SME Innovation Research Innovation methods of Small and Medium Enterprises active on the Remotely Piloted Aircraft Systems market

Camiel R. Verschoor (2535938)!Supervised by:Theo Groen & Gerald Poppinga

Presentation Outline

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1. Motivation

2. Research Question

3. Background

4. Conceptual Model

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5. Methodology

6. Results

7. Conclusion

8. Discussion

Motivation

The world is constantly changing and so is innovation

Traditional innovation methods infeasible:(Chesbrough, 2003a; Hutter, Hautz, Repke & Matzler, 2013)

• Increasing mobility and accessibility of knowledge workers

• Shorter Product Cycles

• Rising costs of designing, developing and shipping novel products

The ability to develop innovation is the key for the enterprises to adapt and survive (Koch, Hauck & Isenhardt, 2011, Chesbrough, 2007)

Motivation

Research Initiator: IDI Snowmobile

Small enterprise that builds intelligent systems:

• Dr.One: a small RPAS that transportsmedical goods in Africa.

• DroneVeilig: a drone traffic management system allowing RPAS to fly safely and securely through airspace.

Motivation Research Initiator

IDI Snowmobile would like to generate insight in the mechanisms of innovation within the RPAS market in the

Netherlands, thereby:

• helping the market to advance.

• allowing IDI Snowmobile to carefully align the business strategy accordingly.

Research Question

ObjectiveTo create insight into the innovation methods of small and medium enterprises active on the remotely piloted aircraft

systems market.

QuestionWhat are the innovation methods of small and medium

enterprises active on the remotely piloted aircraft systems market?

Remotely Piloted Aircraft Systems (RPAS)

A remotely piloted aircraft system consists of:

• a remotely piloted aircraft.

• an associated remote pilot station.

• command and control links.

Examples:

Remotely Piloted Aircraft Systems

Remotely Piloted Aircraft System Market

• ~150 enterprises in the Netherlands (van Nieuwland, 2014)

• Manufacturers

• Service providers

• Data processors

Legal Framework

• Legal framework is constantly changing.

• Dutch Legal Framework:

• Recreational use regulation for model aircraft (Regeling Modelvliegen, 2013).

• Commercial use forbidden, unless you obtain a exemption at the Dutch Civil Aviation Authority (Inspectie Leefomgeving en Transport).

Conceptual Model

Conceptual Model

Research subquestions

• What technology exploration activities do SMEs apply to innovate?

• What technology exploitation activities do SMEs apply to innovate?

• What type of partners do SMEs collaborate with in the innovation processes?

• What social insights do SMEs use to identify market transitions for product creation?

• What is the influence of trade conditions and regulations on the market transition?

• What is the effect of the product-service combination of SMEs on the market transition?

Methodology

• Data CollectionQualitative Semi-Structured InterviewsAudiotaped

• Data AnalysisTranscribedClosed coding

Research Population

11 interviews

• 2 Manufacturers, 8 Service Providers and 1 Data Processor

Selection Criteria

• Small and Medium Enterprise

• >1 year active on the RPAS market

• Respondent decision-maker in the innovation process

Results

Technology exploration

• Customer involvement

• External networking

• Outsourcing R&D

• Inward IP licensing

• External participation

Results

Technology exploration

• Customer involvement

• External networking

• Outsourcing R&D

• Inward IP licensing

• External participation“We add extra functionality to our product by including

external technical capabilities to our product.”

Results

Technology exploration

• Customer involvement

• External networking

• Outsourcing R&D

• Inward IP licensing

• External participation

Technology exploitation

• Outward IP licensing

• Employee involvement

• Venturing

• Partnerships

• Partner projects“We add extra functionality to our product by including

external technical capabilities to our product.”

Results

Technology exploration

• Customer involvement

• External networking

• Outsourcing R&D

• Inward IP licensing

• External participation

Technology exploitation

• Outward IP licensing

• Employee involvement

• Venturing

• Partnerships

• Partner projects“Only internally, if we figured

something out we try to bring it to the market

ourselves.”

“We add extra functionality to our product by including

external technical capabilities to our product.”

Results

Partners

• Small and Medium Enterprises

• Research Institutes

• Large Enterprises

Results

Partners

• Small and Medium Enterprises

• Research Institutes

• Large Enterprises

Social insights

• Privacy

• Security

• Market research

Results

Trade conditions and Regulations

• Trade conditions no effect

• Regulations

• Distinctness

• Unclarity

• Reduction of sales

“We are in favour of the strict regulations for entering the market, this makes the market more professional.”

Results

Trade conditions and Regulations

• Trade conditions no effect

• Regulations

• Distinctness

• Unclarity

• Reduction of sales

Product-Service Combinations

• Press attention

• Word of mouth

• No public awareness

“We are in favour of the strict regulations for entering the market, this makes the market more professional.”

Conclusion

• Most SMEs use external technology exploration and exploitation methods

• Privacy, security and market research were important social insights

• Legal framework has a major effect on the market transition.

• Some SMEs experience a market transition due their product-service combinations.

Discussion

• Main findings are similar to literature

• Relevance

• Conceptual model

• Methodology

Future research

• Inclusion of relevant actors

• Legal framework

• Technology acceptance

Questions?

Remember! Anything can Fly!