stc3832002session1.ppt

MSSTC 383 Session 1, 2002

STC 383KNOWLEDGE & TECHNOLOGY

TRANSFER AND ADOPTIONaka: Knowledge, Innovation &Technology

Transfer, Diffusion and Adoption

Theory and Practice


STC 383 Session 1 Agenda

• Detailed Introduction to STC 383

• Definitions of KTT

• Introduction to Modeling• Discussion of R&D as a

precursor to KTT and of Sourcing R&D for innovation initiatives.

• 2 Breaks ~ 2:45 and 4:15


STC 383 Teaching Team• Dr. David Gibson, Director, Research Programs,

Fellow, IC2; MSSTC Faculty; world traveler, boating and lighthouses, practices yoga, dancing and music, plays the guitar, and dear pet, Helen

• Ms. Meg Wilson, IC2 Fellow; MSSTC Faculty, globe traveler, weaver, gardener, gourmet cook. Perfect spouse, Fred Chriswell.

• Darius Mahdjoubi, UT Austin Ph.D. Candidate, (Topic: Atlas of Innovation). P.E. ; MSSTC TA Member, Association of Professional Engineers Ontario. Hobbies: Travel, Swimming, Mountain Climbing, Classic Music, Cartography.

•


Course Overview

STC 383 will introduce you to state-of-the-art theory and practice on

knowledge and technology transfer (KTT) and adoption,

focused on transfer and adoption of knowledge & technology across organizational boundaries,

including business, academia, and government at regional, national, and international levels of analysis.


Course Overview

STC 383 will introduce – established and innovative models; – concepts and best practices of innovation

and knowledge management; – organization behavior; – governmental policies; and – communication theory

as all pertain to knowledge & technology

transfer, adoption, and diffusion.


Course OverviewCourse efforts will focus on analyzing thebarriers, challenges, facilitators and metrics onknowledge/technology transfer and adoptionthrough:

– Intrapreneurship, entrepreneurship, spin-outs and spin-ins.

– Industry, government, and academic organizations including R&D consortia, national labs and university research centers

– Regional and global implications of knowledge/technology transfer and application in the digital age


STC 383 Sessions

# 1: Overview & Introduction to R&D (Wilson)

# 2: KTT Modeling: Critical Success Factors (Gibson)

# 3: KTT and Marco Issues: The Context of Innovation (Gibson)

# 4: Innovation Policies: Public and Private (Wilson)


STC 383 Sessions

# 5: KTT Support Structures: Incubators and Benchmarking (Wilson & Gibson)

# 6: KTT and Global Perspectives (Gibson) # 7: University Research

Commercialization Processes (Wilson)

# 8: Consortial And National Laboratory Commercialization Processes (Wilson)

# 9: Indirect Policies’ Affect on KTT and Course Wrap-up (Wilson)


Assignments and Grading

• Overall Class Participation (including Blackboard discussions& critiques, chats, teamwork, and other contributions to class success)

• Critique of Readings #1• Critique of Readings #2• Individual KTT Model• Team KTT Model• Analysis of Direct Government Policy• Ideal Path Analysis• Final KTT Model

15%

7%8%10%15%15%

15%15%


Assignments and Due Dates

• Individual KTT Model June 24

• Critique of Readings # July 8

• Team KTT Model July 11

• Analysis of Direct Government Policy* Aug 22

• Critique of Readings #2 Aug 28

• Ideal Path Analysis Sept 16

• Final KTT Model Sept 16


First Assigment Looming...

• Individual KTT Model: This model should be developed as a power point or word document, identifying key elements of your own work or professional experience with a KTT effort and should include a brief ranked list of barriers, challenges and facilitators.


Housekeeping

1. Syllabus: READ IT & Use It

2. Filenames: crucial• Team assignments: STC383 [team

name] [assignment name]. Example: STC383 GroupW final KTT model

• Individual assignments: STC383 [last name] [assignment name]. Example: STC383 Wilson Individual KTT model


Housekeeping• Filenames: Use em!• Evaluations: Do em!• Assignments: Email em!• New Info: Post em!• Questions: Ask em!• Suggestions: Make em!• Late Assignment (points)*:

Lose em!


