Kari Sipilä
Director, D.Sc.(Tech.)h.c.
FUTURE INNOVATIONS
Past President of LES Scandinavia
Former Director of the Foundation for Finnish
Inventions
Espoo, Finland
THE ECONOMIC BENEFITS OF INNOVATIONS’
DEVELOPMENT AND CASE STUDIES
Damascus 15-17.5.2007
© Kari Sipilä www.futureinnovations.fi
kari.sipila@futureinnovations.fi
CONTENTS
• Innovation development: Input and output – economic
benefits
• Practical questions of IP and business - and replies
• Development work: from ideas into products on the
market
• Innovation cases and results
© Kari Sipilä www.futureinnovations.fi
THE SIGNIFICANCE OF INVENTIONS
IDEAS
INVENTIONS
INNOVATIONS
Entrepreneurship
Competitiveness
Internationalization
Employment
© Kari Sipilä www.futureinnovations.fi
INPUT TO INNOVATION DEVELOPMENT
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R&D expenditure ( public and private )
R&D personnel ( public and private )
R&D funding in the state budget and in the industry
Research and technology programmes
Researcher training
Centres of excellence in research
International research cooperation
Large cooperation between public and private organizations (
business and industry )
Source www.research.fi
© Kari Sipilä www.futureinnovations.fi
OUTPUT - ECONOMIC BENEFITS
OF INNOVATION DEVELOPMENT
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•
•
•
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Competitiveness
Patents, innovations and new products and services
New companies
Employment
High technology production and foreign trade
Scientific publications and doctoral degrees
Science and technology evaluations and foresight
Source www.research.fi
© Kari Sipilä www.futureinnovations.fi
QUESTIONS OF IP AND BUSINESS
IN START UP AND SMALL COMPANIES
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•
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•
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We have some ideas and patents, but how can we make
business of them?
Can we afford more inventions, patents and other IP,
R&D-activities, because of their costs? And how do we
finance them? What kind of financiers exist in our
country?
What is IP management? What is included and is it
something for us?
Who should take care of patent matters in our company or
outside?
How do we get more information or money?
© Kari Sipilä www.futureinnovations.fi
QUESTIONS OF IP AND BUSINESS IN SME COMPANIES
1(2)
• Why to apply for a patent and how?
• How do we get the most business and profit of it?
• What is Intellectual Property, its management and
related tasks?
• How should we organize, finance and manage our
R&D and invention activities?
• Who should take care of Intellectual Property – we
or patent attorney or other consultant (who, where
to find, costs, reliability, etc.)?
© Kari Sipilä www.futureinnovations.fi
QUESTIONS OF IP AND BUSINESS IN SME COMPANIES
2(2)
• Who should follow competitors and their IP – and
how?
• Should we sell or buy IP or license in or out, how to
find partners or other interested parties?
• Whom and how and where should we train our
staff for IP?
• How is IP linked to strategies and what kind of
business planning, visions, etc. should we have?
• How should we make IP and innovation decisions?
