Innovation and Entrepreneurship

Lecture Two – Innovation and Entrepreneurship – April 27th 

Ways to perform R&D

Setting up an R&D organization

Project management

Perform R&D internally or access it externally

• They want to share their technologies
• BMW is premium and Toyota is of a less level – so thats what they get in the deal
• BMW can access a new, larger market that brings scale to the table, where they may not know the market

Why source know-how by buying and integrating into your company

• Strengthen your position

Three options of accessing R&D externally

• Licensing

To knowledge flow – just make sure they access the others knowledge – companies still stay as separate entities

• Joint ventures and alliances
• M&A

Most knowledge flow

Setting up an R&D organization

• Centralized (when you want to build up deep knowledge – technological speciality) or decentralized or hybrid
• What does the internal organization look like

Stage-gate process

• Main benefit is that it breaks down your process into stages and gates
• Make sure you don’t invest and keep investing until a project is need
• Gate is more like an assessment

Role of an innovation project manager

Somewhere in stage or gate 2

Does it make sense to go into the next phase?

Should use a tool or criteria to evaluate if the product should go to the next stage

Net Present Value (NPV) -> research it

Continued as a start up included in a existing business segment or a completely new segment – should stamypor continue as a start-up

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