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Sino-bridge International & SASAC
      Training in International Operation and Strategy Management
                           Hilton Croydon Hotel
                     2nd December 2012 - London, UK




 Building Innovation Capacity:
From Survival to Enhanced Business Sustainability



                  Dr Breno Nunes
               Aston Business School
               b.nunes@aston.ac.uk
                        Dr Breno Nunes / Dec 2012 Copyright ©
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                               2012 - All rights Reserved
About Me
•   Lecturer in Operations Management at Aston Business School
    –   http://www1.aston.ac.uk/aston-business-school/staff/academic/oim/breno-nunes/


•   Member of the IAMOT Board of Directors

•   PhD in Management from Aston University – Business School

•   BSc and MSc in Production Engineering from UFRN (Brazil)

•   Experience as Researcher/Consultant:
    –   Innovation & Business Sustainability – automotive industry in Europe
    –   Sustainable Supply Chain management in UK and Thailand
    –   Green Operations, Innovation & Technology Management in UK, Thailand, Germany, USA
    –   Regional development (Brazil)
    –   Strategic planning for water agency (Brazil)



                                      Dr Breno Nunes / Dec 2012
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Lecture Structure
 9:30 - 10:45 Introduction & key concepts on Innovation Capacity

 10:45 - 11:00 Tea-break

 11:00 - 12:00 The New Context for Innovation

 12:00 -14:00 Lunch

 14:00 - 15:00 R&D and Technology Management

 15:00 - 15:15 Short Break

 15:15 - 16:15 Practical examples of innovative management models

 16:15 - 16:30 Question and Answer+




                                Dr Breno Nunes / Dec 2012
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Introduction & Key concepts
•   Why do we need to be innovative in business?
     – Increase Profits
     – Position your company better against competitors
     – Bring more fun to work & Attract new talent
     – Improve Corporate Image

•   Key concepts
     – Innovation
     – Intellectual Property Rights
     – Innovation Capacity
     – Measuring Innovation Capacity (Innovation Capacity Index) in
       countries
     – Measuring Innovation Capacity in organisations
     – Technology Transfer
     – Absorptive Capacity

                                 Dr Breno Nunes / Dec 2012
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What is Innovation?
• (The use of) a new idea or method                        A new Idea or
  (Cambridge Dictionary)                                   an Invention


• ‘Innovation can be defined as the creative
  application of knowledge to increase the
                                                           A new process
  set of techniques and products                           or product in
  commercially available in the economy’                    the market
  (Courvisanos 2007, p.46)

• “the process of harnessing creativity to
  create new value in new ways through new                 Value for your
  products, new services, and new                            Business
  businesses” (Ronald Jonash & Tom
  Sommerlatte, 1999) Dr Breno Nunes /rights2012
                     Copyright © 2012 - All
                                            Dec
                                                Reserved
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From Ideas to Business Innovation
Customers’ needs/wants?
 How to solve a Problem?                   Idea
  Overcome a Challenge




                Reaction                                            Formulation




                   Implementation                         Evolution

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Where and how innovation happens…

• Great innovations of history:
  – Printing Press (Germany, Roman-Empire,
    1400)
  – Steam engine (UK, 1800)
  – Assembly line (USA, 1900)

• How did they happen?
  – They had knowledge, money, and people all
    together in the same place at the same time.
  – The ideas were in an innovation eco-
    system…
                      Dr Breno Nunes / Dec 2012
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Intellectual Property Rights
Copyright legislation is part of the wider body of law known as intellectual
property. The term intellectual property refers broadly to the creations of the
human mind. Intellectual property rights protect the interests of creators by
giving them property rights over their creations. (http://www.WIPO.int)




Under intellectual property law, owners are granted certain exclusive rights
to a variety of intangible assets, such as musical, literary, and artistic works;
discoveries and inventions; and words, phrases, symbols, and designs.
Common types of intellectual property rights include copyright, trademarks,
patents, industrial design rights and in some jurisdictions trade secrets
(Wikipedia, 2012)



                                  Dr Breno Nunes / Dec 2012
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Map of WIPO members (Wikipedia, 2012)




                   Dr Breno Nunes / Dec 2012
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What is Innovation Capacity?
For Countries:
• National innovative capacity is a country’s potential -
  as both a political and economic entity - to produce a
  stream of commercially relevant innovations. This
  capacity is not simply the realized level of innovation
  but also reflects the fundamental conditions,
  investments, and policy choices that create the
  environment for innovation in a particular location or
  nation (Porter, 2001)

For Organisations:
• Innovation capacity is the organizational potential to
  innovate, which is determined by the skills and
  strengths in basic R&D and technology (Pragoso &
  Ahmed, 2006)
                          Dr Breno Nunes / Dec 2012
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Innovation Capacity Index




  Source: Lopez-Claros & Mata (2011) Policies and Institutions Underpinning Country
  Innovation: Results from the Innovation Capacity Index. The Innovation for Development
  Report 2010-2011 - http://www.innovationfordevelopmentreport.org/
                                 Dr Breno Nunes / Dec 2012
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Innovation Capacity Ranking




                Highest – 80.3
                China (64) 49.9
                Lowest – 27.4



               Dr Breno Nunes / Dec 2012
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Global race – total patents
Trend in patent applications at the top five offices
(Source: WIPO Statistics Database, October 2011)




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The Innovation Race - BRICS




               Dr Breno Nunes / Dec 2012
          Copyright © 2012 - All rights Reserved   Source: Fu et al (2011)   14
Growth rate of patent applications
Trend in patent applications at the top 20 offices
(Source: WIPO Statistics Database, October 2011)




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Complex and discrete technologies




                 Dr Breno Nunes / Dec 2012
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Complex and discrete technologies




                 Dr Breno Nunes / Dec 2012
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The Innovation Race 10 years ago (Porter, 2001)




                      Dr Breno Nunes / Dec 2012
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The Innovation Race in 2009




Number of triadic patent families per million inhabitants, 2009.

Source: (Guloglu, 2012) Economic determinants of technological progress in
G7 countries: A re-examination. Economics Letters, vol 116, 3, pp604-608
                                Dr Breno Nunes / Dec 2012
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The Innovation Race




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The Innovation Race
                                       Korea                Japan


                                                  ?