© Kari Sipilä www.futureinnovations.fi
REPLIES TO QUESTIONS:
ADVISORY AND FINANCING SERVICES ARE ESSENTIAL
• Inventors, universities and innovative
companies need innovation advisory services
• Usually innovation services include
– Advisory and financing services for the invention
development work in innovation centers, which may
be separate or part of universities or regional
government offices
– Financing of research and development, patenting
and commercialization costs or part of the costs
© Kari Sipilä www.futureinnovations.fi
SERVICES OF AN INNOVATION CENTER
• ADVISORY ACTIVITIES
• ASSISTANCE IN THE INNOVATION POLICY AND
RULES
• OWNERSHIP CLARIFICATION OF INVENTIONS
• EVALUATION OF INVENTIONS
• ADVICE IN PATENTING AND OTHER USE OF IPR
• PRODUCT DEVELOPMENT ASSISTANCE
• FINANCING
• MARKETING AND COMMERCIALIZATION ( NEW
COMPANIES, SPIN-OFF, LICENSING, ETC )
• DIFFERENT AGREEMENTS
© Kari Sipilä www.futureinnovations.fi
POSSIBLE ACTIVITIES OF AN INNOVATION CENTER
Advising
Promotion
Evaluation
Communications
Financing
Legal Services
IPR
Marketing
Product
Development
Establishment
of new
Enterprises
Educational
Activities
Prototype
Workshop
Venture
Capital
Product Management
International
co-operation
© Kari Sipilä www.futureinnovations.fi
Incubator
Activities
FROM IDEAS TO INNOVATIONS - DEVELOPMENT WORK
© Kari Sipilä www.futureinnovations.fi
FIELDS OF INVENTIONS AND INNOVATIONS
• TECHNOLOGICAL
• STRATEGIC
• BUSINESS
• SOCIAL
• COMBINATIONS
© Kari Sipilä www.futureinnovations.fi
© Kari Sipilä www.futureinnovations.fi
PRACTICAL FACTORS AFFECTING TO THE BIRTH OF
INNOVATIONS
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•
•
•
•
•
Creativity and innovations need room, time and cooperation
Innovative work should be enjoyable and awarding
Encourage and allow different types of innovativeness
Let all flowers grow and give them water, do not rinse too early
Knowledge and success attract others – the magnet phenomen
It is worthwile to respect different experiences, ages, cultures,
backgrounds etc.
• Knowledge and skills grow, when different views and
experiences influence
• Innovative persons cannot always innovate
© Kari Sipilä www.futureinnovations.fi
FROM WHERE DO THE INNOVATIONS COME?
Ideas, inventions and potential innovations may be based on
- market possibilities or needs
- lack of products, methods, solutions
- new technical or business solutions
- research and development work
- basic and applied science and research
- intuition, good luck, by accident, by serendipity
- applications to some other field where invented
- combinations of above
© Kari Sipilä www.futureinnovations.fi
CHARACTERISTICS OF A GOOD INVENTION
• The product is market driven; it is in demand and there is market pull
• The product is inventive, novel and patentable
• The product is significant to the business and to employment
• The product is functional, capable of being produced and economical
• The product can be launched quickly
• There is organizational commitment behind the development project
and the product
• Investors are interested in the venture
© Kari Sipilä www.futureinnovations.fi
FROM IDEAS INTO PRODUCTS ON THE MARKET
IDEA
 General
counselling on
inventions and
innovations
 Invention-specific
counselling
 Innovation
projects
EVALUATION,
PLANNING
 Market pull
 IPR strategy and
policy
 Novelty and
inventiveness
 Technical features
 Business
opportunities
PATENTING
 Domestic and
international
patent application
PRODUCT
DEVELOPMENT
 Technical
 Productive
 Commercial
 Prototype workshop
 Legal aid
 Ownership
COMMERZIALISATION
 Marketing
communications
 Market reserch
 The Invention
Market
 Licensing
 The production
of the inventor
entrepreneur
© Kari Sipilä www.futureinnovations.fi
EVALUATION CRITERIA
• Proximity to the market
• who is the customer and is he willing to pay for a product developed from the invention
• Inventiveness, novelty, patentability
• in addition to the evaluator’s own knowledge, an Internet search is usually conducted for
comparative reasons for instance ( http://ep.espacenet.com or www.delphion.com )
• novelty research by traditional means carried out by the Patent Office
• The technical solution, technological level, potential for industrial
manufacture
• often initially an expert assessment with calculations and
comparisons, and then, at a later development stage, clarifications,
calculations and comparisons related to a prototype and its testing
• Business potential, commercialization and management
• what is the business potential of the new product and its estimated competitiveness
• will future commercialization be based on the production in an existing or starting
company, or on licensing, or on trade
• the business strategy and particularly the company and its management
are evaluated several times during the invention development process
© Kari Sipilä www.futureinnovations.fi
INNOVATIONS REQUIRE EXPERT KNOW-HOW
IN MANY AREAS
• MANAGEMENT
• INTELLECTUAL PROPERTY RIGHTS
• INNOVATION PROCESS
• PRODUCTION
• DOMESTIC AND INTERNATIONAL MARKETING
• COOPERATION SKILLS
© Kari Sipilä www.futureinnovations.fi
SOME SUCCESFUL INNOVATION CASES
FROM UNIVERSITY RESEARCH
© Kari Sipilä www.futureinnovations.fi
•Mr. Linus Thorvalds developed the
Linux system in the University of
Helsinki in the early 1990s.
