Practices and Actors of Eco-Innovation
SMEs and their “Relational Asymmetries” with other Actors
“Demand
Readiness Level” (DRL) scale
as new tool to
Hybridize Market Pull with Technology Push approaches
PhD. Florin Paun
Deputy Director “Industrial Innovation”, ONERA – The French Aerospace Lab TM
ANR - ERANET Workshop
Paris, 8th of February 2011
Eco – innovation ?
« Eco-innovation is the production, application or exploitation of a good, service,
production process, organisational structure, or management or business method that is
novel to the firm or user and which results, throughout its life cycle, in a reduction of
environmental risk, pollution and the negative impacts of resources use (including energy
use) compared to relevant alternatives »
(Kemp und Pearson, 2008, Final report MEI project about measuring eco-innovation. www.merit.unu.edu\MEI)
Innovation = Successful Exploitation of a New Idea (von Hippel)
Eco-Innovation
- Innovation + reducing the use of resources
 Economically and Environmentally Sustainable
 What about Social Sustainability ?!
e.g. Is the Wind Energy Business Model sustainable by
subsidies (for ever) or by the right price on the CO2?
… or the Photo Voltaic for individuals in France
(taxes reduction + solar kwh pricing)
… why not solar pricing for renewable fuels (made from
recycled CO2 + electrolysed H2 with solar electricity)
in spite of stocking CO2 ?! (Paun, F., 2010 “Sustainable CO2 Integration”)
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
Innovation models
Linear Process focused on individual process, activities or components
 concept (Schumpeter)  entrepreneur as driving force (Myer, Freeman)
 R&D push (Abernathy, Utterback)  User (Lead) as Innovator (von Hippel)
 Co-innovation (Shapiro)
Integrated and Systematic Process
 coordination and relationship between participants (Hardy, Iansiti, Chen)
 innovative management (Tucker) – R&D + others/ organizational,
systematical, continual opportunism/ every member involvement
 TOTAL INNOVATION MANAGEMENT – 3 Totalities Model (Xu)
Existing mechanisms must facilitate bridges
Inter and Intra Totalities to create a complete
cycle  Innovation Occurrence
All elements
All domains,
time, spaces
All individuals
Importance of the “Helicopter View”
- Build at each level an ideas receptive system
- Identify barriers  build facilitating bridges
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
A practical guide to innovate?
- The importance of a highly collaborative process
- Identifying barriers  mostly related to asymmetries between actors
 but also structural  role of regulators
- Building « bridges » inter and intra of each of the 3 totalities
- favour the « good merits » and banish the « bad merits » (Stiglitz,
Scott)
- compensate or reduce the identified existing asymmetries
To eco-innovate
+ measure the effects on the resources (material and immaterial): “good merit”
To Sustaining the eco-innovation system
+ measure the social impact (good merit)
All the actors and domains could be part of eco-innovation processes
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
“Time 2 market – Complexity” Barrier
Information and
Telecommunication
Product Complexity (Costs)
 Industrial Groups to innovate?! SMEs? Disruptive, Radical, Incremental?
Aerospace and Defence
Automotive
Bio-genetics
Pharmacy
Time to Market
 SMEs – good vectors for technology demonstration in all domains
 Disruptive/Radical Innovation  Get out of its sector, addressing new domains
ANR - ERANET Workshop, Paris, 8th of February 2011
5
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
R Stephan
Université
Technologique de
Compiègne
SMEs to do demonstrators ? How? Strong existing Asymmetries
1
I
2
I
3
I
4
I
6
I
7
I
9
Technology
Readiness Level:
I
Need for
Collaborative
Tools
R&T
R&D
ASSYMETRISES
MANAGEMENT
during the whole
process:
“Financial Risk” A
“Cultural” A.
“Technology” A.
