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Entrepreneurship in knowledge based business  

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Ulf PetrussonProfessor of Law

Head of Department, Institute for Innovation and Entrepreneurship, University of Gothenburg

Director, Center for Intellectual Property, Chalmers University of Technology and University of Gothenburg

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Control of knowledge

Va

lue

-ad

diti

on

of k

now

ledg

e

Commodity-based natural resource

Commodity knowledge-based physical products

Proprietary knowledge-based physical product

IP-based intellectual or virtual product or service

Raw MaterialBased

Economy

Raw MaterialBased

Economy

ProductionBased

Economy

ProductionBased

Economy

KnowledgeBased

IndustrialEconomy

KnowledgeBased

IndustrialEconomy

KnowledgeBased

KnowledgeEconomy

KnowledgeBased

KnowledgeEconomy

Knowledge based business

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The Challenges of Transforming into a Knowledge Economy

From…

• Production-oriented industry

• Hierarchical organization

• Laborers

• Start-ups starting locally

• Universities as providers of education and background research

• Cities and regions as phyisical infrastructure …

To…

• Technology, brand and service-based ventures

• Open innovation and network-based organization

• Strategic human resources

• Start-ups starting globally

• Universities as engines in the knowledge economy

• Cities and regions as intellectual infrastructure

“Ideas and innovations have become the most important

resource, replacing land, energy and raw materials”

The Economist 2005

“Business in the next decade will change more than in the last 100 years”

Jack Welsh, fm CEO, GE

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Knowledge based business – the four entrepreneurial challenges

1.Knowledge as both input and output – the challenge of leveraging technology, brands and other IA

2.Open Innovation – the challenge of creating, governing and sharing intellectual assets in networks

3.Knowledge Platforms – the challenge of governing portfolios of intellectual assets and knowledge innovations

4.Early Innovation – the challenge of governing and utilizing research

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1Knowledge as both input and outputThe challenge of leveraging technology, brands and other IA based innovations

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Knowledge economy-The change in perspective

• In the industrial economy the material product and control of the production factors is in focus

• Wealth is created in the transactions of physical goods and the number of business models is limited

• The industrial economy requires businesses to be aware of the closest actors and the immediate perspective

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Breaking out from the captivity in the Material Value Chain

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Knowledge economy-The change in perspective

• Taking a step back, however, we all agree that all value creation stems from human intellects; know-how, relationships, inventions etc.

• Taking the starting point in the intellectual assets, however, also reveals the full complexity

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• Technology and modern society has already opened up the whole playing field

• Some players are efficiently using it, of which some are also leading the further construction of it

• Some are not• Utilizing the full potential

requires the ability to make the perspective transition

Knowledge economy- The change in perspective

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© 2010 CIP Professional Services

Knowledge Based Business – The evolution of business thinking, strategy and models

The need for new infrastructure for leveraging knowledge, including:

•management tools and capabilities,

•access to a core profession focused on knowledge based entrepreneurship and innovation,

•access to a support profession,

•education and training.

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2Open Innovation The challenge of creating, governing and sharing intellectual assets in networks

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Technology-centric company- open innovation actorKey focus: Technology management and

governanceProcesses: Package technology as different value

propositions to achieve: Development – technology

licenses, R&D collaboration etc Leveraging – products, software,

licenses, services etc Govern technology as part of relational

networks and standards Develop, claim and control technology

through patents and other control measures

Govern and leverage technology to develop and shape markets

Organization is open and network-based

The challenge of open innovation managementProduct

Service

Technology

Customers

Other technology developers/providers

Suppliernetwork

Serviceproviders

Internal developmentnetwork

Competitors

From product to technology/knowledge focus

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© 2010 CIP Professional Services

Knowledge Based Business – The evolution of business thinking, strategy and models

The need for new infrastructure for leveraging knowledge, including:

•management tools and capabilities,

•access to an professions focused on knowledge based entrepreneurship and innovation,

•education and training.

