Open Innovation, Tech Mining & Competitive Technical Intelligence

in the US

Alan PorterDirector of Research and Development

Search Technology, Inc.&

Co-director Technology Policy & Assessment Center

Georgia Tech

Outline

1. Toward Open Innovation2. “Tech Mining” to deliver “CTI”3. Application Example: “Nano”

Innovation?• What is it?

– Invention is not innovation– Change in function put into practice -- successfully

• Why is it important?– The key to competitive performance – of

organizations, of economies

Technological Innovation:The Conceptual Bases

• Focus on changes in function -- of Products, Services, Processes, &/or Systems (“PSPS”)

• Draw upon models of technological change– Innovation (life cycle) processes– Technology substitution, transfer & diffusion

• See change in a contextual system– Internal Factors– External Forces

Innovation Models (Many!)• Linear: sequential phases

– not true!– but useful to benchmark development

• Ecological: complex interplay of phases– recognition important for policy processes– Understanding essential for Management Of

Technology (MOT)• Technology Delivery System (TDS)

– Identify what is needed to implement the innovation

A “Linear” view of Innovation Processes

Basic to Applied ResearchDevelopment; Patenting

Functionality

Licensing, Collaborative Innovation

Commercial IntroductionNew Product Development

Adoption

Incremental Innovation

Maturation

Time

Technology Delivery System

Example: What nano-electronicsapplications hold greatest promisefor Philips?

Alan Porter, Search Technology, 2006

Open Innovation• Christenson: Innovator’s Dilemma• “Connect and Develop” = shift from “NIH”

syndrome [Huston & Sakkab, HBR, 2006]• P&G’s “open innovation” strategy now produces

>35% of their innovations ($Billions in revenue)• Implies a premium on strategic competitive

technical intelligence (CTI)

Research Arena

Internal R&DA1

A2

Existing PSPS

New PSPS

Really NewPSPS

Incrementalinnovation

CTI

“BCMCR”KnowledgeFlow[via CI]

External R&D

A3A4

A5

B5

C5

Contextual Arena

design

designRadical innovation

The OpenInnovationModel

PSPS = Products, Services, Processes &/or SystemsBCMCR = Business, Competitors, Markets, Customers, Regulations

How to Effect Open Innovation?• Manage innovation processes systematically.

MOT (Management of Technology) is presently – Piecemeal– Intuitive

• Instead, manage better based on strong competitive technical intelligence - CTI– Those who do so will win– Those who do not will lose

• Innovation Mapping can show the way– Understand the system & its key leverage points– Gain external research knowledge– Bring into Design process to exploit business opportunities

Innovation Mapping

• Analogy– You know where you are and your physical

destination– Get a MapQuest Map!

• Innovation Analyses for better Management– You know capabilities and identify potential uses– Build Innovation Maps!

2. Tools: How do you generate “innovation maps”?

Tech MiningAlan L. Porter and Scott W. CunninghamJohn Wiley & Sons Inc., 2005

How to get Management to “hear”information-based knowledge products

• Define the Management of Technology (MOT) Issues• Break out particular MOT Questions• Identify candidate empirical Indicators

• Identify appropriate Analytical Tool(s)

• Identify appropriate Data Source(s)

• Design Effective composite Representations that can be rapidly built … Answer: who, what, when, where?

Tech Mining

MOT Issues, Questions & Innovation Indicators13 MOT Issues ~200 Innovation Indicators

WHAT?Mapping of topic clusters within the technology3-D trend charts for topic clustersRatio of conference to journal papers (benchmarked)Scorecard rate-of-change metrics for topic clustersTime slices to show evolution of topical emphasesTopic growth modeling (S-curve) fit & extrapolation

WHO?Pie chart: Company vs. Academic vs. Government publishingTopical main players’ profilesSpreading (or constricting) # of players by topic

39 MOT Questions

1. What’s hot?2. Fit into tech landscape?3. Drivers?4. Competing technologies?5. Likely development paths?6. etc.

• R&D Portfolio Mgt

• R&D Project Initiation

• Engr Project Initiation

• New Product Development

• Strategic Planning,

• etc.

Tech Mining – 6 information types

Contextual InformationTechnical InformationD. Business, competition,

customer, popular, policy content Databases (e.g., Lexus-Nexus, Factiva)

E. Internet Sources (e.g., blogs, website profiling)

F. Business Expertise

A. ST&I (Science, Technology & Innovation) Databases(e.g., Web of Science,INSPEC, Micropatents)

B. Internet Sources(e.g., Googling)

C. Technical Expertise

Tech Mining

The Process

InformationProfessional

TechnologyAnalysts

Researchers Manager/User

InformationProfessional

TechnologyAnalysts

Researchers Manager/User

Empirical Indicators

MOT Issues

Select Data Sources and

Analytical Tools

MOT Questions

Understanding the Question

Analysis

Search & Retrieval

Knowledge Product

QueryRefinement Combine with

Expert Opinion

Developing the Knowledge

Product

The Tech Mining Process1. Understand & scope the question, set in an

Innovation Process context2. Identify suitable databases

(especially R&D publication or patent abstracts)3. Search & download topical records [iteration likely]4. Import into text mining software

(e.g., VantagePoint or Thomson Data Analyzer)5. Clean the data6. Analyze, interpret & represent the information

effectively – to communicate well

Innovation Indicators• Technology Life Cycle Indicators

– e,g, growth curve location & projection• Innovation Context Indicators

– e.g., presence or absence of success factors (funding, standards, infrastructure, etc.)

