Chapter 10 Open innovation and technology transfer

1. Chapter 10 Open innovation and technology transfer

2. Open innovation and technology transfer • Introduction • Open innovation • Background to technology transfer • Introducing technology transfer • Models of technology transfer • Limitations of different approaches used • Framework for technology transfer • Case study: Sony Ericsson

3. Open innovation New product development Basic research Internal research projects Current market and business model Technology acquisition Technology in-licensing Venture investing External research project

4. Background to technology transfer • The concept of technology transfer is not new . . . • In the thirteenth century, Marco Polo helped introduce to the Western world, Chinese inventions such as the compass, papermaking, printing and the use of coalfor fuel. • Many argue that it was a change in the US law thatled to the surge of interest in the subject. The passage of the landmark National Cooperative Research Act (NCRA) of 1984 officially made cooperation onpre-competitive research legal.

5. Introducing technology transfer • Much written about the subject; became extremely popular in the late 1980s. • Governments believed it could solve problemsof national budget deficits! • Collaboration on technology development encouraged. • Large companies established technologytransfer units. • Universities also established industrial liaison units and technology transfer units. • The panacea for industry’s problems did not materialise.

6. Transfer to industry and private enterprise Existing R&D projects and developed technology Technology transfer The attraction of technology transfer was that companies and industries could benefit from technology that had already been paid for. It has already been paid for!

7. Technology transfer (Continued) Technology Transfer is the application of technology to a new use or user. It is the process by which technology developed for one purpose is employed either in a different application or by a new user. The activity principally involves the increased utilisation of the existing science/technology base in new areas of application as opposed to its expansion by means of further research and development. (Wealth from knowledge, Langrish et al., 1982).

8. Technology transfer (Continued) The process of promoting technical innovation through the transfer of ideas, knowledge, devicesand artefacts from leading edge companies, R&D organisations and academic research into more general and effective application in industry and commerce.  (Seaton and Cordey-Hayes, 1993).

9. Models of technology transfer(see Dorf, 1988) • Licensing • The chemical industry has a long and successful history of licensing. • Ferret model • Experts called “ferrets" were used to search for technology in defence labs. • Intermediary agency model • Range from RTCs to university technology transfer managers. • Science parks • The idea is to develop an industrial area close to an established centre of excellence, often a university.

10. Limitations of models of technology transfer • They fail to understand the recipient organisation's needs • Technology viewed in terms of technical attributes • Underestimate the extent of interaction required • Assume an ability on the part of organisations to communicate their problem in the form of a technical requirement

11. A framework for technology transfer Accessibility Receptivity Mobility Much more emphasis required here

12. Case study: Sony-Ericsson • A joint venture dependent on technology transfer • Two loss-making handset businesses • 2001 – formed a JV in mobile phone handsets • Sony's consumer products expertise with • Ericsson's extensive knowledge of cell phone networks. • To compete with Nokia and Motorola • Disappointing results in 2003 • Problems with alliance • Good news at last in 2004