Open innovation: a company perspective:

1
Open innovation a company perspective

• OECD NESTI-TIP Workshop
• Innovation Indicators for Policy Making and
  Impact AssessmentParis June 13th

2
It is not about.The Dutch Private RD
flatline 1970-2005
3
Agenda

• Introduction of NXP
• The need for open Innovation
• Open innovation at NXP and how NXP measures open
  innovation
• Suggestions for indicators

4
NXP Semiconductors Reborn and Renewed

• Spin-out of Royal Philips Electronics
  Semiconductor Division
• 2 in Europe, Top-10 global supplier
• Sales of 4,960 Bln. in 2006
• Investing 1 Bln. in RD annually
• 38000 employees
• 83 of our engineers are in Europe
• 25,000 patents
• Innovation Centers in Austria, France, Germany,
  Netherlands, UK
• We have the ambition to become a top 5
  semiconductor company

5
Resulting in top positions in key marketsA few
compelling examples

• Automotive
• Every major car maker in the world carries a NXP
  chip
• 1 in car radios
• Identification
• 1 in NFC technology
• 1 in RFID solutions, with more than 1.5 billion
  ICs shipped
• More than 80 of the worlds e-passports use our
  Chips
• 80 of all electronic tickets in public transport
  carry NXP solution (London, Sao Paolo, and 80
  cities in China)

• Mobile
• 1 in complete system solutions for mobile
  handsets
• More than 200 million Nexperia cellular system
  solutions shipped
• All speakers worldwide in all mobile phones are
  from NXP
• Home
• 1 out of in 2 TVs worldwide carries an NXP Chip
• 4 in 10 PC TVs uses our silicon tuners
• MMS
• 1 in 2 laptops uses our GreenChippower supply
  controller
• 1 in interface products

6

• The Need for Open Innovation

7
RD costs rise exponentially
20 of rev
12 of rev
8
More than Moore Diversification
Technological roadmap
Sensors Actuators
HV Power
Analog/RF
Passives
Biochips
Interacting with people and environment Non-dig
ital content System-in-package (SiP)
Miniaturization more Moore
Baseline CMOS CPU, Memory, Logic
Information Processing Digital
content System-on-chip (SoC)
Combining SoC and SiP High Value Systems
Beyond CMOS
9
Innovation is about people

• Talent is key for innovation
• Talent is attracted by an inspiring and
  stimulating environment, both in terms of
  research and business topics as in the physical
  environment
• Open innovation is a very important magnet.

10
The High Tech Campus Eindhoven

• Technical facilities, such as
• Cleanrooms, chemistry and physics laboratories
  rooms in shell form
• Specialised equipment rental

• Non-technical facilities, Restaurants and cafés,
  Shops Campus Wellness Center, Child Care Center,
  Outdoor sport facilities (tennis, soccer,
  basketball, petanque etc)

11
To sum up why open innovation?

• Hardware factors
• RD costs
• Fragmented industry
• Time to market
• Software factors
• multiple application domains
• Multi-complex innovation environment
• Mindware factors
• Innovation is about people, open innovation
  inspires and challenges

12
Open Innovation at NXP
13
NXP general open innovation principles

• Overall principle create a win-win situation for
  partners involved
• Objectives are to
• Leverage scale and investments
• Leverage expertise and know how of partners
• Reduce time to obtain knowledge and support NXP
  own competence buildup in selected area's
• Gain early insight/Scouting/pathfinder
  function/first screening
• Open innovation is a hybrid phenomenon
• The model differs depending on the type of
  research and the partner
• It is easier to co-operate on developing new
  methodologies and technologies than on developing
  new differentiating IP.
• Open innovation with partners in the value chain
  is easier than co-operation with competitors

• Dont be to open or your brains may fall
  out A good IP agreement is essential to let
  open innovation work

14
Working with institutes the Holst center

• International open RD centre, founded by IMEC
  and TNO
• Creating generic technologies for wireless
  autonomous transducer solutions and for
  systems-in-foil
• In program partnership with industry and
  universities, clear business model

Company Y entrance fee participation fee

• Precompetitive programme
• shared IP

Company X participation fee
Holst background research
Access to relevant Holst background IP
15
How does NXP measure open innovation?

• Typical indicators involve
• Invention Disclosures
• Patent Applications
• Confirmed transfers to business and product lines
• Papers at selected conferences
• Papers at selected peer reviewed journals
• People leverage
• For open innovation similar success indicators
  are used as for proprietary innovation
• Only the expected effects are often a factor 5
  times higher!

16
Routes for Indicators
17
Open Innovation program Point One

• Vision
• Create a world class ecosystem (like Silicon
  Valley) on nano-electronics and embedded
  systems, based on unique position of the
  Netherlands (ASML, NXP, Philips)
• Mission
• Create outstanding academic, industrial and
  institutional RD infrastructure (ecosystem)
• Actions
• RD programs
• Open institutes
• Human Capital
• SMES

18
Zero base measurementApproach

• Defined a set of 14 indicators (some clear cut
  economic, some about mobility, some about
  reputation)
• Than use different research methods and data to
  fill in the picture. We have used
• Standard statistics
• Analysis public funding databases (RD
  cooperation)
• Survey among companies (RD, expectations,
  knowledge workers)
• Interviews companies and research institutes
  (context, expectations, RD)
• Simple patent analysis
• Market analysis (public sources, Gartner)
• Expert opinion
• International benchmark with other regional
  hot-spots in same technology domain
• Overall this combination of existing data
  (collected for other purposes) and own data
  provides a reliable snap-shot

19
And on the indicator level

• Some indicators are basically impossible to
  measure
• Mobility of knowledge workers
• Reduction time to market
• Attractiveness/trust
• Current statistics on turn-over, export, RD etc
  are not relevant for global operating companies,
  it doesnt tell you much about there decisions
• More info available at www.technopolisgroup.com

20
Suggestion size down

• Hardware
• Data on RD activities of multinationals cross
  border DTI and EU scoreboard are good starting
  points
• Softwarenetworks
• How do we measure trust?
• Interregional networks
• Mindware data on people
• Brain circulation mobility of RD personal
  across borders
• Industry PhDs
• Why do people want to work somewhere (location
  factors of knowledge workers)?

21
(No Transcript)