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Collaboration in
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THERE ARE MANY WAYS TO DEFINE INNOVATION

There are many ways to define

innovation. For example the
successful implementation of
new ideas (BIS), Change that
creates a new dimension of
performance. (Peter Drucker),
New ideas that work (Nesta)
There are also wordy official
definitions by organisations like the
OECD that help us to collect uniform
statistics and measure innovation.
Click the thumbnails to learn more:

There are three important concepts:

INVENTION

I N N O VAT I O N

DIFFUSION

The creation of an idea

to do or make something
without verification that it
works, or is commercially
valuable

A new product or process

that has proven to be
commercially (or socially)
valuable

The spread of innovation

throughout society that
generates its full benefit

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INNOVATION IS SO IMPORTANT BECAUSE LONG TERM

ECONOMIC GROWTH DEPENDS ON IT
THERE ARE TWO
SOURCES OF ECONOMIC
GROWTH

A.
More
inputs

B.
New ways to get
more output from
those inputs
=

I N N O VAT I O N

You can grow the size of your economy

by increasing the number of people
working (& their skills) or the capital
they have available to use, e.g. to buy
more machines.

At some point, the only way to increase

living standards is to innovate, by
creating new products, services,
technologies or processes.

MAKEUP OF UK
ECONOMIC GROWTH
2 0 0 0 - 2 0 0 8 ( P E R C E N TA G E
POINTS)

In a global economy, innovation is what

allows UK firms to be competitive.
The UKs comparative advantage is
disproportionately derived from R&D
and innovation intensive sectors.
Nestas Innovation Index measures the
contribution of innovation to UK
economic growth. 63% of the UKs
economic growth between 2000 and
2008 was due to innovation.

But there are decreasing returns to

scale. Doubling the number of machines
has a limited impact on output if you
already have lots of them.
Plan I: The Case for
innovation-led growth.
2012 (Nesta)

SOURCE: INNOVATION INDEX (NESTA)

The Innovation Index.

2012 (Nesta)

International bench-marking
of the UK science and
innovation system. 2014 (BIS)

Total factor productivity:

a short biography. 2000
(Hulten)

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AND INNOVATION IS ALSO CRITICAL TO SOLVING 21ST CENTURY SOCIAL CHALLENGES

I N N O VAT I O N F O R
GRAND CHALLENGES

Innovation policies of the past were

profit oriented, and nationally focused.
Today it is widely recognised that
meeting challenges from climate
change or water security, to caring for
rapidly ageing populations, depends on
innovation that seeks to generate
social value at the same time.

The Gates Foundations Grand

Challenges in Global Health is focused on
overcoming persistent bottlenecks in
creating new tools that can radically
improve health in the developing world.
$458 million has so far been awarded
to partnerships in 33 countries.
www.grandchallenges.org

Scientific and technological

innovations have a better chance of
scaling up and achieving global impact
if they are developed from the outset
in conjunction!with social and business
model innovations.

In the UK Nestas Centre for Challenge

Prizes is collaborating with BIS,
Innovate UK and others on a new
multi-million pound prizes for
innovation to tackle grand challenges
like resistance to antibiotics and zero
carbon flight.
www.nesta.org.uk

*
Grand challenges disregard national
boundaries, meaning global collaboration
in innovation and research is more
important than ever.

OECD Innovation
Strategy. 2010

5 Hours a Day: systemic

innovation for an ageing
population. 2013 (Nesta)

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EFFECTIVE SCIENCE AND INNOVATION SYSTEMS DEPEND ON A COMPLEX

SET OF RESOURCES, INSTITUTIONS, CONDITIONS AND INTERACTIONS

N AT I O N A L I N N O VAT I O N
SYSTEMS CAN BE
DEFINED AS:

... the elements and

relationships which interact in
the production, diffusion and
use of new, and economically
useful, knowledge ... and are
either located within or rooted
inside the borders of a nation
state.

The performance of an innovation

system depends not just on the strength
of each actor but on the quality of the
links between them1*
For example, a firms ability to develop
a new solar panel technology might
depend on public investment in basic
research, skills to develop the
technology, access to finance for
development, environmental regulation
that creates market demand, standards
that drive new levels of environmental
performance, competition etc.

LU N D VA L L , 1 9 9 2

National Systems of
Innovation. 1992 (Lundvall)

The impact of standards

on innovation. 2013 (Blind)

Oxford Photovoltaics is an Oxford

University spin-out that has used
Innovate UK grants to commercialise
publicly funded research into low cost,
transparent solar cells that can be
printed on glass. Regulations on the
carbon emissions of new buildings may
help create a market for this new type of
solar cell.
For more examples of SME success
stories see the Innovate UK website.

