© PN, 2009 - 10

Patrice Noailles - 6 octobre 2010

- 9 key points -

Background

of the innovator’s policy

1 - Innovation

1 - Definitions : Innovation - Innovator

2 - Innovator

Bringing to the society as a whole, sustainable economicefficiency improvement. An innovation is the implementation at the macro-economylevel of a new technique, a new tool or a new organization inthe broadest sense of those terms, which improves sustainablyand substantially the economic efficiency of the society as awhole.

The person who decides the technical standard, the businessmodel and achieves the first sales (i.e. beginning of collectivechoice).

Chuàng (create/put up)+ Ju (choose / select)

Note : This report has not been developed by the « FondationConcorde » but explains the basic approach used by the« Groupe de Travail - Innovation » to develop a plan of a newinnovation policy in France.

2 - Innovation value (1)

Time

I.V. U.(Unit

Value)

NbU Users PN - 2007-10

Toward 100%

Innovation Value (I.V.)changes over time

Innovation Value (at time t) is the area of the rectangle = I.V. U x NbU

I.V.GInnovation value / Global

V.I. Innovation Value attime t

2 - Innovation value (2)

Spreading of I.V.U (Innovation Value per Unit) = sharing / distribution

collective I.V.> User

Price (duty free)private I.V. > Innovator

Patent

Over price ofequipment and rawmaterials

Extraordinary profit

Decliningreal price

Taxes

PN - 2007 / 10

Extra pay

3 - A non-linear process

Research Development Manufacturing

Ideas Prototype Product

Scholar Inventor Entrepreneur

Outcome

Performer

Activity

Funding

PN, 2

004-

2010

"

"

Institutional Seed(?) Venture Capital

Classic linear innovation model

4 - A structuralist process

MASS PRODUCTION Manager

© PN, 2009 - 10

Thought EconomyCOLLECTIVE CHOICE Market & consummer

Innovation’s fonctional structure

INVENTION Inventor

- Prototypes

RESEARCH Scholars

- Making new ideas

PRODUCTION Capitaine d’industrie

- Small seriesINNOVATION Innovator

- Standard, business model& collective choice

FINANCE Venture cap.

Innovation value

5 - Figures of innovators

1 - Entrepreneur & Lord innovator 2 - Intrapreneur/ Growth leader

Unknowns,but they assume more

than 50% ofdevelopment

… which would notexist without others

innovators.(incrementalinnovation)

Thomas Watson Jr

Georges Pompidou

Louis Blériot

Thomas Edison

Gustave Eiffel

6 - The innovator’s ecosystem

Environment 1 : knowledge - economy - societyThe ecosystem of the innovator

PN, 2009 - 10

Innovator

Intellec

tual co

ntributio

n

Financial contributionInnovation

policies

Education

Researchsystem

Risk value

Financial,Fiscal &Social

status ofinnovator

Innovationfunding

Social rules(job…)

Industy -research

partnerships

Competitonrules

SocialdowngradePatents

Companies

Status ofinnovationcompanies

Inventor

Entrepreneur

Scholar

Manager

Investor

Customer

Growth leader

Environment 2 : Economic & social régulations

7 - Revisiting History

Four gods « innovators » in Occident

EnkiMesopotamia

LugGallic & Celtic

ThotEgypt

PrometheusGreece

They transfer the art and knowledge of the gods to mankind

8 - The Steam engine (step 2)

Source : Thurston / 1878

Matthew BoultonJames Watt

Scholar Inventor Entrepreneur

Innovators

Steam engine foreshadowes innovation modern process

Source : Wikipedia

Joseph Black

9 - Entreprise in a free market

The free market innovation machine(Schumpeter II - W. Baumol)

GE Building - NY

The tool of the entrepreneur & ofLord innovator (Schumpeter I)

Menlo Park - NJ

is the main vehicule for innovation

From kaïzen to breakthrough innovation, entreprises have to assumeinnovation ! Free market and competition force entreprises and big companies

to permanently improve technology.

The new innovation policy9 WAYS TO CREATE AN INNOVATORS’ ECOSYSTEM

1 - A new status for Innovative SBC (I-SBC) withtransparent criteria2 - Tenfold increase funding for innovative companies3 - Create a “local Executive" for innovation" in the“performance territories”4 – Create a status for innovators with transparentcriteria5 – Welcoming the foreign innovators6 – Update Patent Law for Innovators and I-SBC7 – Create innovation training in each high school8 – Lower the cost of research and enhancetechnology transfer to I-SBC9 – Launch one major program for each presidenc

Une évidence américaine

The free marketinnovation machineANALYZING THE GROWTH MIRACLEOF CAPITALISMWilliam J. Baumol

Books

L’innovationVALEUR - ÉCONOMIE - GESTIONPatrice Noailles - Serge Chambaud

The invention of entrepriseENTREPRENEURSHIP FROM ANSCIENT

MESOPOTAMIA TO MODERN TIMESDavid Landes-Joel Mokyr-William Baumol

Site : www.valeur-innovation.com