M·CAM – The Operating System for the Fusion Economy™ © 2007 Resilient Innovation for Economic...

M·CAM – The Operating System for the Fusion Economy™ © M·CAM – The Operating System for the Fusion Economy™ © 20072007

Resilient Innovation for Resilient Innovation for Economic TransformationEconomic TransformationResilient Innovation for Resilient Innovation for

Economic TransformationEconomic TransformationInnovation: The Role of Business Incubation

Hanoi University of Technology

Hanoi, Vietnam

October 3-5, 2007

Dr. David E. Martin, CEO M·CAM

Batten Fellow, Darden Graduate School of Business Administration, University of Virginia


Modern Innovation ParadigmModern Innovation Paradigm

Russia’s Sputnik satellite (50 years ago) and Japan’s semiconductor market dominance (30 years ago) shook science & technology complacency of the West

1960’s – Vast nationalization of R&D funding

1980’s – Creation of intellectual property R&D trade barriers


U.S. Bayh-Dole Act of 1980U.S. Bayh-Dole Act of 1980

Stimulated vast monopoly holdings in the form of patents and intellectual property

Triggered extensive equity speculation

Created huge stockpiles of “innovation” with NO market

Over 90% of all patents from publicly funded R&D never put to commercial use

Most IP&R from industry abandoned prior to expiration of patents


Policies Lack Industry Policies Lack Industry RealityReality

Majority of innovation succeeds by large enterprise merger & acquisition deployment – NOT THROUGH BUILDING LONG TERM BUSINESSES

Note: Countries without large legacy companies have little to gain from building small & medium sized technology companies for global market distribution

Compare investment flow Seed capital into technology – US$ 2 billion

M&A capital into consolidation – US$ 8 trillion

Mature equity markets require investment returns prior to technology deployment life cycle


What has worked?What has worked?

Governments preferentially purchase from SME’s rather than invest in themSharp silicon solar photovoltaics in Japan

IBM – U.S. government purchaser

Oracle – launched from a CIA commercial project

Purchases are at or above global market rate but selected because of strategic industry incentive


How does Asia-Pac compete?How does Asia-Pac compete?

Majority of trained scientists and engineers between Beijing and Delhi

Over-patenting in the West has created useless, anti-growth barriers which do not have foreign equivalentsAsia-Pac can exploit Global Innovation

Commons filled with geographically limited IP&R

Linking researchers with collaboration platforms can put best ideas in hands of best collaborators for non-legacy economies


Immediate ActionsImmediate Actions

Governments and Agencies purchase rather than “invest”$1 invested is $1 added to economy

$1 from purchase by a recognized customer can be leveraged to $3-5 in debt financing or $10 in equity

Buying from SMEs and SME networks builds economies, not just a single enterprise

Buyer networks can be facilitated by governments and NGOs


Leverage 30 years of excessLeverage 30 years of excess Vietnamese Ministry of Education & Training could

institute require reading of patents to teach how others solved technical challenges to learn successful solution frameworks

Asia-Pac governments can build laws encouraging trade networks built on innovation rather than building barriers such as anti-monopoly regulations U.S. and European Anti-Trust Laws prohibit many

patent pooling efforts – these laws are outdated due to excessive patenting activities on incremental innovations

Incubation can focus on Collaboration Networks and licensing pools rather than individual enterprise creation


New Asia-Pac EraNew Asia-Pac EraCompeting for the next scientific advance –

not the lowest labor costBuild networks of commercial

interdependence rather than proprietary isolationism

Focus on global challenges – sustainable quality of life rather than material consumables:Water, bio-energy, sustainable agriculture,

distributed information networks, communication, education


How does this work?How does this work?


Knowledge NetworkKnowledge NetworkL

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Global Innovation CommonsGlobal Innovation Commons

LocalKnowledge

DomesticPatents

DomesticPatents

ForeignPatents

ForeignPatents

AbandonIPR

AbandonIPR

AbandonIPR

AbandonIPR

PotentialPartners

PotentialPartners

PotentialPartners

AbandonIPR

PotentialPartners

CompetitorAgreement

CompetitorAgreement

ForeignPatents

AbandonIPR

AbandonIPR

InnovationCommons

1. Qualify global position & market2. Leverage existing knowledge networks3. Identify affinity innovators & challenges4. Seed “new” challenges to affinity

innovators


Case StudyCase StudyWind Technology from Hanoi VietnamWind Technology from Hanoi Vietnam

Possible Commercial Partners

Known Commercial Efforts


Making Markets and NetworksMaking Markets and Networks


Instant Market Viability Instant Market Viability AssessmentAssessment

Third Party Research and Commercial Markets Here


Fusion NetworksFusion NetworksGrassroots synergy – no person is

alone

Fusion networks built by proven capability to innovate

Improved by collaboration evidence (willing to share for a common good)

Grow using “guided innovation” where networks are united around common problems

M·CAM – The Operating System for the Fusion Economy™ © 2007 Resilient Innovation for Economic...

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