Downloaded 62 times
Uploaded byEd Morrison
Strengthening Purdue's Innovation Ecosystem
This document discusses filling the innovation gap at Purdue University by strengthening its innovation ecosystem. It proposes creating an Innovation Acceleration Network using a "link and leverage" approach to monetize Purdue assets in new ways. The network would provide shared platforms and tools to scale market-facing innovation projects across campus. It also explores the Fraunhofer Society in Germany as a model, noting how its institutes work as profit centers driven by industry needs through contract research. The goal is to achieve greater scale and coherence for Purdue's engagement system in accelerating innovation.
More Related Content
Similar to Strengthening Purdue's Innovation Ecosystem
![Helix Open Innovation Caspar Van Rijnbach 2 [Compatibility Mode]](https://cdn.slidesharecdn.com/ss_thumbnails/helixopeninnovationcasparvanrijnbach2compatibilitymode-12764841238845-phpapp02-thumbnail.jpg?width=640&height=640&fit=bounds)
Strengthening Purdue's Innovation Ecosystem
- 1. ACCELERATING INNOVATION STRENGTHENINGPURDUE’S INNOVATION ECOSYSTEM ED MORRISON FEBRUARY 11, 2014 1
- 2. Overview The InnovationGap at Purdue Strengthening Purdue’s Innovation Ecosystem The Fraunhofer Connection Insights from the Global Leader in Applied Research Purdue’s Innovation Acceleration Network Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways Launching the Network Defining “next steps” to implementation
- 3. The Gap inPurdue’s Innovation Ecosystem Purdue’s Agricultural Research and Engagement System extends across technology readiness levels, but the same is not true for other technology fields. That leaves a gap. Purdue TAP and Discovery Park partially fill this gap, but not completely. This presentation explores this gap and how to fill it. 9 8 7 6 5 4 3 2 1 Purdue TAP Purdue Research System Technology Readiness Levels System Test, Launch & Operations System & Subsystem Development Technology Demonstration Technology Development Feasibility Research Basic Technology Research Time to Market Short term: 0-6 months Mid term: 6-18 months Long term: 18-48 months Gap
- 4. The Gap inNational Innovation Ecosystem The Design Team for the National Network for Manufacturing Innovation identified a similar gap at the national level. Source: National Science and Technology Council, National Network for Manufacturing Innovation: A Preliminary Design (2013), page 8. “The focus of the NNMI lies squarely in the applied research region, after basic research has been conducted and prior to full commercialization of a technology..TRLs 4-7.” Committee on Science, Space and Technology U.S. House of Representatives May 12, 2012
- 5. The Gap inNational Innovation Ecosystem Manufacturing companies involved in the National Network for Manufacturing Innovation have expressed this gap in another way. Source: Conrady, C. and Carrick, G., “American Manufacturing Innovation Network” Structural problem requires a structural solution Universities, NSF Centers, Federal Labs • High-risk research • Long time horizon • Not focused on shop floor implementation Industry, NIST MEP • Incremental improvement • Off the shelf technology • Short time horizon Time to deployment Technical Innovation Best Practices Basic Research/ Education Manufacturing Technology Innovation Missing Middle • Manufacturing technology innovation, maturation, commercialization, insertion • Medium time horizon • High impact
- 6. The Gap inan International Context The UK government, facing a similar gap between its universities and the market, is implementing a series of Technology and Innovation Centers (TICs). Called Catapult Centres, these centers are designed to transform the UK innovation system. Source: Hauser, H., The Current and Future Role of Technology Innovation Centres in the UK (2010).
