Thinking Out-of-the-Box

Global Virtual Collaboratory

Tapping Brilliant Minds through the Internet

to Solve Complex Scientific Problems

Dr. Peter Van VorisPresident - Van Voris Consulting LLC

23 October 2007

Realization - Dr. Alph Bingham’s Idea

• A Formulation Chemist for 30 years at Eli Lilly• Entered a Chemistry Chat-Room in 2000 to

explore ways to manufacture a precursor to a new pharmaceutical

• Realized the there was incredible scientific power in the web

• Worked with corporate officers to established a reward to those who could deliver prototype samples

4

Global Virtual Collaboratory

InnoCentive -- a single purpose web site that helpsmany Fortune 500 companies solve complex chemistry, biology, physics and materials sciences problems.

www.InnoCentive.com

A 2001 spin-off of Eli Lillyhas over 130,000 prequalifiedscientists signed up as Solvers

Open Innovation PlatformOpen Innovation Platform

• Federal Laboratories

• Inter-Agency Agreements

• Universities

• Contract labs and Consultants

• Global Academia

• Researchers in Russia, India, China, etc.

• Scientists in other industries

• Excess capacity in R&D Labs worldwide

• Retirees

• VC Start-ups

Global access to world class intellectual

capacity

Global access to world class intellectual

capacity

Traditional R&D ResourcesTraditional R&D Resources

Non-Traditional R&D Resources

What is out there on the Web??• Yet2.com - deal broker• Shared-Insight.com - focused on IT sector• TopCoder - focused on writing programming code• Gearson Lehrman Group - custom R&D• Gates Foundation Grand Challenge - focus topic areas• ChemWeb.com - free searchable support for chemists• NineSigmas.com - product development support• Expert Central - thousands of engineers & scientists providing free

support to help answer questions of school aged children• Earth Prize- $25M prize for carbon sequestration technology• X-Prize - Focused on developing radical technologic breakthroughs

• InnoCentive.com - innovative company designed to reward those who can solve “challenge” problems for customers

InnoCentive Business ModelInnoCentive Business Model

InnoCentive’sInnoCentive’sInternet–Internet–based based Search Search PlatformPlatform

Seeker Companies

Solvers130,000

Army of Solution Providers

The Best Solution is to Award a Cash Prize

You Only Pay if Someone Provides a Solution

Internal R&D Staff

Finding One Mind to Help

Confidential

Confidential

Confidential Confidential

Who is Involved

Benefits• Flexible R&D Capacity

– Dynamic flexibility to meet ebb & flow of demand

– More highly skilled resources without fixed cost

• R&D Risk Management– Fund solutions not “science projects”

– Avoid false negatives

• Diversity– Problem solving approaches and scientific disciplines

– Access to very specific tools and labs

• Speed– Avoid re-inventing the wheel

– Marshall more minds

South Asia (India)

11%South America

2%

North America

26%

Africa and the

MidEast3%

Asia Pacific36%

Western Europe & Nordic

13%

Eastern Europe and

Russia9%

Solver Global DemographicsSolver Global Demographics~130,000 Prequalified Scientists

Global Scientific Partnerships

Science Networks in RussiaRussian Academy of SciencesAltay State UniversityBlagoveshchensk State UniversityBuryat State UniversityChelyabinsk State UniversityIrkutsk State UniversityIvanovo State Chemistry UniversityKazan State UniversityKemerovo State UniversityKrasnoyarsk State UniversityKurgan State UniversityMordov State UniversityMoscow State UniversityNijny Novgorod UniversityNovosibirsk State UniversityOmsk State UniversityRostov State UniversityRussian University of Chemistry and TechnologySaint-Petersburg State UniversityMendeleev University of Chemical TechnologySamara State UniversitySaratov State UniversityTambov State UniversityTumen State UniversityTver State Technical UniversityTver State UniversityYaroslavl State University

Science Networks in India

Council of Scientific and Industrial Research (India)National Chemistry Labs of IndiaIndian Institute of Chemical EngineersPanjab University In Chandigarh

Sponsored the 91st Indian Science Congress held at Panjab University in Chandigarh

Sponsored the sixth Chemical Research Society meetings and the India NationalSymposium at Kanpur

Formed and Advisory Board comprising India’s most well-respected scientist and Researchers to enhance global R&D in India

Science Networks in China

Chinese Academy of Sciences (CAS)National Natural Science Foundation of China (NFSC)Beijing Normal UniversityFudan UniversityHuazhong Normal University Lanzhou UniversityNorthwest UniversityPeking UniversitySichuan UniversitySun Yat-Sen UniversityXiamen UniversityZhejiang University

>40 Scientific Disciplines>40 Scientific Disciplines Chemistry Disciplines

>40 Scientific Disciplines>40 Scientific DisciplinesBiology Disciplines

Challenge Types

Theoretical Challenge“Global Think Tank”

