Tortoise Innovation: The Problem with Corporations (and Their Inventors) Hiding in a Shell

Many large companies take a tortoise approach to innovation and stay as hidden within their shells as possible, even some who advocate open innovation. Tortoise companies may have creative R&D staff, including many scientists doing good work, but they keep these inventors hidden in the shell rather than encouraging them to publish or present their work.

The hares, on the other hand, take greater risks as they frequently step out of their comfortable burrows. They let their inventors not just show up at conferences and other events, but take the podium and present. Or, when appropriate, publish their work in major journals. As a result, their inventors become known and get to know many others with related interests. It is that visibility that allows potential partners to find them, to learn about their work, and to come forward with proposals for partnership or further innovation. These visible minds become more highly connected and able to contribute more directly and effectively to the open innovation needs of the Corporation. They are connected to other industries and better connected to the market, and may be more likely to recognize ways to adapt their inventions for better success.

The extreme of tortoise innovator may well be the large body of government scientists that conducted high-tech R&D for decades in the old Soviet Union. One of my past open innovation activities at Innovationedge included traveling to Moscow to assist Russia (more specifically, ISTC: http://www.istc.ru/) in finding external partners for the huge body of invention that arose from government labs in past work (this public information: e.g., I am listed as a speaker on the published agenda of a biotech meeting in Moscow with a presentation entitled "Innovationedge Partnership to bring innovation from Russia to the U.S."). 

Unfortunately, much of that work in the Soviet Union, in my opinion, was dominated by deep drilling into highly isolated wells of expertise, with advanced technologies that were unconnected to real-world industry and markets. Creating connections and finding market opportunities after the fact (as in “answers in search of problems”) is much less efficient that developing inventions tailored to meet real market needs in the first place. The scientists were some of the best in the world, but they were working in isolation, often in great secrecy, with little ability to discuss their work with outsiders and obtain needed feedback and insights to make their work more useful outside their immediate focus. Looking back in time at the fruits of past Soviet era R&D to me looked like closed innovation to an extreme.

My observation of the isolation of Russian R&D relative to industry and markets is consistent with the detailed observation and analysis by Dina Williams in “Russia’s innovation system: reflection on the past, present and future” in The International Journal of Transitions and Innovation Systems, Vol. 1, No. 4, 2011, p. 394-412, available via Academia.edu at  http://www.academia.edu/1207385/Russias_innovation_system_reflection_on_the_past_present_and_future (free download with registration).

Success in open innovation and even in making conventional internal innovation more successful can be enhanced when innovators “get out more often” and increase their visibility in relevant communities. Innovation is frequently about crossing boundaries and making new connections, and open innovation almost by definition involves reaching past one’s own corporate boundaries to find solutions outside. What better way to do this than by having innovators physically or virtually stepping outside those boundaries and being visible to potential partners?

One of my favorite experiences during my days at Innovationedge involved seeing a technology go from an inventor’s garage to a multinational corporation where it is now being commercialized globally. A key event in that story involved speaking at technical conference where my presentation included some information about our client’s invention. Afterwards, I was approached by an R&D leader from a significant corporation who wanted to know more. There was much more work after this—open innovation success is rarely fast and easy—but that new connection took us on a path toward success. Related stories occur frequently when innovation is shared. But silent companies who rely on their tortoise shell eventually find that solid defense is irrelevant. Sometimes, the prizes go not to those who best hide behind their fortifications but to those who cross the finish line in the race for innovation.

My Presentation at IP Counsel 2013: Shenzhen Station

March 19-20 was the 5th IP Counsel Congress held at Shenzhen, one of 3 2013 IP Counsel events in China managed by JFPS Group. This was their first year in Shenzhen, and I think it was highly successful. I think about 150 delegates from China and other nations were present, including IP leaders and influencers from Hungary, Germany, South Africa, Korea, Japan, and other nations.

I was especially pleased to learn from IP leaders from some of the world's leading IP generators such as ZTE, the top international filer recently.

 I had the pleasure of chairing day one of the two-conference, and being the lead speaker with my presentation on IP, China, and innovation. I briefly retraced some of the monumental achievements in the history of China, including some major inventions that the West originally thought came from the West but actually started in China. I began with the example of the printed book, and quizzed the audience about who invented the world's first mass-produced book printed with movable type? Gutenberg is a pretty good answer and his Bible was a remarkable achievement, one that came just 142 years after the world's first mass-produced book printed with movable type was created in China by Wang Zhen. Had some fun with that bit of history, and caught a lot of the Chinese people by surprise. Many don't realize how rich China's tradition of innovation actually is.

 Today, many people think of China as a great copier, but China is rapidly and deliberately moving from a copier to an inventor and a leading source of IP. There are still barriers and inertia to overcome, but the goal is being realized and by the time the West understands the significance of this transformation, many players will have missed the opportunity of a lifetime and some will be completely disrupted. Those who recognize what is happening here may more wisely prepare for the opportunities and risks that will be created, and adapt.

China as a source of innovation and IP must not be ignored. But tapping its potential requires a deeper understanding of Chinese culture and business, which is much different that what the West is used to. I gave some basic tips and reviewed the importance of Chinese concepts such as guanxi, yuanfen (destiny in chance encounters), and hexie (harmony).