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Technology Scouting

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Abstract

This chapter is primarily looking at the flow of technological information from the outside of an organization into the organization in order to enhance its knowledge and capabilities. We first analyze the historical and present sources that produce new and improved technologies. We then deep-dive into the role of individual inventors, universities, industry, startups, and government labs. Special attention has recently been paid to so-called technology clusters and ecosystems where innovation in specific domains (e.g., life sciences, software, aerospace, and automotive) is concentrated. Next, we discuss specifically what is technology scouting and how to set up and run an effective technology scouting organization and its associated processes. We discuss the emergence of technology-focused venture capital and the process of due diligence and conclude on a more controversial but very real topic: competitive intelligence and industrial espionage. Technology scouting is an important feeder for technology roadmapping in order to avoid blind spots, and help create a realistic view of what is the current state of the art and what technologies are being worked on by others.

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Notes

  1. 1.

    A rule of thumb that is often stated is that to become really proficient at something one has to do the activity for at least 10,000 hours. At that point one becomes an expert and can quickly judge the deficiencies or merits associated with that activity. Such individuals, if they have a knack for invention or a desire for continuous improvement, may become good candidates to become lead users.

  2. 2.

    An example that I have witnessed myself is in the area of radio astronomy, where skilled radio astronomers will often build their own antennas, filters, amplifiers, and so forth.

  3. 3.

    Source: https://www.wired.com/2016/02/fascinating-evolution-surfboard/

  4. 4.

    We will discuss the R&D portfolio process in greater detail in Chap. 16.

  5. 5.

    Source: https://www.pcmag.com/news/370180/ibm-got-more-patents-in-2018-than-google-apple-and-microso

  6. 6.

    Source: https://en.wikipedia.org/wiki/List_of_top_United_States_patent_recipients#1998

  7. 7.

    Source: https://en.wikipedia.org/wiki/List_of_oldest_universities_in_continuous_operation

  8. 8.

    In 2019, MIT created a new College of Computing, the largest organizational change in 50 years.

  9. 9.

    The founding team may or may not include a faculty member and the students may or may not have finished their degrees. Some of the most successful companies were started by students who “dropped out” of college before completing their degrees (e.g., Bill Gates, Steve Jobs …)

  10. 10.

    In the case of patented inventions from a university laboratory, the principal investigator (PI), usually a professor or research scientist, is typically a co-founder and part of the founding team

  11. 11.

    Source: https://www.cbinsights.com/research/top-artificial-intelligence-startup-patent-holders/

  12. 12.

    Source: https://www.gao.gov/assets/700/692606.pdf

  13. 13.

    An example of a relatively recent addition to the Massachusetts robotics cluster is the massrobotics accelerator: https://www.massrobotics.org/

  14. 14.

    The global innovation clusters shown in Fig. 14.8 are generic in the sense that all patents from all categories are counted in the analysis of diversity, momentum, and size. A specific firm would have to filter this view down to those categories of patents and technologies that are relevant for it today and tomorrow (typically with a time horizon of anywhere between 5 and 20 years). Based on this down-filtered analysis, a certain number of geographic locations would then rise to the top as potential locations where to base individuals or teams of technology scouts.

  15. 15.

    Keeping in mind the magical number seven plus or minus two (Miller 1956), it is recommended that a technology scout not work on more than seven or so requests at once. This therefore requires prioritization and management of the queue of technology requests.

  16. 16.

    Before this happens, a careful discussion with the IP department should take place to avoid the risk of future patent infringement litigation.

  17. 17.

    A quick calculation reveals that the cost of a qualified international technology scout is about $150 K–$200 K per year. With about 2–3 scouts per location, including office rental and travel expenses, the cost of a single technology scouting location may be around $1 million per year.

  18. 18.

    For example, technology scouts could develop Object Process Models (OPM), SysML models, or executable models in Matlab/Simulink, Modelica, or any other CAD/CAE/CAM environment the company decides to establish. Another important aspect is to use a common ontology between scouting and R&D.

  19. 19.

    Source: https://sciencebusiness.net/news-byte/us-and-china-lead-investments-artificial-intelligence-start-ups

  20. 20.

    This is a borderline case as employees often switch to a different and potentially competing company in the same industry. NDAs and non-compete clauses in employment contracts are attempts to reduce the leakage of IP to competitors. However, the enforcement of such clauses through the courts is often rather difficult. Accusations of industrial espionage, violation of non-compete clauses, and other forms of IP leakage are difficult to prove in practice.

  21. 21.

    A recent case that has been successfully prosecuted and that has been in the news is that of an engineer who worked on self-driving car technology at Google for nearly a decade and was subsequently hired by UBER. However, he took with him and transferred a significant amount of technological information in the form of documents and data files for which he was convicted in court: https://www.theguardian.com/technology/2019/aug/27/anthony-levandowski-google-trade-secrets-theft

  22. 22.

    An important practice with potentially significant legal implications is the signing of so-called non-disclosure agreements (NDA). These govern precisely what kind of information will be exchanged between individuals and organizations, measures for safeguarding the information, and sanctions in the case of noncompliance.

  23. 23.

    IP intelligence can lead to the filing of complaints – even before full-on litigation – to have competitor’s patent claims invalidated by a patent office.

  24. 24.

    Source: https://en.wikipedia.org/wiki/Industrial_espionage

  25. 25.

    Economic Espionage: Information on Threat From U.S. Allies, T-NSIAD-96-114: Published: Feb 28, 1996. Publicly Released: Feb 28, 1996

  26. 26.

    Source: https://www.americanbar.org/groups/business_law/publications/blt/2017/05/05_kahn/

  27. 27.

    A well-known example of this is the original recipe for Coca Cola (see Chap. 5)

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de Weck, O.L. (2022). Technology Scouting. In: Technology Roadmapping and Development . Springer, Cham. https://doi.org/10.1007/978-3-030-88346-1_14

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  • DOI: https://doi.org/10.1007/978-3-030-88346-1_14

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