© Kari Sipilä Kari Sipilä Director, D.Sc.(Tech.)h.c. FUTURE INNOVATIONS Past President of LES...

© Kari Sipilä www.futureinnovations.fi

Kari SipiläDirector, D.Sc.(Tech.)h.c. FUTURE INNOVATIONS

Past President of LES ScandinaviaFormer Director of the Foundation for Finnish

InventionsEspoo, Finland

FROM INTELLECTUAL PROPERTY TO BUSINESS ASSETS

Damascus 14-17.5.2007

Kari SipiläDirector, D.Sc.(Tech.)h.c. FUTURE INNOVATIONS

Past President of LES ScandinaviaFormer Director of the Foundation for Finnish

InventionsEspoo, Finland

FROM INTELLECTUAL PROPERTY TO BUSINESS ASSETS

Damascus 14-17.5.2007


KARI SIPILÄ IN THE FIELD OF INNOVATIONS

• Dr. Kari Sipila is a citizen of Finland and has graduated at Helsinki University of Technology.

• He is Executive Director in a consulting company Future Innovations, which is specialized in management and innovation development activities. He is a consultant to SME companies, to WIPO, EPO and to some other international organizations in the fields of intellectual property and innovation policy, development and commercialization.

• He is also the Immediate Past President of LES Scandinavia - Licensing Executives Society of Scandinavia, a member in the Finnish Academies of Technology and a former member of the Board of The Finnish Technology Award Foundation.

• He has been in 1992- 2003 Executive Director of the Foundation for Finnish Inventions, a non-profit Innovation Center, which promotes, finances and assists in IPR, developing and commercialization of Finnish innovative products. Earlier he has been Director in a bank and in domestic and international companies in Finland, USA, Switzerland and Saudi Arabia.

• Dr. Kari Sipila is a citizen of Finland and has graduated at Helsinki University of Technology.

• He is Executive Director in a consulting company Future Innovations, which is specialized in management and innovation development activities. He is a consultant to SME companies, to WIPO, EPO and to some other international organizations in the fields of intellectual property and innovation policy, development and commercialization.

• He is also the Immediate Past President of LES Scandinavia - Licensing Executives Society of Scandinavia, a member in the Finnish Academies of Technology and a former member of the Board of The Finnish Technology Award Foundation.

• He has been in 1992- 2003 Executive Director of the Foundation for Finnish Inventions, a non-profit Innovation Center, which promotes, finances and assists in IPR, developing and commercialization of Finnish innovative products. Earlier he has been Director in a bank and in domestic and international companies in Finland, USA, Switzerland and Saudi Arabia.


CONTENTS

• Innovation experiences from Finland • From inventions to innovations and to business assets• Management of Intellectual Property ( IP )• Valuation of IP assets• Influences of innovation activities


IDEAS

INVENTIONS

INNOVATIONS

IDEAS

INVENTIONS

INNOVATIONS

BusinessBusiness

EntrepreneurshipEntrepreneurship

CompetitivenessCompetitiveness

InternationalizationInternationalization

EmploymentEmployment

BusinessBusiness

EntrepreneurshipEntrepreneurship

CompetitivenessCompetitiveness

InternationalizationInternationalization

EmploymentEmployment

THE SIGNIFICANCE OF INVENTIONS


INVENTIONS AND INNOVATIONS

INVENTIONS AND INNOVATIONS

ARE THE CORNERSTONES

OF SUCCESSFUL COMPETITIVE

PRODUCTS AND BUSINESS REFORMS


INNOVATION EXPERIENCES FROM FINLAND


THE WORLD – AND GLOBALIZATION


REPUBLIC OF FINLAND

• Member of European Union• 5.2 mill. inhabitants• Area 338 000 km2

• Capital Helsinki• GDP 25 600 euros ( 30 000 USD )• 20 universities• Modern industries and innovations