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THERE ARE VARIOUS WAYS TO VISUALISE INNOVATION SYSTEMS

F O R E X A M P L E F RO M T H E P O I N T O F
VIEW OF FUNCTIONS AND
CONDITIONS:

O R F RO M T H E P O I N T O F V I E W O F
INSTITUTIONS:
MAIN ORGANISATIONS SHAPING THE
SCOTTISH INNOVATION SYSTEM:

SOURCE: EDLER, J. ET AL (2011) MEASURING WIDER FRAMEWORK

CONDITIONS FOR SUCCESSFUL INNOVATION, NESTA, LONDON.

SOURCE: THE SCOTTISH INNOVATION

SYSTEM: ACTORS, ROLES AND ACTIONS (2006)*

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INNOVATION POLICY REFERS TO ALL PUBLIC INTERVENTIONS THAT SEEK

TO SUPPORT THE GENERATION AND DIFFUSION OF INNOVATION

It involves increasing the

S U P P L Y of resources
for innovation:
Examples:
Through grants, subsidies,
skills, entrepreneurs and
research

But also influencing D E M A N D

to pull innovation through the
system and influence markets
Examples:
Through regulation, standards and
using governments huge purchasing
power.

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INNOVATION POLICIES HAVE DIFFERENT GOALS

GOAL

EXAMPLES

Increasing inputs to innovation

R&D tax credits, grants for R&D, public

support for venture capital

Increasing non-financial capabilities (eg

access to skills and expertise)

Support for exploiting IP, technical support

services, skilled migration and mobility
schemes

Enhancing connections and

complementarities

Cluster policy, support for networks,

collaborative R&D programmes, support for
intermediaries

Enhancing demand for innovation

Public procurement policies, pre-commercial

procurement of R&D

Improving framework conditions for

innovation

Regulation, standards, business environment

Improving discourse and preparedness

Foresight and horizon scanning, technology

roadmapping exercises

The Compendium of
Evidence for Innovation
Policy. 2012. (MIoIR)

The OECD-World Bank

Innovation Policy Platform

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INNOVATION POLICIES MAY HAVE A SIGNIFICANT IMPACT (EITHER INTENTIONAL

OR UNINTENTIONAL) ON INTERNATIONAL COLLABORATION

AT H O M E

BETWEEN

ABROAD

UK policies may attract R&D

investments (eg low corporation
tax) or talent from abroad (eg
favourable immigration policy or
targeted scholarships); or they may
facilitate introduction of those
technologies, business models or
new practices that are generated
abroad (eg soft landing incubators
or business support)

Programmes to foster international

research collaboration produce
new knowledge, but also build
bridges and relationships that
additional stakeholders may
exploit. Funds for collaborative
R&D help support partnerships
between firms and universities
internationally.

The host country policy

environment affects export
opportunities for innovative UK
companies (eg protectionism &
subsidies), the opportunity to codevelop products and take them to
market (eg IPR regime & wider legal
environment) and the ability of UK
companies to access funding (e.g
requirement to conduct R&D
locally or transfer technology)

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H O W & W H Y F I R M S I N N O V AT E

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A RANGE OF FACTORS INFLUENCE FIRMS DECISIONS TO INNOVATE

Innovation is risky and often

expensive. The value of new ideas
and intellectual property is only as
great as the firms ability to exploit
them.

Factors influencing a firms decision to innovate

The community innovation survey,

conducted every two years across
Europe, reaches over 28,000 UK
firms, and shows us which factors
influence innovative UK companies
to invest in innovation.
The chart opposite shows the
factors which influence a firms
decision to innovate.

INNOVATION FACTORS (% OF ALL BROADER

INNOVATORS RATING HIGH)

Community Innovation
Survey. 2012 (BIS)

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WE HAVE A GENERIC UNDERSTANDING OF HOW THE INNOVATION PROCESS WORKS

SOURCE: GREENHALGH AND ROGERS (2010) INNOVATION, INTELLECTUAL

PROPERTY AND ECONOMIC GROWTH

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YET THIS LINEAR MOVEMENT FROM BASIC RESEARCH TO THE MARKET DOESNT
CAPTURE THE RANGE OF WAYS IN WHICH INNOVATION TAKES PLACE

S E R V I C E I N N O VAT I O N

S O C I A L I N N O VAT I O N

This isnt just about the service industries. Service innovation takes
place in many different sectors.