- 7. Filling the Gap:Expanding Market-Facing Research Filling the Gap involves expanding research that will: • Focus on Technology Readiness Levels 5 through 9, converting knowledge and technology into money; • Fit between typical multi-year government research contracts and short-term Purdue technical assistance contracts; • “Face the market” in that industry managers -- not academic researchers -- will define the research agenda; • Focus on accelerating innovation: the application of knowledge to generate money • Accelerating the transfer of knowledge into revenue generation by business firms Purdue’s Engagement System Technology Readiness Levels 5-9 Technology Money Technology Readiness Levels 1-5 Purdue’s Research System
- 8. Filling Purdue’s InnovationGap will: 1. Create new pathways to expanded market-facing research where the industry sets the agenda; 2. Create new innovation hot spots to accelerate innovation across Indiana; 3. Provide new, powerful learning experiences that are market-driven, multi-disciplinary, and team-based. Key Success Metrics: Examples For Purdue Colleges For Discovery Park For Indiana • Increased diversity of research projects across TRLs • Powerful learning experiences for students and graduates • Increased industry research • Increased cross disciplinary innovation initiatives addressing large scale innovation challenges • Accelerate innovation among Indiana SMEs revenues from new products and services • Increased retention and value of Purdue graduates Filling the Innovation Gap
- 9. Filling the Gap:Expanded Industry Research Creating new pathways to expanded market-facing research at Purdue involves: • Organizing Purdue around strategic thematic areas • Developing new paradigms of industry research collaboration and creating networks and alliances of researchers around each thematic area; • Designing rapidly deployable, agile and sustainable platforms for continuous engagement of industry with Purdue; and • Generating new revenue from Purdue’s extensive research assets. Filling Purdue’s Innovation Gap will: 1. Create new pathways to expanded market-facing research at Purdue; 2. Create new innovation hot spots to accelerate innovation across Indiana; and 3. Provide new, powerful learning experiences that are market-driven, multi-disciplinary, and team-based.
- 10. Filling the Gap:New Innovation Hot Spots Creating new innovation hot spots to accelerate innovation in key strategic areas within Indiana means: • Increasing access to proven technology and innovation management tools; • Supporting Indiana companies with an agile innovation infrastructure to accelerate the development and introduction of new products, processes, and services; • Providing customized connections to the world’s advanced applied research networks; and • Expanding access for Indiana’s small and medium size enterprises (SME’s) to globally sophisticated innovation infrastructures Filling Purdue’s Innovation Gap will: 1. Create new pathways to expanded market-facing research at Purdue; 2. Create new innovation hot spots to accelerate innovation across Indiana; and 3. Provide new, powerful learning experiences that are market-driven, multi-disciplinary, and team-based.
- 11. Filling the Gap:Powerful Learning Experiences Providing powerful learning experiences involves: • Experiential learning by students engaged in real-world projects defined by industry; • Working directly with industry partners; • Expanding beyond traditional student/professor relationships to work in teams; and • Providing unique and global educational experiences Filling Purdue’s Innovation Gap will: 1. Create new pathways to expanded market-facing research at Purdue; 2. Create new innovation hot spots to accelerate innovation across Indiana; and 3. Provide new, powerful learning experiences that are market-driven, multi-disciplinary, and team-based.
- 12. Filling the Gap:Horizontal and Vertical Connections Filling the Innovation Gap will strengthen horizontal ties across Purdue’s colleges and vertical ties to the market economy: • Horizontal ties will come from multi-disciplinary research; • Vertical ties will come from research agendas defined by industry partners. Filling the Gap x.y <process name> <process name> Strengthen vertical ties with industry Strengthen horizontal ties across Purdue 9 8 7 6 5 4 3 2 1 Technology Readiness Levels System Test, Launch & Operations System & Subsystem Development Technology Demonstration Technology Development Feasibility Research Basic Technology Research Engineering 133.4 Agriculture 61.6 Science 61.6 Health 26.7 Veterinary 13.4 Pharmacy 11.6 Technology 9.4 Liberal Arts 5.7 Education 3.7 Research Focus Basic Applied Market Economy Purdue's Engagement System: Engaged Research Purdue's Extramural Research Awards, 2011-2012 (in $millions) Other 18.6 Purdue's Research System: Academic Research
- 13. Universities Operate WithinEcosystems Startup Ecosystem Start-up firms Investor networks Provides capital and expertise Accelerates new venture investment Colleges and universities Skilled talent pool Innovating Growth Companies Provides ideas, incubators and smart people Recruits smart people Recruits and trains smart people Provides network and mentoring to start-ups Provides R&D partners Recruits and supplies smart people Provides investment and generates wealth Provides technology support and training Source: Ed Morrison Innovation Ecosystem
