When to use innovation clusters

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Determining when to use
innovation clusters

Is this your situation?
Your firm already has experiences in co-innovating with academia and other firms.
You find via an integrated market / products and applications / technologies / competences roadmap that there are
significant Deltas that need to be closed
 Technologies that need to be developed / brought to maturity
 Competences and capabilities that need to be built up
- 2 -
● You wonder if there is a proven process that helps in making a decision on whether an innovation cluster is
the best open approach to innovation or other ones
● Furthermore you wonder how the set-up for an innovation cluster approach should be designed so that the
chances for success are maximized
● Finally you wonder how an effective IP framework should be designed that safeguards your interests yet at
the same time allows for exploitation of the cluster potentials
● There are some voices stating these topics should be positioned in an innovation cluster
● Other voices are arguing that other open approaches to innovation (e.g. joint bilateral development project or
contract research) are more appropriate

Then, innovation-3 might provide the solution
● We are sharing with you our insights about how leading firms are taking on this challenge
● We profile the fit of open approaches to innovation (including clusters) for your innovation challenge
● We help – if relevant – in breaking down the innovation challenge and determining in which of the parts
innovation should be done closed or open – And which open approach to innovation is best suited
● We help you on the implementation of the individual steps along the way
- 3 -

(Already planned/budgeted)
An integrated roadmap shows the Deltas that need to be closed
- 4 -
Current
Products/ApplicationsCompetences
Current year (Y0) Y1 Y2/3 Y4/5
Market changing event Market changing event
(NPD milestones)
(End Of Life)
Technologies
(Technology development milestones)
Program 1
Program 2
(Already planned)
Program 3
(Not yet planned)
Program 4
Emer-
ging
Market
(Not yet planned)
Program 5
Market changing event
Market changing event

Deltas that are in the “adjacent/adjacent” or even “new/new” sectors in an
Ansoff market/ technology matrix often require a value-chain approach
R&D effectiveness and efficiency
● Better target the specific needs
● Maximize the resource use
● Ensure efficiency at all levels
● Maximize quality through specialization
- 5 -
Competence
field
Competence
field
Competence
field
Materials Devices Systems Applications
Project bundle 1
xx
Project bundle 2
xx
Project bundle 3
xx
Sustainability
● Eco-design (Carbon footprint etc.)
● Life Cycle Thinking

There are immediate and tangible reasons for using an innovation cluster
in order to solve an innovation challenge
● Share costs for Basic Research
● Share costs for development in Open Innovation schemes
● Promote and share facilities and logistics
● Develop “knowledge triangle” schemes
(see image on the right)
● Improve resource efficiency
● Make better use of local/regional high education,
training and research facilities and infrastructures
● Get access to Top Talent
- 6 -

Futhermore, research shows that innovation clusters drive innovation performance
● Existence of clear objectives
● Number of members
● Percentage of supraregional members
● Range of cluster services
● Central knowledge management
● Implementation of joint R&D activities
- 7 -
Cluster success
Sustainability
of cluster
financing
Intensity of
co-operation,
number of co-
operation
requests
Jointly
developed
products,
patents
generated
Impact of
work on R&D
activities
● (Biotech) Clustered firms are eight times more innovative
when located in clusters; Key reason is:
• New technological knowledge is often elusive and
uncodified, geographic concentrations of innovative
activity generate more knowledge spillovers and,
therefore, more innovative output

Innovation clusters are one of more than 30 open approaches to innovation
- 8 -
Decreasing degree
of specification
Decreasing degree
of familiarity
Open-end searchTargeted search
Known
innovation
partners
Unknown
innovation
partners
01
02
03
04
05
09
12
20
21
22
23
10
26
27
28
14
06 1115
16 241918
08
1307
17
Innovation cluster

IP situation in clusters is more complex; A clear IP framework on how to deal with
foreground, background and spill-over IP is needed
● Partner obtains co-ownership (with cluster) on results
to which Partner has contributed(*) (IP1)
● Partner gets a royalty free, non-exclusive license without
sublicensing rights on results generated by cluster / other
partners in the program; (Program Affiliation fee (yearly),
without contribution of the Partner (IP1 (*));
● Partner has the option to generate proprietary IP (IP2)
via separate R&D projects, through application of IP1
outcome onto specific context in Partner’s core business;
type of results agreed upfront
● Partner gets a royalty free, non-exclusive license without
sublicensing rights on program background (IP0),
necessary for exploitation of the results of the program;
(one time program entry fee)
● IP0 supported by services, trainings, spinoffs, licensing
(*) Contributed result = result to which there is a clear contribution from the
partner’s assignee
- 9 -
R&D program
Results (IP)
(Foreground)
Partner A
Partner B
Partner C
Partner D
Partner E
Proprietary IP (IP2)
Co-owned (shared) IP (IP1)
Program
background IP
(IP0)
Shared
(licensed) IP
Example

Factors determining if engaging in an innovation cluster is the best open approach to
innovation
Provided that suitable innovation cluster exists / willingness to invest
resources and money in establishing and managing a new innovation cluster exists …
● Technology in question is relevant for Open Innovation (or “case-by case”)
● Value-chain approach required (Adjacent markets and technologies or
breakthrough innovations; Sustainability / Life Cycle Thinking)
● Emerging Industry (applications of new technologies / radical innovations or
existing economic activities that undergo transformation
• Problem-driven, involving complementary skills / backgrounds
• Shifting base from products towards more comprehensive solutions
● High degree of certainty that innovation challenge can be solved by close
co-operation with known (cluster) innovation partners
● Solid IP framework available / can be negotiated
● High volume of knowledge spill-over expected
● High importance of immediate benefits (see page 5)
- 10 -

© innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited - 11 -
Would you like to start our conversation?
Frank Mattes
Founder and CEO, innovation-3
Grillparzerstr. 4 II / III
65187 Wiesbaden
Tel.: +49-(0)611-59057-0
frank.mattes@innovation-3.com
www.innovation-3.com

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