This directly creates value for society in addition to the

economy. It engages new actors, resources, systems and
processes in areas from education and healthcare to climate
change and financial inclusion.

For example the business model innovation that emerged in

Europe from the deregulation of European airspace in the 1990s
resulted in low-cost carriers like Ryanair and EasyJet. While the
core business remains passenger transportation, it transformed the
European airline industry and the travel industry in general.
The application of ICT has led to disruptive service innovations
across many different parts of the economy.
Innovation in services.
2007 (DTI)

Microfinance is regarded as one of the most important social

innovations of a generation. Muhammad Yunus was awarded the
Nobel peace prize in 2006 for his work with the Grameen Bank.
With 2,500 branches, this microfinance bank provides credit to
almost 8 million people, recovering over 98% of loans.

The Open Book of Social

Innovation. 2010 (Young
Foundation)

The Process of Social

Innovation. 2006 (Mulgan)

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FOREIGN DIRECT INVESTMENT CONTRIBUTES TO NATIONAL CAPACITY FOR INNOVATION

Foreign direct investment (FDI)

occurs when overseas businesses
invest in the UK, either by acquiring a
British company or a stake in one, or
by setting up a new subsidiary.
The UKs!2014/15 Inward
Investment Annual Report, published
by UK Trade and Investment (UKTI),
shows the UK has continued to
strengthen its position as the leading
European destination for foreign
direct investment. The US and the
Netherlands are the biggest inward
investors into the UK.

Almost one in five private sector

workers in the UK is employed by a
foreign business; between 1997 and
2010, foreignowned firms went
from employing 11 per cent of the
UKs private sector workforce to
employing 19 per cent.
Critics have argued that FDI, in the
form of acquisitions, hollows out the
UKs productive capacity since
foreign owners are more likely to
shift highvalue functions overseas
and to neglect UK supply chains.
However, survey evidence shows
that foreign firms have a significant
positive impact on the innovative
capabilities of their suppliers in
the UK.

Foreign Direct Innovation:

The effect of FDI on
innovation in the UK.
2012 (Nesta)

Inward investment
report 2014/15 (UKTI)

NISSAN CAR MANUFACTURING PLANT IN

SUNDERLAND

BOMBARDIER TRANSPORTATION PLANT IN DERBY

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DIFFERENT STAGES OF GROWTH REQUIRE DIFFERENT TYPES OF FUNDING FOR INNOVATION

The source of funding for innovation

adapts as a start-up evolves, adjusting to
changes in risk, capital needs and the
relative due diligence cost, but in some
stages finance may be too costly or
simply not available.
Venture capital for innovation is
concentrated in a few sectors like
ICT and biotech, and is available to
a very small proportion of innovative
firms overall. Contracts to develop and
supply products and solutions are a far
more common route to growth.
Public sector spending by large
departments such as health and defence
is also an important driver. Innovate
UKs Small Business Research Initiative
taps into the spending power of
government departments to create
opportunities for small, innovative
companies to access
R&D contracts.

SOURCE: BRIDGING THE VALLEY OF

DEATH PARLIAMENTARY REPORT, 2013

PUBLIC SUPPORT FOR ACCESS

TO FINANCE INCLUDES:

Public venture capital

schemes (public funds
or co-investment
models)

From Funding Gaps to

Thin Markets. 2009 (Nesta)

Business angel
network support

Exploding the myths of

innovation policy. 2011
(Connell)

Tax credits for investors

in innovative companies
(directly or through
funds)

Loan
guarantees

Bridging the valley of death.

2013 (HoC S&T select
committee)

Grants (from
R&D to
innovation
prototyping)
The Small Business
Research Initiative (TSB)

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THERE HAS BEEN A RISE IN ALTERNATIVE FORMS OF FINANCE FOR INNOVATION LIKE CROWDFUNDING

The financial crisis spurred a range of new financial

innovations. Models like crowdfunding and peer-to-peer
funding are remarkable for their transparency and simplicity.
This new alternative finance movement uses technology to
bring those with money to invest closer to those who need
it, allowing investors to create diversified portfolios, avail of
tax incentives and back growing businesses, all without the
need of large traditional institutions.
For example, in 2013 Zovolt, a UK based startup, raised
90,000 through crowdfunding platform Crowdcube for its
miniature wireless ECG/Heart Rate sensor, which is able to
send data in real time to mobile devices.
Nesta research found that in 2013 alternative finance
intermediaries facilitated almost half a billion pounds of
business funding, through crowdfunding, peer-to-peer
lending and invoice financing. While this is still a relatively
small proportion of the overall funding for SMEs, it is
growing fast.
*
*
Find a range of practical
resources, research and
publications here.