• No lab work required

• Deliverables: theoretical proposal

• Cannot validate the solution prior to acceptance

Reduction-to-Practice ChallengeAn “Extended Lab”

• Requires lab work

• Deliverables: validated solution (research data and/or sample)

• Can validate the solution prior to acceptance

Award level: $15-$50K Award level: $40-$1M

Developing a Challenge• Abstract - one or two sentence description

• Project or Workroom– Detailed Description of the Challenge - full page or more– Detailed Project Solution Criteria - very important– Any Prior Art and/or attempts that were not fruitful to pursue– Known literature and or patents in this area– Formats or graphic requirements or plots of information required– Lab work that must be submitted to validate approach if

a “reduction to practice” – Expectations of ownership of IP and freedom to operate

Private Project or Workroom • Allows the solver to upload proposed solutions

for evaluations• Allows the solver to ask questions of seeker• Links to other relevant information on the site

or other sites• Allows the solver to review the terms of their

agreement with InnoCentive

Writing Challenges for Success

Lower

• Long-standing industrial problems

• “Programmatic” challenges• Drastically under-priced

challenges or those with insufficient deadlines

Higher

• Discrete scientific problems• Search for novel ideas• Extension of your lab

capacity

Probability of Success

Solution Rate Varies Among Different Seeker Clients

100%

77%

50% 48%

33%27%

17%

0% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 6 7 8 9

Averagesolution rate

~37%

Average Solution Rate is ~37%

Results to Date • Over 500 challenges posted• >130,000 solvers (>175 countries)• >185 awards to date (many under review/pending)• Over $3,100,000 paid to Solvers• Global source of solutions:

− Argentina - Italy - Singapore− Canada - Japan - Spain− China - Kazakhstan - Sweden− Denmark - N.Ireland - Switzerland− Egypt - Philippines - Thailand− Germany - Poland - UK− India - Romania - USA− Israel - Russia

Sample Web Site Page

A Snapshot - InnoCentive Website

Answers to Four Typical Questions

• Award amount is a Paid-up License in exchange for the Technology– Meets the fundamental requirements of Inventors being paid for inventions

• Outsourcing Science to overseas Scientists– All Seekers have internalized the solution into products or to further development

of an instrument in house• Federal employees signing up to as solvers

– This could happen; however, InnoCentive does “Due Diligence” to verify employment status at the time of the award & who would give up their pension for $25K

• Seeker Steals Solvers Ideas– InnoCentive employs scientists to assist with the development of Challenges and

they also prescreen proposals when they are submitted to the Seeker.– InnoCentive Business Model protects the interest and equities of both Seekers

and Solvers

4-(4-Hydroxyphenyl)butyric acid - an early-stage intermediate

MeO

OH

OHO

OH

OO

OH

OEtO

O

O

NH

OEtO

O

N

O NH2 OHO

O

NH

NNO

518674

• The current starting material, 4-(4-Methoxyphenyl)butyric acid, is available but moderately expensive ($300/kg).

• 4-(4-Hydroxyphenyl)butyric acid a viable starting material if an economically competitive route could be developed.

Example - Pharmaceutical Intermediate

INNOCENTIVE 3109 R4-(4-HYDROXYPHENYL) BUTANOIC ACID   POSTED: June 26, 2001DEADLINE: Nov 30, 2001AWARD: $25,0000 USD

• Challenge Abstract

An efficient synthetic strategy for the following butanoic acid derivative is required. This molecule has been previously reported in the chemical literature but the existing known synthetic route may be lengthy, expensive and/or low yielding. Devise and execute the "best synthetic pathway".

HO

OH

O

BUTANOIC ACID

Butanoic Acid Challenge

AWARDED!

INNOCENTIVE 3109 R4-(4-HYDROXYPHENYL) BUTANOIC ACID   POSTED: June 26, 2001DEADLINE: Nov 30, 2001AWARD: $25,0000 USD

• Solution Criteria:– 2 steps or fewer – >80% overall yield– >95% purity– 2.0 g white to off-white solid

HO

OH

O

Challenge Dynamics

• 221 Solvers expressed interest in solving the problem and created project rooms

• 10 Solvers (representing 7 countries) submitted chemicals for analysis

• Average time to solve the problem was 45 days

Successful Solution Received

• Solution Meets Challenge Criteria: 2 steps >80% overall yield >95% purity Delivery of 2.0g white to off-white solid

Solver receives $25,000 USD!