                           Germany

                                                      USA
        China
                                              ?             Finland




                 Dr Breno Nunes / Dec 2012
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Improving the Innovation Ecosystem

• What are the bottlenecks for national
  innovation?
  – IP Law?
  – Communication systems?
  – Education?
  – International Collaboration?
  – Business regulations?
  – Relationship (capitalists, lawyers , inventors)


                       Dr Breno Nunes / Dec 2012
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                  Copyright © 2012 - All rights Reserved
Innovation Capacity in Organisations
•     R&D investments (facilities, people, training, % of cost, IPR)
•     Internal Innovation Capabilities:
       – Knowledge exploitation                         Formal (R&D) and informal (non-
       – Entrepreneurial capabilities                    R&D) investments in innovation
       – Risk management capabilities                 should be considered when assessing
       – Networking capabilities                       the company’s innovation capacity!
       – Development capabilities                          (Hervas-Oliever et al, 2011)
       – Project Management
       – Change management capabilities
•     External input through networking
       – Market and customer knowledge (interface with internal capabilities)
       – Supplier collaboration (interface with internal capabilities)
       – Identification of new technologies and potential partners
       – Access to new knowledge (technical libraries, new personnel, forums, etc)
       – Resource acquisition (licensing, acquisitions, etc)
       – Collaborative development activities (Universities, Research centres,
          Consultants, etc)
                                               Dr Breno Nunes / Dec 2012
    Source: Adapted from Forsman (2011)   Copyright © 2012 - All rights Reserved
                                                                                        23
         and Spithoven et al (2011)
Patents by organisations (USA/PO, 2010)

TOP 10 organisations by patent applications:

5866 IBM, headquartered in Armonk, New York, USA
4518 Samsung Electronics Co., headquartered in Korea
3086 Microsoft Corporation, headquartered in Washington, USA
2551 Canon Kabushiki Kaisha, headquartered in Tokyo, Japan
2443 Matsushita Electric Industrial Co., Ltd., headquartered in Japan
2212 Toshiba Corporation, headquartered in Tokyo, Japan
2130 Sony Corporation, headquartered in Tokyo, Japan
1652 Intel Corporation, headquartered in Santa Clara, California, USA
1488 LG ELECTRONICS INC., headquartered in Seoul, Korea
1480 Hewlett-Packard, headquartered in Palo Alto, California, USA




                                Dr Breno Nunes / Dec 2012
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Creating an Innovation Stimulus
External                                   Innovation Stimulus
Business
Context:                                        Leadership
                                            People Management
Customers                                 Knowledge Management
Environment                               Creativity Management
Legislation
                                           Innovation Capacity
Competitors
Suppliers                                 Technology Management
New technology                               R&D Management
etc
                                         Innovation Performance

                                            Product Innovation
                                            Process Innovation
                                         Business Model Innovation

                                                                     Adapted from Prajogo
     Dr Breno Nunes / Dec 2012                                                            25
                                                                       & Ahmed (2006)
Copyright © 2012 - All rights Reserved
Time for a break
• Questions & Comments?


"If you're not failing every now and again, it's
     a sign you're not doing anything very
           innovative." (Woody Allen)


              Coming Next:
   The New Global Context for Innovation
                      Dr Breno Nunes / Dec 2012
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The context of innovation




                Dr Breno Nunes / Dec 2012
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The New Context for Innovation
The new forces shaping innovation and innovation capacity:

•   Globalisation:
     – Geo-political and socio-economic context
     – Global Supply Chains
     – Large Customer Diversification

•   Environmental and social sustainability

•   Rapid technological progress

•   The fight for talent


                                Dr Breno Nunes / Dec 2012
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The old Washington’s friends
                         What is the impact of the ‘Arab Spring’
                         on the whole region and its business
                         environment?

                         For the global business environment:
                         FDI, Logistics routes, energy supply, etc




                Dr Breno Nunes / Dec 2012
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Longevity versus quality of life




                  Dr Breno Nunes / Dec 2012
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The ageing workforce




                 Dr Breno Nunes / Dec 2012
            Copyright © 2012 - Economist
                       The All rights Reserved   June 2009   31
End of cheap oil, money and food?




   June 2004       Feb 15th 2007                        Dec 6th 2007

                    Dr Breno Nunes / Dec 2012
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Oil prices




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The Danish Maersk




          http://www.maerskline.com/link/link/?page=news&path=/news/news20110221

Four-hundred metres long, 59 metres wide and 73 metres high, the Triple-E is the largest
vessel of any type on the water today. Its 18,000 TEU (twenty-foot container) capacity is
16 percent greater (2,500 containers) than today’s largest container vessel, Emma
Mærsk. The Triple-E will produce 20 percent less CO2 per container moved compared to
Emma Mærsk and 50 percent less than the industry average on the Asia-Europe trade
lane. In addition, it will consume approximatelyDec 2012
                                       Dr Breno Nunes / 35 percent less fuel per container than
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the 13,100 TEU vessels being delivered to other container shipping lines in the next few
Monsanto
wants
to feed the
world using
biotechnology
…

Do you fancy
transgenic
potatoes?
                     Dr Breno Nunes / Dec 2012
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Environmental problems – not in my
backyard, please…




                   Dr Breno Nunes / Dec 2012
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Green jobs in my backyard, please


Clean Energy

Food

Water

Waste
Management

Mobility

Housing
                    Dr Breno Nunes / Dec 2012
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The fast pace of emerging
      technologies




      Dr Breno Nunes / Dec 2012 Copyright ©
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             2012 - All rights Reserved
The accelerating pace of change...
(Time,2011)




                8,000                     120                          90
   Agricultural years   Industrial        years                        years   Moon
                                                          Light-bulb
   Revolution           Revolution                                             Landing


               22                         9                            ?
    Moon       years    World             years            Human       years
                                                                               ?????
    Landing             Wide Web                           Genome




                              Dr Breno Nunes / Dec 2012
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                         Copyright © 2012 - All rights Reserved
Gartner’s Hype cycle for emerging technologies (2011)




                         Dr Breno Nunes / Dec 2012
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The pace of global innovation
      What happened to Nokia?




                 Dr Breno Nunes / Dec 2012
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Emerging Fields of Technology
• Environmental technologies

• Nanotechnology (materials science, energy, etc)

• Biotechnology (genetic engineering, artificial
  photosynthesis)

• Robotics (artificial intelligence, nano-robots, etc)

• Information Technologies
   – Data management (storage, analysis, transference,
     etc)
   – Intelligent systems
   – Wireless
                           Dr Breno Nunes / Dec 2012
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                      Copyright © 2012 - All rights Reserved
How is your company reacting?
• What is the key area for innovation in your business?
   –   Green technology?
   –   Global supply chain?
   –   Process automation?
   –   New materials?
   –   New business model or sales channels?

