breakthrough technologies and open innovation -...
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Breakthrough technologies and Open InnovationValérie André, BASF Future Business GmbH Michael Koch, Science Relations and Innovation Management BASF SELudwigshafen, Germany
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Contents
Introduction BASF
Open Innovation History at BASF
Definition of Open Innovation
Partnership as a fundamental part of Open Innovation
Challenges of Open Innovation
Summary and conclusion
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Expenditures in research and development
Research is key to the future. New technologies and products help us to find solutions for global challenges.
22%
26%
12%
19%
10% 9%
1%
1%
Plastics
Functional Solutions
Performance Products
Chemicals
Agricultural Solutions
Oil & Gas
Other
Corporate Research
ca.€ 1.49
bn
2010 R&D expenditures circa €1.49 bn –world leader in the chemical industry
Since 2005 up to and including 2010: ca. 40% increase in R&D expenditures
Annual sales from product innovations*:
2010: over € 6 billion
2015 (target): € 6-8 billion
* new or improved products or applications, max. 5 years on market
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Central R&D Organization
Currently, ca. 9,600 R&D employees
Ca. 3,000 R&D projects and topics
R&D “Verbund” with ca. 1,900 collaborations
Universities
PolymerResearch
PlantBiotechnology
Research
SpecialtyChemicalsResearch
Chemicals Research & Engineering
BASF Research Verbund
Industry Partners
Research Institute
High-TechJoint Ventures
Thanks to our close cooperation with numerous partners from science and business worldwide, we have created an international and interdisciplinary Know-how Verbund.
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Innovation in five growth clusters
OLED
Fuel cell
Organic photovoltaic
Lithium-ion batteries
Thermoelectrics
More efficient agricultural practices
Healthier food
Plants as renewable raw materials
NanotechnologyEnergy Management
Plant Biotechnology
White Biotechnology
Raw Material Change
Biopolymers
Chemicals through biocatalysis and fermentation
Performance biologicals
Printed electronics
Nano materials
Paintings and coatings
Medical technical devices
Research on thesafety of nanomaterials
From oil to gas
Coal and renewable raw materials
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Growth Cluster Raw Material Change
The goal of the raw material change growth cluster is to enable BASF to replace or supplement oil, the conventional chemical raw material, with alternatives
GOALTo develop new technologies for entry into the existing value-adding chains
STRATEGY
Natural gasOil Coal Carbon dioxideBiomass
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Growth Cluster Plant Biotechnology
Crops with higher yields and higher resistance, e.g., drought-tolerant corn
6 – 10% higher yields under conventional cultivation conditions per product generation
First positive field trials – product submitted for registration
We help farmers to cover the growing demand for better agricultural productivity and healthier food for human and animal nutrition.
Example:
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Growth Cluster White Biotechnology
Fermentative production of vitamin B2 and enzymes for animal nutrition
Enzymatic production of chiral intermediates for the production of medicines and crop protectants
White biotechnology enables the efficient and resource conserving production of (bio)chemical products and the development of completely new bio-based products.
Example
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Contents
Introduction BASF
Open Innovation History at BASF
Definition of Open Innovation
Partnership as a fundamental part of Open Innovation
Challenges of Open Innovation
Summary and conclusion
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Open Innovation has already been practiced at BASF since the beginning
F. Engelhorn Theodore Coupier de Creil
~ 1867:F. Engelhorn obtains via licensing contracts from French chemist Theodore Coupier a better process for the production of fuchsine (without having to use arsenic) and later aniline, toluidine and induline. Source: Die BASF - Eine Unternehmensgeschichte, W. Abelshauser Verlag, C. H. Beck, 2002
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Indigo (1897)
Ammonia (1913)
Vitamine A (1963)
Strobilurins (1996)
Timm Anke, Wolfgang Steglich (University) Hubert Sauter (BASF)
Georg Wittig (University) Horst Pommer (BASF)
Hermann Staudinger (University) Carl Wolff (BASF)
Fritz Haber (University) Carl Bosch, Alwin Mittasch (BASF)
Adolf von Baeyer, Karl Heumann (University) Heinrich Caro (BASF)
Polystyrene (1930)
Break-through innovations by cooperation between science and industry
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Kresoxim-methyl
Strobilurin A from Strobilurus tenacellus
1977 Timm Anke, University Kaiserslautern
Discovery of Strobilurin A
Wolfgang Steglich, University Bonn
Structure of Strobilurin
2001 F 500 Sales Potential: 500 Mio. €
1983 BASF team develops Strobilurins as Fungicides
1995 Kresoxim-methyl
Successful University collaboration and breakthrough technology: Strobilurins
2008 Strobilurin Market: 2600 Mio USD
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Contents
Introduction BASF
Open Innovation History at BASF
Definition of Open Innovation
Partnership as a fundamental part of Open Innovation
Challenges of Open Innovation
Summary and conclusion
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Definition of OI for BASF today What it is (left) and what it is not (right)
Selling of a whole business (incl. IP) or business parts to re-center
on core competencies
Acquisition
Divestiture
Acquisition of whole companies or part of business to improve market access
via portfolio extensionOutside-inOutside IP / competency becomes BASF business / know-how
Inside-outBASF IP / competencycommercialized outside BASF
CoupledCooperation, Alliances, Joint Ventures, Cross-Industry Innovation
BASF internal Collaboration or IP Transfer
OPE
N IN
NO
VATI
ON
not p
erce
ived
as
OPE
N IN
NO
VATI
ON
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The Open Innovation landscape has become very large and complex
BASF internal (1) One Partner *
* Partners: Universities, Institutes, Customers, Suppliers, Competitors, Start-ups, etc.
