Innovation and Commercialization

1
Innovation and Commercialization

• Andrew Maxwell MBA P.Eng.
• Director Business Partnerships
• Canadian Innovation Centre
• Waterloo
• Ontario

2
Innovation and Commercialization

• Confusion arises between the terms because they
  are used interchangeably
• Such confusion is systemic of the problems faced
  in this area, as there is a lack of agreed
  definitions and understanding of the process
• Thus it is not surprising then solutions to the
  problem may not be optimal or consistent with
  each other as neither the problem or the outcome
  required are well defined

3
Our definition

• Innovation is change that creates a new
  dimension of performance.
• Commercialization is the process of creating
  something new with value by devoting the
  necessary time and effort, assuming the
  accompanying financial, psychic (physical) and
  social risks, and receiving the resulting rewards
  of monetary and personal satisfaction and
  independence.

4
Four underlying assumptions

• Commercialization
• is a process that occurs in the private sector
• requires an understanding or anticipation of
  customers requirements
• involves risk taking and reaping appropriate
  rewards
• requires the assembly of resources to develop the
  solution and deliver it to the customer

5
There seems little doubt that commercialization
is important

• Enhanced labour, capital and technology progress
  are the three key drivers of wealth creation
• Discussions of US economic competitiveness often
  focus on the creation of new technologies, but
  the evidence indicates that the key factor
  underpinning US competitiveness is not the
  development of technology, but the factors that
  influence the commercialization of technology
• Rosenberg, Landau, and Mowery Boskin, and Lau
  1992

6
Using a quality improvement process to identify
improvement opportunities

• A four step approach
• Understand the process
• Align the stages of the process
• Focus attention on the stages in the process
  which have the biggest impact or opportunity for
  improvement
• Identify specific opportunities for process
  improvement and share results

7
Understand the process

• Develop a shared understanding of the technology
  commercialization roadmap
• Understand the factors (inputs, moderators and
  mediators) that influence the rates of
  commercialization - positively or negatively
• Develop measurement systems, for each stage of
  the process, to identify opportunities for
  improvement and record the results
• Facilitate the removal of constraints that
  inhibit the transfer of ideas from one stage of
  the process to the next

8
Align the stage of the process

• Understand the linkages in the process,
  recognizing that the output from one stage is
  the input for the next
• Understand the overall objectives of
  commercialization (wealth creation) and foster
  activities that will enhance this outcome
• Use measurements of commercial success to drive
  the proceeding processes, rather than the reverse
  having input factors drive outputs
• Identify inputs that affect the overall process
  quality and inputs that affect a single process
  stage, in order to facilitate overall process and
  individual stage improvements

9
Focus attention on stages in the process which
have the biggest impact

• Understand market place success (understanding
  technology / market need not necessarily
  inventing technology)
• Understand the impact of context and culture on
  the process and how these can be modified to
  increase success rates
• Identify where government should play a role and
  where they should not especially how
  interfering in one stage distort the process
• Look at the benefits of both creation of new
  technology commercialization opportunities and
  their adoption

10
Identify opportunities for process improvement
and share results

• Identify and incent academics and practioners
  with commercialization experience to share their
  knowledge/experience
• Create infrastructure to foster collaboration and
  resource/knowledge sharing between the experts
  and with others
• Establish standard commercialization processes
  definitions and measurements to improve
  performance measurement
• Enhance commercialization rates through improved
  process understanding and increased awareness of
  the opportunities for improvement