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3Knowledge PlatformsThe challenge of governing portfolios of intellectual assets and knowledge innovations

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© 2010 CIP Professional Services

Knowledge Based Business – The public-private challenge of creating knowledge platforms

The Open innovation platform

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4Early Innovation The challenge of governing and utilizing research

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The international business and university transformation pushes us into IP-behaviour

• More or less all academic activities can be claimed as Intellectual assets

• Licensing more than a tool to commercialize

• Openness requires structural control• Capitalization increasingly possible in

very early stages

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Academia Education Research results Publications

Industry

Products Services

• Education tools and teaching media • Research tools• Diagnostic tools• Production and development tools• System innovations• “Features” (elements in product concepts)• Control marks and quality stamps• “Content”• Databases and information collections• Open innovations and other platform innovations

University and business are increasingly overlapping

The challenge of governing an interface in transformation

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University

Education Research Publication

Business

Products Services

University and business are increasingly overlapping

A

CP

Assets as valuable objects

Property as objects in commercial transactions

Capital as objects in a financial machinery for value creation

The challenge of governing an interface in transformation

Responsibility to build the knowledge markets and platforms of the knowledge society

University responsibility to educate students and contribute to scientific knowledge of the world

Responsibility to actively support industry and society interests

Responsibility to partake in the creation of business future

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Public domain modelThe role of the University is to together with its researcher promote the creation of the public domain of scientific result

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

23-04-20

Researcher/group

Industry

IP ownership CompensationResearch interaction

Phase 1 in both US (before Bayh-Dole) and Europe

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Researcher/group

Industry

Phase 2 – European approach

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Compensation & deliverance

University

Salary and employment

IP ownership Research interaction

•23-04-20

Researcher/group

Industry

Phase 2 – US approach

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Compensation & deliverance

University

IP ownership

Research interaction

Employment & deliverance

IP ownership

Venture model 1 – US

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Researcher/group

Industry

University

Venture

Partial company ownership

Venture model 2

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Researcher/group

Industry

University Venture

Company ownership

Venture model 3

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

Researcher/group

Industry

University Incubator

Venture

Incubator ownership

Partial or no ownership

23-04-20

4. Knowledge Platform University

3. Entrepreneurial University

2. Research University

1. Educational University

IndustryIndustry

SMESME

UniversityUniversity

S-upS-up

RR

SMESME

R InstR Inst

SMESME

RRRR

RR

RR

RR

RRRR RR RR

RR

RR

IncInc

UniversityUniversity

UniversityUniversity

IndustryIndustry

RR

RR

RR

RR

RR

S-upS-upRR

RR

RR

RR

RRRR

RR

RR

Creative Commons & Open Source Platforms

SMESME

RR

Research Consortias & Platforms

Industry Clusters & Platforms

UniversityUniversity

IndustryIndustry

PPPP

PP

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GU KMP Project X

Data

Databases

Data Correlations

Theoretical Frameworks

Inventions

Software and Tools These assets can be commercialized…” ”

These assets can be licensed …” ”

These assets can form the basis for collaboration…” ”

These assets can be published…” ”

These assets can be strategically developed…” ”

Incubators Science Parks Financiers Preincubators

1. Purpose of KMP

Knowledge Based Business – The public-private challenge of creating knowledge platforms

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The objective is to build a portfolio of valuable assets that can be strategically managed and packaged for use across multiple value-creating paths.

Commercial OpportunitiesCommercial

OpportunitiesLicensing

OpportunitiesLicensing

OpportunitiesResearch

CollaborationsResearch

CollaborationsResearch FinancingResearch Financing

Intellectual Assets and PropertyIntellectual Assets and Property

Utilization Strategies

IA9

IA3 IA7IA4IP1 IP2

IP10 IP11

IP12

IA5 IA6 IA8

IP 1 IA 6 IA 8IP 1 IA 4IP 1 IA 5IP 1 IP 2 IA 3 IA 9

Platform Assets

4. KMP Output

Portfolio of Valuable Assets

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5CIP Forum

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© 2010 CIP Professional Services

2001 2003 2005 2007 2009

Participants 50 140 350 500 524

Number of speakers

15 30 85 170 120

Number of program

hours

35h4h ”Mini course”

10h plenary7h parallel sessions

14h workshops

59h4h ”Mini course”

7h plenary18h tracks

30h workshops

112h7h plenary45h tracks

60h workshops

159h7h plenary

20h roundtables54h tracks

70h workshops8h high level summit

138h8h plenary

25h roundtable40h tracks

57h workshops8h high level summit

Managing the

Intellectual

Value Chain

Technology and

R&D CollaborationsThemes: Managing IP as

core business

En route to an intellectualized

economy

The Future of

Innovation