THE CROWDFUNDING PROCESS

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COLLABORATION IN INNOVATION TAKES DIVERSE FORMS, THESE

RELATIONSHIPS HAVE DIFFERENT DEGREES OF INTENSITY AND RISK

C O M B I N AT I O N

C O O P E R AT I O N

Information sharing
Informal
Separate resources
Low intensity
Low risk

Some joint planning

Formalised partnership
Communication channels
Resource matching
Medium intensity
Low-medium risk

C O - C R E AT I O N

Shared mission/goal
Comprehensive joint planning
New hybrid structure
Pooled resources
High risk
Shared reward

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GOVERNMENTS USE A RANGE OF METHODS TO

SUPPORT COLLABORATION ON INNOVATION

UK

EXAMPLES OF GOOD PRACTICE FROM

ELSEWHERE

Bilateral
agreements

RCUK has an extensive range of bilateral agreements on joint

research funding calls. Innovate UK has begun to organise joint
innovation calls.

While international agreements are often non-commital,

Swedens innovation agency,Vinnova, is well known for the
number of bilateral programmes that it runs.

Multilateral
agreements

The goal of the Global Innovation Initiative, a British Council

programme, is to strengthen global research through
multilateral partnerships. The UK also participates in the EUs
Horizon 2020 programme.

Germanys CLIENT project involves BRIC countries as

well as South Africa and Vietnam in order to work together
on environmental technologies and services.

Researcher
mobility
schemes

The UK has one of the most extensive lists of researcher

mobility schemes in the EU. Examples include the Royal
Societys Newton International Fellowship and several research
council schemes.

Swedens Advanced International Training programme, run

by SIDA and VINNOVA, aims to promote innovation-led
sustainable growth by funding inward mobility and training.

Partnership
programmes
and initiatives

One example of a UK innovation collaboration initiative is the

Lancaster China Catalyst Programme, which aims to support
the development of partnerships between UK and Chinese
R&D intensive companies.

The Initiative Entreprises Innovantes promotes

partnerships between French SMEs and their counterparts
in abroad.

Foreign branches The UK is well represented internationally by SIN, UKTI,

Prosperity Officers and, in key countries, RCUK.
or subsidiaries

Austria, Denmark, Germany, Italy, the Netherlands, and

Sweden all have S&T attachs, mostly focused on the
BRICS, the USA and Japan. Germany is notable for its
international network of Max Planck and Fraunhofer
research centres.
SOURCE: ADAPTED FROM EU COMMISSION
REPRORT ON INTERNATIONAL SCIENCE, TECHNOLOGY
AND INNOVATION COOPERATION (2013)

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FROM JOINT VENTURES TO STRATEGIC ALLIANCES, THERE ARE MANY

DIFFERENT FORMS OF COLLABORATIVE AGREEMENT BETWEEN FIRMS

The OECD defines a joint venture as:

a contractual agreement
between two or more parties for
the purpose of executing a
business undertaking in which the
parties agree to share in the
profits and losses of the enterprise
as well as the capital formation
and contribution of operating
inputs or costs. It is similar to a
partnership, but typically differs
in that there is generally no
intention of a continuing
relationship beyond the original
purpose.

But there are many kinds of
collaboration on innovation beyond
joint ventures. As companies find
increasingly flexible models of
collaboration, strategic partnerships
are common.

W H Y D O C O M PA N I E S
S E E K PA RT N E R S H I P S
A N D C O L L A B O R AT I O N S
R E L AT I N G TO
I N N O VAT I O N ?

These entail some degree of strategic

and operational coordination and may
include things such as joint research
and development (R&D), technology
exchanges, exclusionary market and
manufacturing rights, and comarketing agreements.

Access product and financial

markets;
Share costs of R&D;
Share risk, reduce uncertainty;
Access complementary
resources and skills of partners,
such as finance, complementary
technologies;
Benefit from research synergies
or access facilities;
Accelerate return on
investments through more rapid
diffusion of innovation
Co-opt competition;
Attain legal and political
advantages in host countries.

Key terms in FDI. 2008
(OECD)

For more on this see the work of Professor Nicholas Vonortas

at the Center for International Science and Technology Policy,
George Washington University

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THE VALUE CREATED BY UNIVERSITY-BUSINESS INTERACTION

GOES FAR BEYOND PATENTING, SPIN OFFS AND LICENSING

There are many ways in which public

research can be transferred, exploited,
and commercialised.
Knowledge flows and
commercialisation channels are not
unidirectional and often operate in
simultaneous and complementary ways.
A recent survey by the UKIRC
identifies the various channels through
which knowledge flow between
universities and businesses, and
highlights the importance of people
interaction from conferences and
advisory boards to student placements
and invited lectures.