• Do you have experts in any of these key areas?

• Have you developed relationships to deal with the fast-
  changing environment?

• How can you use emerging technologies to spur the growth
  of your innovation capacity?


                              Dr Breno Nunes / Dec 2012
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                         Copyright © 2012 - All rights Reserved
Time for a break
• Questions & Comments?



  A problem is solved when it gets tougher.
              (Arabic Proverb)


                Coming Next:
  Technology and R&D management in the
 development of a robust innovation capacity
                     Dr Breno Nunes / Dec 2012
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                Copyright © 2012 - All rights Reserved
Building Innovation Capacity
                                          Innovation Stimulus

                                               Leadership
                                           People Management
                                         Knowledge Management
                                         Creativity Management

                                          Innovation Capacity

                                         Technology Management
                                            R&D Management

                                         Innovation Performance

                                           Product Innovation
                                           Process Innovation
                                          Structural Innovation
                                             Business Model
                                                                  Adapted from Prajogo
     Dr Breno Nunes / Dec 2012                                                         45
                                                                    & Ahmed (2006)
Copyright © 2012 - All rights Reserved
Innovation Capacity in Organisations
•     R&D investments (facilities, people, training, % of cost, IPR)
•     Internal Innovation Capabilities:
       – Knowledge exploitation
       – Entrepreneurial capabilities
       – Risk management capabilities
       – Networking capabilities
       – Development capabilities
       – Project Management
       – Change management capabilities
•     External input through networking
       – Market and customer knowledge (interface with internal capabilities)
       – Supplier collaboration (interface with internal capabilities)
       – Identification of new technologies and potential partners
       – Access to new knowledge (technical libraries, new personnel, forums, etc)
       – Resource acquisition (licensing, acquisitions, etc)
       – Collaborative development activities (Universities, Research centres,
          Consultants, etc)

                                               Dr Breno Nunes / Dec 2012
    Source: Adapted from Forsman (2011)   Copyright © 2012 - All rights Reserved
                                                                                     46
         and Spithoven et al (2011)
Building Innovation Capacity
•   In-house (inside-out) innovation (endogenous development)
     – Developing your own R&D Centres
•   Outside-in (exogenous) innovation
     – Purchasing from external R&D centres
•   Licensing, franchising, or technology acquisition
•   Collaboration
     – Alliances
     – Joint Venture
     – Academic-scientific research with universities
•   Transfer of technology
     – Vertical (From R&D to Production)
     – Horizontal (Between production facilities)



                               Dr Breno Nunes / Dec 2012
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R&D & Technology Management
• Develop in-house technology
                                                      R&D Management
• Collaborative Development

• Identify emerging complementary
  or competing technologies

• Acquire Technology
                                                                 Technology Management

• Apply and diffuse technology

• Transfer technology
                             Dr Breno Nunes / Dec 2012
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                        Copyright © 2012 - All rights Reserved
R&D Management
• It covers activities such as basic
  research, fundamental research,
  technology development, advanced
  development, concept development, new
  product development, process
  development, prototyping, R&D portfolio
  management, etc (Specht, 1996)



                    Dr Breno Nunes / Dec 2012
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               Copyright © 2012 - All rights Reserved
Welcome to the 3D-printers era

3D printers will reduce the cost of prototyping
and allow small and medium companies to have
higher innovation capacity

http://www.youtube.com/watch?v=Jt3EGgtSAUc
Technology Management
What Wikipedia says:
• Technology Management is set of management disciplines
  that allows organizations to manage their technological
  fundamentals to create competitive advantage.

• Typical concepts used in technology management are
  technology strategy (a logic or role of technology in
  organization), technology forecasting (identification of
  possible relevant technologies for the organization, possibly
  through technology scouting), technology roadmapping
  (mapping technologies to business and market needs),
  technology project portfolio ( a set of projects under
  development) and technology portfolio (a set of
  technologies in use).

                            Dr Breno Nunes / Dec 2012
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                       Copyright © 2012 - All rights Reserved
Technology Management
Academic definition:
Technology Management is about:
   – Acquisition
   – Exploitation
   – Identification
   – Learning
   – Protection
   – Selection



Source: Cetindamar et al (2010) Technology Management:
Activities and Tools. Dr Breno Nunes / Dec 2012
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The Path of Technologies

   Creation                 Transfer                            Diffusion




                                              Acquirer /                    Other
   Originator   Supplier
                                              Developer                     users




With Thanks to Prof David Bennett www.davidjbennett.org
                            Dr Breno Nunes / Dec 2012
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Types of Technology
 Technology types:

                     • Product               Transfer and diffusion
                     • Process              can be of either or both




 Technology forms:                 Knowledge:

        • Hardware                 • Embedded
                                                                 Increasing
        • Software                 • Codified                    difficulty of
        • ‘Humanware’                                              transfer
                                   • Tacit


                             Dr Breno Nunes / Dec 2012
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Absorptive Capacity
• The ability of an organization to recognize the value
  of new external information and knowledge,
  assimilate, and apply them, and this ability is
  critical in determining innovative output (Cohen
  and Levinthal,1990).

• Absorptive capacity is a key ability to build
  Innovation Capacity.
• A number of technology acquisitions fail because
  the country or corporation is not able to adapt the
  technology for a new environment. This impedes
  further innovations in the market.

                         Dr Breno Nunes / Dec 2012
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                    Copyright © 2012 - All rights Reserved
Success in Building Innovation Capacity


• The case of Microsoft and the video-
  games developer Rare




• The case of Google and Motorola




                            Dr Breno Nunes / Dec 2012
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                       Copyright © 2012 - All rights Reserved
The Case of Rare, Nintendo, and Microsoft
Background: British game developer for Nintendo and Microsoft
Ownership: Tim and Chris Stamper (founders, 1982–2002), Nintendo (1994-
2002), Microsoft (2002–present)