Keys to Class Success• Active Participation – in class

and online• Active blackboard use for class

integration• Sharing knowledge and

experiences• Creative Modeling • Knowledge Integration


Integrated Courses• The courses of MSSTC are integrated:

They are interwoven to elucidate the deep and broad concept of “commercialization of technological innovation.”

• The courses of MSSTC - unlike conventional academic programs such as MBA or MS - are not parallel courses with substantial overlaps and holes.

How might we model this difference?


MBA Courses

Total: 20 courses, 4 semesters (2 years)

BA384T

BA385T

BA381T

BA380N

BA386T

BA380S

MIS380N

Elective

Elective

Elective

Elective

Elective

Elective

Elective

Elective

Elective

Elective

Elective

Elective

Elective


MSSTC Courses

Total: 12 courses, 3 Trimesters (1 year)

1st Trimester

STC386T1

TEA

MS

STC380

STC382

STC383

2st Trimester

STC386T2TE

AM

S

STC395

STC394C

STC384

3st Trimester

STC381

TEA

MS

STC396

STC385

STC391


MSSTC Students Need to be able to:

1. become familiar with the integrated process of commercialization of technological innovation.

2. analyze and develop “models” to explore, explain and organize the integrated process of commercialization of technological innovation.

3. work in team-organization that are needed for the integrated process.

4. analyze “cases” proper for the integrated process.


You Need to be able to:5. develop strategies that nurture the integrated

process of technology commercialization and share and integrate this vision in internal reports (strategies).

6. develop, as external reports (business plans) that let you acquire the support needed for the development of a technology commercialization.

7. develop presentations (elevator pitch, VC presentation) to secure the financial and administrative support needed for the development of a technology commercialization.


Models and Integration

• Developing shared views is essential for the team- members to transcend geographic zones, professional backgrounds and modes of learning and to follow the path of integrate courses.

• Proper models play a key role in creating and developing shared views and in sustaining the integration inside teams, companies, courses, etc!


Modeling Fundamentals

Models can show:1. Actors, stakeholders, key

players

2. Actions, reactions, process flows

3. Timing & Relationships between and among actors, factors and actions.


The Commercialization Process

Source: Vijay Jolly. : Vijay Jolly. Commercializing New TechnologiesCommercializing New Technologies

3. Incubate

to define

Commercializability

7.Promote adoption

9.

Sustain commercialization

2.Mobilize Interest

and endorse-

ment

5.Demonstrate

contextually in

products and

processes

4.Mobilize resource

forDemo

6.Mobilize market

constituents

8.Mobilize

complimentary assets for delivery

1.Imagine the dual

(techno-market)insight

Source: Jolly, Vijay. 1997. From Mind to Market.

Jolly’s Model of Technology Commercialization

Sub-Processes: Building the Value of a New Technology

Tech Assessment Business Plan

Bridges: Mobilizing the Stakeholders

Venture Analysis


A Global Challenge

Education

Innovation

GovernmentIndustry

Creativity

T2

Mechanisms

Processes Metrics


Two Basic Forms of Technology Transfer to Commercial Applications

private sector

federal labs

universities

consortia

corporate labs

process application

R&D/Mfg.

Marketing/Sales

spin-out technologies

technologyincubator

private sector

federal labs

universities

consortia

ROI

2

1

start-upcompany


What do we mean by all of this…

1. What do you think knowledge is?

2. What do you think innovation is?

3. What do you think R&D is?

4. What do you think technology is?


TECHNOLOGY

KNOWLEDGE

INNOVATION

Darius’ View of Knowledge, Innovation and Technology

Technological Innovation

MarketInnovation

Organizational Innovation

Creativity and Human Innovation


factual information used as a basis for reasoning,factual information used as a basis for reasoning,

and calculation and calculation

the communication or reception of knowledge the communication or reception of knowledge or intelligenceor intelligence

knowledge obtained from investigation, study, knowledge obtained from investigation, study, or instructionor instruction

intelligence, newsintelligence, news

Components of Knowledge?(Webster& Leif Edvinsson and Michael S. Malone,

Intellectual Capital, 1997)