While 17% of the firms surveyed

said their interaction with the
university had been initiated by a
Technology Transfer Office (TTO),
this was the least common way to
initiate a relationship.
Direct approaches and follow up to
chance meetings at conferences
were more common, highlighting
the importance of building dense,
informal networks between
universities and businesses.

THE LAMBERT TOOLKIT

Various toolkits have been developed

to help universities and industries
interact successfully. The Lambert
Toolkit is widely recognised, and although
less than 10% of university-business
collaborations in the UK use a Lambertstyle agreement, it is still seen as a
useful template and starting point
for good practice.

International league tables show

the UK ranking highly for
academic-industry collaboration.

Commercialising public
research. 2013 (OECD)

The Connected
University. 2009 (Nesta)

Business perspectives
on knowledge exchange in
the UK. 2013 (UKIRC)

The Lambert toolkit 8

years on. 2013 (IPO)

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CHANNELS OF KNOWLEDGE FLOW BETWEEN UNIVERSITY AND INDUSTRY

ARE DIVERSE, WITH VARYING SIGNIFICANCE FOR INDUSTRY

CHANNEL

DESCRIPTION

INTERACTION
INTENSITY?

INDUSTRY
SIGNIFICANCE?

PUBLISHING

Most traditional and widespread mode of knowledge transmission

Low

High

CONFERENCES &
NETWORKING

Professional conferences, informal relations, casual contact and conversations

are seen as among the most important channels by industry across sectors

Medium

High

COLLABORATIVE
RESEARCH &
RESEARCH
PARTNERSHIPS

Resources are jointly committed by academic researchers and private

companies. Range from small scale projects to large scale strategic
partnerships eg PPPs

High

High

CONTRACT
RESEARCH

Commissioned by a private firm to pursue a solution to a problem of interest, High

involves creating new knowledge as per the specifications of the client. Usually
more applied than collaborative research
Research or advisory services provided by researchers to industry clients.
High
Often led by individuals and not institutionalised.

High

INDUSTRY
HIRING,
STUDENT
PLACEMENT

Firms get access to talent pipeline but main benefits for universities (joint
supervision of theses, internships collaborative research)

Medium

PATENTING
&LICENSING

Ranked among the least important channels by both industry and researchers. Low
Despite policy focus, little transfer of tacit knowledge

Low

PUBLIC
RESEARCH SPIN
OFFS

Receives substantial attention, but in fact a rare form of entrepreneurship

compared to alumni and student startups

Low

Low

PERSONNEL
EXCHANGES

May take many forms, usually university or industry researchers spending time
in alternate settings

Medium

Low

STANDARDS

According to OECD research, at least as important a knowledge transfer

channel as patents

Low

Medium

ACADEMIC
CONSULTING

Medium

High

SOURCE: COMMERCIALISING PUBLIC RESEARCH,

NEW TRENDS AND STRATEGIES, 2013, OECD

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THERE ARE MANY EXAMPLES OF SUCCESSFUL LARGE SCALE

UNIVERSITY-INDUSTRY COLLABORATIONS IN THE UK

DUNDEES BIOTECHNOLOGY
C LU S T E R

The division of signal transduction therapy, run by Sir

Philip Cohen, is supported by the MRC and the University
of Dundee, and attracts 2.7million per year in funding
From 5 of the worlds largest pharmaceutical companies:
AstraZeneca, Boehringer Ingelheim, GlaxosmithKline,
MerckSerono and Pfizer.
The companies share the right to exploit the technical
knowhow, kinase profiling service and unpublished results,
but they pay for special services and to license the units IP.
Forty per cent of the funding for this collaboration goes to a
service facility with 25 staff in a series of backup teams that
support the 14 research groups. This expert team can be
accessed by the companies, providing reagents and chemicals
which generate a further 4 million per company over the
fouryear period. The unit has successfully spawned a number
of startup companies, most of which remain in Dundee.
SOURCE: Plan I, NESTA

ROLLSROYCE, EPSRC AND

U N I V E R S I T Y T E C H N O LO G Y
CENTRES

RollsRoyce has cofunded large amounts of engineering

research alongside the EPSRC.
Their network of University Technology Centres provides
stable funding partnerships with specific institutions, focused
on research areas of interest to the company. Beyond this,
they have participated in research collaborations such as the
ADAM (advanced aeroengine materials) project, a five year
collaboration between RollsRoyce, QinetiQ and six
universities, with funding from EPSRC and DTI (now BIS).
This investigation into the behaviour of hightemperature
materials contributed to major engine improvements
that RollsRoyce has put into production.

