This document outlines Lewis Branscomb's talk on research and innovation systems for commercial innovations. It discusses knowledge sources, intellectual property, firm structures, sources of technical knowledge, relationships between knowledge demand and sources, geographic concentrations of innovations, and the importance of communication and trust networks for innovation.

1. Research & Innovation Systems for High Tech Commercial Innovations Knowledge for Development Seminar December 4, 2003 Lewis M Branscomb, Harvard University Internal and External Knowledge Sources Knowledge for Development Seminar, Center for International Development Kennedy School of Government, Harvard University, December 4, 2003

12. IBM PC Digital Cameras DVD Automobiles Electronics Cameras MRI Cell-phone Existing New Existing New Increasing risk Evolutionary businesses ] Leverage base Market Discontinuity Creative Destruction

15. Relationship between source of demand for technical Knowledge and sources of demand satisfaction Key task for corporate Research Most essential for out of core innovation Essential for radical innovation Important for process and product development Passive and active access to world knowledge Advanced knowledge is both required and produced Primary mechanism N/A N/A New firm creation by spinoff or entrepreneurship Useful only if firms learn from partners Weak Can be a key tool for in-core innovation [IBM FLAT PANEL] Most useful for market expansion and broader product coverage Collaboration, partnerships, M&A, JVs Useful only if firms learn from suppliers Weak Useful when linked to firms specialized in new technologies Key new strategy in formerly vertical firms Outsourcing innovations to supply chain Important for tacit knowledge N/A Difficult, requires strong leadership Primary role Business unit R&D Key role for Corporate Research Very difficult Moderately strong, but hard to transfer Moderate, usually through process techn. Corporate research Sustaining technical lead to support strategy Out-of-core radical innovation create new market In-core radical innovation to destabilize market Evolution in face of market competition DEMAND SOURCE

21. Geographical concentration of patents and Innovations (U.S. 1982) Source (Acs, Anselin, and Varga 2002); “innovation” counts from the U.S. Small Business Administration

25. Its not the “R” Its not the “D” It’s the “&” - Phil Auerswald