(2) Several Partner * (3) Crowd *
coord. by BASF
Co-Location
Strategic Partnership
R&D Collaboration / Joint Development
Collab. Busi- ness Model
Cooperation along Value Chain
Strategic R&D Network
Scouting
Joint Venture
Intermediaries / Broker
Expert Networks
Corporate Idea Portal
Customer Innovation WSCross-Industry WS
Public Funded Projects
Licensing
Proprietary OI Platform
Collab. PlatformVenture Capital
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When is it necessary to look for an external partner ?
Core businessCore competencies
Existing markets
Core businessNew technologiesExisting markets
Non core businessNew technologies
New markets
Three main categories of activities leading to different options
One partner Several partners Crowd/Consortium
Increasing complexity
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Opportunities offered by Open Innovation
… accelerate time to market, especially in new business fields
… facilitate transition from products
to systems / solutions
…establish access to broad know-how &
talents across industries and along value chain
Open Innovation can help
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Open Innovation as key success factor for…
Source: Osram
Idea creationIdentification of new market trends
Including additional competencies
Speed up for bringing innovations to market
Identification of lead users
along the value chains
Improving market success
… by using internal & external sources along the whole value chain
Realizing innovative products & business models with external partners
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Contents
Introduction BASF
Open Innovation History at BASF
Definition of Open Innovation
Partnership as a fundamental part of Open Innovation
Examples of Open Innovation
Summary and conclusion
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How to identify the right partner ?
Strengths Weaknesses
Personal network Easy and quick High level of trust
Not always neutral in evaluation- can limit opportunities
Experts network Know the topics best High quality evaluation delivered
Often strong NIH syndrome
Crowd/Internet /Conference/Chance
Range of possibilities increased Cross fertilization possible
Time consuming IP? Trust ?
Partner finds us Specific proposition or business plan available
Strategic fit has to be evaluated
Key Partnership Messages
Build the relationship (trust)
Identify respective weaknesses and fix them
Then establish the partnership
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Contents
Introduction BASF
Open Innovation History at BASF
Definition of Open Innovation
Partnership as a fundamental part of Open Innovation
Examples of Open Innovation
Summary and conclusion
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OI@BASF: Strategic Partnerships with Universities BASF Advanced Research Initiative at Harvard University
Objectives
Executing BASF projects related to the fields Polymer-based formulationsUnderstanding the formation of biofilms on surfacesNew chemical approaches for processesand materials, e. g. exploring CO2 chemistry
Cooperation with 9 Faculty Professors
Focus on new topics and novel concepts
Creating visibility of BASF in Harvardfacilitation of recruitingaccess to innovation circles
Scouting for start-ups
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OI@BASF: Platforms Organic Electronics InnovationLab in Heidelberg
UniversitiesHeidelberg (40%)Mannheim (10%)
IndustryBASF SE, Merck, Freudenberg,
Heidelberg, Roche, SAP (each 8,3%)
Shareholders
BoardBoard
50% 50%
Scientific Advisory BoardScientific Advisory Board
Research & Development5 Competence Centers for OEProjects Forum Organic Electronics
Research & Development5 Competence Centers for OEProjects Forum Organic Electronics
Education and TrainingJoint master program HD - KATraining Lab in cleanroom
Education and TrainingJoint master program HD - KATraining Lab in cleanroom
Transfer and Incubator…
Transfer and Incubator…
ServicesCluster Management iL – Colloquium / Cluster Conference
ServicesCluster Management iL – Colloquium / Cluster Conference
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OI@BASF: Strategic Partnerships Competitors High yield hybrid rice
Higher yielding, stress-resistant hybrid rice varietiesBPS licenses yield-increasing technologies for commercialization in Bayer CropScience’s Arize hybrid rice Market launch by 2020
Advantages:10% more yield over conventional hybrid rice seeds Global, non-exclusive, agreement that encompasses all major rice growing geographies Rice is the world’s largest food crop.
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OI@BASF: Cooperation with start-ups Evolva, Switzerland
Goal of cooperation:
Develop compounds applied to protect crops
Description:
Joint research on the design of novel and optimized biosynthesis routes for selected natural products with crop protection potential
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Summary
Open Innovation has been existing at BASF since the beginning of the company
As markets become more dynamic and complexity of products or solutions increase new competencies are required
Partnership and openness are successful if trust between partners exist
Open Innovation is best adapted for new areas where core competencies are not key
Open Innovation is a strong tool to solve future challenges