic textiles • Translation TECHNOLOGICAL INNOVATION • Development of a wearable and flexible substrate energy source directly on textile products. • Translation

MICROFLEX - http: //microflex. ecs. soton. ac. uk/ Micro fabrication production technology for MEMS on new emerging smart textiles/flexibles Translation Drug delivery Mechanical action Lighting Sensor Medical Transport Workwear Consumer Smart bandage, Auto sterilization uniform Active monitoring underwear Luminous cabin, smart driver seat, auto clean filters Danger warning workwear (heating suite, high visibility, gas sensing, temperature sensing, movement sensing, alarm sounder Massage and cooling/heating armchair Luminous wall, surroundings customisation

BRAVEHEALTH - http: //www. labor-eu. net/ A miniaturised multi‐parameter measuring unit made of miniaturised sensors and conductive fibres embedded to continuously monitor critical parameters to diagnose and manage Cardiovascular Diseases Translation Textile Integration of Electronics Tsinghua University (China) partner Translation

Conclusions 1. The textile sector has a large room for innovations Translation 2. FP 7 can be an opportunity for Chinese partners A Chinese company, research centre or other institution can be partner of a EU-funded FP 7 project and can receive funding from EU Translation

Thanks for your attention! Tommaso Foglia (t. foglia@innova-eu. net) INNOVA S. p. A. Via Giacomo Peroni, 386 - 00131 Rome - Italy Tel: +39 06 40040358

Technology Transfer models Tommaso Foglia – INNOVA S. p. A. Suzhou - China, 17/03/2010

Definitions The process of formally transferring new discoveries and innovations resulting from research to industrial sector. Perspective in: • science: formal transfer of new discoveries and innovations resulting from science scientific research conducted at universities to the commercial sector • industry: mechanism that enables companies to solve their own technology industry needs by purchasing or licensing other companies’ technology and expertise • knowledge: any process by which basic understanding, information, and knowledge innovations move from an university, an institute, or a government laboratory to individuals or firms in the private and quasi-private sectors Translation 68

Players – Developers (generators): the owner or source of the innovative technology, product, process, expertise or know-how – Recipients: the organisation or company that purchases innovative technology, product, process, expertise or know-how – Catalysers: Governments, Banks, Equity Funds, University system, Citizens, Unions – Translation 69

The Developer or Recipient could be one of the following • • A private company including SMEs A research organisation A governmental Agency/ Laboratory A university A Technology Centre An Individual Translation 70

Catalysers • Organizations which provide technology transfer referrals and information • Technology brokers • Technology transfer consultants • Law firms • Technology transfer conference organisers • Technology business incubators and research parks • Translation 71

Mechanims • Formation of new technology-based companies from R&D organizations (e. g. spin-offs). • Licensing patents, software and technical know-how, prototypes. • Performing contract R&D for clients and transferring the results. • Sharing information in interactive events (conferences, workshops, briefings, visits). • Translation 72

Mechanims • Performing cooperative R&D. • Forming R&D or technology transfer consortia. • Providing technical assistance. • Employing unique R&D facilities and capabilities. • Activities which catalyse or facilitate any of the above. • Translation 73

The Business Model – Open Science Model – License Model – Interaction Model – Spin-out Model – Translation 74

Services: Open Science Model To the developer: Partner Search, Funding To the recipient: Funding, Project generation, Management, BPR, Tech. Marketing To both: IPR / negotiation – From research to technology transfer: you can “order” or “adapt” innovations – Translation Research Development Production Sale Technology Transfer Developer Recipient 75 End-User

Open Science Model • Universities does not retain any IP rights (except citation) • No need for IP management • Little incentive to invest in applications (both by culture and lack of protection) • No direct impact on regional economy • Still the most widespread model in Europe • Translation 76

Services: License Model To the developer: Partner Search To the recipient: Technology Marketing To both : IPR / negotiation – From production to technology transfer: you can “buy” innovations – Translation Research Development Production Sale Technology Transfer Developer Recipient 77 End-User

License Model – Ownership of results by PROs not (yet) recognised as best practice) – Non uniform IP laws across Europe – Patenting costs are prohibitive (5 x. US) – Not enough uptake by European industry – Most deals are with non-European licenses: does not support European economy – Translation 78

Services: Interaction Model To the developer: Partner Search, Funding, IPR To the recipient: Funding, BPR, Technology Marketing To both: IPR / negotiation – From development to technology transfer: you can “manufacture” innovations – Translation Research Development Production Sale Technology Transfer Developer Recipient 79 End-User

Interaction Model • Builds on the Licensing Model and IP • Background technology & patent become tools to seed development • Proof of principle is made in collaboration with industry • Demonstration funded in part by public money (EU Framework programs) • Translation 80

Interaction Model • Foster innovation as interactive process; compatible with University mission if: – Contributes to science – University can capitalise on foreground – Fair share of returns • Contributes to regional economy • Translation 81

Services: Spin-out Model Technology watch, Partner search, IPR, BPR, Business Plan, Technology Marketing, Financing, VC and Seed Capital – From research to technology transfer: you can “do” innovations – Translation Research Development Production Sale 82 End-User

Spin-out Model • Builds on the Licensing Model • Background technology used as platform to develop new business concepts • Only alternative when no industry partner in sight • Contributes to regional development • Contributes to rejuvenating economy • Slow process: more than 10 years for mature companies • Translation 83

How to support the creation of durable spin -outs? • They are created spontaneously by entrepreneurs • Rate of creation can be increased by the right combination of incentives: – Pre-seed and seed capital – Science Incubators – Training and coaching of entrepreneurs – Recognition and entrepreneurship culture – Translation 84

How to support the creation of durable spin -outs? • Sustainability is still a problem: – Access to talents – Strategic partnership Translation 85

Problems in international Technology Transfer • Difference in culture • Difference in intellectual property protection regime • Difference of rules within systems. Institutional versus individual ownership • Biases and wrong beliefs Translation 86

Thanks for your attention! Tommaso Foglia (t. foglia@innova-eu. net) INNOVA S. p. A. Via Giacomo Peroni, 386 - 00131 Rome - Italy Tel. : +39 06 40040358