- 14. Two Purdue Ecosystemsfor Market Engagement Purdue anchors two “ecosystems” to translate technology into money. Purdue’s Startup Ecosystem Intellectual Property Technology Talent University Innovation Inputs + Small and Medium Sized Companies with Growth Potential Business Model and Lean Start-up Frameworks Sustaining Innovation - Product Extension Efficiency Innovation Market Extension = Bundled Innovation + Management Frameworks and Tools + Purdue and Corporate Partner Teams Existing Existing New New Technology Markets - Market Penetration Transformative Innovation - Product Market Diversification Sustaining Innovation - More Growth = Higher rates of innovation among Indiana companies Purdue’s Innovation Ecosystem + Business Formation and Support Networks More Growth Spin-out Companies
- 15. Purdue’s Engagement System Ecosystem Strategic Focus Existing Anchors Primary Customers Outcome Metrics Purdue Entrepreneurship Ecosystem Producing start-ups from Purdue technology Purdue Foundry Purdue research faculty Number of Purdue start-ups Purdue Innovation Ecosystem Accelerating innovation in existing companies using technology and innovation management tools Purdue TAP Purdue Extension High growth SMEs and Consortia of industrial firms facing a common innovation challenge Revenues coming from improved and new products and services Two Purdue Ecosystems for Development Purdue can attract more investment to the university by strengthening these two ecosystems. Steps are being taken to strengthen the Startup Ecosystem. More can be done to strengthen the Purdue Innovation Ecosystem. Technology Money Purdue’s Research System Purdue’s Innovation Ecosystem Purdue’s Startup Ecosystem Purdue Foundry Purdue Research Foundation Discovery Park Purdue TAP Purdue Extension
- 16. Overview The InnovationGap at Purdue Strengthening Purdue’s Innovation Ecosystem The Fraunhofer Connection Insights from the Global Leader in Applied Research Purdue’s Innovation Acceleration Network Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways Launching the Network Defining “next steps” to implementation
- 17. Purdue Innovation Ecosystem:Fraunhofer as Partner 17 To determine how to fill the Innovation Gap, a Purdue team from the College of Technology and the Purdue Center for Regional Development explored Fraunhofer as a model. The Fraunhofer Society (Gesellschaft) formed in 1949 and named after a famous inventor, scientist and entrepreneur: Joseph von Fraunhofer (Think Edison). Now the largest applied research organization in Europe Applied research, technology licensing (e.g., mp-3 format), and spin-out companies Similar to (but about 10X the size of) SRI International (formerly Stanford Research Institute)
- 18. Purdue Innovation Ecosystem:Fraunhofer as Partner In the German research landscape, Fraunhofer occupies a pivotal position between public and private sectors. 18 Applied Research Basic Research Predominantly public Predominantly private Characteristics of Research Funding Federal/ German Länder Institutes HGF WGL Universities Industry (internal and external expenditures) AiF MPG HGF Hermann von Helmholtz-Gemeinschaft WGL Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz AiF Arbeitsgemeinschaft industrieller Forschungsvereinigungen MPG Max-Planck-Gesellschaft Source:: Fraunhofer The Gap
- 19. 19 nEstablished in1949, Fraunhofer represents one of the world’s largest applied and most successful applied technology agencies with over 80 institutes and centers nMore than 22,000 employees: 4,000+ PhD’s nAn annual research volume of €1.9 billion, of which €1.6 billion is generated through contract research. n70% of this research revenue derives from contracts with industry and from publicly financed research projects. n30% is contributed by the German federal government and the Länder governments in the form of matching funds. Schkopau Bayreuth München Bremen Hannover Würzburg Ilmenau Holzkirchen Oldenburg Dortmund Schmallenberg St. Augustin Darmstadt Saarbrücken Karlsruhe Freiburg Efringen- Kirchen Freising Pfinztal Stuttgart St. Ingbert Kaiserslautern Erlangen Nürnberg Teltow Oberhausen Duisburg Aachen Euskirchen Potsdam Berlin Rostock Lübeck Itzehoe Braunschweig Bremerhaven Jena Leipzig Chemnitz Cottbus Dresden Magdeburg Halle Fürth Wachtberg Ettlingen Kandern Freiberg Paderborn Kassel Gießen Erfurt Augsburg Oberpfaffenhofen Straubing Garching Bronnbach Prien Hamburg Leuna Fraunhofer: Global leader in applied research
- 20. Fraunhofer: Groups, Alliancesand Networks Over 60 Fraunhofer institutes are organized into 7 Groups… Information and Communication Technology Life Sciences Microelectronics Light & Surfaces Production Materials and Components Defense and Security with multiple internal alliances… Adaptronics Advancer Ambient Assisted Living Building Innovation Cleaning Technology Polymer Surfaces Digital Cinema E-Government Energy Additive Manufacturing Food Chain Management Cloud Computing Nanotechnology Optic Surfaces Photocatalysis Simulation Traffic and Transportation Vision Water Systems Automobile Production Lightweight Structures Embedded Systems …and global networks.