• Product Value Chain and Market Prospects Indicators– e.g., applications, sectors engaged

“Nano”: Illustration[Nanoscience & Nanoengineering R&D]

Georgia TechIn support of NSF Center for Nano in Society[Arizona State Univ.] &NSF Partnership for Innovation[North Carolina State Univ.]; alsoEuroNano Project[sub to SPRU]

Metrology & Nanoprocesses

Nanostructure Chemistry & Materials

Nanomedicine & Nano-biotechnology

Nanodevices & Nanoelectronics

•Biomolecular & biomemetic devices•Biosensors•Molecular motors•Biomolecular fabrics•Engineered enzymes & proteins•Drug discovery and delivery

•Nanocomputing devices•Nanotransistors•NEMS; PEBBLES•Molecular electronics•Nanoscale magnetics

•Microscopy- Scanning probe microscopy- Electron microscopy

•Self assembly; Directed assembly•Nanomechanics•Molecular simulation•Scanning probe writing & fabrication•Top-down processes (nano-lithography, laser nanomachining,etc.)

• Nanoscale chemical structures• Nanocomposites• Sol-gels; quasi-crystals• Growth methods

(epitaxy – MBE, CBE,MOCVD)• 0D – Quantum dots• 1D – Nano/quantum tubes, rods or fibers;

nanopolymers• 2D – graphite layers• 3D -; fullerenes; nanocrystals

Nanotechnology Research Foci & Key Concepts

[from Porter et al., J Nanoparticle Research, in press]

Our Nano Data: Global, 1990-2006

• ISI Web of Science [Science Citation Index - SCI] ~407,000 articles(Representing ~2.7% of SCI over the period and 4.1% of SCI for the 2005-06 period)

• EI Compendex~381,000 articles & conference papers

• INSPEC [Engineering Village 2 website] ~334,000 articles & conference papers

• EKMS searched MicroPatent, INPADOC, and their proprietary U.S. Patent Citation database~61,000 patent families [from ~70 patent authorities]

“Nano”: Illustration[Nanoscience & Nanoengineering R&D]

Global LevelNational LevelCompany Level

Innovation Mapping: Topical Emphasis TrendsGlobal Nano Patents,1990 – (partial-year 2006)

Georgia Tech TPAC / CNS-ASU patent analysis; refined nano definition; results subject to revision

Innovation Mapping: Nano Geo-Districts

Georgia Tech TPAC / CNS-ASU Analysis of SCI Publications; refined nano definition; results subject to revision

Cumulative Nano Publications (Science Citation Index)

0

20000

40000

60000

80000

100000

120000

140000

160000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006est.

EU27USJapanChinaGermanyAsian Tigers

Science Citation Index Nano Articles, 2005: Data Differences to Beware

All Authors First AuthorEU27 31.0% 26.4%US 25.4% 21.8%Japan 11.1% 9.5%China 17.6% 16.5%Germany 8.8% 6.2%Asian Tigers 9.6% 8.5%

“Aged” Nano Citations in 2000 and 2004 relative to Nano Articles (1st Author)

Quantity vs. quality

• The US leads in “quality”

• China is the third largest publication producer[now ~#1]

• Quality of China’s publications is not comparable with quantity

0

2

4

6

8

10

12

14

16

18

0 10 20 30 40 50 60 70 80 90 100

Publications, in thousands

Citation Rate

USA

Japan

China

Germany

France

UK

Italy

South Korea

Russi

India

Accumulated publications and citation rates, 1990-2006

Analysis of SCI Publications 1990-2006; refined Georgia Tech nano definition; see Porter et al., 2007; count for 2006 extrapolated

EI Compendex Nano Publications – 7 Target Areas by Country/Region

0

2000

4000

6000

8000

10000

12000

14000

EU USA China Japan SEAsia

Tigers

India

ChemistryEnergyElectronicsOpticsMedicineMedical MaterialsEnvironment

Innovation Mapping: What type of organizations are patenting?