• He published Linux by using the
GPL, General Public License, and
transferred it to Internet free for
everybody. Linux has become very
popular in the whole world.
© Kari Sipilä www.futureinnovations.fi
© Kari Sipilä www.futureinnovations.fi
ONLINE GAME HABBO HOTEL, FINLAND
Virtual game world attracts
young people
• Sulake Habbo Hotel is an online
game world aimed at young
people where multiple users can
play simultaneously. In Habbo
Hotel, users create virtual
characters who experience
adventures in the hotel along
with other characters.
• www.sulake.fi
© Kari Sipilä www.futureinnovations.fi
SOME SUCCESFUL INNOVATION CASES
FROM INDUSTRY
AND
FROM INDUSTRY - UNIVERSITY
COLLABORATION
© Kari Sipilä www.futureinnovations.fi
BENECOL
CHOLESTEROL
LOWERING PRODUCTS
Benecol offers you a new
way to reduce your
cholesterol with delightfully
good-tasting foods.
www.raisiogroup.com
The name Benecol brings
together Bene, meaning
"good" and col, for
"cholesterol.”
© Kari Sipilä www.futureinnovations.fi
NEW DENTAL TREATMENT
with Fibre-reinforced Composite Materials
www.sticktech.com , Prof. Pekka Vallittu, University of Turku, Finland
© Kari Sipilä www.futureinnovations.fi
NOKIA
The Finnish Information Technology company.
World leader in mobile phones.
© Kari Sipilä www.futureinnovations.fi
ONE PRODUCT MAY INCLUDE LARGE IPR
© Kari Sipilä www.futureinnovations.fi
THE ELDERLY PERSONS
AND DIFFERENT ICT SERVICES
»
© Tekes, Anna Niemelä
© Tekes, Anna Niemelä
© Kari Sipilä www.futureinnovations.fi
WRIST ALARM ( VIVAGO ) FOR ELDERLY PEOPLE
WWW.ISTSEC.FI
© Kari Sipilä www.futureinnovations.fi
AN INTERNET BUS FOR ICT TRAINING LOCALLY
Netti-Nysse, Tampere, Finland
(www.tampere.fi/kirjasto/nettinysse)
© Kari Sipilä www.futureinnovations.fi
PAPER MACHINE INNOVATIONS
The Metso Paper-supplied PM 1 OptiConcept fine paper machine at UPM's
Changshu, China mill has again set a new world speed record for fine paper
production. On 25-26.4.2006 the 10.4-m-wide (wire) machine was run at 1,654 m/min
(5,427 ft/min) for more than 24 hours. (Source Metso Paper Ltd)
© Kari Sipilä www.futureinnovations.fi
INNOVATIVE EQUIPMENT FOR DENTISTS
( INVENTOR KARI ULVIO)
© Kari Sipilä www.futureinnovations.fi
CASE
WATER MIST FIRE PROTECTION SYSTEMS
MARIOFF HIFOG CORPORATION,
HELSINKI / VANTAA, FINLAND
© Kari Sipilä www.futureinnovations.fi
Marioff HiFog Corporation 1
WATER MIST FIRE PROTECTION SYSTEMS
• Marioff is the world's leading supplier of
water mist fire protection systems.
• Marioff designs, manufactures and
supplies high pressure water mist fire
protection systems under the brand HIFOG®.
• Marioff has also one of Finland's leading
fine mechanical machining workshops.
• Founded in 1985, turnover 80 mill.euros,
staff 320 persons
• www.marioff.com
© Kari Sipilä www.futureinnovations.fi
DM 58114
05-2003 Copyright © Tekes
Marioff HiFog Corporation 2
• HI-FOG is an innovative fire protection
technology utilising high pressure to produce
a fine water mist.
