P. Gaudenzi The death valley of innovation

The death valley of innovation
The methaphor and some comments from the field
Prof. Paolo Gaudenzi
Dipartimento di Ingegneria Meccanica e Aerospaziale
“Life & path of an innovative project in
France
Or the innovation chain from idea to
development”
Rome Feb 3, 2015
Facolta di Ingegneria Civile e Industriale
Università di Roma “La Sapienza” – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
DEATH VALLEY
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
The Valley of Death of innovation:
A Desert Between Research outcomes and the Market (or the profit)
The development of our global society is currently based on innovation.
What is innovation?
1 The action or process to making changes in something established, especially by
introducing new methods, ideas or products. (source: Oxford Dictionary)
2 The process of translating an idea or invention into a good or service than creates
value for which customer will pay. To be called an innovation, an idea must be
replicable at an economical cost and must satisfy a specific need.
(source: Businessdictionary.com)
It is clear that the novelty is introduced in a context, a specific environment, that might
be a market, that recognizes the introduction of something new.
Innovation is not a synonimous of discovery (find, learn of, or observe something for the first
time) or of invention (to produce something previously unknown by the use of ingenuity or
imagination) but of course a discovery or an invention might be the sources for an innovation.
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
The meaning of innovation
Discovery
Invention
Initial
Product or
Service
concept
Research and
Development
New Product
or Service
Utilisation
and sales
Innovation
Creativity
Hard Work
Reward
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
University of Rome, January 2009, Master in Satelliti e Piattaforme Orbitanti, Marco Guglielmi, Strategy and Innovation
Slide 4
P. Gaudenzi The death valley of innovation
Why a valley of death?
In technology transfer, the valley of death is the metaphor often used to
describe the gap between academic-based innovations and their commercial
application in the marketplace. The valley of death suggests that the practice
is anything but smooth.
As a metaphor, the valley of death suggests that the path between academic
innovation and its commercial application is a perilous and life threatening
one at best. Indeed, regardless of its merit, an innovation’s success is never
certain—many obstacles, including monetary resources, can stand in the way.
(source: K.E. Gulbrandsen Bridging the valley of death: The rhetoric of technology
transfer, PhD Thesis, 2009 Univ Iowa)
The valley of death refers to financial risks that start-ups face as they struggle
to grow from small teams to going ventures. The dip of the valley refers to the
debt—the negative balance sheets—that companies experience as they
invest money now in hopes of making it back upon success.
(source: Into the Valley of Death, A. Hargadon, 2011 University of California at Davis)
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
DEATH VALLEY 2
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
Why we are here at this seminar?
“Life & path of an innovative project in France
Or the innovation chain from idea to development”
Communities are increasingly looking to their regional governments and universities
to implement programs that stimulate the local economy.
This community expectation is especially vocal when regions are trying to overcome
an economic downturn (e.g. the post dot-com bust), or stimulate a particularly
promising industry (e.g. nanotechnology).
In response to these heightened outcries, government leaders eagerly assemble a
plan corresponding to taxpayer-derived funding. Leveraging universities is
frequently a key component of this solution.
How to go through or to cross the death valley? What governments can do to
implement the best policies for innovation?
To go where?
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
From the death valley to another valley… let us have a look to California
We would like to move from the death valley to… Silicon Valley!
From uncertain venture to successful business and growth!
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
FROM HERE: DEATH VALLEY
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
TO THERE: SILICON VALLEY
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
SILICON VALLEY
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
A field of opportunities for development: finding the valley of success!
The example of MIT and Stanford
Research- and technology-intensive universities, especially via their entrepreneurial
spinoffs, have a dramatic impact on the economies of the United States.
MIT and the Boston area: A direct extrapolation of the underlying survey data boosts
the numbers to 25,800 currently active companies founded by MIT alumni that
employ about 3.3 million people and generate annual world revenues of $2 trillion,
producing the equivalent of the eleventh-largest economy in the world.
(source: Entrepreneurial Impact: The Role of MIT, E. B. Roberts and C. Eesley
MIT Sloan School of Management, February 2009)
Stanford and the silicon valley: Stanford University has long been known as one of
the world's leading centers for innovation and a breeding ground for the
entrepreneurs who created – and continue to shape – Silicon Valley. The companies
formed by Stanford entrepreneurs generate world revenues of $2.7 trillion annually
and have created 5.4 million jobs since the 1930s. The equivalent of the world's 10th
largest economy.(source Stanford University’s Economic impact via Innovation and
Entrepreneurship, C. Eesley, 2011, Stanford Alumni)
P. E. Auerswald, Lewis M. Branscomb, Valleys of Death and Darwinian Seas: Financing the
Invention to Innovation Transition in the United States, Journal of Technology Transfer, 28,
227–239, 2003, (Kennedy School of Governement at Harward University)
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
Bridging the gap, crossing the desert is the challenge in front of us to the valley
of development.
