Enhancing Innovation ROI by Adding Patents at the Front End: Some Resources

A new client has asked for some information on how consideration patents and IP at the front end of the innovation/product development process can enhance business value.  Readers of this blog might find this material informative, also. This is a published article from Innovation Management article entitled “How to Improve Innovation ROI with Early Stage Patent Expertise.”  In this article, I discuss how IP can help orient innovation teams in a direction that can enhance value capture.  Practical steps to implement such a program into innovation processes is included in this article. Here is a YouTube video that explains my process simply.  In short, including IP at the front end of a company’s innovation process allows one to enhance their calibration with respect to the IP rights of others to better ensure that they will achieve the desired ROI on innovation investment. This blog post describes how a large company failed to capture the full value of its deep investment in a new product innovation.  These folks (the name has been changed to protect the not-so-innocent) failed to grasp that their innovation was not a product, but a customer solution.  This first-to-market Fortune company did not understand that the customer Continue Reading →

How to Improve your Innovation ROI with Early Stage Patent Expertise: In Depth Management Article

This article, How to Improve your Innovation ROI with Early Stage Patent Expertise,  was published in late 2010 as a pay for download article in Innovation Management Magazine.  It later became free for download, and I can share it with readers in this link.  I hope those responsible for creating value from IP in their organizations can find the insights in this article helpful.  Here is a synopsis: Innovation teams are often removed organizationally from a company’s patent matters. This can mean that corporate innovation processes move forward with little or no consideration of whether competitors can legally “knock off” the resulting consumer offering. Companies may then not attain expected ROI because competitors can legally copy the innovation—be it a product, technology or otherwise—without incurring legal liability. It may not always be necessary to protect innovation efforts with patents, such as where a product has a short shelf-life or where the company may desire to maintain trade secret protection for the technology. However, for innovation endeavors where go-forward financial models assume exclusivity, companies often require patent protection. Also, the absence of patent insights at an early stage frequently means that innovations are not properly scoped for potential infringement risk until significant Continue Reading →

A Startup Company’s Experiences with Open Innovation-Part 1: Dealing with a Large Company Having Small Innovation Goals

For the past several months, I have been at the helm of Evgentech, a startup company with game-changing battery charging methodology.  Our technology was developed by young men who did not come from a traditional engineering background and, even then, their discovery was a serendipitous result of the co-founders’ recognition of a new principle stemming from investigations initially directed toward something wholly different from battery charging.  Put simply, Evgentech’s technology would not have been found if anyone–outsider or not–would have been looking for it.  We are now bringing to market the first truly new battery charging paradigm in over 100 years.  To put things in perspective, with Evgentech’s technology, you will be able to charge your batteries in a fraction of the time possible with existing battery charging methodologies, which means you can charge your iPhone to “full” in as little as 20 minutes, as compared to the about 3-5 hours it takes today.  Moreover, our technology is scalable to large format batteries, as well as a wide range of battery chemistries. Not surprisingly, when companies with footprints in battery power find out about us, they are interested in finding out more.  We have recently begun preliminary discussions with a number Continue Reading →

It’s Time for Your R & D Team to Stop Inventing and Start Innovating

In a recent post on his 15 Inno blog, Open Innovation guru Stefan Lindegaard presented the ostensibly nonsensical hypothesis:  R & D leaders are often a “threat” to innovation.  Stefan’s post resulted from an interaction he had with a senior R & D person at a mid-sized tech company, who apparently adhered to the outdated notion that he and his scientists and engineers know more about the company’s business than anyone else could possibly even try to know.  As a result, this R & D leader believes that they cannot maximize (or even create) value for their organization by looking outside the confines of their existing R & D infrastructure to solve the company’s pressing business problems. Reading this, R & D professionals might likely think:  “What’s this guy smoking?  How can R & D be a threat to innovation?!  We’re the reason this company has any innovation at all.  We’re scientists!  Inventors!  Innovators!”  But, unless their companies are consistently experiencing year over year growth coming solely from sales of innovative new products and technology or cost reductions resulting from process innovations, such protestations prove Stefan’s point:  many R & D leaders kill their organization’s ability to innovate due to Continue Reading →

Companies Adopting Open Innovation Must Incorporate Patent Information at the Front End

(Editorial note:  This is a repost from this blog over 2 years ago, but the content is more relevant than ever.  On January 20, 2010, I am participating in a Yet2.com webinar with Ben DuPont and Jason Lye where we will be sharing our thoughts about marketing technology to “non-traditional” technology buyers, many of whom come to the table because they are adopting Open Innovation into their product and technology development processes.  I thought this “classic” post would be a good overview for anyone of my viewpoint for those who find my blog as a result of this event.  For regular readers, well, I hope you enjoy this too.  I will post a link to the recorded webinar when it is available. ) Open Innovation is unquestionably becoming a “hot” area of focus for U.S. companies, especially in the current economic climate in which businesses are more than ever focused on smarter ways of doing business. And, why wouldn’t Open Innovation be an intriguing business model when companies can fill their product and technology pipelines for significantly lower cost and with more variability of ideas than typically is possible from their own R&D infrastructures? As a result, more and more Continue Reading →