Universities43%

Others22%

Firms19%

Government Institutes16%

Universities6%

Others38%

Firms52%

Government Institutes4%

US

Firms dominatingChina

Universities and Gov’tinstitutes dominating

Analysis of SIPO and USPTO patents 1990-2006; refined Georgia Tech nano definition; see Porter et al., 2007; count for 2006 extrapolated

Innovation Mapping: Patent Aims along the Value Chain[by Simone Alencar and Adelaide Antunes, UFRJ]

Main IPC [# patents] Main uses description in the nanopatents

Position along the Nano Value Chain

H01L-Semiconductor Devices; Electric Solid State Devices Not Otherwise Provided [2870]

• Electron device • Semiconductor device • Solar cell

• Nanointermediate • Nanointermediate • Nano-products

C01B-Non-Metallic Elements; Compounds Thereof [2716]

• carbon nanotube • fuel cell • catalyst

• Nano-raw material • Nano-products • Nanointermediate

A61K-Preparations For Medical, Dental, Or Toilet Purposes [1863]

• Cancer (treatment, medication) • Cosmetics • drugs

• Nano-products • Nano-products • Nano-products

B82B-Nano-Structures; Manufacture Or Treatment Thereof Chemistry [1615]

• Carbon nanotube • Electron device • catalyst

• Nano-raw material • Nanointermediate • Nanointermediate

Innovation Mapping: Nano Research Co-authoring Network for a small firm-- via a university-- to other universities and government labs[from Jue Wang, PhD Dissertation, Georgia Tech, 2007]

Pajek

GLOBAL MAP OF SCIENCE

Neurosciences

Computer Sciences

GeoscienceAgriculture

Ecology

Biological Sciences

Chemistry

Physics

Engineering

Environ. Sci.

Materials Sci

Infectious diseases

Clinical medicine

General medicine

Leydesdorff&Rafols (2007, submitted)

Pajek

Quantum Dot1995Size (area) of nodes is proportional to:Size (area) of nodes is proportional to:

Log (1+Number of citations per category)Log (1+Number of citations per category)RafolsRafols

Map of Science

Pajek

Quantum Dot2005

Rafols

Map of Science

Co-citation Map (piece): Nano in

SSCI

Wood, S.Wood, S.

Wilsdon, J.Wilsdon, J.

Whitesides, G.Whitesides, G.

Smalley, R.E.Smalley, R.E.

Singer, P.A.Singer, P.A.

ROCO MCROCO MC

Renn, O.Renn, O.Nordmann, A.Nordmann, A.

Joy, B.Joy, B.

Jones, R.Jones, R.

DREXLER KEDREXLER KE

Mnyusiwalla, A.Mnyusiwalla, A.

Daar, A.S.Daar, A.S.

Crichton, M.P.Crichton, M.P.

CRANDALL BCCRANDALL BC

dge, W.S.dge, W.S.

Arnall, A.H.Arnall, A.H.

Kurzweil, R.Kurzweil, R.

10 Tech Mining Cases1. Innovation & Application: Ceramic coatings for engines

(Army)2. Hazardous Substances Data Bank: Import to facilitate

knowledge discovery and database management (NLM)3. NSF Proposal Assessment/EPA STAR Research Evaluation4. Measuring research Interdisciplinarity (National Academies)5. Self-profiling one’s organizational strengths & gaps (GT)6. Generating ST&I Indicators (Sao Paulo)7. Combining empirical & expert data: Plastic molding

technologies to assess relative R&D priorities (UFSC)8. Life Cycle Positioning Analyses: Nanopatenting (UFRJ)9. Tracking Media coverage of an R&D organization (Embrapa)10. Geo-mapping based on text and data mining

Polymer Biomaterials : fibrous structural proteins : skin1991-1997 (68 patents)

Polymer Biomaterials : fibrous structural proteins : skin1991-2005 (470 patents)

[Literature-Based Discovery for Open Innovation

1. Specify the initiating challenge (innovation opportunity “A”)[Classic case: Swanson pursuing Raynaud’s Disease]

Note key attributes2. Search the literature (&/or patents)

Profile the core and fringe topical themes (related factors “B”)Expert assessment of best prospects[Raynaud’s associated with blood viscosity changes]

3. New, independent Literature search on B1 (also possibly B2,…)Profile the promising elements (“C1, C2 , C3, …”)Expert assessment of interesting prospects (considering key attributes of “A”)Vetting that C1 has not been previously explored (check literature & patents)[Raynaud’s case: blood viscosity lowered by eicosapentaenoic acid, not previously explored as treatment]

4. Investigate potential of C1 to resolve the initiating challenge (“A”)

SummaryOpen Innovation depends on effectively exploiting external research knowledgeTreat text like Data – Mine it for patterns!Patterns speak to innovation prospects: maturation, contextual forces, market prospectsAnswer “who, what, where & when”Innovation Management questions for business decision processes

Open Innovation “Machine” in practice at a Fortune 50 Company

• Implement Tech Mining – “treat text like data”[apply VantagePoint and other ‘mining’ tools]

• Standardize data, analyses & information presentationsScript to expediteMake better innovation decisions for competitive advantage!

Resources• Tech Mining by Alan Porter and Scott Cunningham,

Wiley, 2005

• www.theVantagePoint.com- the software- various “News” on text mining of S&T- in Spain, contact Triz XXI, Fernando Palop

[fpalop@triz.es]

• +1 770 441 1457

• aporter@searchtech.com