• Information technology• Metal• Wood, paper, pulp

• One of the most wired and wireless nation in the world

• The world’s leading innovator in mobile phones and telecommunications

• Home to the world’s most developed electronic banking system

• The world leader in forest products, pulp, paper and board technology

REPUBLIC OF FINLAND

• Member of European Union• 5.2 mill. inhabitants• Area 338 000 km2

• Capital Helsinki• GDP 25 600 euros ( 30 000 USD )• 20 universities• Modern industries and innovations

• Information technology• Metal• Wood, paper, pulp

• One of the most wired and wireless nation in the world

• The world’s leading innovator in mobile phones and telecommunications

• Home to the world’s most developed electronic banking system

• The world leader in forest products, pulp, paper and board technology HELSINKI


FIELDS OF INNOVATION AND TECHNOLOGY POLICIES IN FINLAND

• EDUCATION, KNOWLEDGE AND KNOW-HOW

• PRIVATE AND PUBLIC R&D AND ITS FINANCING

• COOPERATION BETWEEN PUBLIC AND PRIVATE SECTORS

• DEVELOPMENT OF EXISTING AND NEW SECTORS

• FOCUS ON AREAS OF SPECIFIC EXCELLENCE

• INTERNATIONAL COMPETITIVENESS

• EDUCATION, KNOWLEDGE AND KNOW-HOW

• PRIVATE AND PUBLIC R&D AND ITS FINANCING

• COOPERATION BETWEEN PUBLIC AND PRIVATE SECTORS

• DEVELOPMENT OF EXISTING AND NEW SECTORS

• FOCUS ON AREAS OF SPECIFIC EXCELLENCE

• INTERNATIONAL COMPETITIVENESS


RESULTS FROM INNOVATION ACTIVITIES IN FINLAND

• HIGH RATINGS IN INTERNATIONAL COMPARISONS LIKE IN– COMPETITIVENESS – RESEARCH AND DEVELOPMENT ( R&D )– PATENTING – HIGH TECHNOLOGY – UNIVERSITY-COMPANY COOPERATION

• FINLAND IS ABOVE EU’S AVERAGE RATINGS


(Source: NBPR)


DM 3610002-2005 Copyright © Tekes

Innovation environment in FinlandResources and funding

Pri

va

te

Basic research Applied research Business R&D

Business developmentMarketingInternationalisation

R&Dat companies

3,528

The figures represent the total extent of each organisation in million euros in 2004. In parenthesis the share thatis funded from the State budget. The funds of Tekes, the Academy of Finland and Innofin are funded entirely

from the State budget.

BusinessAngels

387

Pu

bli

c

Finnvera364 (41)

Universities976 (443)

Academyof Finland

185Ministries,

TE-Centres,sectorial research

302 (229)

Tekes395

VTT213 (63)

From abroad158

Innofin5 (4)

Finpro31 (19)

Venture capitalists:Private 294

Industry Investment Ltd 40(additional gov. investment 42)

Sitra 32


FROM INVENTIONS TO INNOVATIONS AND TO BUSINESS ASSETS


KEY ELEMENTS

IP Creation

Strategy, PolicyImpact Recognition Portfolio Management

Value Extraction


INTELLECTUAL PROPERTY ( IP ) POLICY

1. Types and role of intellectual property (IP)2. Management and organization for IP3. Making and acquisition of inventions

4. Rewards5. Instructions on utilizing patent information

6. Instructions to secure and maintain patent protection and protecting the corporate patents

7. Portfolio management, follow up, business 8. Values of IP 9. Licensing behavior ( out and in ) 10. Infringements 11. Publication policy


FIELDS OF INVENTIONS AND INNOVATIONS

• TECHNOLOGICAL

• STRATEGIC

• BUSINESS

• SOCIAL

• COMBINATIONS


HOW TO START THE INNOVATION PROCESS?

• Get familiar to possibilities and practice of Intellectual Property ( IP ) and Interrectual Property Rights ( IPR )

• IP is creating something new ( inventions, trademarks, copyrights, trade secrets and other forms of IP; research and development; think: who, where and how )

• Would IPR be useful to your company?• Arrange the IPR information, encouragement,

organization and financing in your company• Start the innovation and IPR policy work• Get familiar with others in the field of IPR • Do not get disappointed with the first problems!