• HI-FOG combines the extinguishing
characteristics of water with the penetrative
qualities of gases without any safety hazards
for personnel or the environment.
© Kari Sipilä www.futureinnovations.fi
Marioff HiFog Corporation 3
© Kari Sipilä www.futureinnovations.fi
Marioff HiFog Corporation 4
M/S Freedom of the Seas
• M/S Freedom of the Seas, the first of two Ultra Voyager class vessels, is
now under construction at the Aker Finnyards Turku Shipyard for Royal
Caribbean International. When it enters service in April 2006, this 158,000
GRT vessel will be the world’s largest cruise vessel. The 339-metre-long
vessel will carry 3,600 passengers on 15 passenger decks.
• The Freedom of the Seas will be fitted with about 13,000 sprinklers in
the accommodation, public and service areas, as well as 400 spray heads
in the machinery spaces. The machinery space arrangement follows the
principles of all RCCL vessels since the Grandeur of the Seas. All
machinery spaces are protected by an enhanced high pressure water
mist system, providing a much higher level of protection than would be
required by a regulatory local application system.
Source:First Choice 24, March 14 2005
© Kari Sipilä www.futureinnovations.fi
Marioff HiFog Corporation 5
• Marioff Corporation Oy is listed in top ten patents-list in
Finland.
• HI-FOG is a registered trademark of Marioff Corporation
Oy.
• Marioff Corporation has now some 100 patent families
containing over 700 granted patents and almost 600 patent
applications worldwide.
• Strong R&D department and extensive patent portfolio
strengthen Marioff´s position as the world´s leading supplier
of water mist fire protection systems.
• Marioff´s main owner Mr. Göran Sundholm is the only one
in Finland who has a total of 68 patents to his credit. Major
part of these patents is related to HI-FOG technology.
Source: Marioff
© Kari Sipilä www.futureinnovations.fi
Marioff HiFog Corporation 6
MARIOFF WON INTERNET COURT CASE
• Marioff has just won an important internet court case through the "fasttrack" arbitration procedure of WIPO, the World Intellectual Property
Organization.
• A competitor had been diverting customers to their own website from
the domain name www.hifog.com (instead of www.hi-fog.com), arguing
that "HI-FOG" or "HIFOG" is a commonly used term for any high
pressure water mist systems. The arbitrator, chosen by WIPO, rejected
this argument, deciding that the competitor had registered and used the
name in 'bad faith', and ordered Network Solutions, the "com"
registration company, to hand over the domain name to Marioff.
• So now you will get the same high quality information on the internet
from the "first choice" water mist company - whether you key in "hifog" or "hifog"!
Source: Article from First Choice
© Kari Sipilä www.futureinnovations.fi
Marioff HiFog Corporation 7
CONCLUSIONS OF THE SUCCESS OF MARIOFF
• SUCCESS IS BASED ON GOOD INVENTIONS AND
EFFECTIVE USE OF PATENTS AND TRADEMARKS
• MARIOFF HAS GROWN IN 20 YEARS FROM A START-UP
COMPANY
–
–
–
–
TO A LARGE INTERNATIONAL SME-COMPANY
WITH SUCCESS PRODUCTS TO GLOBAL MARKETS
TURNOVER 80 MILLION EUROS
STAFF 320 PERSONS
© Kari Sipilä www.futureinnovations.fi
INNOFINLAND AWARDS
TO INNOVATIVE ENTREPRENEURS
BY THE PRESIDENT OF THE REPUBLIC
One of Innofinland 2001 awards was given to Exel Oyj,
represented by Mr. Aki Karihtala by the President of the Republic, Mrs. Tarja Halonen,
who was assisted by Mr. Martti Enäjärvi and Dr. Kari Sipilä.
© Kari Sipilä www.futureinnovations.fi
THANK YOU!
Kari Sipila, Helsinki/Espoo, Finland
kari.sipila@futureinnovations.fi
www.futureinnovations.fi
www.les-scandinavia.org
© Kari Sipilä www.futureinnovations.fi