DataData

InformationInformation


• the fact or condition of knowing the fact or condition of knowing something with familiarity gained something with familiarity gained through experience or associationthrough experience or association

• acquaintance or understanding of acquaintance or understanding of science, art, science, art, or techniqueor technique

• the fact or condition of being aware of the fact or condition of being aware of somethingsomething

Definitions/Concepts to Think About and to Discuss

KnowledgeKnowledge


Views on Innovation and Knowledge

Knowledge creation is the key source of innovation in any company.

George von Krogh

Successful innovation depends on converting knowledge flows into goods and services.

Debra Amidon

Innovation is the ability to build on previous knowledge and generate new knowledge.

Leif Edvinnson


technical languagetechnical language applied scienceapplied science a technical method of achieving a a technical method of achieving a

practical purposepractical purpose totality of the means employed to totality of the means employed to

provide objects necessary for human provide objects necessary for human sustenance and comfortsustenance and comfort

Definitions/Concepts to Think About and to Discuss

TechnologyTechnology


Human CapitalHuman Capital

The combined knowledge, skill, The combined knowledge, skill, innovativeness, and ability of the company’s innovativeness, and ability of the company’s individual employees to meet the task at individual employees to meet the task at hand - including company hand - including company values, culture, values, culture, philosophy. philosophy.

Human capital cannot be owned by Human capital cannot be owned by the companythe company

““Wetware”/tacit knowledge/intangibles/Wetware”/tacit knowledge/intangibles/know-how know-how


Structural CapitalStructural Capital

The hardware, software, databases, The hardware, software, databases, organizational structure, patents, organizational structure, patents, trademarks, and everything else of trademarks, and everything else of organizational capability that supports organizational capability that supports employee productivity;employee productivity;

Customer capital and relationshipsCustomer capital and relationships

Everything left in the office when the Everything left in the office when the employees go home employees go home

(unlike Human Capital) can be owned (unlike Human Capital) can be owned and tradedand traded

Codified knowledge.Codified knowledge.


Intellectual CapitalIntellectual Capital

Human brainpower, brand names, intellectual Human brainpower, brand names, intellectual property that is protected, trademarks,property that is protected, trademarks,

Assets often/traditionally valued as zero on Assets often/traditionally valued as zero on the balance sheetthe balance sheet

HumanHuman ++ StructuralStructural == IntellectualIntellectualCapitalCapital CapitalCapital CapitalCapital

(Leif Edvinsson and Michael S. Malone, (Leif Edvinsson and Michael S. Malone,

Intellectual Capital, 1997)Intellectual Capital, 1997)


CODIFIEDCODIFIED(Software)(Software)

TACITTACIT(Human capital or wetware)(Human capital or wetware)

The Knowledge-Based Economy

KNOWLEDGEKNOWLEDGEKNOWLEDGEKNOWLEDGE

• books• discs• goods

• talent• skills• know-how


Technology TransferTechnology Transfer

the adoption of knowledge the adoption of knowledge (commercialization and processes)(commercialization and processes)

A (the?) A (the?) newnew source of wealth is source of wealth is information/knowledge applied to work to information/knowledge applied to work to

create value create value

Walter Wriston, The Twilight of Sovereignty, 1992Walter Wriston, The Twilight of Sovereignty, 1992


Technology Transfer: Was & Is ?

• Prime the R&D pump.• Over the wall.• Part of a serial process (linear,

sequential, ordered).• Involves a deliverable product—the

more fully formed the better.• Expert to user—technology

marketing.• Trickle out over time.


Technology Transfer Perspectives

Inve

stm

ent

of

Tim

e an

d R

eso

urc

es

Most Passive Most Active

InformationTransfer

Knowledge Capture and Protection

Application Development

Commercialization“Productization”

Seminars, workshops, conferences Trade shows, Invention Fairs

Product Launch

Product Licensing

IP Protection

Prototype Development

Technology Integration

R&D

Joint Venture


Commercialization Utilization

Deployment Application

The Adoption of Knowledge

Management of InnovationManagement of Innovation Diffusion of InnovationDiffusion of Innovation

Management of Management of TechnologyTechnology

Knowledge ManagementKnowledge Management

Technology Transfer:Technology Transfer:

Other Relevant LabelsOther Relevant Labels


Technology Transfer Definitions...

