Innovation & Protecting IP

Invention vs Innovation

• Invention involves creating something entirely new, such as the first light bulb or telephone.

• Innovation, on the other hand, is finding a new application or improvement for an existing creation.

• Invention - Formulation of new ideas for products or processes

• Innovation - Practical application of new inventions into marketable products or services

Main types of innovation

• Product innovation
  • Launching new or improved products
• Process innovation
  • Finding better or more efficient ways to produce existing products or delivering existing services

Product innovation

• Advantages
  • First mover advantage can mean:
    • Higher prices and profitability
    • Added value
    • Opportunity to build early customer loyalty
    • Enhanced reputation as an innovative company
    • PR coverage
    • Increased market share

Process innovation

• Advantages
  • Reduced costs
  • Improved quality
  • More responsive customer service
  • Greater flexibility
  • Higher profits

Entrepreneurship vs Intrapreneurship

Entrepreneurship

• Entrepreneurial activity by entrepreneur
• Rewards go to entrepreneur
• Risk taken by entrepreneur

Intrapreneurship

• Entrepreneurial activities taken by employees and managers
• Rewards (mostly) go to the company
• Risk taken by company

Ways to encourage and facilitate intrapreneurship

• Structured time away from work to allow employees & managers to develop business ideas
• Build cross-functional teams to lead innovation projects
• Secondment of staff to smaller businesses or startups
• Staff competitions and innovation days (such as hackathons)

Why protect Intellectual Property

• Keep control of intellectual property
• Maintain unique selling point
• Maximise return on investment
• Reduce threat of competition

Patents

• To be patent protected, the invention must be:
  • New
  • An innovative step (not obvious to others with knowledge of the subject)
  • Capable of industrial application (can be made and used)
  • Not be excluded (certain inventions don’t count, such as scientific theories and artistic creations)

Copyright

• Important protection for many industries including media, design and publishing
• Protection is automatic for any original work
• Lasts for 70 years after authors death
• Can control how copyrighted work is exploited (eg, license, royalties)
• Widely used as a way of protecting creative work of all kinds