Innovation Trapped – Rethinking the flow of ideas to market

I think we do need to move very swiftly in creating value for consumers and reacting to the economics.
- Brian Becker

On BusinessWeek’s website recently (November 9, 2009), Vivek Wadhwa posted a ViewPoint column focused on the implication of globally outsourced innovation. While what he reviewed was not necessarily earth-shattering in its revelations it did highlight a series of long-held but little discussed ways for the USA (or any country) to position itself in the new exchange of research and development ideas.

Wadhwa catalogued the inherent risks in the present shifting innovation landscape: over 50% of US companies have developed outsourced innovation initiatives; US inflexibility in partnering with offshore resources is negatively impacting domestic innovation performance; cost may have been the initial driver for embracing outsourced solutions, but tapping global talent is the new fundamental necessity; and, the support roles previously outsourced have been superseded by much more complex jobs involving complex thinking, research, and solution design. If the most complex jobs are moving off-shore, what remains of the innovation-driven US economy?

In response he offered four approaches to help the US retain its innovation edge:

1. Increase the global awareness of American workers as they will be looking off-shore for ideas to apply at home in new and interesting ways, to drive the US economy domestically and globally,
2. Mid-tier companies cannot afford to outsource so better policies need to be developed to make it easier for them to use technology and provide them tax breaks for research,
3. Outsourcing is inherently disruptive so we must upgrade our investment in workforce training and development and make these items more of a corporate priority (as well as a national one akin to Singapore’s approach, perhaps?), and,
4. As early-stage ventures create the highest percentage of value per capita during the lifespan of companies, we need to harness this innovation treasure by building mechanisms to break the innovation logjam at the source, inside the research institutions and organizations where good ideas too often die.

Of the four areas for action defined, it is perhaps the last one which can provide the most immediate positive impact to both the innovation standing of the USA and to the need to generate new jobs to replace those lost in the current economic turmoil – or “Great Recession” as I heard it so glowingly defined recently. It is not a question of, “does America need to try harder on the innovation front?” Far from it. What needs to occur is a fundamental rethinking of the way current innovations, often set aside due to missteps and poor advocacy, so that they can receive a full and frank assessment for market potential.

A case in point. I was recently attending a fundraiser for the 80th anniversary of the non-profit nursery school for which I serve on the Board of Trustees. In the middle of meeting-and-greeting I began a conversation with John, the Alumni Relations and Development Director for a local high school, about the nursery school which in turn led to a discussion of my role on the Board and my work away from the Board (in the “real” world). After explaining my consulting approach, which is focused on helping people bring their ideas to market as fast as possible, John said, “that’s interesting…”

(If ever there was an opening!)

John then recounted an innovation lost story of his own. It seems he was asked to provide support to a pair of university professors who had developed a serious piece of heads-up display technology. It was truly mobile and ground-breaking. The professors were evidently excited by their breakthrough and eager to present it to possible venture capitalists. John, in working with them closely recognized that the professors needed some additional preparation. They simply were not ready for “prime time.” He tried to address his greatest fear, that they would not present their concept in the best light, by spending extensive time with the professors in advance of the impending demonstration. The professors tolerated his involvement, but kept insisting that their ideas would speak for themselves.

On the day of the presentation, John reinforced the fact that the demonstration needed to go off without a hitch. The display equipment, all very beta, was a little unwieldy. The professors, eager to show off their creative genius, asked the venture capitalist to try it on as it was very impressive when you were immersed in the data display. For the wearer the experience was like a 20 foot video screen was floating before you. Or, at least that was what was meant to happen. No sooner was the headgear clamped to the head of the venture capitalist than the arm holding the small display snapped at its base and the arm swung down driving the display into his shocked and open mouth, chipping a tooth.

In an instant he went from interested party to injured party.

Needless to say, no money was to be offered that day, or any day as word got around about what had transpired. The professors couldn’t understand why no one was willing to take a chance. John, in frustration, walked away from the deal. His parting comment to me, “if we can’t help our best and brightest bring their sharpest ideas to market we’ll all suffer in the long-term.”

So, here’s the challenge, how can we help unlock those innovations, many already fully formed, so that they can flow to the market? No matter where they are, in the heads of our scientists and researchers, or in the work of our offshore partners, how can we capitalize on them as swiftly as possible. I’ll look for your ideas in the comments and will offer my own in future posts.