"The business transactions or processes, such as patent licenses or start-up companies, by which innovations are moved from one place (such as a university), development stage or application to another place (such as a company) for a commercial purpose. (We include defense conversion as a special case under this definition.)”

Michael Odza, Celebrating ten years of assisting tech transfer professionals via Technology Access Report and Intellectual Property Advice (for researchers)


Another Definition...

"Technology transfer - the dissemination of all the information necessary so that one party may duplicate the work of another party. The information is of two types, technical (engineering, scientific, standards) and the second is procedural (legal, non-disclosure agreements, patent rights, licensing).” Andy Gluck


Another Technology transfer is an umbrella term that

encompasses the range of processes from most passive to most active: info transfer (what universities do so well); intellectual property protection (allows for legal transfers); technology development; lassoing resources; technology integration; and technology adoption through to the sale of new or innovative products or processes based on a new application of scientific knowledge or technology (and increasingly on innovative business structures). Meg Wilson on former Pax Website


and….

Technology Transfer: The range of processes, from knowledge transfer to product or process commercialization, that facilitate the development and adoption of knowledge and technology.

Meg Wilson on former Pax Website


Perspectives on R&D

Public & Private


Basic research is Basic research is what I am doing what I am doing

when I don’t know when I don’t know what I am doing…what I am doing…

Werner Von Braun


Perpetual Tension...

• Vannevar Bush believed that “Basic research leads to new knowledge. It provides scientific capital. It creates the fund from which the practical applications of knowledge must be drawn…”

• He also cited a “perverse law” that “applied research invariably drives out the pure”. * * Lost at the Frontier, US Science and Technology Policy Adrift, Deborah Shapley & Rustum Roy, ISI Press, 1985, pgs 14 – 15.


Science Policy Foundation and Features

$ $ $

$ $ $

Ap

pli

ed S

cien

ce

and

En

gin

eeri

ng

TechnologicalFruit Tree

ContemporaryBasic ScienceFloweringTree

Regional Planning

Skilled Labor

On

th

e S

helf

Scie

nce

Venture

Capital

Instrumentati

on

Public

Support

So

urc

e:

Lo

st a

t th

e F

ron

tier:

U

.S.

Sci

en

ce a

nd

Te

chn

olo

gy

Po

licy

Ad

rift,

De

bo

rah

Sh

ap

ley/

R

ust

um

Ro

y


R&D Definitions

• Basic Research Objective:– Government/Academic: “to gain more

comprehensive knowledge or understanding of the subject under study, without specific applications in mind

– Private Sector: “research that advances scientific knowledge but does not have specific immediate commercial objectives…may be in fields of …commercial interest.


R&D Definitions

• Applied Research– General: Gaining “the knowledge or

understanding to meet a specific, recognized need”.

– In Industry: “includes investigations oriented to discovering new scientific knowledge that has specific commercial objectives with respect to products, processes, or services”


R&D Definitions

• Development– “the systematic use of the

knowledge or understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including the design and development of prototypes and processes”.


R&D is the Key

• R&D is the key precursor to technology knowledge, developments and commercialization.

• The source, sponsor, purpose, documentation and R&D processes affect commercialization paths and thus need to be acknowledged and better yet, be understood.


US R&D Funding by SourceMillions of Current $

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

1970 1980 1990 1998 2000

Federal Gov't

Industry


So What? Who Cares?1. Your government spends of dollars on R&D.

So, you might care about that because they:Are funding research in an area of your expertise

and you need to keep up with the latest technologyAre funding your competitor to do that research

putting you at a disadvantageHave an open competition for performance of the

R&D and you might want to get funded to do that work (supports your agenda and gives you new funding)


More Reasons... You ... Are pumping millions of dollars into a new area of

R&D and it suggests a new market opportunity to you…!

