Network Of Space Innovators
Roundtrip To Space: $15,000
The Rise Of Global Innovation
Networks: Implications for US
Competitiveness
Navi Radjou
Vice President
Forrester Research
Council on Foreign Relations
November 28, 2006
Theme
US firms can outsmart
competitors by networking
globally-available
innovation capabilities
Agenda
• Global Innovation Networks in action
• Lessons from early US adopters – and implications
for US competitiveness
The Innovation Imperative
Customers
• Generation Y
• Baby boomers
• Wal-Mart
• Emerging markets
Competition
Compliance
• Cell-phone=1-month • FDA
market exclusivity
• SOX, BASEL II
• BRIC countries
• WEEE
(Huawei, Cipla)
• China’s RFID norm
Globalization amplifies the “3Cs”
Over the next 50 years
Brazil, Russia, India,
and China could become
a much larger force in the
world economy
CEOs recognize supply-side deficiencies:
“Our internal R&D can’t
keep up with exploding
innovation demand”
A. G. Lafley
CEO
Procter & Gamble
Innovation-hungry firms seek external help
Sources of new ideas and innovation
Employees (general population)
Business partners
Customers
Consultants
Competitors
Assocs., trade groups, conference boards
Sales/service units
R&D (internal)
Academia
Other
Think tanks
Internet, blogs, bulletin boards
0%
10%
Base: 765 CEOs
Source: IBM’s Global CEO Study 2006
20%
30%
40%
A New Approach To Innovation
Old Model
New Model
S
T
The “What” — Global Innovation Networks
• Global Innovation Networks is a new market
structure (ecosystem) in which:
» Firms seamlessly weave internally and externally
available invention and innovation services to
optimize the profitability of their products, services,
and business models.
S
Financier
T
Inventor
Transformer
The “Who” — Specialized Roles in a Global
Innovation Network
Global Innovation Networks In Action: P&G
“We want P&G to be known as
the company that collaborates. I want
P&G to be the absolute best at spotting,
developing and leveraging relationships
with best-in-class (innovation) partners
in every part of our business. In fact,
I want P&G to be a magnet for
the best-in-class (inventors)”
A. G. Lafley
CEO
Procter & Gamble
Source: (http://www.scienceinthebox.com/en_UK/pdf/C_DbrochureFINAL.pdf)
Global Innovation Networks In Action: P&G
P&G
P&G’s GIN roles:
-Transformer
-Financier
-Broker
Global Innovation Networks In Action: Boeing
Boeing’s GIN role: Broker
Global Innovation Networks In Action: Best Buy
Sand Hill VC
Partners
$
Inventor
Broker
T
Transformer
Best Buy’s GIN roles: Broker, Transformer
Financier
Global Innovation Networks In Action: IBM
“A new corporate entity based on
collaborative innovation, integrated
production, and outsourcing to
specialists is emerging in response
to globalization and new technology.
Such ‘globally integrated
enterprises’ will end
up reshaping geopolitics, trade,
and education.”
Samuel J. Palmisano, CEO, IBM
Global Innovation Networks In Action: IBM
IBM’s GIN roles: Global Inventor, Global
Transformer, Global Financier, Global Broker
Agenda
• Global Innovation Networks in action
• Lessons from early US adopters – and
implications for US competitiveness
Lesson 1: You Don’t Need To Invent To
Innovate
1. Knowledge is NOT power
Finding and sharing knowledge is power
2. Patents are NOT an indicator of innovation
Market value is the BEST indicator of innovation
3. Smart firms will trade ideas with competitors
Lesson 2: Pick A Role
Writers
Musicians
Talent agents
Actors
Film
Directors
Studios
Technicians
You Can Choose To Be:
A Talented Specialist…
A Renaissance Man…
Current profile of US engineers:
• Deep engineering or scientific expertise
• BS, MS, PhD in a S&E field
Recommended profile #1 of US engineers:
• Business acumen + technical expertise
• Arts + Science
• MBA/MS, MBA/PhD, MFA/MS
• Example: Stanford’s (Hasso Plattner) Institute of Design
Recommended profile #2 of US engineers:
• Engineering expertise + complimentary analytical skills
• MBA/MS in social sciences (e.g., anthropology)
• Example: Intel’s ‘People and Practices’ research team
Recommended profile #3 of US engineers:
• Engineering + Business + Area Studies + Foreign Language (s)
• MS/MBA (major: International Relations), MBA/MA Asian Studies
• Example: MIT Sloan Fellows Program in Innovation
and Global Leadership;
Whirlpool’s Knowledge Brokers
Thank you
Navi Radjou
+1 650-581-3849
[email protected]
www.forrester.com
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