Innovation and Entrepreneurship Science to Practice

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Innovation and EntrepreneurshipScience to
Practice
By
Prof. V. B. Nanda Gopal Consultant

• Saudi Entrepreneurship Development Institute

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Why support entrepreneurship New Business and
Inventors

• Most of the economic development efforts include
  encouraging Entrepreneurship in the Saudi Society
• Help new Business and supporting Inventors
• Globalization has changed world economy
• Majority of the new jobs are in the small
  business
• Jobs created in the small are larger
• Inventions will create more business and more
  jobs
• Entrepreneurship need to be encouraged and
  nurtured to develop new ideas , consequently new
  jobs

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Innovation

• Innovation is a process of doing new things.
• Ideas have little value until they are converted
  into products, services or processes.
• Innovation is transformation of creative ideas
  into useful application
• Creativity is a prerequisite to innovation

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Inventors

• Inventors are drawn to new ideas and finding ways
  to get ahead of the competition
• They may be idealistic and get carried with their
  enthusiasm
• They are very good at envisioning solutions to
  the challenges for the organization.

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Invention vs. Innovation
The Creation of Something New
Results in New Knowledge
Invention
The Transformation of an Idea or Resources into
Useful Application
Results in New Product Services or Process
Innovation
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Entrepreneurship

• Entrepreneurship is the process of applying
  management concepts and techniques, standardizing
  the product, designing processes and tools with a
  view to improving the yield from resources ,
  conquering new markets and winning new customers.
• The Process is risky, thus the entrepreneur had
  to be alert and constantly monitoring the
  environment.
• He must be result oriented , visionary and a
  concrete thinker , clearly seeing a tangible goal

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• He wants to be independent and bored by mundane
  tasks
• Enjoys new ideas and excitement
• Willing and able to take risks and face danger

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Entrepreneurship and Innovators

• Understand the market, clients , the technology
  and perceived constrains of the problem in the
  field.
• Visualize new concepts and customers
• Implement the new concept for commercialization
• Uses resources for the purposes both in the
  industry and outside .

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Translation of Creative Idea into Useful
Application
Innovation Process
Analytical Planning
Organizing Resources
Commercial Application
Implementation
To Identify Product Design Market
Strategy Financial Need
To Obtain Materials Technology Human
Resources Capital
To Accomplish Organization Product
Design Manufacturing Services
To Provide Value to Customers Rewards to
Employee Revenue to Investors Satisfaction of
Founders
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Inventor and Entrepreneurship

• Ignite the creative process by grasping the idea
  and creating the vision.
• There are four angels involved in the process of
  innovation and commercialization
• Sponsor
• Shaper
• Sounding board
• Specialist who will facilitate inventor-
  entrepreneur in developing a strategy for
  marketing and commercializing his invention

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Where are the inventionstaking place

• Universities and other academic institutions
• King Abdul Aziz Center for Science and Technology
• Specialized institutions
• Individual Inventors
• Industries and corporate

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Current status

• RD , Inventions in Industry are product based ,
  are specific to product development
• These are of value to academic institutions ,
  they have no access to these inventions .
• Similarly many Researches in academic
  institutions are of value to industry they remain
  in academic institutions
• There are many innovations which never reach the
  society or the light of commercialization

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• What we need today is development of a Data base
  of Inventions , Innovation , made at
• Universities and academic institutions
• Research and Development in Industries
• Specialized RD centers like the King Abdul Aziz
  Center of Science and Technology
• Promote Entrepreneurship and systems for
  commercialization in the institutions
• Specialized New venture creation training
  programs with a focus on innovation .

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UNIVERSITIES ROLE

• Mentoring Program must be initiated.
• only a small group of students have a
  potential for starting business ventures , and
  few will have innovative ideas . Facilitation by
  mentor with extensive business experience ,
  expertise to develop business plan will enhance
  commercialization of inventions
• Building Entrepreneurial culture will benefit
  individuals desiring to start ventures and
  companies
• Students like to work on their own ideas ,
  inadequate knowledge on scope of the project ,
  phases of commercialization limits the project
  potential.

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Strategic goals, The seeking of new innovations,
new students
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Invention to Entrepreneurship Process Flow
University Research
Private Research Fun Signs
Growth
Disclosure
Entrepreneurship
Patenting
Licensing
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Disclosure

• I have discovered something important in the
  course of my academic research, what do I do ?
• I have been working on some thing interesting ,
  when should I disclose an invention
• I am considering publishing my discovery in an
  academic journal, how will affect the patent
  process?

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Patenting

• Will every invention disclosed in a patent
  application?
• How much does it cost to file a patent
  application in the kingdom
• Who is an inventor and why does it matter ?

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Licensing

• What is a License?
• What are property rights.
• Are license to property rights worth less than
  licenses to patent rights.

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Company creation

• As a inventor , can I think of starting a company
  as an employee
• Licensing of a University developed Technology
  to a startup company

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Inventors Guide for Starting Business

• Asses your Invention /Idea
• Research your Idea to the market whether
  similar process has already been existing
• Research and Development for commercialization
• Appropriate Technology and Business Venture

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Appropriate Technology and Business Venture

• It is more an Art than Science
• Can it attract Venture capital , to facilitate
• Invention disclosure and Licensing
• Stage of Development and breath of Technology
• Intellectual property
• Opportunity cost.

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Opportunity cost Why?

• To asses
• Up Front cash required
• Royalties to be paid/ Demand
• Share in the company
• Business Plan and commercialization
• Trade for License
• Sales royalty
• License royalty

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The Major issue we need to worry

• Project cost
• Structure of the company
• Partners
• Role responsibilities of partners

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Over all three issues emerge

• Capitalization plan
• Entrepreneurship and Management
• Business Plan
• Product Development
• Commercialization Milestones