Success at Open Innovation Requires Finding the Right Partners: Here’s How to Improve Your Success Rates

With more companies building open innovation into their product development platforms, there would appear to be increasing opportunities for companies and independent IP owners to sell or license their technology.  In my many conversations with corporate innovation professionals, I find that that the desire to in-source externally developed products and technology may be strong, but few know how to go about finding and acquiring what their companies need.  As I have written about before, developing fruitful open innovation relationships is very much like dating:  you may want to do so, but unless you know where to show up, and how to initiate conversation, chances are you will remain single for a long time unless you engage a matchmaker. Well, I guess you could be your own “matchmaker” and search for potential partners.  This is easier today than it used to be because many corporations have idea submission portals and a few, like General Mills and Clorox, are even publicizing their detailed needs to the public.  This is a lot like finding your own mate, however.  You may show up someone all dolled up, but if your ideal mate isn’t also at the same place with the same message at the Continue Reading →

How Patent Whitespace Analysis Can Set a Company Up for Sustainable Failure

I spent a few days last week at the Innovation Cubed Conference in Orlando.  While there, I heard two instances of use of a term that I absolutely hate, at least when it is used by innovation professionals to define in some manner the innovation processes of their respective organizations.   This word is: PATENT WHITESPACE ANALYSIS Not only do I hate this phrase, I think that companies that utilize patent (or IP) whitespace analysis to define their product and technology development pathways are quite possibly setting themselves up for failure.  And, it’s bad enough that a single innovation project might fail as a result of the faulty data inputs that can occur from relying on whitespace assessments, but I think that most corporate processes incorporating patent whitespace analysis are based upon faulty methodology, thus setting the organization up for sustainable failure. For the uninitiated, when applied to the patent world, the term “whitespace” designates an analysis methodology that identifies the absence of patents in a particular product or technology area as a primary driver of innovation decision-making.  This term has been used for some years by patent and business professionals alike to provide information about whether one can obtain Continue Reading →

We’re Measuring the Wrong Things: Inventiveness and Patents Do Not Equal Innovation

Few things infuriate me more than supposed experts who make statements along the lines of “patents are critical to innovation.”  I have avoided stating my views widely in this forum because I didn’t want to get into a contest of one upmanship with my patent lawyer peers.  However, in the last couple of weeks, several pieces of information have hit my radar screen that make this seem like the right time to go public with my views. Let my position be very clear:  we create a false dichotomy when saying “innovation is not possible without patents.”  The issue is much more complex and nuanced than this:  in a particular instance, patents may be critical to innovation, but they might also be only slightly important or–likely in the majority of situations–they might be wholly irrelevant to innovation.  (I talk more about this in this recent interview in Innovation Management Magazine.) Unfortunately, where you stand also depends on where you sit, and sitting behind a desk writing or examining patents may color your belief that patents are the cure for America’s innovation ills.  (The cynic would likely note that relying on a patent practitioner or the Commissioner of the US Patent Office Continue Reading →

Contrarian Viewpoint: Patents Likely Matter Little to US Innovation and Job Creation

Many experts insist that innovation cannot succeed without patents, and that the delays in the US Patent Office stifle innovation.  This viewpoint is like to become more widely believed by the public as US Patent Office Director Stephen Kappos sees a way to improve the dismal operations of the Patent Office by equating patents as job creation tools, which necessarily requires patents to be asserted as critical for innovation to occur. I believe it is highly misleading, and even harmful in many cases, to say that patents are the end-all be-all to innovation.  I also think that fixing the Patent Office–which will invariably mean that more people will see value in obtaining patents to support their business idea–should be viewed more as a job creation engine for patent attorneys and those who support them (including Patent Office employees), as opposed to creating jobs that can help improve the dismal employment figures the US is experiencing today. No doubt, it is true that patents are necessary to create value from many innovations, and that jobs can then result when the patent owner is able to build a business around the idea (assuming the company and its employees are actually present in Continue Reading →

An Innovation Expert Sticks Up for IP Lawyers!

Regular readers of this blog know that I strongly believe that IP lawyers can do a whole lot more to better serve the needs of innovation teams.  Much of the disconnect between what IP lawyers do and those of their innovation clients can be traced to misalignment of incentives, as well as a structural and cultural impediments that makes it difficult for legal and business experts to communicate and work well together.  Last week, along with my good friend Deb Mills-Scofield and Mike Riegsecker of Menasha Packaging, I co-led a workshop on this topic at the 2nd Annual Open Innovation Summit.  The workshop was well-attended, and the response was very positive. Also, it appears that my message got through to at least one attendee, who is a prominent innovation consultant.  Keven McFarthing of Innovation Fixer wrote this post in which he asks open innovation professionals to not just look at their IP lawyer as an “extraneous irritant,” but instead as a member of the team.  Kevin also provides these recommendations: Ideally, make the lawyer a member of the formal team. If that can’t happen, treat them as if they are on the team. Don’t leave the final decision up to Continue Reading →