accelerating innovation at purdue presentation v3.1

RAGU ATHINARAYANAN ED MORRISON FEBRUARY 11, 2014

ACCELERATING INNOVATION PURDUE’S INNOVATION ACCELERATION NETWORK

1

The Purpose of the Presentation

Propose a pathway to monetize Purdue’s assets in new ways

The Innovation Gap at Purdue!Strengthening Purdue’s Innovation Ecosystem!

!

The Fraunhofer Connection !Insights from the Global Leader in Applied Research!

!

Purdue’s Innovation Acceleration Network!Using “Link and Leverage” Networks to Monetize Purdue Assets in New Ways!!

Launching the Network !Defining “next steps” to implementation

Overview

The Gap in Purdue’s Innovation Ecosystem

9

8

7

6

5

4

3

2

1Purdue Research System

Purdue TAP

Basic Technology Research

Feasibility Research

Technology Development

Technology Demonstration

System & SubsystemDevelopment

System Test, Launch& Operations

Technology Readiness Levels

Time to Market

Mid term: 6-18 months

Short term: 0-6 months

Long term: 18-48 months

Gap

The Gap in National Innovation Ecosystem

Source: Conrady, C. and Carrick, G., !“American Manufacturing Innovation Network”

Structural problem requires a structural solution

Universities, NSF Centers, Federal Labs •  High-risk research •  Long time horizon

•  Not focused on shop floor implementation

Industry, NIST MEP

•  Incremental improvement •  Off the shelf technology

•  Short time horizon

Time to deployment

Tech

nica

l Inn

ovat

ion

Best Practices

Basic Research/ Education

Manufacturing Technology Innovation

Missing Middle •  Manufacturing technology

innovation, maturation, commercialization, insertion

•  Medium time horizon •  High impact

The Gap

The Gap in an International Context: The UK

Source: Hauser, H., The Current and Future Role of Technology Innovation Centres in the UK (2010).

The Gap

Filling the Gap: Expanding Market-Facing Research

Technology Readiness Levels 1-5

MoneyTechnology

Technology Readiness Levels 5-9

Purdue’s Research System

Purdue’s Engagement System

Government funds this part of the cycle

Industry funding drives this part of the cycle

The Gap is here

Filling the Innovation Gap will strengthen horizontal ties across Purdue’s colleges and vertical ties to the market economy:!

Filling the Gap: Horizontal and Vertical Connections

Filling the Gap

x.y<process name>

<pro

cess

na

me>Strengthen

vertical ties with industry

Strengthen horizontal ties across

Purdue

9

87

6

5

4

3

2

1Basic Technology

Research

Feasibility Research

Technology Development

Technology Demonstration

System & SubsystemDevelopment

System Test, Launch& Operations

Technology Readiness Levels

Engineering133.4

Agriculture61.6

Science61.6

Health26.7

Veterinary13.4

Pharmacy11.6

Technology9.4

Liberal Arts5.7

Education3.7

Rese

arch

Foc

us Appl

ied

Basic

Market Economy

Purdue's Engagement System: Engaged Research

Purdue's Extramural Research Awards, 2011-2012 (in $millions)

Other18.6

Purdue's Research System: Academic Research

Start-up firms Investor networks

Colleges and universities

Skilled talent pool

Innovating Growth

Companies

Provides ideas, incubators

and smart people

Provides capitaland expertise

Recruits smart people

Recruits and trains smart people

Provides networkand mentoring to

start-ups

Provides R&D partners

Recruits and supplies

smart people

Provides investment

and generates wealth

Provides technology support and training

Acceleratesnew venture investment

Source: Ed Morrison

Universities Operate Within EcosystemsStartup Ecosystem

Innovation Ecosystem

Purdue’s Startup Ecosystems

Purdue’s Startup Ecosystem

Technology Talent

Intellectual Property

University Innovation Inputs

+Business Model and

Lean Start-up Frameworks

+Business Formation and

Support Networks

=More Growth

Spin-out Companies

Purdue’s Innovation Ecosystem

Small and Medium Sized Companies

with Growth Potential

+Bundled Innovation

Management Frameworks and Tools

+Purdue and Corporate

Partner Teams

Existing

Existing

New

New

Technology

Markets

Efficiency Innovation

-Market Penetration

Sustaining Innovation

-Product Extension

Transformative Innovation

-Product Market Diversification

Sustaining Innovation

-Market Extension =

More Growth

Accelerating innovation among Indiana companies


Ecosystem Strategic Focus Existing Anchors Primary Customers Outcome Metrics

Purdue Entrepreneurship Ecosystem

Producing start-ups from Purdue technology

Purdue Foundry Purdue research faculty

Number of Purdue start-ups

Purdue Innovation Ecosystem

Accelerating innovation in existing companies using technology and innovation management tools

Purdue TAP !

Purdue Extension!

High growth SMEs and Consortia of industrial firms facing a common innovation challenge

Revenues coming from improved and new products and services

Two Purdue Ecosystems for Development


Purdue’s Startup

Ecosystem

PurdueFoundry

PurdueResearch

Foundation

DiscoveryPark Purdue

TAP

PurdueExtension


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Overview

Purdue Innovation Ecosystem: Fraunhofer as Partner

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To determine how to fill the Innovation Gap, a Purdue team explored Fraunhofer as a model. !!

Now the largest applied research organization in Europe!Applied research, technology licensing (e.g., mp-3 format), and spin-out companies!Similar to (but about 10X the size of) SRI International (formerly Stanford Research Institute)

Purdue Innovation Ecosystem: Fraunhofer as Partner

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Applied Research

Basic Research

Predominantly public Predominantly private

Characteristics of Research

Funding

Federal/German Länder Institutes

HGF

WGL

Universities

Industry (internal and

external expenditures)

AiF

MPG

HGF! Hermann von Helmholtz-Gemeinschaft! WGL! Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz! AiF!Arbeitsgemeinschaft industrieller Forschungsvereinigungen! MPG! Max-Planck-Gesellschaft

Source:: Fraunhofer

The Gap

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nThe world’s largest applied and most successful applied technology agencies!

nOver 80 institutes and centers!nMore than 22,000 employees: 4,000+

PhD’s!nAn annual research volume of €1.9 billion!

n70% of this research revenue competitive and market-facing. !

n30% is contributed by government in the form of matching funds.

München

Holzkirchen

Freiburg

Efringen-Kirchen

FreisingStuttgart

PfinztalKarlsruheSaarbrücken

St. IngbertKaiserslautern

DarmstadtWürzburg

Erlangen

Nürnberg

Ilmenau

Schkopau

Teltow

Oberhausen

Duisburg

EuskirchenAachen St. AugustinSchmallenberg

Dortmund

PotsdamBerlin

RostockLübeck

Itzehoe

Braunschweig

Hannover

BremenBremerhaven

Jena

Leipzig

Chemnitz

Dresden

CottbusMagdeburg

Halle

Fürth

Wachtberg

Ettlingen

Kandern

Oldenburg

Freiberg

Paderborn

Kassel

GießenErfurt

AugsburgOberpfaffenhofen

Garching

Straubing

Bayreuth

Bronnbach

Prien

Hamburg

Leuna

Fraunhofer: Global leader in applied research

Fraunhofer: Groups, Alliances and Networks

60+ institutes organized into 7 Groups…!

Information and Communication Technology!Life Sciences!Microelectronics!Light & Surfaces !Production !Materials and Components !Defense and Security

Multiple Alliances…

Adaptronics

Ambient Assisted Living

Building Innovation

Digital Cinema

E-Government

Energy

Food Chain ManagementAdditive Manufacturing

Cloud Computing

Advancer

Nanotechnology

Simulation

Optic Surfaces

Photocatalysis

Polymer SurfacesCleaning Technology

Water Systems

Traffic and Transportation

Vision

Automobile Production

Lightweight Structures

Embedded Systems

And global networks…

Design: !The model of innovation of the Fraunhofer Society can be described as a network model,…The network, together with a strong reputation, makes it fairly easy for small and big firms to establish a contact with the Society. !Drivers: !The Fraunhofer model allows the organization to set up new institutes where it sees a new market demand.

Åström, Eriksson, Niklasson and Arnold, International Comparison of Five Institute Systems (2008)

Fraunhofer: Design and drivers

“

“

“”

”


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Overview

The Central Idea: Achieve Scale with Coherence

Current Engagement System

a loose collection of components

Proposed Engagement System

achieve scale with more coherence and better communication


Purdue Innovation !

Acceleration Network

The Innovation Acceleration Network

As the Innovation Acceleration Network establishes itself across campus, it will bring coherence, speed, and “link and leverage” opportunities to expand industrial investment in Purdue’s market-facing research.