- The methaphor of the valley of death might frighthen us and discourage to proceed
to innovation but on the other side make us aware of the difficulties, the risks, the
threats.
- Also if the figures of MIT and Stanford may be overestimated and seem to be really
excessive, they also send a very clear message of opportunity.
It would be maybe good to try to make a measure of the impact of La Sapienza in
society following the same approach, also if the differences are clear in terms of the
contexts, the society, the rules and the role of Universities in Europe versus the
American case.
But the point is today that to better exploit the potential of innovation in the
European context and better understand the good models, policies and
practices, like the French ones.
Among other considerations two factors might make this a real opportunity:
1. Natural cultural tendency in Italy to entrepreneurship
2. Presence of consistent research centers universities a treasure largely
unexploited
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
We might have a more optimistic view!
Look at the valley – still a desert – with another approach!
But let us enter the field now… since I promised some comments
from there…
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
Let us go through the desert! Let us do start our (ad)venture!
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
The adventure
My goal/motivation
-
Survive
Reach an oasis
Have fun/adventure
Reach the other side
Weakness/threats
What I need?
What to take with me?
-
Water
Food
Shelter
Adequate suits (hat)
- Map
- Binoculars
- Way of transportation
Alone or in a team
Duration of the adventure
- Smart phone (GPS, etc)
- Access to web
Information on the environment
Uncertainties
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
The venture
My goal/motivation
What I need?
-
- Value proposition
- Business plan
Survive
Reach the market
Have revenues
Reach the b/e point: profit
Weakness/threats
-
Organization
Financial resources
Human resources
infrastructures
- Access to information
- Communication
Alone or in a team
- Partnership
Duration of the venture
Information on the environment
Uncertainties
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
Smart Structures
Solutions srl
A Spin-Off Company
of the "Università di Roma La Sapienza"
P. Gaudenzi The death valley of innovation
My company is now right into the valley…
Will we survive? Will we reach the valley of our success?
Smart Structures Solutions is a company that works in the field of Structural
Health Monitoring, with the aim of developing innovative solutions for
monitoring critical system parameters, based on the integration of local
sensing and space data.
Structural Health Monitoring is an horizontal field, due to the fact that the need
of keeping under monitoring critical mechanical elements is common to many
industrial sectors (Telco & Broadcast, Energy, Oil & Gas, Transportation and so
on) with the purpose of risk reduction and better and lower cost maintenance
activities.
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
Smart Structures Solutions has developed know-how in developing and
manufacturing custom-made sensor network solutions and
architectures with experience in the field of Telecom towers
monitoring. (Pictures below from the experimental campaign on
Raiway Tower of Monte Mario)
Environmental
Node
Environmental
Node
Structural
Node
Structural
Node
GPS
Node
Main node
(data collection and TLC)
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
Structural Health Monitoring for Telecom Towers
• Project: “Structural Health Monitoring for
Telecom Towers” ARTES 20 (IAP) Feasibility
Study,
ESA
Contract
Number:
4000108290/13/NL/US
• Objectives:
– Assessing of the structural integrity of
towers for Radio-TV Broadcasting to
increase safety and to optimize the
maintenance procedures.
– promoting the transition from a timebased maintenance to a condition-based
one.
• The key point:
– the integration of several existing
technologies such as structural health
monitoring and wireless sensor networks
with existing space services in order to
enhance the proposed service with
innovative capabilities.
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
P. Gaudenzi The death valley of innovation
Where are we now? Right into the valley!
Are we well
equipped?
Hope so!
1 Value proposition
2 Business plan
3 Patent deposit
4 Partnership for
Industrialization
and
Commercialization
Where would we like to be?
- In three months from now in Las Vegas at one of
the largest world fair for our candidate market!
- But… With your help!
Università di Roma ―La Sapienza‖ – Dipartimento di Ingegneria Meccanica e Aerospaziale
The death valley of innovation
The methaphor and some comments from the field
Prof. Paolo Gaudenzi
Dipartimemto di Ingegneria Meccanica e Aerospaziale
“Life & path of an innovative project in
France
Or the innovation chain from idea to
development”
Rome Feb 3, 2015
Facolta di Ingegenria Civile e Industriale
Università di Roma “La Sapienza” – Dipartimento di Ingegneria Meccanica e Aerospaziale