HO

HO

OH

O

H2

Pd/C

O

+ OH

O

HO

OH

HOAc

HO

OH

O

O

Benefits• The Seeker paid for success, not efforts or failures• The solution was reached in 1/10 of the time• The solution was reached at a fraction of the cost of internal

resources

The Seeker Scientist did not have to look for someone to solve the problem – the solution found the Seeker

AWARDED! INNOCENTIVE 258382 PARACRYSTALLINE ARRAYSPOSTED: MAY 07, 2002DEADLINE: JUL 08, 2002$50,000

• Challenge Abstract:

Provide a research proposal that outlines a novel research plan to define the pathogenesis and toxicologic significance of paracrystalline arrays in mitochondria in the absence of other ultrastructural alterations.

        

Winning Solver– a protein crystallographer from Russia

Sample Award

• A new screening program resulted in a “puzzling” toxicology: – Toxicology experts from 6 different firms cannot make sense of it– “Outside” toxicology experts (consultants) cannot solve– Decided to post on InnoCentive

• A protein crystallographer solves it:– No background in toxicology – PhD in crystallography– Understood the problem based on crystallography principles– Solved on the basis of crystallography knowledge – not toxicology

Benefits

AWARDED!InnoCentive 2975421UV Resistance of Coating Containing Metal IonsPosted: August 25, 2005  Deadline: October 30, 2005

• Challenge Abstract

The Seeker is seeking additives to improve UV resistance of coating containing metal ions.

• Result 130 Project rooms

17 Submissions

2 Awards

Sample Award

AWARDED! InnoCentive 1225582

Full-Length cDNA Isolation Posted: October 15, 2003  

Deadline: November 15, 2003

• Challenge Abstract A method to isolate a full-length cDNA based on the 3' EST sequence is

needed. • Result:

547 Project rooms6 Submissions1 Awards

Sample Awards

InnoCentive 4035417Stable Solid Peroxide(s) to Withstand Extreme Conditions

Posted: September 11, 2006 Deadline: November 26, 2006

$25,000 Award • Challenge Abstract

Identification of stable solid peroxide(s) that can withstand temperature extremes during long term storage is required.

• Result 128 Project rooms

7 Submissions

1 Award

Sample Award

44 year old US polymer chemist from Texas with 20 years experience with PVA encapsulationmethods, designed a dry storage “Alka-Seltzer” like product that the corporate scientists hadnever thought about or had proposed to them.

Narrow Bandwidth Optical Spectral Filter - $35,000Posted: February 23, 2007

Deadline: June 9, 2007 • Challenge Abstract - Identified a narrow bandwidth optical spectral filter with

high in bandwidth UV transmission & high out-of-band rejection ratio within the Solar Blinds Spot

• Result - 132 Project Rooms

Russia 5Ukraine 3Bulgaria 2Poland 1

German 6France 4Swiss 2Dutch 2UK 2

USA 65Canada 12

China 2India 8

Hong Kong 1

South Africa 3

Colombia 1Portugal 2Venezuela 1

Mexico 1Brazil 1

What next? This person is now a consultantto the company who issued the challenge.

Solver - Retired VP of R&D PerkinElmer -- Ph.D. Atomic/Optical Physicist fromUniversity of Wisconsin who now lives in Norwalk Connecticut Retired after 30+ years in Instrument development for PerkinElmer and has 30 US patents.

Sample Award

InnoCentive 5034503 $25,000Solvent Free Nucleic Acid Extraction

Posted: March 14, 2007

Deadline: May 31, 2007 • Challenge Abstract

A novel method of extraction and

concentration of nucleic acids is

needed.

• Result 216 Project rooms

7 proposed solution

No award

“DNA Extraction”

Russia 15Slovenia 1Bosnia &

Herzegovina 1

Germany 11UK 9

France 5Spain 6Italy 4

USA 89Canada 10

India 24China 8

Singapore 1Bangladesh 1

South Africa 1

Argentina 1 Brazil 2

InnoCentive 5050499 $25,000RT Oxidation Catalyst

Posted: March 22, 2007

Deadline: June 22, 2007

• Challenge AbstractIdentify a catalyst or catalyst

system that will oxidize pesticidial

organic compounds at room temp.

• Result 120 Project rooms

9 Proposed Solution

No Award

“RT Oxidation Catalyst”

Russia 6Croatia 1Moldova 1

UK 5Germany 3France 5Spain 3Italy 2

USA 47Canada 4

India 15China 8

South Korea 2

Philippines 1

New Zealand 1

Argentina 2El Salvador 1

• Intellectual Gold Mine • Costs:

– Annual Membership fee: $100,000– Posting fees: $3,500 per Challenge– Award amount + 20% to InnoCentive

• $25,000 award will cost $30,000• Validate or Invalidate concept in your own

Laboratories

peter.vanvoris@att.net 202-550-8500

What does it Cost??

Help is on its Way!!!

Wikinomics How Mass Collaboration Changes Everything