Possibilities and Benefits of
International Collaboration for
Innovative Companies
Martin Wassell
Managing Director
European Institutes
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
What is an Innovative Company?
Value Chain
Process
Innovation
Product
3
Innovation
Business Model
Innovation
2
4
Innovation
Structural
Innovation
Application
Revenue Growth
Innovation
Frontier
Research
Main Street
(Mature)
Early
Market
Time
Death
Valley
Bowling Tornado
Alley
1
Main Street
(Early)
Main Street
(Declining)
Indefinitely Elastic Middle Period
Young Innovative Company (YIC) – less than 15 years old
and spend at least 15% of expenditures on R&D
Fault
Line
End Of
Life
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
Why Collaborate ….. Internationally?
Innovation Barriers
International Benefits?
Select the best opportunity
International expertise for concept
and balance risk/reward?
Development and market compliance
Access the best suppliers,
International markets through
distributors and customers?
large customers, best suppliers and dist.
Develop product, process
Best in class R&D and technology
and service solutions?
development
Scale up to access markets
Customer, supplier and distribution
National and International?
Networks for rapid market access
Maximise product
Extended product, process or service life
lifespan and profit?
market acceptance and penetration
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
FP7 An Opportunity for Collaboration
Ideas
€7,460
Cooperation
€32,365
People
€4,728
JRC
€1,751
610
2,780
Capacities
€4,217
Euratom
€2,751
Health
6,050
Food
4,180
1,935
IST
NMP
Energy
1.
2.
3.
Envt
1,900
Transport
2,300
SSH
9,110
3,500
Sec and Space
€1.4Bn
Thematically unrestricted
100% cost reimbursed
Excellent cash flow
Open Innovation
…and the Smart Use of Public Funding
How This Programme Supports
International Collaboration
The DNA of Successful International Business Development
1
2
3
4
5
6
Developing the
Value of New
Ideas
95% of Costs
Paid for by
the EC
Access to
World Class
R&D Resources
Creation of
Full Value
Chain
International
Distribution
Network
Develop Key
Customer
Relationships
How This Programme Supports
International Collaboration
The DNA of Successful International Business Development
1
2
3
4
5
6
Developing the
Value of New
Ideas
95% of Costs
Paid for by
the EC
Access to
World Class
R&D Resources
Creation of
Full Value
Chain
International
Distribution
Network
Develop Key
Customer
Relationships
Developing The Value of New Ideas!
Customers
Competences
Developing The Value of New Ideas!
Quality
Performance
Cost
Flexibility
Delivery
Functionality
EC funding is about
creating sales, wealth
…and high value jobs!
Customer Relationship
How This Programme Supports
International Collaboration
The DNA of Successful International Business Development
1
2
3
4
5
6
Developing the
Value of New
Ideas
95% of Costs
Paid for by
the EC
Access to
World Class
R&D Resources
Creation of
Full Value
Chain
International
Distribution
Network
Develop Key
Customer
Relationships
The Value Proposition
Develop the value & differentiation of new offering ideas
Provide access to experts to outsource/co-deliver the R&D
Develop your idea into a commercially validated prototype
Build new technical capabilities into your value chain
Develop new market access & customer relationships
Create 95% cost leverage for you with no dilution of IPR &
equity
Cost Leverage Potential
When You Carry Out Part of the R&D
Smart Use of Public funding
Total Project €3,500k costs
€2,500k grant
71
% reimbursed
€500k costs €375k
grant
75%
reimbursed
R&D
Partner 1
€500k costs €375k
grant
75%
reimbursed
University
R&D
Partner 6
R&D
Partner 2
SME
SME
€500k costs €375k
grant
75%
reimbursed
You
R&D
Partner 5
R&D
Partner 3
Research Inst
SME
R&D
Partner 4
€500k costs €375k
grant
75%
reimbursed
Large Firm
€500k costs €250k
grant
50%
reimbursed
€500k costs €375k
grant
75%
reimbursed
€500k costs €375k
grant
75%
reimbursed
Total Project Effort Secured
€3,500k
R&D
Partner 1
University
R&D
Partner 6
R&D
Partner 2
SME
SME
You
R&D
Partner 5
R&D
Partner 3
Research Inst
SME
R&D
Partner 4
Large Firm
€155k of your costs, leverage €3,500k of R&D
creating IPR for you at 95% leverage
Cost Leverage Potential
When You Outsource the R&D
Smart Use of Public funding
Total Project €1,500k costs
€1,125k grant
75
% reimbursed
€1,125k grant pays
R&D service provider costs
Supply
Partner 1
SME
Distributor
Partner 6
Supply
Partner 2
SME
SME
R&D
Performer 1
Research Inst
You
Distributor
Partner 5
Supply
Partner 3
SME
SME
Customer
Partner 4
Large Firm
€375kof SME costs
7 ways
€53k each
Split
R&D
Performer 1
Research Inst
Total Project Effort Secured
€3,500k
R&D
Partner 1
University
R&D
Partner 6
R&D
Partner 2
SME
SME
R&D
Performer 1
Research Inst
You
R&D
Partner 5
R&D
Partner 3
Research Inst
SME
R&D
Partner 4
Large Firm
€80k of your costs, leverage €1,500k of R&D
creating IPR for you at 95% leverage
R&D
Performer 1
Research Inst
The Experts Available Through the
Programme
Route to Market
Co-Investment
EC Expertise
Control of IPR
No Cranks or Tyre Kickers!
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
Eurostars
A Eurostars project European research and development project
Address any technological area
• development of a new product, process or service
Collaborative – minimum of 2 participants from 2 different Eurostars
participating countries
Main participant must be a research-performing SME from one of
these countries
Project should be market-driven with a maximum duration of 3 years
Within 2 years of project completion
• product of the research should be ready for launch onto the
market (except biomedical or medical projects, where clinical
trials must be started within two years of project completion)
First deadline – 8th February 2008
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
Improved Functionality
Enables Pain Relief
Eluted
drug
Fibro
id
Polyvinyl
Beads
Uterine
artery
“With this new alternative to invasive surgery, we see our market growing to
over €100m. A key element of success was the access to R&D skills that we
don’t have internally.”
Andrew Lewis, Technical Director, Biocompatibles Ltd
Improved Product Function
Improves Patient Outcome
The project allowed us to investigate novel surface features to allow
earlier product fixation resulting in the potential for implant longevity.
Alan Taylor CEO, Finsbury Ltd
Decision Support Software Improves
Flexibility For Orthopaedic Implants
This technology represents a major part of our
product development programme for the next 10 years
Allen Ritchie VP R&D DePuy plc,
Agenda
What is an Innovative Company?
Why Collaborate …. Internationally
Barriers to Innovation
Benefits of International Collaboration
International Collaboration for Innovation
Framework Programme 7
Eurostars
Case Studies
Questions
Thank You