Innovation, Technology Transfer and New Venture Creation Washington, D.C., December 23, 2004

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Innovation, Technology Transfer and New Venture
CreationWashington, D.C., December 2-3, 2004
From imitator to creator 1954-2004Wiggo
SmebyChief Technology Officer Anita Krohn
ThraneHead of strategic projects, Corporate
Technology and Innovation
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Objective
To safeguard life, property and the
environment Foundation established 1864
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Innovation phases in DNV
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Maritime Innovation Phase 1950-1970

• Innovations
• Rules for operation of unmanned engine rooms
• Design rules for very large ships
• Design concepts for Liquefied Natural Gas (LNG)
  ships

• Success factors
• Focus on technology development to create
  competitive advantage
• Market growth
• Technological leadership by Prof. Vedeler
• Ability to attract talent

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Offshore Innovation Phase 1970-1980

• Innovations
• Rules and concepts for steel jackets and drilling
  rigs
• SESAM
• Design procedures and standards against fire and
  explosion loads
• Rules and certification schemes for design and
  installation of sub sea pipelines

• Success factors
• Competence transfer from ship sector
• Encouragement from Norwegian authorities to
  foreign oil companies to invest in RD
• Technological and innovation leadership by Dr.
  Egil Abrahamsen
• Ability to attract talents

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Internationalization Innovation Phase 1980-1990

• Innovations
• Veritec
• Risk and reliability technology
• Concepts for Floating Production and Storage
  Offshore
• Veritas Petroleum Services was formed

• Succes factors
• Following Norwegian maritime customers building
  ships in Japan and Korea
• Solid position in the Norwegian oil and gas
  cluster
• Strong demand for new technological solutions in
  the North Sea
• Large investments in RD funded by national and
  foreign oil companies
• Modern Quality and Loss Control Management
  philosophy being adopted
• Recruitment of talent from best international
  universities

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Diversification Innovation Phase 1990-2004

• Innovations
• Management system certification a new business
  world wide
• Nauticus life cycle product model technology
• Total Safety Class combining technical,
  organizational and human aspects

• Success factors
• Innovation leadership by CEO Sven Ullring
• Establishment of a strong global infrastructure
  including IT infrastructure
• Ability to attract talents in Norway and abroad
• A culture for zero tolerance for failure
  developed - The new risk reality

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Result Position
2004 DNV are being imitated
1954 RD creates fundament for Thought
Leadership
1950 DNV imitate Lloyds
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Result Revenue 1966 - 2002
Asia
America
Europe
Nordic
Mainly due to Research JIPs
Norway
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Result DNV revenue trends-diversification new
markets
Maritime
2000
mill NOK (1998 money value)
Upstream Process
1000
Other industries
1970
1980
1990
2000
1960
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Result The power of clustering

• The Norwegian maritime cluster
• The Korean maritime cluster
• The Norwegian oil and gas cluster
• The Italian food cluster
• The Danish wind energy cluster

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Result, Impact on industry competitors

• Maritime Offshore
• Standards, cluster strength, renewal pressure,
  learning, e.g. DNV Research made ca. 1000
  internal DNV-reports since 1984, in addition, ca.
  320 public papers presentations since 2000.
• Competence centre
• DNV considered as Norwegian graduate school of
  technology.
• Spin-offs
• ScanPower, Computas, Underwater Institute (NUI),
  Fjerndata, Geco etc.

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Result, Impact on society

• Reduction of injuries and deaths
• Protecting environment
• Supporting the Norwegian welfare state
• Knowledge generation and distribution
• Supporting Norwegian technological reputation

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DNVs investment in RD, 4.2
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DNVs investment in RD, 4.2
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Remarks

• DNV would have had considerable challenges to
  survive without RD.

DNV 1864 195?

• Growth in Maritime
• Competence, Tools Laboratories

Classification

• Offshore success
• Competence Tools from Shipping

• New competence
  credibility
• New areas
• Existing tools competence
  

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RD, historic perspective
The only real growth in human history started
with the industrial revolution.
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Value creation from RD depends on

• Quality, quantity and diversity
• Highly educated staff
• Critical mass of diverse projects and people
• Free funding (not only allocated funds)
• Organizational interplay
• High intra-organizational cooperation
• High customer interaction
• High degree of RD personnel transfer (ca.
  20/yr)
• Academic cooperation
• Leadership commitment
• Long-term perspective of leadership (RD results
  10yrs, patience)
• Personal interest in and understanding of RD
• Willingness to take risks (only 1 of 10 of RD
  succeeds, RD time horizon 5-10 yrs)
• Active government participation
• Since society benefit most from RD, and industry
  under-invests ? government must bridge the gap
• Co-financing

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RD, in the future

• Trends
• Shift from corporate to applied RD
• Weakening of the basic research engine
• Universities are aggressive in prosecuting
  patents, less focus on responsibility as
  defenders of open science
• Globalizations has led to two shifts,
• a) number of qualified people to do research is
  rising rapidly
• b) building labs close to the customers
• Area Software and services

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.. a world still to discover, improve, develop
and sustain

• Everything that can be invented has been
  invented
• The commissioner, US Patent Office 1899

Nobel
Bell
Diesel
Benz
Pemberton