Intellectual Capital Management and Open Innovation



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XXII Brazilian National Science Parks and Business Incubators Seminar XX ANPROTEC Workshop Intellectual Capital Management and Open Innovation Foz do Iguaçu, 19 th September 2012 Dr.-Ing. Markus Will Head of Competence Center Knowledge Management Division Corporate Management Fraunhofer IPK Berlin - Germany

The Fraunhofer-Gesellschaft The Fraunhofer-Gesellschaft undertakes applied research of direct utility to private and public enterprise and of wide benefit to society. Our Customers: Industry Service sector Public administration Division Corporate Management Prof. Dr.-Ing. Kai Mertins

Innovation: A Linear Model? Innovation Value Chain Basic research Applied research Development Production and diffusion Indicators Inputs (R&D expenditure, Human Resources) Black Box (innovation) Output (patents, publications, high-tech products)

Future Challenges of Science & Technology Parks and Incubators A new form of economic development is taking shape worldwide the so-called Knowledge Revolution. Knowledge has increasingly become a dynamic factor of production and a powerful driver of innovation and productivity. Science & Technology Parks became an important factor to support the knowledge development in economies worldwide. As an incubator for innovation, Science & Technology Parks are designed to strengthen the link between science and business. The generation and transformation of scientific and technological knowledge within a complex network of different actors is the main activity of Science & Technology Parks. The Success of Science & Technology Parks highly depends on: the ability to utilize and manage its intangible resources, specialized human, structural and relational capital for successful scientific and technological performance. Human Capital Structural Capital Relational Capital

Average Impact of Intellectual Capital (IC) on Einfluss der Business Kapitalarten Success auf den Geschäftserfolg Human Humankapital Capital 8,1 Structural Strukturkapital Capital 7,1 Relational Beziehungskapital Capital 6,3 Tangible Materielle Resources Ressourcen 5,1 0 1 2 3 4 5 6 7 8 9 10 Source: Survey Results Knowledge Economy Germany, Fraunhofer IPK 2010 (N=1.000)

Intellectual Capital Factors Human Capital Professional Competence Social Competence Employee Motivation Leadership Ability Structural Capital Internal Co-operation and Knowledge Transfer Management Instruments IT and Explicit Knowledge Product Innovation Process Optimisation and Innovation Corporate Culture Patente Relational Capital Customer Relationships Supplier Relationships Public Relationships Investor Relationships Relationships to Co-operation Partners

The Company as a Complex System of Intellectual Capital 3. Professional Competence 2. Employee training 12. Customer Relationships 13. Marketing 14. Investor Relationships 15. External Co-operation and Knowledge Transfer 27. Financial Result You can see that you can t see anything! 4. Social Competence 6. Management process 1. Product process 28. Image/ Brand 5. Motivation/ Leadership ability 29.Revenue growth weak Impact strong exponential 7. Corporate culture 8. Internal Cooperation and Knowledge Transfer 9. Information Technology and Explicit Knowledge 10. Product Innovation 11. Process Optimisation and Innovation 2011 Fraunhofer IPK, 7 Fraunhofer IPK, Berlin Division Corporate Management 7 of 170

Intellectual Capital Statements (ICS) Support the Systemic Management of Innovation 0,25Y 1Y 1. Product process 0,25Y 1Y 27. Financial results 10. Product innovation 0,25Y 1Y >2Y 12. Customer relations 1Y 2Y 1Y 2Y 28. Image/ brand 8. Co-operation/ knowledge transfer 0,25Y 1Y 5. Employee motivaion leadership 1Y 2Y Y = Year Strong impact Very strong impact Loop 2011 Fraunhofer IPK, 8

Example of a Software Company QQS-Assessment Assessment of Intellectual Capital and Prioritization of Fields of Action IC Management Portfolio Impact Analysis

Monitoring Change: Development of Intellectual Capital Over Time 80 % 70 % 60 % Humankapital Capital Strukturkapital Structural Capital Relational Beziehungskapital Capital Very sehr good gut good gut satisfactory befriedigend 50 % 2006 2007 2008 2006 2007 2008 2006 2007 2008 Fachkompetenz Professional Management- Competence und Sozialkompetenz Management- and Motivation Social Competence Motivation Corporate Unternehmenskultur Culture Kommunikation und Communication and Organisation Organisation Innovation Innovation Beziehungen Customer Relations zu Kunden Beziehungen zu Relations to Co-opeartion Kooperationspartnern Partners Beziehungen zu Stakeholdern Stakeholder Relations

Impact of ICS on Financial Analysts Assessment of Future Earnings Potential Case A Case B 100% 90% Negative Negative Neutral Neutral 80% 70% 60% 50% 40% 30% Neutral 20% 10% Positive Neutral Positive Positive 0% Without intellectual capital report With intellectual capital report Without intellectual capital report With intellectual capital report Source: Alwert; Bornemann; Will: Does intellectual capital reporting matter to financial analysts? in Journal of Intellectual Capital, Vol. 10 No. 3, 2009.

ICS-BR Intellectual Capital Statement for Brazilian SME ICS Pilot Project in Rio de Janeiro (2011) Project Partners ICS Factory Ten pilot companies from the oil & gas sector implementing first ICS in Brazil

ICS-BR Intellectual Capital Statement for Brazilian SME Feedback from Pilot Companies in Rio de Janeiro The ICS helps me to......reflect and refine the business strategy 13 3 1 0...analyse strengths and weaknesses 11 6 0...prioritise improvement opportunities 8 8 1 0...derive and implement actions 10 7 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% strongly agree agree partly disagree strongly disagree

Levels of Application of Intellectual Capital Management Macro Level National Innovation System Meso Level Science & Technology Parks, Incubators, Innovation Clusters Regions Micro Level Organization A Organization B Organization C Small, medium, large companies, universities, other organizations

European Research Project CADIC on Intellectual Capital Management in SME Clusters CADIC SME Network Cluster 1 Cluster n Individual support according to cluster members demand (core activity) Cluster Facilitator Customized set of tools and services according to cluster members demand CADIC Framework CADIC IC-Benchmarking CADIC Web Platform & online services CADIC offline services

Strategische Unternehmensentwicklung auf Basis immaterieller Werte Eine Methode zur Integration der ressourcenund marktbasierten Perspektive im Strategieprozess. by Markus Will, Ed.: Kai Mertins Wissensbilanzen Intellektuelles Kapital erfolgreich nutzen und entwickeln Eds.: Mertins, Alwert, Heisig Including contributions from over 20 wellknown experts. Knowledge Management Concepts and Best Practices Eds.: Mertins, Heisig, Vorbeck Including recommendations and project results, Siemens, Aventis, HP and many more Thank you for your attention! Dr.-Ing. Markus Will Head of Competence Center Knowledge Management Fraunhofer IPK Division Corporate Management Pascalstraße 8-9 10587 Berlin Germany markus.will@ipk.fraunhofer.de +49(0)30 / 390 06 304 +49(0)30 / 393 25 03 http://www.um.ipk.fraunhofer.de