Have developed a hot new technology and the government allows you to license needed integration components

Need to procure services or R&D efforts or components/equipment and you could get into the government procurement business or find R&D partners.


Final Reasons...

2. Your government might provide tax credits for R&D – goes to your bottom line

3. Your government may regulate private R&D (e.g. medical and pharmaceutical research) and you must operate under those regulations

4. Other governments may regulate that R&D differently (e.g. less stringently) and it may provide you an opportunity to conduct R&D less expensively and at lower risk initially or, conversely, may inhibit your ability to enter a market if the policy barriers are high.


Understanding How to Unlock R&D Resources

• For any of this to happen, you need to:Understand the Context,

Players and ProgramsUnderstand the ProcessesUnderstand the

Information Resources


Taking Advantage of R&D Resources

• You also need to understand those factors as they relate to:

National, state/provincial, and local funding & research organizations

Agency/national mission-oriented R&D University research structures, roles and funding Private R&D investments and the role they play in

national economies R&D as a measure of competitiveness and

economic health The relationship between R&D and innovation (or

lack thereof…)

Sourcing R&D....







1800 to ~ 1940 Characterization Creation of the US University Land Grant System (Ag &

Engineering – Morrill Act, 1862), and the general proliferation of universities in the US -- few academic institutions had any kind of scientific program until late in the 19th century.

Dominance in Science and R&D by European universities Independent inventors -- Angel funding (e.g. Tesla) Development of Corporate R&D Labs (e.g.

Westinghouse, Bell, Edison) – there were 4 in the US in 1890 and 1030 by 1930

Industrial funding of individual inventors and universities


R&D And Science POLICY: the CONTEXT

• Primary NEW 20th Century Player:

• FEDERAL GOVERNMENTS

• WHY: • World War II• Then the cold war• Space Race


1940-present Characterized by Dramatic Changes

Government funding – grew phenomenally into today’s multi $Billion enterprise

University R&D: industrially funded Research Centers were supplemented (sometimes supplanted) by government sponsored Scientific Centers of Excellence and support of individual principal investigators (PIs)


Market Failure Mission CooperativeCoreAssumptions

1. Markets are mostefficient allocator of info &technology2. Gov’t role limited tomarket failures such asextensive externalities; hightransaction costs; andinformation distortions.Mission domain chiefly indefense.3. Innovation flows fromand to private sector,minimal gov’t role

1. The gov’t role shouldbe closely tied toprogrammatic missionsof agencies.2. Gov’t R&D islimited to missions ofagencies – not confinedto defense3. Gov’t should notcompete with privatesector in innovation &technology.

1. Markets not always themost efficient route toinnovation and economicgrowth.2. Global economy requiresmore centralized planningand broader support forcivilian technologydevelopment3. Gov’t can play a role indeveloping technology,especially pre-competitivetechnology, for use in theprivate sector

In US, PeakInfluence

ALL 1945-1965; 1992-present

1982-1994

PolicyResponses

Deregulation; contraction ofgov’t role; R&D tax credits,capital gains tax reduction;little need for fed. Labsexcept in defense

Creation of energypolicy R&D,agricultural labs andother broad missionframeworks.

Expansion of federal labroles in technology transferand cooperative research;manufacturing extensionpolicies.

TheoreticalRoots

Neoclassical economics Traditional liberalgovernance with broaddefinition of gov’t role

“the ‘new’ industrialorganization theory.”

Three Competing R&D Policy Models


Changes in ‘70-90s

Industry funding surged into the 70’s, 80’s and 90’s. The mainstay players, manufacturers, declined in their R&D investment while information-related technologies more than made up their decline in recent years.


Shares of national R&D Shares of national R&D expenditures, by source of funds: expenditures, by source of funds:

1953-20001953-2000


Changes in 70s and 80’s

The 1970-1990’s have seen an inventor/ entrepreneur resurgence and a major shift from general manufacturing-based businesses to technology service, information and advanced manufacturing businesses.

We also see an explosion of innovative R&D support structures such as science & R&D parks and technology incubators.