SOURCE: Plan I, NESTA

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Whether its the 250 million strong global Linkedin

platform, or the Technology Strategy Boards _connect
platform for the UK innovation community, there are a
growing range of professional networking platforms that
help firms to identify expertise, deals and track industry
specific knowledge. These loose networks are a
complement to offline networking programmes and
their potential is rarely fully realised.

CROWDSOURCING
SOLUTIONS

A growing number of platforms enable online

collaborative development. Marblar is an online
collaborative development platform that lets users generate
commercial applications for scientific discoveries. It attracts
patents from NASA and commercial support for product
development from Samsung. Launched over a year ago, 30
patents have so far been curated on the site, resulting in
thousands of product ideas. Open IDEO is a collaborative
design platform.

P R O P R I E TA R Y
P L AT F O R M S

ONLINE
PROFESSIONAL
NETWORKS

C O L L A B O R AT I V E
DEVELOPMENT
P L AT F O R M S

ONLINE PLATFORMS ARE PLAYING AN EVER BIGGER

ROLE IN ENABLING INNOVATION COLLABORATIONS
Crowdsourcing solutions, involves defining a unsolved challenge
or problems, and creating an online infrastructure through
which the widest possible range of participants can submit
solutions, be judged according to a set of strict criteria and be
rewarded for their achievement. Online ideas marketplace
Innocentive, a spin out from pharma firm Eli Lilly, has 250,00
registered solvers from 200 countries competing for over $35
million in prizes. The US government has created new
legislation to allow government departments to solve
innovation challenges with crowdsourced prizes..

Proprietary digital platforms associated with products, which

provide an opportunity for third party commercial innovations,
have revolutionised the mobile and digital services industry.
For instance, while the direct contribution to profits of Apps
sold in Apples App Store is not huge, the indirect contribution,
through value added to iphone and ipad products is enormous.
There are now over 300,000 Apps on Googles competitor
Android platform, which have been downloaded over ten billion
times. This model is likely to spread beyond the mobile industry.

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COLLABORATING INTERNATIONALLY EXPOSES INNOVATIVE COMPANIES

TO ADDITIONAL RISKS WHICH REQUIRE TAILORED MITIGATION STRATEGIES

The risks that companies face when collaborating

internationally can be categorised as:

Preventable risks that result from poor

preparation or ineffective operational practice. E.g.
failing to apply for a patent; choosing the wrong
partner. They may also result from having a poor
understanding of the local culture or from language
barriers
Strategic risks that companies take in the
knowledge that they are likely to generate strategic
or financial returns; e.g. conducting R&D in China
exposes a company to the risks of a relatively weak
legal system, but they also gain access to local
resources and markets.
External risks such as political and economic
factors and natural disasters that cannot be
controlled, but can sometimes be influenced

Innovative companies face specific risks that are less

relevant to other businesses:

They are likely to require a higher risk tolerance, since

the rapid and regular development of new products or
services is key to their competitive advantage;

They depend more than other industries on IP for

their value and growth strategies.

The risks innovative companies face, and their mitigation

strategies, vary depending on company size and technology:

Small companies may not have the resources to

undertake market research, build government
relationships and defend their IP.

Advanced technologies are more difficult to copy as

they embody a large amount of knowledge which is
not published in patents.

The real risk equation.

2013 (Nesta)

Risk management and

innovation in business.
2013. (Allianz insurance)

Managing Risk: A New

Framework. 2012 (Kaplan)

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INTELLECTUAL PROPERTY IS THE GRAMMAR OF COLLABORATION ON INNOVATION,

AND THERE ARE MANY DIFFERENT ROUTES TO PROTECTING IT

While patents and

other formal rights are
often thought of as the
main ways to protect IP,
businesses use a wide
range of formal and
informal approaches.
For example, trusted
relationships are key to
innovation
collaborations and must
be cultivated over time.
In a recent survey 74%
of firms surveyed said
that cultivating
commitment and loyalty
is an effective way to
protect IP, compared to
just 51% for a patent.

APPROACH TO
PROTECTION

DESCRIPTION

Patent

An invention which is a product or a process that provides a new way of doing

something, or offers a new technical solution to a problem.

Design right

Design Right refers to the specific legal protection available to unregistered

designs in the UK.

