Possibilities and Benefits of Possibilities and Benefits of International Collaboration for International Collaboration for
Innovative CompaniesInnovative Companies
Martin Wassell
Managing DirectorEuropean Institutes
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
Early Marke
t
Death Valley
Bowling Alley
Tornado Main Street (Early)
Main Street (Mature)
Main Street (Declining)
Fault Line
End Of Life
Indefinitely Elastic Middle Period
Frontier Research
ApplicationInnovation
ProductInnovation
ProcessInnovation
Value ChainInnovation
Business ModelInnovation
StructuralInnovation
Time
Revenue G
row
th
What is an Innovative Company?What is an Innovative Company?
1
23
4
Young Innovative Company (YIC) – less than 15 years old and spend at least 15% of expenditures on R&D
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
Why Collaborate ….. Internationally?Why Collaborate ….. Internationally?
Access the best suppliers,
distributors and customers?
Develop product, process
and service solutions?
Scale up to access markets
National and International?
Maximise product
lifespan and profit?
International expertise for concept
Development and market compliance
International markets through
large customers, best suppliers and dist.
Best in class R&D and technology
development
Customer, supplier and distribution
Networks for rapid market access
Extended product, process or service life
market acceptance and penetration
Innovation Barriers International Benefits?
Access the best suppliers,
distributors and customers?
Develop product, process
and service solutions?
Scale up to access markets
National and International?
Maximise product
lifespan and profit?
International expertise for concept
Development and market compliance
International markets through
large customers, best suppliers and dist.
Best in class R&D and technology
development
Customer, supplier and distribution
Networks for rapid market access
Extended product, process or service life
market acceptance and penetration
Access the best suppliers,
distributors and customers?
Develop product, process
and service solutions?
Scale up to access markets
National and International?
Maximise product
lifespan and profit?
Select the best opportunity
and balance risk/reward?
Access the best suppliers,
distributors and customers?
Develop product, process
and service solutions?
Scale up to access markets
National and International?
Maximise product
lifespan and profit?
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
CooperationCooperation€€32,36532,365
CapacitiesCapacities€€4,2174,217JRCJRC
€€1,7511,751
IdeasIdeas€€7,4607,460
EuratomEuratom€€2,7512,751
PeoplePeople€€4,7284,728
€1.4Bn1. Thematically unrestricted2. 100% cost reimbursed3. Excellent cash flow
€1.4Bn1. Thematically unrestricted2. 100% cost reimbursed3. Excellent cash flow
FP7 An Opportunity for CollaborationFP7 An Opportunity for Collaboration
6,050
1,935
9,110
3,500
2,300
1,900
4,180
6102,780 Health
Food
IST
NMP
Energy
Envt
Transport
SSH
Sec and Space
Open InnovationOpen Innovation …and the Smart Use of Public …and the Smart Use of Public FundingFunding
Developing the Value of New
Ideas
95% of Costs Paid for by
the EC
International Distribution
Network
Creation of Full Value
Chain
1 2 3 4 5 6
Access to World Class
R&D Resources
Develop Key Customer
Relationships
The DNA of Successful International Business The DNA of Successful International Business DevelopmentDevelopment
How This Programme Supports How This Programme Supports International CollaborationInternational Collaboration
Developing the Value of New
Ideas
95% of Costs Paid for by
the EC
International Distribution
Network
Creation of Full Value
Chain
1 2 3 4 5 6
Access to World Class
R&D Resources
Develop Key Customer
Relationships
How This Programme Supports How This Programme Supports International CollaborationInternational Collaboration
The DNA of Successful International Business The DNA of Successful International Business DevelopmentDevelopment
CustomersCustomers
CompetencesCompetences
Developing The Value of New Ideas!Developing The Value of New Ideas!
QualityQuality
CostCost
DeliveryDelivery
PerformancePerformance
FlexibilityFlexibility
FunctionalityFunctionality
Customer RelationshipCustomer Relationship
Developing The Value of New Ideas!Developing The Value of New Ideas!
EC funding is about creating sales, wealth …and high value jobs!
Developing the Value of New
Ideas
95% of Costs Paid for by
the EC
International Distribution
Network
Creation of Full Value
Chain
1 2 3 4 5 6
Access to World Class
R&D Resources
Develop Key Customer
Relationships
Developing the Value of New
Ideas
95% of Costs Paid for by
the EC
International Distribution
Network
Creation of Full Value
Chain
1 2 3 4 5 6
Access to World Class
R&D Resources
Develop Key Customer
Relationships
The DNA of Successful International Business The DNA of Successful International Business DevelopmentDevelopment
How This Programme Supports How This Programme Supports International CollaborationInternational Collaboration
The Value PropositionThe Value Proposition
Develop the value & differentiation of new offering ideas
Provide access to experts to outsource/co-deliver the R&D
Develop your idea into a commercially validated prototype
Build new technical capabilities into your value chain
Develop new market access & customer relationships
Create 95% cost leverage for you with no dilution of IPR & equity
Cost Leverage PotentialCost Leverage PotentialWhen You Carry Out Part of the R&DWhen You Carry Out Part of the R&D
Smart Use of Public funding
R&D Partner 1University
R&D Partner 2
SME
R&D Partner 3
SME
R&D Partner 4Large Firm
R&D Partner 6
SME
R&D Partner 5
Research Inst
You
Total Project €3,500k costs €2,500k grant
71 % reimbursed
€500k costs €375k grant
75% reimbursed
€500k costs €375k grant
75% reimbursed€500k costs
€375k grant 75% reimbursed
€500k costs €375k grant
75% reimbursed
€500k costs €375k grant
75% reimbursed
€500k costs €375k grant
75% reimbursed
€500k costs €250k grant
50% reimbursed
R&D Partner 1University
R&D Partner 2
SME
R&D Partner 3
SME
R&D Partner 4Large Firm
R&D Partner 6
SME
R&D Partner 5
Research Inst
You
Total Project Effort Secured €3,500k
€155k of your costs, leverage €3,500k of R&D creating IPR for you at 95% leverage
Cost Leverage PotentialCost Leverage PotentialWhen You Outsource the R&DWhen You Outsource the R&D
Smart Use of Public funding
Supply Partner 1
SME
Supply Partner 2
SME
Supply Partner 3
SME
Customer Partner 4Large Firm
Distributor Partner 6
SME
DistributorPartner 5
SME
You
Total Project €1,500k costs €1,125k grant
75 % reimbursed
R&DR&DPerformer 1Performer 1Research InstResearch Inst
R&DR&DPerformer 1Performer 1Research InstResearch Inst
€1,125k grant pays R&D service provider costs
€375kof SME costs Split 7 ways
€53k each
R&D Partner 1University
R&D Partner 2
SME
R&D Partner 3
SME
R&D Partner 4Large Firm
R&D Partner 6
SME
R&D Partner 5
Research Inst
You
Total Project Effort Secured €3,500k
€80k of your costs, leverage €1,500k of R&D creating IPR for you at 95% leverage
R&DR&DPerformer 1Performer 1Research InstResearch Inst
R&DR&DPerformer 1Performer 1Research InstResearch Inst
EC Expertise
Control of IPR
Co-Investment
Route to Market
The Experts Available Through the The Experts Available Through the ProgrammeProgramme
No Cranks or Tyre Kickers!No Cranks or Tyre Kickers!
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
EurostarsEurostars
A Eurostars project European research and development projectAddress any technological area
• development of a new product, process or service
Collaborative – minimum of 2 participants from 2 different Eurostars participating countries
Main participant must be a research-performing SME from one of these countries
Project should be market-driven with a maximum duration of 3 years
Within 2 years of project completion• product of the research should be ready for launch onto the
market (except biomedical or medical projects, where clinical trials must be started within two years of project completion)
First deadline – 8th February 2008
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
“With this new alternative to invasive surgery, we see our market growing to over €100m. A key element of success was the access
to R&D skills that we don’t have internally.”
Andrew Lewis, Technical Director, Biocompatibles Ltd
Improved Functionality Improved Functionality Enables Pain ReliefEnables Pain Relief
Uterineartery
Polyvinyl Beads
Fibroid
Eluted drug
The project allowed us to investigate novel surface features to allow earlier product fixation resulting in the potential for implant longevity.
Alan Taylor CEO, Finsbury Ltd
Improved Product Function Improved Product Function Improves Patient OutcomeImproves Patient Outcome
This technology represents a major part of our product development programme for the next 10 years
Allen Ritchie VP R&D DePuy plc,
Decision Support Software Improves Decision Support Software Improves Flexibility For Orthopaedic ImplantsFlexibility For Orthopaedic Implants
AgendaAgenda
What is an Innovative Company?
Why Collaborate …. InternationallyBarriers to InnovationBenefits of International Collaboration
International Collaboration for Innovation Framework Programme 7Eurostars
Case Studies
Questions
Thank YouThank You
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