Innovation Markets

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= Innovation Markets are often used by larger organizations to post research challenges aimed at academic, technical, and other specialist teams.


Definition

"Innovation markets generally allow clients and contributors to post and view challenges, give access to a pre-registered crowd of relevant experts, and provide a platform to facilitate collaboration between seekers and solvers. "

Description

Ross Dawson:

"Sometimes referred to as R&D platforms, these are essentially competition platforms that are focused on specific challenges posted by an organization. Usually a pre-specified reward is given to whoever meets the challenge or provides the best idea. They are commonly used by larger organizations for high-value R&D activities, such as new product development processes that require technical or academic expertise."

„„ Process overview: 1) register a crowd; 2) post a challenge; 3) search and connect; 4) participants submit ideas; 5) review and interact; 6) reward; 7) transfer IP

("In general, full intellectual property rights for the winning solution become the property of the client organization. Those who did not win retain the rights to their ideas or proposed solutions.")

(source: Getting Results from Crowds)


Typology

'There are a number of public innovation markets on which organizations can post their challenges. Some companies such as Procter & Gamble have created their own corporate-branded sites."


Status

Market maturity: Some aspects of distributed innovation are relatively mature. Idea management platforms such as Imaginatik have been around for 15 years, while InnoCentive publicly launched in 2001. Prediction markets have been used in the corporate arena for over two decades, though it is only over the last five years or so that a range of commercial prediction market platforms have become available."


Discussion

"In most cases distributed innovation should tap as wide and diverse an audience as possible. While some areas of innovation are extremely specialized, in many cases the most valuable and useful ideas come from people who work outside that domain who can bring new perspectives to bear."


Directory

"Formed in 2001 and the current market leader, InnoCentive tends to present technical R&D or scientific challenges from blue chip organizations such as NASA (occasionally in branded ‘pavilions’), with bounties which range from $10,000 to $1,000,000. There is a tightly controlled process to protect IP."


"ideaken is a Software-as-a-Service platform based around collaborative innovation. It is aimed at the enterprise market, but is also used by some smaller organizations. It claims to be both scalable and flexible, allowing for a range of innovation scenarios that can include posting challenges to a nominated set of individuals, internal groups, external communities, or combinations of all these."


"NineSigma mainly services large global corporates, for example GlaxoSmithKline, in addition providing a number of value-add services such as consulting, training, and implementation. NineSigma gives access to a network of commercial and academic experts from over 135 different countries. Although the specialists cover diverse sectors and capabilities, NineSigma currently specializes in sustainability issues."


"Innovation Exchange describes its client base as “Global 5000 companies and not-for-profit organizations”. Financial rewards are usually between $50,000 to $100,000. Challenges cover new product concepts, marketing, and wider social issues such as child poverty. The platform also facilitates social networking, encouraging individual innovators to connect and form teams to respond to challenges."

Examples

NASA at InnoCentive

"NASA has been an active supporter of using distributed innovation and competitions to solve specific issues it is facing. For example in the past six years it has set a number of “Centennial Challenges” based around different themes, including “Sample Return Robot” and “Nano-Satellite Launch”.

They have also set up their own branded ‘pavilion’ within InnoCentive that displays their current areas of interest. These have ranged from new packing technologies that keep food in space fresher for longer to the “co-ordination of sensor swarms for extra-terrestrial research.” In the pavilion they also posted their request for “Data driven forecasting of solar events.”

The winner of the challenge was Bruce Cragin, a retired radio frequency engineer from New Hampshire, US. He was awarded a $30,000 prize for being able to predict the “onset, intensity of duration” of a “solar event” with 75% accuracy within a 24 hour forecast window." (Getting Results from Crowds, p. 150)


Source

Most material for this page is sourced from: Ross Dawson: Getting Results from Crowds


More Information

For another type of Distributed Innovation Platforms, see:

  • Idea Management Platforms facilitate the ongoing submission of ideas from targeted communities that propose and rank the best ideas.