Supplier acquisition strategy
Up from the end of 2000, people from Activision and Microsoft visited Rare.
In November 2001, Microsoft trademarked It's Mr. Pants, a game that was
released three years later. In September 2002, the Stamper brothers sold
their 51% interest in Rare to Microsoft; following this, Nintendo sold their
49% stake in the company as well. Microsoft paid a total of $375 million
to own 100% of the company. Because of this, Rare is now a first-party
developer for Microsoft's Xbox and its successors. This left Donkey Kong
Racing, which was due to be released for the Nintendo GameCube,
unreleased. The trademarks of the characters from the games that Rare
made for Nintendo consoles (such as Conker of Conker's Bad Fur
Day and Banjo of the Banjo-Kazooie series) were retained by Rare (apart
from intellectual properties originally developed by Nintendo,
including Donkey Kong and Star Fox). Despite the acquisition, Rare still
developed games for Game Boy Advance, and now develops for the Nintendo
DS, as Microsoft is currently not participating in the hand-held video game
console market. (Gaming and Digital Entertainment Day in Bham and
Wikipedia, 2010)
                                Dr Breno Nunes / Dec 2012
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Google buys Motorola
• Google's chief executive, Larry Page, said that
  Motorola had a long history in technological
  development: "Motorola is a great American tech
  company that has driven the mobile revolution,
  with a track record of over 80 years of
  innovation, including the creation of the first cell
  phone." He said he saw the new business
  producing "the next generation of mobile devices
  that will improve lives for years to come". The
  purchase gives Google access to more than
  17,000 of the company's valuable patents.
  (BBC, 2012)

                         Dr Breno Nunes / Dec 2012
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                    Copyright © 2012 - All rights Reserved
Google buys Motorola
• Google only really bought MMI for the
  patent portfolio to defend Android
  from attacks by Apple and Microsoft after
  losing out in the July 2011 auction of
  Nortel's patents during a bankruptcy sale
  (won for $4.5bn by Apple, Microsoft, RIM
  and Sony). The handset business has
  always looked like baggage. (The
  Guardian, 2012)

                    Dr Breno Nunes / Dec 2012
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               Copyright © 2012 - All rights Reserved
Time for a break
• Questions & Comments?



“It is better to be prepared for an opportunity and
not have one than to have an opportunity and not
                     be prepared.”
                 (Whitney Young Jr.)


                   Coming Next:
Successful stories on building innovation capacity
                       Dr Breno Nunes / Dec 2012
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                  Copyright © 2012 - All rights Reserved
Success in Building Innovation Capacity


• Daimler-Chrysler and sisal fibres in Africa




• Cisco’s Approach




                            Dr Breno Nunes / Dec 2012
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                       Copyright © 2012 - All rights Reserved
Daimler-Crysler in South Africa

Background
http://www.unido.org/fileadmin/import/44524_0384940.pdf

In the early 1990s, DaimlerChrysler and Borgers, one of its German
suppliers, together developed natural fiber car components. Both companies
worked to roll out this technology to South Africa, identifying two South
African SMEs with the capacity to replicate and develop the process using
sisal fibers. This followed a similar project in Brazil. Borgers worked closely
with Brits Textiles and NCI, the two South African manufacturers, to help
them set up new processing systems and production lines. This included
exchanges of personnel, provision of equipment and skills training.

In addition, the customs regulations in South Africa specified that imported
components used in vehicle production were liable for duty, and local
content in vehicles exported from South Africa earned credits that offset
import duties. As such there was a strong commercial incentive for
DaimlerChrysler to localize component production. Supporting sisal farming
and processing in poor regions in South Africa was also a motivation for
DaimlerChrysler



                                  Dr Breno Nunes / Dec 2012
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                             Copyright © 2012 - All rights Reserved
Daimler-Crysler in South Africa

Background
http://www.unido.org/fileadmin/import/44524_0384940.pdf

Partnership approach for supplier development
DaimlerChrysler oversaw the implementation of the entire program,
including the technology transfer to its suppliers, but relied
extensively on partnerships with Borgers to deliver technical
assistance to the two South Africa manufacturers, and CSIR to
support sisal production and processing.

Results
This program developed a stable and efficient local supply of Sisal,
generating long-term sustainable jobs for Sisal farm workers, and
promoting economic growth in poverty stricken areas.
DaimlerChrysler can now rely on a stable supply of Sisal fiber
components that meets the high quality standards of its automobile
production facility in South Africa.

                              Dr Breno Nunes / Dec 2012
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                         Copyright © 2012 - All rights Reserved
Some findings about M&A
• “Study after study shows that most mergers
  – some estimates are 70% or more – fail to
  deliver their intended benefits and destroy
  economic value in the process. A recent
  analysis of 93 studies covering more than
  200,000 mergers published in peer-reviewed
  journals show that the negative effects of a
  merger on shareholder value become evident
  less than a month after a merger is
  announced and persists thereafter” (Pfeffer
  & Sutton – Evidence-based Management)
                     Dr Breno Nunes / Dec 2012
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                Copyright © 2012 - All rights Reserved
CISCO’s Approach: Making it work

• “More thoughtful leaders might do what Cisco
  Systems has done – figure out the factors
  associated with successful and unsuccessful
  mergers and then actually use those insights to
  guide behaviour (...) Cisco embarked on a policy
  of aggressively acquiring new technology and
  companies. Between 1993 and 1998, it acquired
  on average one firm per quarter and since this
  pace has continued, if not intensified. Cisco’s
  leaders have noticed that similar-size mergers
  don’t work and uncovered the importance of
  organizational cultural compatibility”

                       Dr Breno Nunes / Dec 2012
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                  Copyright © 2012 - All rights Reserved
The New Industrial Robots and Mass
Customisation




                   Dr Breno Nunes / Dec 2012
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              Copyright © 2012 - All rights Reserved
Cases on product and business model

• Adidas

• Tailor4less

• Xerox

• Rolls Royce
                   Dr Breno Nunes / Dec 2012
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              Copyright © 2012 - All rights Reserved
Buy your fully customised Adidas
http://shop.adidas.co.uk/miadidas/Main.action




                         Dr Breno Nunes / Dec 2012
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                    Copyright © 2012 - All rights Reserved
Innovation in the sales channel
 http://www.tailor4less.com/




                    Dr Breno Nunes / Dec 2012
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               Copyright © 2012 - All rights Reserved
Innovation at Business Model
• The case of Xerox & Rolls Royce




                           Dr Breno Nunes / Dec 2012
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                      Copyright © 2012 - All rights Reserved
Summary
• Building Innovation Capacity is vital for survival in the
  global market;
• Investigate the new context for innovation in your
  sector;
• Choose key areas to enhance R&D;
• Build expertise in technology management;
• Improve absorptive capacity through training the
  existing personnel and recruiting new talent;
• Adaptation of foreign technology is key for a successful
  technology transfer;
• Develop an ‘innovation’ culture rather than only an
  innovative product.

                           Dr Breno Nunes / Dec 2012
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                      Copyright © 2012 - All rights Reserved
Thank you very much
• Questions ? Comments

Dr Breno Nunes
Aston Business School
b.nunes@aston.ac.uk


Dreams come true; without that possibility, nature would not incite us to have them.
                                 (John Updike)

                                   Dr Breno Nunes / Dec 2012
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                              Copyright © 2012 - All rights Reserved

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Nunes, Breno (2012) Building innovation capacity

  • 1. Sino-bridge International & SASAC Training in International Operation and Strategy Management Hilton Croydon Hotel 2nd December 2012 - London, UK Building Innovation Capacity: From Survival to Enhanced Business Sustainability Dr Breno Nunes Aston Business School b.nunes@aston.ac.uk Dr Breno Nunes / Dec 2012 Copyright © 1 2012 - All rights Reserved
  • 2. About Me • Lecturer in Operations Management at Aston Business School – http://www1.aston.ac.uk/aston-business-school/staff/academic/oim/breno-nunes/ • Member of the IAMOT Board of Directors • PhD in Management from Aston University – Business School • BSc and MSc in Production Engineering from UFRN (Brazil) • Experience as Researcher/Consultant: – Innovation & Business Sustainability – automotive industry in Europe – Sustainable Supply Chain management in UK and Thailand – Green Operations, Innovation & Technology Management in UK, Thailand, Germany, USA – Regional development (Brazil) – Strategic planning for water agency (Brazil) Dr Breno Nunes / Dec 2012 2 Copyright © 2012 - All rights Reserved
  • 3. Lecture Structure 9:30 - 10:45 Introduction & key concepts on Innovation Capacity 10:45 - 11:00 Tea-break 11:00 - 12:00 The New Context for Innovation 12:00 -14:00 Lunch 14:00 - 15:00 R&D and Technology Management 15:00 - 15:15 Short Break 15:15 - 16:15 Practical examples of innovative management models 16:15 - 16:30 Question and Answer+ Dr Breno Nunes / Dec 2012 3 Copyright © 2012 - All rights Reserved
  • 4. Introduction & Key concepts • Why do we need to be innovative in business? – Increase Profits – Position your company better against competitors – Bring more fun to work & Attract new talent – Improve Corporate Image • Key concepts – Innovation – Intellectual Property Rights – Innovation Capacity – Measuring Innovation Capacity (Innovation Capacity Index) in countries – Measuring Innovation Capacity in organisations – Technology Transfer – Absorptive Capacity Dr Breno Nunes / Dec 2012 4 Copyright © 2012 - All rights Reserved
  • 5. What is Innovation? • (The use of) a new idea or method A new Idea or (Cambridge Dictionary) an Invention • ‘Innovation can be defined as the creative application of knowledge to increase the A new process set of techniques and products or product in commercially available in the economy’ the market (Courvisanos 2007, p.46) • “the process of harnessing creativity to create new value in new ways through new Value for your products, new services, and new Business businesses” (Ronald Jonash & Tom Sommerlatte, 1999) Dr Breno Nunes /rights2012 Copyright © 2012 - All Dec Reserved 5
  • 6. From Ideas to Business Innovation Customers’ needs/wants? How to solve a Problem? Idea Overcome a Challenge Reaction Formulation Implementation Evolution Dr Breno Nunes / Dec 2012 6 Copyright © 2012 - All rights Reserved
  • 7. Where and how innovation happens… • Great innovations of history: – Printing Press (Germany, Roman-Empire, 1400) – Steam engine (UK, 1800) – Assembly line (USA, 1900) • How did they happen? – They had knowledge, money, and people all together in the same place at the same time. – The ideas were in an innovation eco- system… Dr Breno Nunes / Dec 2012 7 Copyright © 2012 - All rights Reserved
  • 8. Intellectual Property Rights Copyright legislation is part of the wider body of law known as intellectual property. The term intellectual property refers broadly to the creations of the human mind. Intellectual property rights protect the interests of creators by giving them property rights over their creations. (http://www.WIPO.int) Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights and in some jurisdictions trade secrets (Wikipedia, 2012) Dr Breno Nunes / Dec 2012 8 Copyright © 2012 - All rights Reserved
  • 9. Map of WIPO members (Wikipedia, 2012) Dr Breno Nunes / Dec 2012 9 Copyright © 2012 - All rights Reserved
  • 10. What is Innovation Capacity? For Countries: • National innovative capacity is a country’s potential - as both a political and economic entity - to produce a stream of commercially relevant innovations. This capacity is not simply the realized level of innovation but also reflects the fundamental conditions, investments, and policy choices that create the environment for innovation in a particular location or nation (Porter, 2001) For Organisations: • Innovation capacity is the organizational potential to innovate, which is determined by the skills and strengths in basic R&D and technology (Pragoso & Ahmed, 2006) Dr Breno Nunes / Dec 2012 10 Copyright © 2012 - All rights Reserved
  • 11. Innovation Capacity Index Source: Lopez-Claros & Mata (2011) Policies and Institutions Underpinning Country Innovation: Results from the Innovation Capacity Index. The Innovation for Development Report 2010-2011 - http://www.innovationfordevelopmentreport.org/ Dr Breno Nunes / Dec 2012 11 Copyright © 2012 - All rights Reserved
  • 12. Innovation Capacity Ranking Highest – 80.3 China (64) 49.9 Lowest – 27.4 Dr Breno Nunes / Dec 2012 12 Copyright © 2012 - All rights Reserved
  • 13. Global race – total patents Trend in patent applications at the top five offices (Source: WIPO Statistics Database, October 2011) Dr Breno Nunes / Dec 2012 13 Copyright © 2012 - All rights Reserved
  • 14. The Innovation Race - BRICS Dr Breno Nunes / Dec 2012 Copyright © 2012 - All rights Reserved Source: Fu et al (2011) 14
  • 15. Growth rate of patent applications Trend in patent applications at the top 20 offices (Source: WIPO Statistics Database, October 2011) Dr Breno Nunes / Dec 2012 15 Copyright © 2012 - All rights Reserved
  • 16. Complex and discrete technologies Dr Breno Nunes / Dec 2012 16 Copyright © 2012 - All rights Reserved
  • 17. Complex and discrete technologies Dr Breno Nunes / Dec 2012 17 Copyright © 2012 - All rights Reserved
  • 18. The Innovation Race 10 years ago (Porter, 2001) Dr Breno Nunes / Dec 2012 18 Copyright © 2012 - All rights Reserved
  • 19. The Innovation Race in 2009 Number of triadic patent families per million inhabitants, 2009. Source: (Guloglu, 2012) Economic determinants of technological progress in G7 countries: A re-examination. Economics Letters, vol 116, 3, pp604-608 Dr Breno Nunes / Dec 2012 19 Copyright © 2012 - All rights Reserved
  • 20. The Innovation Race Dr Breno Nunes / Dec 2012 20 Copyright © 2012 - All rights Reserved
  • 21. The Innovation Race Korea Japan ? Germany USA China ? Finland Dr Breno Nunes / Dec 2012 21 Copyright © 2012 - All rights Reserved
  • 22. Improving the Innovation Ecosystem • What are the bottlenecks for national innovation? – IP Law? – Communication systems? – Education? – International Collaboration? – Business regulations? – Relationship (capitalists, lawyers , inventors) Dr Breno Nunes / Dec 2012 22 Copyright © 2012 - All rights Reserved
  • 23. Innovation Capacity in Organisations • R&D investments (facilities, people, training, % of cost, IPR) • Internal Innovation Capabilities: – Knowledge exploitation Formal (R&D) and informal (non- – Entrepreneurial capabilities R&D) investments in innovation – Risk management capabilities should be considered when assessing – Networking capabilities the company’s innovation capacity! – Development capabilities (Hervas-Oliever et al, 2011) – Project Management – Change management capabilities • External input through networking – Market and customer knowledge (interface with internal capabilities) – Supplier collaboration (interface with internal capabilities) – Identification of new technologies and potential partners – Access to new knowledge (technical libraries, new personnel, forums, etc) – Resource acquisition (licensing, acquisitions, etc) – Collaborative development activities (Universities, Research centres, Consultants, etc) Dr Breno Nunes / Dec 2012 Source: Adapted from Forsman (2011) Copyright © 2012 - All rights Reserved 23 and Spithoven et al (2011)
  • 24. Patents by organisations (USA/PO, 2010) TOP 10 organisations by patent applications: 5866 IBM, headquartered in Armonk, New York, USA 4518 Samsung Electronics Co., headquartered in Korea 3086 Microsoft Corporation, headquartered in Washington, USA 2551 Canon Kabushiki Kaisha, headquartered in Tokyo, Japan 2443 Matsushita Electric Industrial Co., Ltd., headquartered in Japan 2212 Toshiba Corporation, headquartered in Tokyo, Japan 2130 Sony Corporation, headquartered in Tokyo, Japan 1652 Intel Corporation, headquartered in Santa Clara, California, USA 1488 LG ELECTRONICS INC., headquartered in Seoul, Korea 1480 Hewlett-Packard, headquartered in Palo Alto, California, USA Dr Breno Nunes / Dec 2012 24 Copyright © 2012 - All rights Reserved
  • 25. Creating an Innovation Stimulus External Innovation Stimulus Business Context: Leadership People Management Customers Knowledge Management Environment Creativity Management Legislation Innovation Capacity Competitors Suppliers Technology Management New technology R&D Management etc Innovation Performance Product Innovation Process Innovation Business Model Innovation Adapted from Prajogo Dr Breno Nunes / Dec 2012 25 & Ahmed (2006) Copyright © 2012 - All rights Reserved
  • 26. Time for a break • Questions & Comments? "If you're not failing every now and again, it's a sign you're not doing anything very innovative." (Woody Allen) Coming Next: The New Global Context for Innovation Dr Breno Nunes / Dec 2012 26 Copyright © 2012 - All rights Reserved
  • 27. The context of innovation Dr Breno Nunes / Dec 2012 27 Copyright © 2012 - All rights Reserved
  • 28. The New Context for Innovation The new forces shaping innovation and innovation capacity: • Globalisation: – Geo-political and socio-economic context – Global Supply Chains – Large Customer Diversification • Environmental and social sustainability • Rapid technological progress • The fight for talent Dr Breno Nunes / Dec 2012 28 Copyright © 2012 - All rights Reserved
  • 29. The old Washington’s friends What is the impact of the ‘Arab Spring’ on the whole region and its business environment? For the global business environment: FDI, Logistics routes, energy supply, etc Dr Breno Nunes / Dec 2012 29 Copyright © 2012 - All rights Reserved
  • 30. Longevity versus quality of life Dr Breno Nunes / Dec 2012 30 Copyright © 2012 - All rights Reserved
  • 31. The ageing workforce Dr Breno Nunes / Dec 2012 Copyright © 2012 - Economist The All rights Reserved June 2009 31
  • 32. End of cheap oil, money and food? June 2004 Feb 15th 2007 Dec 6th 2007 Dr Breno Nunes / Dec 2012 32 Copyright © 2012 - All rights Reserved
  • 33. Oil prices Dr Breno Nunes / Dec 2012 33 Copyright © 2012 - All rights Reserved
  • 34. The Danish Maersk http://www.maerskline.com/link/link/?page=news&path=/news/news20110221 Four-hundred metres long, 59 metres wide and 73 metres high, the Triple-E is the largest vessel of any type on the water today. Its 18,000 TEU (twenty-foot container) capacity is 16 percent greater (2,500 containers) than today’s largest container vessel, Emma Mærsk. The Triple-E will produce 20 percent less CO2 per container moved compared to Emma Mærsk and 50 percent less than the industry average on the Asia-Europe trade lane. In addition, it will consume approximatelyDec 2012 Dr Breno Nunes / 35 percent less fuel per container than 34 Copyright © 2012 - All rights Reserved the 13,100 TEU vessels being delivered to other container shipping lines in the next few
  • 35. Monsanto wants to feed the world using biotechnology … Do you fancy transgenic potatoes? Dr Breno Nunes / Dec 2012 35 Copyright © 2012 - All rights Reserved
  • 36. Environmental problems – not in my backyard, please… Dr Breno Nunes / Dec 2012 36 Copyright © 2012 - All rights Reserved
  • 37. Green jobs in my backyard, please Clean Energy Food Water Waste Management Mobility Housing Dr Breno Nunes / Dec 2012 37 Copyright © 2012 - All rights Reserved
  • 38. The fast pace of emerging technologies Dr Breno Nunes / Dec 2012 Copyright © 38 2012 - All rights Reserved
  • 39. The accelerating pace of change... (Time,2011) 8,000 120 90 Agricultural years Industrial years years Moon Light-bulb Revolution Revolution Landing 22 9 ? Moon years World years Human years ????? Landing Wide Web Genome Dr Breno Nunes / Dec 2012 39 Copyright © 2012 - All rights Reserved
  • 40. Gartner’s Hype cycle for emerging technologies (2011) Dr Breno Nunes / Dec 2012 40 Copyright © 2012 - All rights Reserved
  • 41. The pace of global innovation What happened to Nokia? Dr Breno Nunes / Dec 2012 41 Copyright © 2012 - All rights Reserved
  • 42. Emerging Fields of Technology • Environmental technologies • Nanotechnology (materials science, energy, etc) • Biotechnology (genetic engineering, artificial photosynthesis) • Robotics (artificial intelligence, nano-robots, etc) • Information Technologies – Data management (storage, analysis, transference, etc) – Intelligent systems – Wireless Dr Breno Nunes / Dec 2012 42 Copyright © 2012 - All rights Reserved
  • 43. How is your company reacting? • What is the key area for innovation in your business? – Green technology? – Global supply chain? – Process automation? – New materials? – New business model or sales channels? • Do you have experts in any of these key areas? • Have you developed relationships to deal with the fast- changing environment? • How can you use emerging technologies to spur the growth of your innovation capacity? Dr Breno Nunes / Dec 2012 43 Copyright © 2012 - All rights Reserved
  • 44. Time for a break • Questions & Comments? A problem is solved when it gets tougher. (Arabic Proverb) Coming Next: Technology and R&D management in the development of a robust innovation capacity Dr Breno Nunes / Dec 2012 44 Copyright © 2012 - All rights Reserved
  • 45. Building Innovation Capacity Innovation Stimulus Leadership People Management Knowledge Management Creativity Management Innovation Capacity Technology Management R&D Management Innovation Performance Product Innovation Process Innovation Structural Innovation Business Model Adapted from Prajogo Dr Breno Nunes / Dec 2012 45 & Ahmed (2006) Copyright © 2012 - All rights Reserved
  • 46. Innovation Capacity in Organisations • R&D investments (facilities, people, training, % of cost, IPR) • Internal Innovation Capabilities: – Knowledge exploitation – Entrepreneurial capabilities – Risk management capabilities – Networking capabilities – Development capabilities – Project Management – Change management capabilities • External input through networking – Market and customer knowledge (interface with internal capabilities) – Supplier collaboration (interface with internal capabilities) – Identification of new technologies and potential partners – Access to new knowledge (technical libraries, new personnel, forums, etc) – Resource acquisition (licensing, acquisitions, etc) – Collaborative development activities (Universities, Research centres, Consultants, etc) Dr Breno Nunes / Dec 2012 Source: Adapted from Forsman (2011) Copyright © 2012 - All rights Reserved 46 and Spithoven et al (2011)
  • 47. Building Innovation Capacity • In-house (inside-out) innovation (endogenous development) – Developing your own R&D Centres • Outside-in (exogenous) innovation – Purchasing from external R&D centres • Licensing, franchising, or technology acquisition • Collaboration – Alliances – Joint Venture – Academic-scientific research with universities • Transfer of technology – Vertical (From R&D to Production) – Horizontal (Between production facilities) Dr Breno Nunes / Dec 2012 47 Copyright © 2012 - All rights Reserved
  • 48. R&D & Technology Management • Develop in-house technology R&D Management • Collaborative Development • Identify emerging complementary or competing technologies • Acquire Technology Technology Management • Apply and diffuse technology • Transfer technology Dr Breno Nunes / Dec 2012 48 Copyright © 2012 - All rights Reserved
  • 49. R&D Management • It covers activities such as basic research, fundamental research, technology development, advanced development, concept development, new product development, process development, prototyping, R&D portfolio management, etc (Specht, 1996) Dr Breno Nunes / Dec 2012 49 Copyright © 2012 - All rights Reserved
  • 50. Welcome to the 3D-printers era 3D printers will reduce the cost of prototyping and allow small and medium companies to have higher innovation capacity http://www.youtube.com/watch?v=Jt3EGgtSAUc
  • 51. Technology Management What Wikipedia says: • Technology Management is set of management disciplines that allows organizations to manage their technological fundamentals to create competitive advantage. • Typical concepts used in technology management are technology strategy (a logic or role of technology in organization), technology forecasting (identification of possible relevant technologies for the organization, possibly through technology scouting), technology roadmapping (mapping technologies to business and market needs), technology project portfolio ( a set of projects under development) and technology portfolio (a set of technologies in use). Dr Breno Nunes / Dec 2012 51 Copyright © 2012 - All rights Reserved
  • 52. Technology Management Academic definition: Technology Management is about: – Acquisition – Exploitation – Identification – Learning – Protection – Selection Source: Cetindamar et al (2010) Technology Management: Activities and Tools. Dr Breno Nunes / Dec 2012 52 Copyright © 2012 - All rights Reserved
  • 53. The Path of Technologies Creation Transfer Diffusion Acquirer / Other Originator Supplier Developer users With Thanks to Prof David Bennett www.davidjbennett.org Dr Breno Nunes / Dec 2012 53 Copyright © 2012 - All rights Reserved
  • 54. Types of Technology Technology types: • Product Transfer and diffusion • Process can be of either or both Technology forms: Knowledge: • Hardware • Embedded Increasing • Software • Codified difficulty of • ‘Humanware’ transfer • Tacit Dr Breno Nunes / Dec 2012 54 Copyright © 2012 - All rights Reserved
  • 55. Absorptive Capacity • The ability of an organization to recognize the value of new external information and knowledge, assimilate, and apply them, and this ability is critical in determining innovative output (Cohen and Levinthal,1990). • Absorptive capacity is a key ability to build Innovation Capacity. • A number of technology acquisitions fail because the country or corporation is not able to adapt the technology for a new environment. This impedes further innovations in the market. Dr Breno Nunes / Dec 2012 55 Copyright © 2012 - All rights Reserved
  • 56. Success in Building Innovation Capacity • The case of Microsoft and the video- games developer Rare • The case of Google and Motorola Dr Breno Nunes / Dec 2012 56 Copyright © 2012 - All rights Reserved
  • 57. The Case of Rare, Nintendo, and Microsoft Background: British game developer for Nintendo and Microsoft Ownership: Tim and Chris Stamper (founders, 1982–2002), Nintendo (1994- 2002), Microsoft (2002–present) Supplier acquisition strategy Up from the end of 2000, people from Activision and Microsoft visited Rare. In November 2001, Microsoft trademarked It's Mr. Pants, a game that was released three years later. In September 2002, the Stamper brothers sold their 51% interest in Rare to Microsoft; following this, Nintendo sold their 49% stake in the company as well. Microsoft paid a total of $375 million to own 100% of the company. Because of this, Rare is now a first-party developer for Microsoft's Xbox and its successors. This left Donkey Kong Racing, which was due to be released for the Nintendo GameCube, unreleased. The trademarks of the characters from the games that Rare made for Nintendo consoles (such as Conker of Conker's Bad Fur Day and Banjo of the Banjo-Kazooie series) were retained by Rare (apart from intellectual properties originally developed by Nintendo, including Donkey Kong and Star Fox). Despite the acquisition, Rare still developed games for Game Boy Advance, and now develops for the Nintendo DS, as Microsoft is currently not participating in the hand-held video game console market. (Gaming and Digital Entertainment Day in Bham and Wikipedia, 2010) Dr Breno Nunes / Dec 2012 57 Copyright © 2012 - All rights Reserved
