05/27/2008

A range of innovative approaches to knowledge transfer and problem solving

This session brought together Alpheus Bingham, founder and board member of InnoCentive Inc., Pedro Gil, Managing Director and co-founder of Principia Technology, and Xavier Ricart, board member of the Knowledge Innovation Market Barcelona (KIMBCN). Each offered their views and experience in the field of knowledge transfer and the forging of mutually beneficial alliances to externalise the complex business of problem-solving within organisations.

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Dr. Bingham began by explaining the concept behind InnoCentive, a company which exists virtually rather than geographically, and provides a platform where complex problems can be posted in the hope of finding a solution. The idea is very simple but has enjoyed great success and as it offers companies and non-profit organisations the ability to seek solutions in real time from a vast international and multidisciplinary community, with no advance payment. If the organisation adopts the solution, an award is then paid to the solver. The company philosophy is based on the probability of finding a solution to a problem and breaks away from the usual reliance on experts in their fields. He stated that training and expertise is not always the best or sole basis for problem-solving, citing Archimedes as a case in point; his training prepared his mind for thought, but it was his inspiration that led to his most famous discovery. Dr. Bingham gave some examples to expand on this way of thinking - the value of chat rooms containing small user groups of dedicated fans vs. expert help desks, Linux vs. Windows, etc. - and emphasised the importance of considering a variety of solutions to complex problems motivated from different interests and distinct cross-field disciplines. The Internet provides ways of tapping a much wider audience and many advances in this field have in fact been made by those who are "new and external", through bringing unique knowledge and a different perspective to a problem.

The platform is used by a wide variety of commercial and non-profit organisations, some of them large global corporations, with postings from all kinds of sectors, including the chemical, medical, food, cosmetics and pharmaceutical industries. It offers an international resource through which they can consider a range of solutions. This system generates more approaches to challenges, encourages lateral thinking and promotes multi-disciplinary perspectives, ensuring openness within organisations at a low cost. Dr. Bingham explained how the platform had been built as a spot market where there is no complex contracting procedure; in fact, it is the scientific community that takes the risk as payment is paid on a purely result-led basis. Interestingly, he remarked on how, from a community of some 140,000 solvers from 175 countries, over 50% come from China, India and Russia and 40% have PhDs. The InnoCentive founder concluded his talk by speaking of the lessons learned from this innovative platform. These are: reach matters (use existing challenges of engagement, express in technical but not discipline-specific language); diversity matters (no limitations based on areas of expertise, vary geography, disciplines, background), and size matters (bite-sized problems, forego headlines for real results).

Mr. Gil presented the Principia Technology Group, a high-tech American firm which was founded on the market need to facilitate a more efficient technology transfer process between governments, universities and companies. He stressed that the company has always been powered by the strength of its personnel as, to be an entrepreneur or a scientist is to be an explorer, in constant search of new places and new fields. The organisation was founded three years ago with founding partners from the MIT.

The entrepreneur then stated the need for taking risks to bring about new opportunities and identifying new cycles, being ready to act at the right moment. According to Mr. Gil, innovation is accelerating based on the speed of market penetration and that a quick development time can mean the difference between being a consumer and an inventor. Principia Technology Group was founded on an open innovation model based on long-term investment to promote knowledge, ideas and research through entrepreneurial activity with a strong market focus and economic impulse. This focus has created valuable alliances between governments, universities and businesses and forms part of a move towards a more open society founded on collaboration and interaction. Mr. Gil finalised his talk by making reference to the creation of Principia Tech innovation Centres, here in Valencia as well as Navarra, and the US.

Mr. Ricart opened his presentation with a focus on the changes seen in attitudes, capacity and learning, and the creation of teams to solve more complex problems. The new tendencies towards innovation and the availability of technologies have led to restructuring of business models and a growing need for sourcing fresh knowledge to keep ahead of the game. This has created the need for intermediaries who are able to manage the knowledge transfer process. He defined innovation as the successful economic exploitation of a product or a new idea, based on a process of transforming ideas and research into a market success. He stated that currently this mechanism is lacking due to a problem in diagnosis and the differing functions of universities and businesses. He feels it is essential that companies do not control the generation of knowledge at universities, that their role is instead to add value to certain areas.

Mr. Ricart continued by saying that innovation should not exist for its own sake, but that it should be used to bring about success and growth. Growth for companies is seen in increased sales and market share. In order for companies to tap into new knowledge to help them expand, there needs to be firmer connections made between those interested in transferring their knowledge, and those interested in receiving it. While some relationships are already in place, the dialogue needs to become more fluid, and a stronger understanding of the channels available for this exchange is required. KIMBCN, part of the Barcelona Chamber of Commerce, responds to the need to compete in the global market by bringing innovative solutions to company products and services based on business needs and demand. It works to commercialise technology through a strategic development process where companies source and implement new technologies and external know-how. Mr. Ricart completed his contribution by speaking of the need to create interrelated structures connected to wider initiatives to create a knowledge pool and seek value, demand and purpose in innovation. This process, he stated, must be managed on an operative and public level to create collaboration and a flexible structure that fosters communicative networks on a global level.