• Get familiar to possibilities and practice of Intellectual Property ( IP ) and Interrectual Property Rights ( IPR )

• IP is creating something new ( inventions, trademarks, copyrights, trade secrets and other forms of IP; research and development; think: who, where and how )

• Would IPR be useful to your company?• Arrange the IPR information, encouragement,

organization and financing in your company• Start the innovation and IPR policy work• Get familiar with others in the field of IPR • Do not get disappointed with the first problems!



RIGHT FROM THE BEGINNING AN INVENTION

MUST BE CONSIDERED AS A BUSINESS OPPORTUNITY !


FROM IDEAS INTO PRODUCTS ON THE MARKET

COMMERZIALI-SATION

COMMERZIALI-SATION

PRODUCTDEVELOPMENT

PRODUCTDEVELOPMENT

PATENTINGPATENTINGIDEAIDEA EVALUATION,

PLANNING

EVALUATION,PLANNING

KNOW-HOW AND FINANCIAL RESOURCES ADD VALUEKNOW-HOW AND FINANCIAL RESOURCES ADD VALUE


MODERN PRODUCT SAVES TIME AND DEVELOPMENT REQUIRES CO-OPERATION

IDEA PRODUCT DEVELOPMENTPRODUCT DEVELOPMENTPRODUCT DEVELOPMENTPRODUCT DEVELOPMENT MANUFACTURINGMANUFACTURINGMANUFACTURINGMANUFACTURINGPRODUCTPRODUCTPRODUCTPRODUCT SALES

• IDEA

• DEVELOPMENT POTENTIAL

• MARKETS

• COMPETITION

• IDEA

• DEVELOPMENT POTENTIAL

• MARKETS

• COMPETITION

• NEWPRODUCT TO MARKETS

• NEWPRODUCT TO MARKETS

MANUFACTURINGMANUFACTURING

MARKETINGMARKETING

IPR, PRODUCT DEVELOPMENTIPR, PRODUCT DEVELOPMENT


INTELLECTUAL PROPERTY AND BUSINESS ASSETS

Intellectual property often forms the basis for • business assets • corporate development • growth • international expansion


• MANAGEMENT

• INTELLECTUAL PROPERTY RIGHTS

• INNOVATION PROCESS

• PRODUCTION

• DOMESTIC AND INTERNATIONAL MARKETING

• COOPERATION SKILLS

• MANAGEMENT

• INTELLECTUAL PROPERTY RIGHTS

• INNOVATION PROCESS

• PRODUCTION

• DOMESTIC AND INTERNATIONAL MARKETING

• COOPERATION SKILLS

INNOVATIONS REQUIRE EXPERT KNOW-HOW IN MANY AREAS


INTELLECTUAL PROPERTY MANAGEMENT AND VALUATION


INTELLECTUAL PROPERTY IS A PART OF COMPANY´S BUSINESS ASSETTS

Market valueMarket valueMarket valueMarket value

Intellectual CapitalIntellectual CapitalIntellectual CapitalIntellectual Capital

Customer Customer CapitalCapital

Customer Customer CapitalCapital

Organizational Organizational CapitalCapital

Organizational Organizational CapitalCapital

Human Human CapitalCapital

Human Human CapitalCapital

Customer Base

Customer Base

Customerrelationships

Customerrelationships

CustomerPotential

CustomerPotential

ProcessCapital

ProcessCapital

Corporateculture

Corporateculture

Innovation Capital, IPR

Innovation Capital, IPR

BaseValue

BaseValue

RelationshipValue

RelationshipValue

PotentialValue

PotentialValue

Adjusted ShareholdersÁdjusted ShareholdersÉquity Financial CapitalEquity Financial CapitalAdjusted ShareholdersÁdjusted ShareholdersÉquity Financial CapitalEquity Financial Capital


EXAMPLE OF A STRONG USE OF IPR

• Patent(s) for product(s)