Purdue Core

Innovation Lab

(Core Lab)

(iLab) 1

iLab 2

iLabn

Innovation Acceleration Networkwith Market-Facing

Innovation Disciplines

University and College

CentersUnviersityUnviersityUnviersityUniversity

College1College

1

College2College

2College2

Colleges and Departments

CollegeCollege

CollegeCollege 1 Departments

ExistingEngagement

Networks

Purdue Extension

Purdue TAP

The Innovation Acceleration Network includes:!

• A core innovation lab; and!

• Multiple innovation labs (iLabs) for multiple theme areas. !

This network would:!!1. Increase market-facing industry research in

Discovery Park and across Purdue colleges and departments;!

2. Network more effectively to create an ecosystem with global partners conducting similar market-facing research;!

3. Create new multi-disciplinary learning opportunities for Purdue students locally and globally;

The Innovation Acceleration Network

Purdue Core Innovation Lab

(Core Lab)

Innovation lab

(iLab) 1

iLab 2

iLabn

The Core Lab will provide:!

1. External linkages to Fraunhofer innovation assets.-- With Fraunhofer build a shared pool of tools, frameworks, and expertise. !

2. Innovation acceleration across campus and Indiana.-- Link and leverage Fraunhofer assets around selective theme areas.!

3. New pathways for industry support.— Provide a new platform for collaborative research.

Functions of the Core Lab

iLab 3

iLab 2

Purdue Core Innovation Lab

(Core Lab)

iLab1

Purdue iLabs provide industry partners with:!

1. Customized, agile innovation infrastructure.-- Each iLab will design an lean infrastructure to rapidly meet an industry research agenda; !

2. Access to powerful innovation tools on demand.-- Each iLab will have a portfolio of the latest innovation tools, frameworks and training supported by the Core Lab;!

3. Access to researchers, faculty and students on demand.— Each iLab will be staffed by Purdue researchers, faculty and students with a background in the technologies of interest to the industry partner.

The iLabs Value Proposition to Industry

PPI core innovation lab

Innovation lab1

Innovation lab2

Innovation lab3

Industry support for iLabs will come in a variety of ways:!— Base funding commitments to each iLab!— Contract research!— Donations of equipment!— Unrestricted gifts from alumni

Proposed Innovation Ecosystem

Core innovation

lab

iLab1

iLab 2

iLabn

FraunhoferLicensing and

consulting fees

Innovation frameworks

and tools

Innovation

support

Industry partners

Industry partners

Fees

Innovation supportFees

Innovation support

Fees

Industry partners

Industry partners

Innovation support Fees

Purdue Innovation Ecosystem

Scaling Purdue’s Innovation Acceleration NetworkR

even

ues

in $

000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Year 1 Year 2 Year 3 Year 4 Year 5

Year 1 Year 2 Year 3 Year 4 Year 5Number of iLabs

Small ($100-200K) 2 5 10 15 25Medium ($300-500K) 0 1 2 5 10Large ($700-900K) 0 0 1 2 5

Core Lab ($1.5M-$3M) 1 1 1 1 1

• Potential Scale through franchising.— Deploying the network across campus and Indiana could increase industry support for Purdue research by $20 million to $25 million in 5 to 7 years.!

• Timing.— Revenue generation will accelerate as the network grows.!

• Drivers.— Success will depend on how many iLabs can be “franchised” by the Core lab.


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Overview

Launch of the Core Lab will take place in Year 1. Development of the Core Lab will occur coincident with the development of the first iLab. Configuration and launch of iLabs will be flexible, driven in part by industry expressions of interest.

Launching the Network: Strawman Schedule

Year 1 Year 2 Year 3

Core Lab

iLab 1

iLab 2

iLab 3

iLab 4

iLab 5

iLab 6

iLabs 7-13

Next Steps

The next steps to developing the Innovation Acceleration Network include:!• Workshop at Purdue.— Assemble a

core team to review this presentation and develop a set of detailed outcomes to engage with Fraunhofer.!

• Workshop at Fraunhofer.— Conduct a 1.0 to1.5 day workshop at Fraunhofer: !• Develop detailed specifications for Core

Lab and iLab.!• Draft agreement with Fraunhofer IAO on

design and management of the Network.!

• Preparation of detailed prospectus.— Prepare a business plan and investor prospectus for the Network.

Thank You

Ragu Athinarayanan!Department Head, Technology Leadership and Innovation !College of [email protected]!!Ed Morrison!Regional Economic Development Advisor!Purdue Center for Regional [email protected]!

mailto:[email protected]

accelerating innovation at purdue presentation v3.1

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