- 21. Fraunhofer: Market Facing,Market Driven 21 Matching Funding Industry and Government Contract Research Institute business model: • Institutes work as profit centers: incentive to “run to cash” • Institutes keep most of what they generate • Private sector funding matched with public sector dollars • Spinoffs by Fraunhofer researchers are encouraged Customer base: • Industrial and service companies • Public sector R&D activities: €2,000 €1,500 • Application-oriented research based on industry’s agenda • Application-oriented basic research with longer time horizons • Research for German Defense Ministry €0 €1,000 €500 Total Business Volume 2006 2007 2008 2009 2010 2011 2012
- 22. Design: The modelof innovation of the Fraunhofer Society can be described as a network model,…The network, together with a strong reputation, makes it fairly easy for small and big firms to establish a contact with the Society. Drivers: The Fraunhofer model allows the organization to set up new institutes where it sees a new market demand. Fraunhofer: Design and drivers Åström, Eriksson, Niklasson and Arnold, International Comparison of Five Institute Systems (2008) “ “ “ ” ”
- 23. Overview The InnovationGap at Purdue Strengthening Purdue’s Innovation Ecosystem The Fraunhofer Connection Insights from the Global Leader in Applied Research Purdue’s Innovation Acceleration Network Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways Launching the Network Defining “next steps” to implementation
- 24. The Central Idea:Achieve Scale with Coherence Current Engagement System for Innovation a loose collection of components that lacks coherence Purdue’s Innovation Acceleration Network Proposed Engagement System for Innovation achieve scale with shared market-facing innovation disciplines
- 25. Outcome: Achieving Scalethrough a Shared Platform An Innovation Acceleration Network will provide the common language, frameworks, platforms and tools needed for Purdue innovation projects to scale across campus. With common understandings, innovation becomes more “plug and play” across Purdue. 1 Deploying Building on shared 2 3 shared 4 frameworks platforms Developing shared metrics Using shared processes Use new, emerging models of technology and innovation management Define new innovation processes based on open and collaborative innovation Achieve scale through common platforms that connect different networks Rely on shared metrics to evaluate “what’s working” across campus Example: Technology Readiness Levels Example: Open innovation Strategic doing Example: Purdue One Hub Example: Common knowledge transfer metrics developed in the UK
- 26. Innovation Acceleration Network with Market-Facing Innovation Disciplines The Innovation Acceleration Network As the Innovation Acceleration Network establishes itself across campus, it will bring coherence, speed, and “link and leverage” opportunities to expand industrial investment in Purdue’s market-facing research. University and College Centers Unviersity Unviersity Unviersity University College C1ollege 1 College C2ollege C2ollege 2 Colleges and Departments College College College College 1 Departments Existing Engagement Networks Purdue Extension Purdue TAP
- 27. The Innovation AccelerationNetwork To achieve scale in innovation engagement, Purdue will need to pioneer new approaches to market-facing research and engage industrial firms in ways not currently taking place on the Purdue campus. The Innovation Acceleration Network includes: 1. A core innovation lab; and 2. Multiple innovation labs (iLabs) within colleges across the campus and Indiana. This network would: 1. Increase market-facing industry research in Discovery Park and across Purdue colleges and departments; 2. Link more effectively with global partners conducting similar market-facing research; 3. Create new multi-disciplinary learning opportunities for Purdue students locally and globally; Purdue Core Innovation Lab (Core Lab) Innovation lab (iLab) 1 iLab 2 iLab n
- 28. The Core Labwill provide: 1. Common pool of innovation assets.— Assemble and support a shared pool of tools, frameworks, platforms and training for innovation and technology management. 2. Asset leverage across campus.-- Provide a market facing innovation infrastructure to departments and centers. 3. External linkages to additional innovation assets.-- Identify and link to external innovation assets that can be rapidly deployed by Purdue’s industrial partners and research teams. 4. Powerful learning experiences.— Provide Purdue students opportunities to engage with global research teams. Functions of the Core Lab iLab 1 iLab 3 iLab 2 Purdue Core Innovation Lab (Core Lab) The Core Lab provides services to all iLabs and manages the external relationships with multi-disciplinary applied research institutes, such as Fraunhofer (Germany); ITRI (Taiwan); VTT (Finland); A*STAR (Singapore)