• Patent for manufacturing method

• Corporate trademark

• Product trademark(s)

• Copyrights

• Trade secrets

• Patent(s) for product(s)

• Patent for manufacturing method

• Corporate trademark

• Product trademark(s)

• Copyrights

• Trade secrets


MEASURING THE INFLUENCE OF INTELLECTUAL PROPERTY ASSETS

• QUANTITY AND QUALITY OF– PATENTS, TRADEMARKS, COPYRIGHT AND OTHER IP

– RESEARCH AND DEVELOPMENT WORK OR PROJECTS AND ITS PERCENTAGE OF TURNOVER

– COOPERATION WITH UNIVERSITIES OR RESEARCH INSTITUTES

– CUSTOMER CONTACTS GENERALLY AND ALSO FOR LICENSING AND TECHNOLOGY TRANSFER

• VALUE ADDED PER PERSON

• INNOVATION POLICY AND ITS FULFILMENT

• BUSINESS SUCCESS, MAKE-OVER RATE, OR THE ABILITY TO INTRODUCE NEW PRODUCTS AND THEIR SHARE OF TOTAL SALES

• DOMESTIC AND INTERNATIONAL REPUTATION

• QUANTITY AND QUALITY OF– PATENTS, TRADEMARKS, COPYRIGHT AND OTHER IP

– RESEARCH AND DEVELOPMENT WORK OR PROJECTS AND ITS PERCENTAGE OF TURNOVER

– COOPERATION WITH UNIVERSITIES OR RESEARCH INSTITUTES

– CUSTOMER CONTACTS GENERALLY AND ALSO FOR LICENSING AND TECHNOLOGY TRANSFER

• VALUE ADDED PER PERSON

• INNOVATION POLICY AND ITS FULFILMENT

• BUSINESS SUCCESS, MAKE-OVER RATE, OR THE ABILITY TO INTRODUCE NEW PRODUCTS AND THEIR SHARE OF TOTAL SALES

• DOMESTIC AND INTERNATIONAL REPUTATION


WHY IP MANAGEMENT ?

1. To focus– The IP based business– Competitors and partners

2. To get – Knowledge – Fresh ideas 3. To develop – The niche and best business areas4. To manage– All intellectual property


IP NEEDS ACTIVE MANAGEMENT 1 (2)

• The management of the company has the central role in the strategy and policy work, also in the IP policy

• The goal is to get the best use of IP to improve the business and competitiveness of the company

• The IP organization has the responsibility of the fulfilment of the IP strategy in the company

• The size and form of the IP organization may vary depending on the company

• The management of the company has the central role in the strategy and policy work, also in the IP policy

• The goal is to get the best use of IP to improve the business and competitiveness of the company

• The IP organization has the responsibility of the fulfilment of the IP strategy in the company

• The size and form of the IP organization may vary depending on the company


IPR NEEDS ACTIVE MANAGEMENT 2 (2)

• The IP organization activates and coordinates the innovation work inside the company, evaluates the need of the resources and follows the budget

• IP management has to follow the latest developments in the IP field

• It is in charge of education of IP matters in the company

• It may also be a business unit in IP matters, in cooperation with other business units of the company

• The IP organization activates and coordinates the innovation work inside the company, evaluates the need of the resources and follows the budget

• IP management has to follow the latest developments in the IP field

• It is in charge of education of IP matters in the company

• It may also be a business unit in IP matters, in cooperation with other business units of the company


IP MANAGEMENT IN A SMALL OR A START-UP COMPANY

President (Managing Partner), also in charge of IP

Team BTeam A


IP MANAGEMENT IN A SME COMPANY

President

Department A(law and administration ),

the tasks include IP Management

Department B Department C


IP MANAGEMENT IN A LARGE CORPORATION

President

Division ATechnology

IP ManagementDivision B Division C

Legal matters


VALUE OF A PATENT OR INTELLECTUAL PROPERTY ASSETS VIEWED FROM DIFFERENT PERSPECTIVES

• The inventor’s perspective

• The inventing enterprise’s perspective

• The lisensor’s perspective

• The licensee’s perspective

• Social and perhaps global economic perspectives

• The inventor’s perspective

• The inventing enterprise’s perspective

• The lisensor’s perspective

• The licensee’s perspective

• Social and perhaps global economic perspectives


VALUATION METHODS TO CALCULATE THE VALUE OF IP

• Cost Approach - based as realised costs or by comparing costs of a similar patent or product

• Market Approach- based on selling or buying of patents, comparing similar technologies or products

• Income Approach- based on a licensed IP and estimate of future cash flow over time, including estimates of success and risks. Popular method.