Trademark

A sign (logo/words that make a brand) which distinguishes goods and services
from that of a competitor.

Copyright

Artistic and creative works

Secrecy/nondisclosure agreement

Inventions that havent been patented

Restricted access to
information

Trade secrets that have not been registered for legal protection

Division of duties

Involves splitting stages of the production or research process between different

partners or suppliers

Cultivating
commitment &
loyalty

Allows partners to share information without fear of IP theft

Fast innovation cycle

Bringing products and services quickly to market reduces risk of being copied

Complex product
design

Products that do not embody large amounts of advanced knowledge are relatively
easy to copy and manufacturers often make them unnecessarily complex in order
to mitigate this

Collaborate to
innovate. 2013. (Big
Innovation Centre)

IPO: Types of IP

IP toolkits and guides

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LEARN MORE

OECD (2005) Oslo Manual: Guidelines for Collecting and Interpreting

Innovation Data, 3rd Edition. Available at: http://www.oecd.org/sti/inno/
oslomanualguidelinesforcollectingandinterpretinginnovationdata3rdedition.
htm

Hulten (2000) Total factor productivity: a short biography. Available at:

http://www.nber.org/papers/w7471

OECD (2002) Frascati Manual: Proposed Standard Practice for Surveys on

Research and Experimental Development, 6th edition. Available at: http://
www.oecd.org/innovation/inno frascatimanualproposedstandardpractice
forsurveysonresearchandexperimentaldevelopment6thedition.htm

OECD (2010) The OECD Innovation Strategy. Available at: http://

www.oecd-ilibrary.org/science-and-technology/the-oecd-innovationstrategy_9789264083479-en;jsessionid=ouwfbd5krd7i.x-oecd-live-01*

Nesta (2012) Plan I: The Case for innovation-led growth. Available at:
http://www.nesta.org.uk/publications/plan-i"

Nesta (2013) 5 Hours a Day: systemic innovation for an ageing

population. Available at: http://www.nesta.org.uk/publications/fivehours-day"

Nesta Innovation Index. Available at: http://www.nesta.org.uk/project/

innovation-index

Lundvall (1992) National Systems of Innovation: Toward a Theory of

Innovation and Interactive Learning Available at: http://books.google.co.uk/
books/about/National_Systems_of_Innovation.html?
id=iDXGwacw-4oC&redir_esc=y

Allas, T. (2014) Insights from the international bench-marking of the

UK science and innovation system. Available at: https://www.gov.uk/
government/publications/science-and-innovation-system-internationalbenchmarking

Blind (2013) The impact of standardization and standards on

innovation. Available at: https://www.nesta.org.uk/sites/default/files/
the_impact_of_standardization_and_standards_on_innovation.pdf

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Elder et al (2011). Measuring wider framework conditions for successful

innovation. Available at: http://www.nesta.org.uk/PUBLICATIONS/
MEASURING-WIDER-FRAMEWORK-CONDITIONS-SUCCESSFULINNOVATION

DTI (2007) Innovation in services, DTI Occasional paper. Available at:

http://www.cambridgeservicealliance.org/uploads/downloadfiles/
DTIpaper9.pdf

Roper (2006) The Scottish innovation system: actors, roles and actions.
Available at: http://www.scotland.gov.uk/Resource/Doc/89713/0021562.pdf

Murray et al (2010) The Open Book of Social Innovation,Young

Foundation., London. Available at: http://www.nesta.org.uk/
publications/open-book-social-innovation"
"

Manchester Insitute of Innovation Research (2012) The Compendium of

Evidence for Innovation Policy. Available at: http://www.innovation-policy.
net/compendium/

Mulgan, G. (2006) The Process of Social Innovation, Innovations,

MIT, Boston. Available at: https://www.nesta.org.uk/sites/default/
files/the_open_book_of_social_innovation.pdf

The OECD-World Bank Innovation Policy Platform. Available at: https://

www.innovationpolicyplatform.org/

Chesbrough (2006) Open Innovation: the new imperative to creating and

profiting from technology. Available at: http://books.google.co.uk/books/
about/Open_Innovation.html?id=OeLIH89YiMcC&redir_esc=y"

BIS (2012) Community Innovation Survey: Available at: https://

www.gov.uk/government/collections/community-innovation-survey"

Nooteboom et al (2008) Network Embeddedness and the

Exploration of Novel Technologies. http://papers.ssrn.com/sol3/
papers.cfm?abstract_id=903743

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OECD (2013) Interconnected Economies: benefitting from Global Value

Chains. Available at: http://www.oecd.org/sti/ind/interconnected-economiesGVCs-synthesis.pdf"

UKTI (2013) Inward Investment Report 2014/15. Available at: https://

www.gov.uk/government/publications/ukti-inward-investmentreport-2014-to-2015

Dedrick et al (2008) Who profits from innovation in global value chains?