- 29. Core Lab’s CommonPool of Innovation Assets • Technology and Market Assessments.— Evaluating technology readiness and market opportunities. • Agile Strategy Discipline.— Developing and implementing collaborative strategies; • Network and Alliance Development.— Designing and supporting technology and innovation networks and alliances; • TechnologyRadar.— Identifying, evaluating emerging technologies in existing markets; • MarketExplorer.— Identifying market opportunities for existing technologies; • Shared IT and Open Innovation Platforms.— Designing IT support for technology and innovation management; • Operations.— Organizing innovation and research and development (R&D) effectively and efficiently using lean processes; • Technology and Innovation Management Training.— Conducting training to increase the capacity for innovation among Purdue and its partners; • Innovation Metrics.— Developing metrics to evaluate innovation performance iLab 3 iLab 2 Purdue Core Innovation Lab (Core Lab) iLab 1
- 30. The iLabs ValueProposition to Industry Purdue iLabs provide industry partners with: 1. Customized, agile innovation infrastructure.-- Each iLab will design an lean infrastructure to rapidly meet an industry research agenda; 2. Access to powerful innovation tools on demand.-- Each iLab will have a portfolio of the latest innovation tools, frameworks and training supported by the Core Lab; 3. Access to researchers, faculty and students on demand.— Each iLab will be staffed by Purdue researchers, faculty and students with a background in the technologies of interest to the industry partner. PPI core innovation lab Innovation lab 1 Innovation lab 2 Innovation lab 3 Industry support for iLabs will come in a variety of ways: — Base funding commitments to each iLab — Contract research — Donations of equipment — Unrestricted gifts from alumni
- 31. Scaling Purdue’s InnovationAcceleration Network Revenues in $000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Number of iLabs Small ($100-200K) 2 5 10 15 25 Medium ($300-500K) 0 1 2 5 10 Large ($700-900K) 0 0 1 2 5 Core Lab ($1.5M-$3M) 1 1 1 1 1 • Potential Scale.— Deploying the network across campus and Indiana could increase industry support for Purdue research by $20 million to $25 million in 5 to 7 years. • Timing.— Revenue generation will accelerate as the network grows. • Drivers.— Success will depend on how many iLabs can be “franchised” by the Core lab.
- 32. Metrics: A PurdueInnovation Dashboard Company A Company B Northwestern University has developed an “innovation radar” to measure the innovation performance of individual companies. A similar innovation metric could be developed for individual Purdue centers, departments and colleges. This metric would enable measured, focused improvements in performance. Fraunhofer has developed similar dashboards to evaluate innovation productivity and efficiency across different Fraunhofer institutes. The Core Lab would develop and deploy an Innovation Management Dashboard to promote: • Common Metrics.— Create a campus-wide performance metric for innovation • Improved Focus.— Enable focused improvement on critical characteristics of effective and efficient innovation • Continuous Learning and Improvement.— Promote a collaborative culture of continuous improvement • Global benchmarking.— To the extent that Purdue aligns ints metrics with Fraunhofer, enable global comparisons
- 33. Overview The InnovationGap at Purdue Strengthening Purdue’s Innovation Ecosystem The Fraunhofer Connection Insights from the Global Leader in Applied Research Purdue’s Innovation Acceleration Network Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways Launching the Network Defining “next steps” to implementation
- 34. Launching the Network:Strawman Schedule Launch of the Core Lab will take place in Year 1. Development of the Core Lab will occur coincident with the development of the first iLab. Configuration and launch of iLabs will be flexible, driven in part by industry expressions of interest. Year 1 Year 2 Year 3 Core Lab iLab 1 iLab 2 iLab 3 iLab 4 iLab 5 iLab 6 iLabs 7-13
- 35. Next Steps Thenext steps to developing the Innovation Acceleration Network include: • Workshop at Purdue.— Assemble a core team to review this presentation and develop a set of detailed outcomes to engage with Fraunhofer. • Workshop at Fraunhofer.— Conduct a 1.0 to1.5 day workshop at Fraunhofer: • Develop detailed specifications for Core Lab and iLab. • Draft agreement with Fraunhofer IAO on design and management of the Network. • Preparation of detailed prospectus.— Prepare a business plan and investor prospectus for the Network.
- 36. For more information,please contact: Joachim Warschat Univ.-Prof. Dr.-Ing. habil. Director and Head of Technology & Innovation Management Telephone : + 49 (0) 711 / 970-2081 E-mail: [email protected] Antonino Ardilio Dr.-Ing. Dipl.-Ing. Des. Head of Technology Management Telephone : + 49 (0) 711 / 970-2246 E-mail: [email protected] Ed Morrison Regional Economic Development Advisor Purdue Center for Regional Development Telephone : + 1 216 650 7267 E-mail: [email protected] © Fraunhofer IAO, IAT Universität Stuttgart http://www.iao.fraunhofer.de