Privatization Policy Impacts • Federal Governments in many countries have

been THE primary source of R&D– Centralized government– Government owned industries and utilities

Privatization in the 80s and 90s has led to an explosion of industrial research and increase in overall research in many developing and

emerging market countries


Global Trends 80s-90s

• Privatization promotes industry R&D• Cooperative Research programs in EU (now

funding the 5th Framework) -- consortial research expands worldwide

• Japan R&D enterprise expanded significantly.• South Korea builds an R&D infrastructure

from scratch in 40 years• Technopolis development becomes a

conscious policy, globally


Private Sector Growth

• European Research Council endorsed EU target, recommending that businesses help increase R&D to equal 3% of GDP in each member State by 2010.


Private Sector Perspectives

• Corporate R&D labs now a vestigial part of former R&D empires.

• R&D moved to divisional responsibility -- R&D seen as a tax on Divisions...

• Outsourcing an increasing strategy for conduct of R&D

• Joint ventures now common


What is the prospect for the 2000s?

• Continued erosion of public investments in R&D?• Less basic R&D through companies – more

attention to applied research?• Universities become the bastions of basic R&D –

controversy explodes over their role in R&D• Private sector horns in on key R&D areas

formerly conducted wholly by public/university sources…

• R&D still seen as an engine to economic development (rightly or wrongly…)

• New ethical issues arising to change landscape







Federal R&D support, by Federal R&D support, by performingperforming sector: 1953-2000 sector: 1953-2000


U.S., G-7, and OECD U.S., G-7, and OECD countries’ R&D expenditurescountries’ R&D expenditures


Total R&D as a percentage of Total R&D as a percentage of GDP GDP


R&D as a % of GDPR&D as a % of GDP

0

0.5

1

1.5

2

2.5

3

1996/1997

US

South Korea

Japan

Australia*

Mexico

Uganda

Germany

Canada

Brazil

Czech Rep.

Russia

* Australian Ministry for Industry Science and Resources claims Australia has world’s 3rd highest ratio, 1999

NSF National Patterns in R&D Resources, 1998, Science Indicators, 1998


Changes in share of Federal Changes in share of Federal academic research obligations, academic research obligations,

by field: 1990-99 by field: 1990-99

SOURCE: National Science Board, Science and Engineering Indicators-2002

Industrial R&D spending flows of U.S. and foreign affiliates, by world region: 1998

SOURCE: National Science Board, Science and Engineering Indicators-2002

U.S. patents granted: 1986–99


R&D Spending by 5 major Latin American Countries, 1990, 1996

0 2 4 6 8

Brazil

Argentina

Mexico

Chile

Venezuela

Costa Rica

$ Billions for R&D Expenditures

1996

1990


US Total Industrial R&DBillions of Current $

0

20

40

60

80

100

120

140

160

180

1994 1995 1996 1997 1998 1999 2000

Total


Selected US Industry Sectors

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000

Software Pubs.

Comp. Periph

Wireless etc.

Comp. Sys.Design

Pharmaceuticals

Med. Devices

1996 Constant $Billions







R&D Sources/Indicators

• Data Sources: NSF, OECD, UN, World Bank, country-by-country

• Indicators: Ph.D. production, publications, patents filed, patents granted, educational science competitions, workforce data

• OTHER Sources and Indicators?


R&D Programs• Agencies: NSF, DOD, EPA, NIH, etc.• Private Sector: Industry Roadmaps,

special R&D, Consortial R&D• Programs: SBIR, ATP, Homeland

Security, DARPA grants, EPCORE• Processes: Grants & Contracts,

appropriations & program White Papers and Congressional Studies, R&D procurement, SBIR/STTR partnering, state-level R&D (e.g. Texas’ ARP and ATP programs)


Session Theses: Wrap Up1. Modeling Concept and Practice

Modeling integrates the two Modeling is a key methodology of the

program

2. KTT definitions are not static, nor understood uniformally

3. R&D is the precursor to technology and tracking it allows for more effective R&D prospecting, forecasting, and sourcing – which can lead to new and/or better KTT!