  • 58. Google buys Motorola • Google's chief executive, Larry Page, said that Motorola had a long history in technological development: "Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone." He said he saw the new business producing "the next generation of mobile devices that will improve lives for years to come". The purchase gives Google access to more than 17,000 of the company's valuable patents. (BBC, 2012) Dr Breno Nunes / Dec 2012 58 Copyright © 2012 - All rights Reserved
  • 59. Google buys Motorola • Google only really bought MMI for the patent portfolio to defend Android from attacks by Apple and Microsoft after losing out in the July 2011 auction of Nortel's patents during a bankruptcy sale (won for $4.5bn by Apple, Microsoft, RIM and Sony). The handset business has always looked like baggage. (The Guardian, 2012) Dr Breno Nunes / Dec 2012 59 Copyright © 2012 - All rights Reserved
  • 60. Time for a break • Questions & Comments? “It is better to be prepared for an opportunity and not have one than to have an opportunity and not be prepared.” (Whitney Young Jr.) Coming Next: Successful stories on building innovation capacity Dr Breno Nunes / Dec 2012 60 Copyright © 2012 - All rights Reserved
  • 61. Success in Building Innovation Capacity • Daimler-Chrysler and sisal fibres in Africa • Cisco’s Approach Dr Breno Nunes / Dec 2012 61 Copyright © 2012 - All rights Reserved
  • 62. Daimler-Crysler in South Africa Background http://www.unido.org/fileadmin/import/44524_0384940.pdf In the early 1990s, DaimlerChrysler and Borgers, one of its German suppliers, together developed natural fiber car components. Both companies worked to roll out this technology to South Africa, identifying two South African SMEs with the capacity to replicate and develop the process using sisal fibers. This followed a similar project in Brazil. Borgers worked closely with Brits Textiles and NCI, the two South African manufacturers, to help them set up new processing systems and production lines. This included exchanges of personnel, provision of equipment and skills training. In addition, the customs regulations in South Africa specified that imported components used in vehicle production were liable for duty, and local content in vehicles exported from South Africa earned credits that offset import duties. As such there was a strong commercial incentive for DaimlerChrysler to localize component production. Supporting sisal farming and processing in poor regions in South Africa was also a motivation for DaimlerChrysler Dr Breno Nunes / Dec 2012 62 Copyright © 2012 - All rights Reserved
  • 63. Daimler-Crysler in South Africa Background http://www.unido.org/fileadmin/import/44524_0384940.pdf Partnership approach for supplier development DaimlerChrysler oversaw the implementation of the entire program, including the technology transfer to its suppliers, but relied extensively on partnerships with Borgers to deliver technical assistance to the two South Africa manufacturers, and CSIR to support sisal production and processing. Results This program developed a stable and efficient local supply of Sisal, generating long-term sustainable jobs for Sisal farm workers, and promoting economic growth in poverty stricken areas. DaimlerChrysler can now rely on a stable supply of Sisal fiber components that meets the high quality standards of its automobile production facility in South Africa. Dr Breno Nunes / Dec 2012 63 Copyright © 2012 - All rights Reserved
  • 64. Some findings about M&A • “Study after study shows that most mergers – some estimates are 70% or more – fail to deliver their intended benefits and destroy economic value in the process. A recent analysis of 93 studies covering more than 200,000 mergers published in peer-reviewed journals show that the negative effects of a merger on shareholder value become evident less than a month after a merger is announced and persists thereafter” (Pfeffer & Sutton – Evidence-based Management) Dr Breno Nunes / Dec 2012 64 Copyright © 2012 - All rights Reserved
  • 65. CISCO’s Approach: Making it work • “More thoughtful leaders might do what Cisco Systems has done – figure out the factors associated with successful and unsuccessful mergers and then actually use those insights to guide behaviour (...) Cisco embarked on a policy of aggressively acquiring new technology and companies. Between 1993 and 1998, it acquired on average one firm per quarter and since this pace has continued, if not intensified. Cisco’s leaders have noticed that similar-size mergers don’t work and uncovered the importance of organizational cultural compatibility” Dr Breno Nunes / Dec 2012 65 Copyright © 2012 - All rights Reserved
  • 66. The New Industrial Robots and Mass Customisation Dr Breno Nunes / Dec 2012 66 Copyright © 2012 - All rights Reserved
  • 67. Cases on product and business model • Adidas • Tailor4less • Xerox • Rolls Royce Dr Breno Nunes / Dec 2012 67 Copyright © 2012 - All rights Reserved
  • 68. Buy your fully customised Adidas http://shop.adidas.co.uk/miadidas/Main.action Dr Breno Nunes / Dec 2012 68 Copyright © 2012 - All rights Reserved
  • 69. Innovation in the sales channel http://www.tailor4less.com/ Dr Breno Nunes / Dec 2012 69 Copyright © 2012 - All rights Reserved
  • 70. Innovation at Business Model • The case of Xerox & Rolls Royce Dr Breno Nunes / Dec 2012 70 Copyright © 2012 - All rights Reserved
  • 71. Summary • Building Innovation Capacity is vital for survival in the global market; • Investigate the new context for innovation in your sector; • Choose key areas to enhance R&D; • Build expertise in technology management; • Improve absorptive capacity through training the existing personnel and recruiting new talent; • Adaptation of foreign technology is key for a successful technology transfer; • Develop an ‘innovation’ culture rather than only an innovative product. Dr Breno Nunes / Dec 2012 71 Copyright © 2012 - All rights Reserved
  • 72. Thank you very much • Questions ? Comments Dr Breno Nunes Aston Business School b.nunes@aston.ac.uk Dreams come true; without that possibility, nature would not incite us to have them. (John Updike) Dr Breno Nunes / Dec 2012 72 Copyright © 2012 - All rights Reserved