• Other methods- Business Results Method is based on calculated or estimated cash flow

and revenues of business and estimated role of the patent in it. This value changes according to time and business. It may also include the influence of goodwill or value of other IPR

- Monte Carlo is a simulation method.


VALUATION IS ONLY AN ESTIMATE

• Remember that all methods give only estimates• It is good to use at least 2 methods• Think and check the real possibilities of your product

or company in the competition situation • Do not select estimates of price, profit, markets, time,

interest rates and risks too positively • Valuations are only a starting point in business or

licensing negotiations


INFLUENCES OF INNOVATION ACTIVITIES


MAIN RESULTS TO A NATION FROM SCIENCE, TECHNOLOGY AND INNOVATION ACTIVITIES

• Economic growth and social development• The welfare of the nation and the citizens• Successful and competitive domestic and

international companies• New entrepreneurs and innovative products• Good employment• Possibilities for good education, science, research

and development activities and to continuation in the forefront of technology

• Economic growth and social development• The welfare of the nation and the citizens• Successful and competitive domestic and

international companies• New entrepreneurs and innovative products• Good employment• Possibilities for good education, science, research

and development activities and to continuation in the forefront of technology


INNOVATION ACTIVITIES HAVE LARGE INFLUENCES

• Children and students are more interested in sciences and mathematics• Universities and companies are active with their innovation and patenting strategies and

policies• The government recognizes the needs for changes in technology and innovation policies• More human efforts and financial resources to research and development activities• Number of patent applications, new products and innovative entrepreneurs grow• Many innovative companies seem to be more profitable than others• With success of innovative companies, different interest groups get profit or revenues

- Taxes to government and municipalities- Dividends to shareholders- Business opportunities to subcontractors and service companies- More employment- Innovative enterprises pay often higher salaries

• Active R&D turns into company´s intellectual capital and means more highly educated personnel

• Good and innovative products to customers• New technologies support a renewing society

• Children and students are more interested in sciences and mathematics• Universities and companies are active with their innovation and patenting strategies and

policies• The government recognizes the needs for changes in technology and innovation policies• More human efforts and financial resources to research and development activities• Number of patent applications, new products and innovative entrepreneurs grow• Many innovative companies seem to be more profitable than others• With success of innovative companies, different interest groups get profit or revenues

- Taxes to government and municipalities- Dividends to shareholders- Business opportunities to subcontractors and service companies- More employment- Innovative enterprises pay often higher salaries

• Active R&D turns into company´s intellectual capital and means more highly educated personnel

• Good and innovative products to customers• New technologies support a renewing society


TRENDS IN INTELLECTUAL PROPERTY ( IP )

• Strong growth in awareness of IP and its possibilities in corporations, universities and also on political levels internationally

• Globalization requires continuously new skills and education, because the competition is worldwide

• Increased complexity in all technology, especially in information technology, communications, etc.

• The field of IP widens and offers more possibilities to business

• More new positions for IP staff and management• More companies active in IP – also more competition



THANK YOU!

Kari Sipila, Helsinki/Espoo, Finland

[email protected]

www.futureinnovations.fi

www.les-scandinavia.org

Date post:	27-Mar-2015
Category:	Documents
Upload:	marissa-mcnamara
View:	218 times
Download:	0 times

© Kari Sipilä Kari Sipilä Director, D.Sc.(Tech.)h.c. FUTURE INNOVATIONS Past President of LES...

Documents