Industry Studies. Available at: http://web.mit.edu/is08/pdf/
Dedrick_Kraemer_Linden.pdf"
*

Nesta (2009) From Funding Gaps to Thin Markets: UK government support

for early stage venture capital. Available at: http://www.nesta.org.uk/
publications/funding-gaps-thin-markets

Kraemer et al (2011) Capturing value in global networks. Available at:

http://pcic.merage.uci.edu/papers/2011/Value_iPad_iPhone.pdf

Connell and Probert (2011). Exploding the myths of innovation policy.

Centre for Business Research, University of Cambridge. Available at: http://
www.cbr.cam.ac.uk/fileadmin/user_upload/centre-for-business-research/
downloads/special-reports/specialreport-explodingthemyths.pdf

OECD (2013) UK participation in global value chains. Available at: http://

www.oecd.org/sti/ind/GVCs%20-%20UNITED%20KINGDOM.pdf

House of Commons Science and Technology Select Committee (2013)

Bridging the valley of death: improving the commercialisation of research.
Available at: http://www.publications.parliament.uk/pa/cm201213/cmselect/
cmsctech/348/348.pdf"

Nesta (2012) Foreign Direct Innovation: The effect of FDI on

innovation in the UK. Available at: http://www.nesta.org.uk/sites/
default/files/foreign_direct_innovation.pdf

The Small Business Research Initiative (SBRI): https://

sbri.innovateuk.org/"

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Find a range of practical resources, research and publications here: http://

www.nesta.org.uk/project/crowdfunding"

Nesta (2009) The Connected University. Available at: http://

www.nesta.org.uk/publications/connected-university

Technopolis (2012) Overview of international science, technology and

innovation cooperation between Member States and countries outside the
EU and the development of a future monitoring mechanism. Available at:
http://ec.europa.eu/research/iscp/pdf study_cooperation_countries
_outside_the_eu.pdf *

UKIRC (2013) Connecting with the ivory tower: Business perspectives

on knowledge exchange in the UK. Available at: http://ukirc.ac.uk/object/
report/8325/doc/Business-UniversitySurveyReport.pdf"

OECD Key terms in FDI (2008). Available at: http://www.oecd.org/

investment/investmentfordevelopment/2487495.pdf

IPO (2013) Collaborative research between business and

universities: The Lambert toolkit 8 years on. Available at: http://
https://www.gov.uk/government/uploads/system/uploads/
attachment_data/file/311757/ipresearch-lambert.pdf

For more on this see the work of Professor Nicholas Vonortas at the
Center for International Science and Technology Policy, George
Washington University: http://elliott.gwu.edu/nicholas-s-vonortas

OECD (2013) Commercialising public research, new trends and strategies.

Available at: http://www.oecd.org/sti/sci-tech/commercialising-publicresearch.htm

OECD (2013) Commercialising public research, new trends and

strategies. Available at: http://www.oecd.org/sti/sci-tech/
commercialising-public-research.htm

Nesta (2012) Plan I: The case for innovation-led growth. Available at:
http://www.nesta.org.uk/publications/plan-i

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Nesta (2013) The Real Risk Equation. Chapter in China's Absorptive State:
Research, innovation and the prospects for China-UK collaboration.
Available at: http://www.nesta.org.uk/sites/default/files/
chinas_absorptive_state_0.pdf#page=79
Allianz Insurance (2013) Risky Business: A report comparing how
combining risk management and innovation in business can deliver growth.
Available at: http://docs.allianzebroker.co.uk/PDF/AC/General/AllianzRisky-Business-Report-April-2013.pdf *

Kaplan (2012) Managing Risk: A New Framework. Harvard Business

Review. Available at: http://www.eurocert.org.uk/Files/Posts/Portal1/risk
%20management.pdf

The Big Innovation Centre (2013) Collaborate to innovate: how

businesses can work with universities to generate knowledge and drive
innovation. Available at: http://www.biginnovationcentre.com/universitiesand-innovation-centres

IPO : Types of IP. Available at: http://www.ipo.gov.uk/types.htm

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C L I C K H E R E TO R E T U R N
T O T H E I N N O V AT I O N P O L I C Y
T O O L K I T H O M E PA G E