Dedicated Structures
Industrialisation
Equity Gap
Death Valley
First Sales
Investment in R&T
SME
Market Actors
SME with
Development
Offices
SME with
R&D capacities
Some Public R&D
mainly Carnots
Carnot Institutes
Public Research
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
PROCESS AND ACTORS
Commercialisation
Distribution
Promotion
+
Time
Example: Onera– Tech SMEs Charter
Develop the collaboration between Onera and the SMEs by :
• Favouring the acces of the SME to the aerospace R&D results,
• Presenting an innovative offer to the industrial groups, (TRL 6-7)
• Enhancing the opportunities for the Onera’s R&D results to
reach the market
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
Partnership topics
Collaborative R&D contracts :
- addressing all type of private or public R&D call for tenders, all domains, all times, all markets (geographical);
- all configurations - supplier or associate - envisaged;
- IP co-sharing based on related contributions
Studies/expertise for the SME :
- directly financed by the SME
- Onera’s support for public innovation finance
- expertise : RDT, CREATI (PARTECH) and regional actors DRIRE, CRITT…
- R&D : OSEO, ADEME (energy), la DGA-PME (Defence or Dual projects)…
Product / Tech Demonstrators Developpement in Risk and Benefice Sharing :
- ONERA’s contribution carried on Risk sharing basis  Onera’s ROI based on commercial exploitation by the SME
Technology or Knowledge Transfert Agreements :
- licensing taking into account the treasury specific need for a SE or a Start-up
Scientist migration from Onera to the SME’s development team :
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)
Early Stage Results with SME / Start-ups
http://innovationhub.onera.fr
Medical
Imagery
“Wind” Lidar
Acoustic Signature
Software for Targeting
and Scoring System
Wireless Home
Distress Surveillance
Pressure Sensitive
Paintings
EM Synthetic
environment
US machining
Fogale nanotech
Thin Layers Capacitive Sensors
Keopsys LASERS
LASER Interferometer
Life Science Microscopy
bio-medical
Prosthesis
in Porous Ti
ONERA’s software
Accelerometers
MEMS
See and Avoid
System
UAV landing
Crack propagation
monitoring device
9
NHEOLIS
Individual Wind Mills
© - Onera, 2009,
Ce document et l’information contenue sont la propriété de l’ONERA. Toute reproduction est interdite sans l’accord de l’ONERA.
Conclusion – Need to change the reference system!
Towards a « HYBRIDISATION of MktPull vs TechPush approaches » (Paun, F., 2010)
“What is the TRL level”
- Customer Voice are sunken inside the TRL scale an our minds are Technology Push driven.
- Why not referring to a scale related to the Degree of Maturity for the Expression of a Need by a
customer on a given market including the lead markets for eco-innovation?
- Why not define this scale and plot it in a reverse manner related to the classic TRL scale?
DR Level
Description for the “Demand Readiness Level” (Paun, F., 2011)
1
Occurrence of a Feeling of “something is missing” on the market
2
Description TRL level
TR Level
Identification of a specific need
Market certification and sales
authorisation
9
3
Identification of the expected functionalities for the new
Product/Service
Product Industrialisation
8
4
Quantification of the expected functionalities
Industrial Prototype
7
5
Identification of the systemic capabilities (including the project
leadership)
Field demonstration for the whole
system
6
6
Translation of the expected functionalities into needed capabilities to
build the response
Technology development
5
7
Definition of the necessary and sufficient competencies and resources
Laboratory demonstration
4
8
Identification of the Experts (R&T) possessing the competencies
Research to prove feasibility
3
9
Building the adapted Research Projects to find answers to the
expressed need on the market
Applied research
2
Fundamental research
1
 Ask for Projects which are searching for this matching on Eco-Innovation Lead Markets
ANR - ERANET Workshop, Paris, 8th of February 2011
© - Florin Paun, 2011 (Ce document et l’information contenue sont la propriété de Florin Paun. Toute reproduction est interdite sans l’accord de l’auteur.)