Collaborative R&D: What is it and why do it?
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Collaborative R&D: What is it and why do it?Paul JohnstonVice President, Operations
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An outline …
• What are they?• Why do we use them?• What are the key elements of success?• What are the benefits?
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What are they?
• Definition: three or more organizations working together, sharing expertise, sharing resources to tackle a significant R&D issue or research domain
• Compare: contract? partnership? joint venture?
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What are Precarn and IRIS?
Precarn Incorporated• Founded in 1987 by industry
• Independent, not-for-profit, member-owned
• Supported by Industry Canada
• Funds, manages and promotes
collaborative R&D projects
• Delivers related services
IRISInstitute for Robotics and Intelligent Systems
A federally funded Network of Centres of ExcellenceFounded in 1990
13 Universities, 80 PIs, 18 ProjectsCreated and managed by Precarn
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Intelligent Systemsemulate or enhance the human ability to
Perceive
SensorsVision systemsObject modeling
Pattern recognition
Reason
Artificial IntelligenceKnowledge systems
Data miningModeling & simulation
Decision supportDiagnosis, planning, scheduling
Act
RoboticsControl systems
Actuators
Human-Machine Interfaces
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Why do firms collaborate?
These labelsintentionallyleft blank
0 10 20 30 40 50 60
Percent of collaborators mentioning a particular reasonSource: Collaborating for Innovation, 2nd Annual Innovation Report, Conference Board of Canada, 2000
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Why use them?• “There is considerable corporate risk involved with
a company’s technology strategy. A company’s future is determined by where and how it invests in research and development. There is no certainty that the development of a particular technology will work. We don’t know what we don’t know.”
• “Companies have a limited amount of resources consisting of (1) personnel with varying types of expertise, (2) finances, and (3) established infrastructure …”
From Collaborative R&D: Manufacturing’s New Tool, Gene Allen & Rick Jarman, John Wiley & Sons Inc., 1999, p. 14
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Key structural elements for success• End-user champion
• Technology-developer vision• Network of expertise (people)• Commitments• Funding• Minimal organizational “overhead”• Timing
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A successful collaborative R&D modelBuild Canada’s intelligent
systems industryImprove productivity and
competitiveness
Develop highly qualified entrepreneurial people
Technology developer partnerTypically, a young, high-tech SME
Technology user partnerTypically, medium to large & mature
Beta test site/first customer
Scientific partnerA university (or proxy)
Advances the state of the artIntroduces students to companies
Intelligent Systems R&D ProjectPools expertise - Shares risk and cost - Accelerates development
Leads to demonstrated prototype, with IP owned by the project team(One partner must be a company that can commercialize the technology)
Costs $2-4 m, lasts 12-36 monthsGets max. 40% (or max. $1 m) from Precarn Other partners
Government labsOther companiesOther universitiesIRIS
researchers
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EUSCEnhanced Urban Signal Control Package
• Led by Delcan Corporation, Toronto, with
– NOVAX Industries, Vancouver– EIS Electronic Integrated Systems, Toronto– City of Vancouver– University of Calgary
Completion Date: June 2003
• Advanced traffic control system featuring new traffic detectors supplying data to a Multiple-Criteria Adaptive Control algorithm. The algorithm computes optimal signal timing parameters on a real-time basis
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Smart GITSSmart Geophysical Information Technology System
• A system to empower a mobile field worker to make decisions while dealing with large data volumes and bandwidth constraints, employing intelligent agents, semantic web techniques, novel inference techniques and wireless Internet access.
• Led by MacDonald Dettwiler and Associates, Richmond, BC, with– Noranda Inc., Toronto– University of Calgary– University of Alberta
Completion Date: January 2004
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Key process elements for success• Recognize and define roles and
responsibilities at the beginning• Establish good communication links from the
beginning• Agree to a clear legal framework (“it’s the IP,
stupid”)• Establish an economical management
structure• Build in means to address problems quickly
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But, what is the real bottom-line reason?
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What are the benefits to firms?
Reducing the risk that the technologywon’t work or directly benefit the firm
Reducing the time to “market” or “application”
Exposing the firm to new ideas and cultures
Providing a means to develop new product lines,new markets, or new business relationships
Reducing the cost to develop new technologies
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What are the benefits to innovation?
Longer term Science driven
Medium termApplication driven
Granting Councils
NCE’s, incl. IRIS
CFI
Precarn
IRAP
TPC
Shorter termMarket driven
$Funding support
… the innovation gap
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National Summit on Innovation and Learning“Improving Research, Development and Commercialization”
Priority Recommendation No. 1:
Enable the relationship between the receptor community and universities, colleges and researchers. Strengthen receptor capacity.
– “Strengthen research and business collaboration. Establish clusters and managed networks for sustained interactions among stakeholders, especially between academic institutions, government laboratories, businesses and financiers . . . Utilize “fourth pillar organizations” to facilitate partnerships between key stakeholders.“ (italics added)
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Some conclusions …
• Why would a firm join an R&D Alliance?
… because it is in their self-interest to do so.
• Why should a firm join an R&D alliance?
… because it is in their self-interest to do so.
• Why should we care about this?
… because the model adds economic value(faster development, shared risk, shared cost,competitive advantage)