In a recent webinar with Dr. Paul Germeraad of Intellectual Assets, Inc., Dr. Germeraad explained how close examination of intellectual property activity can provide valuable insight on where to focus and invest scarce open innovation resources. Two particular metrics are mentioned that should be examined: IP Density and IP Velocity.
With IP density, one should investigate what type of the following three environments does your opportunity area reside in:
- IP Jungle – An area where there is patent documentation in the 10s of thousands, which would require a significant investment in people and software to examine and sort through.
- IP Forest – An area where there are a few hundred to a thousand pieces of documentation, showing a developing area where information analysis is manageable and opportunity is rich.
- IP Desert – An area where there is patent documentation in the 10s. Most likely this is an immature technology or market with a long developmental horizon in front of it.
The key to navigating this is to match your business goals, innovation capabilities and resources with the IP activity profile. “Velocity” can also provide a a litmus test of the potential for successful Open Innovation, according to the following slide:Regarding this slide, Dr. Germeraad commented during the webinar:
If the growth rate in patents…has been slow and steady, putting an open innovation team into that environment gives you a good chance for success..Likewise if it’s sporadic and going up and down, and people haven’t found a dominant design yet, that’s also a good area for open innovation…What’s tough of course is the center, where you’re maybe “a day late and a dollar short,” that’s a hard area to get into, when things are changing fast around you and it’s hard to communicate about what’s happening…there are too many blind sides coming in and anxiety that’s not conducive to productive open innovation.”
This webinar is available for on-demand viewing – click the link below to watch now: