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The way we work is our most important innovation
Creating Abundance in the Global Innovation Economy
Dr. Curtis R. Carlson President and CEOSRI International
November 1, 2012
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SRI’s Innovation Model
World’s first virtual computer assistant
Computer speech recognitionMinimally invasive virtual surgery
$26B $7.5B
2
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Our Challenge
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abundant freedomabundant
technologyabundant labor
abundant land abundant trade
abundant natural resources
abundant energy
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Our Economy is Stuck
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1970 1990 2010 2030
500%
400
300
200
100
0
?
Drowning in Debt
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#1 39%
wastecorruption
World’s Worst Business Taxes
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USA #1 2008
USA #5 2011
Rapidly Declining Competitiveness
USA # 7 2012
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FOR
LEASE
California – Best to Worst
every week
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Not wanted
H-1B: America’s “Genius Card”
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outcomes = 0
spending >2X
1970 1980 2000 20101990
Educational Results
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It Gets Worse
8x more likely to go to jail
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America
China
Students
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Poor Performance
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Year
s on
S&P
500
7060
50
4030
20
100
1960 1970 1980 1990 2000 2010 20202030
Companies Going Away– Faster
More Myspace Layoffs
Expected This Week
Oracle buys Sun Microsystems
Google buys Motorola mobile phone division for $12.5bn
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Brutal Corporate Reality"Every CEO will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation. But if you go into an organization and ask people to describe their innovation system, you get blank looks. They have none."
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Worldwide Standards
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most mediamost politiciansmost educators
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they believe in scarcity…
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fear
protectionismlooking inward – not outward
not adapting
pessimism
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this is not a zero sum gamewe can thrive
we have the knowledge
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I believe in abundance …
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… but we must innovate abundantly
( )
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We Have Been Here Before
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nothing seems to be working; it’s time to pay attention again
we need a new way of working
but now based on the FUNDAMENTALS of INNOVATION
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Global Innovation
Economy
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also = intense competition
rapid, exponential improvementunlimited opportunities
huge markets
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Exponential ImprovementIdeas and bits; not just atoms and muscle
10 -9
10 6
10 3
1.0
10 -3
10 -6
1900
Monkey
1920 198019601940 20202000
Multiprocessor Lizard
Worm
Human10 9
After Hans Morevac
Speed/CostMIPS for $10001997 dollars
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Unlimited Opportunities
Additive manufacturing Energy
Cloud, Internet, and mobile devices
Healthcare; regenerative medicine
Digital, on-line education
Social media
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Huge Untapped Markets
7.5%
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Innovation Fundamentals
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high-value innovation is our only path to
environmental
sustainability
securityprosperity
socialresponsibility
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“Build a better mousetrap, and the world will beat a path to your door.” Ralph Waldo Emerson
U.S. Patent Office issued > 6,000 mousetrap patents, however, only two have had real
success!
Classic Tech Push
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creativity and imaginationinvention and IP
teamwork entrepreneurship
technical and business skills
these are all inputs
Innovation is Not Just…
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Definition of Innovation
Creation and delivery of new customer value in the marketplace with a
sustainable business modelfor the enterprise producing it
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successful innovation is not: the result of luck or a lone genius
it is a discipline
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best teamsimportant global opportunities
complete ecosystem and supportive culturesupportive government policies
compelling, defensible product & business model
value creation best practices
Innovation Fundamentals
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MarketSuccess
SRI’s Five Disciplines of InnovationImportant Customer & Market NeedsProcess of Value Creation
Innovation Champions
Innovation Teams
Organizational Alignment
Disciplines are multiplicative
Top 10 Business
Book of the Year
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Time
B
Valu
e
start overC
new knowledg
e A
important need
Value Creation Is a Process
$ make a profit
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Value Propositions
ApproachNeed
Benefits/costsCompetition or alternatives
important customer
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N A B/$ C
Almost All Presentations
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Hard lesson: value creation can only be understood by doing it
Value Creation Forums: Intense Iteration
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Convenience
Perc
eptu
al q
ualit
y
HDTV
PDAsCD Walkman
Color TV
B&W TV
FM
AM
iPod
iPhone
iPad
Morita-san and Jobs Got It
shirt pocket radio
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Progression of Value
$11B
$560B
experiences
emotions
products
services
commodities
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IndustryGovernmentUniversities
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Not Small Companies – New Ones!
Established
- 1.2%New
+ 3%
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best teams?important global opportunities?
complete ecosystem and supportive culture?supportive government policies?
compelling, defensible product & business model?value creation best practices?
National Laboratory Report CardMajor role in national security; but how about
commercialization?
Failure increases dramatically as innovation activities move away from the fundamental’s of innovation
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Projects – Not ProgramsJust giving researchers money to do good is rarely
effective
Speech translation Computer personal assistant
GPS Internet
• DARPA mostly uses the Silicon Valley innovation model
• Paradigm shifting technologies• 240 employees• $3.2B budget/year• Other U.S. R&D organizations adding DARPA-like agencies
48
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University “Tech Transfer”Must bridge the entire R&D spectrum
Fundamental Science
Basic Research
Applied Research
Product Development Production
University R&D
Tech transfer
office
New companies
and licenses
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Value Creation CentersMust bridge the entire R&D spectrum
Fundamental Science
Basic Research
Applied Research
Product Development Production
University R&D
Value creation center
New companies
and licenses
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Girls Middle School
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Kindergarten to Grad School
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we have an abundance of opportunities …
the best time ever …
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we have the knowledge …
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transform education
use innovation fundamentals
Play to Win …
recruit talent
incentivize new company formation
exceed world standards
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Jobs
To Create High-Paying, Meaningful …
environmental sustainability
security
prosperity
social responsibility
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thank you for your attention
discussion
Dr. Curtis R. Carlson [email protected]
650 859 2878