The IDEAGORA – an emerging innovation trend

1. The IDEAGORA – an emerging innovation trend Presenting three leading examples June 2008

2. Agenda • Why are Ideagoras growing • Update on 3 leading Ideagoras: • Summary • Opportunities for the IAS

3. Why are the Ideagoras growing?

4. Workingcollaboratively on needs definition for your RFP • Dedicated, expert program managers • Simultaneously stimulating internal resources • Broadest sources of solution providers in government, private industry, academia and individuals • Via our unique innovation network • We find un-obvious solutions, cost-effectively • Manage confidentiality • Reach new partners and you go forward through best options Background • Founded in 2000 • They source innovative solutions for their clients by using a global network of Solution Providers • First 100+ Request for Proposal (RFP) documents were on behalf of Proctor and Gamble • 500 RFPs posted up to end 2006, 400 RFPs posted in 2007 • Network has grown to 1.5 million+ solution providers; • 100+ registered Affiliates - hundreds more in the pipeline • Reachable network size is 575K+ innovators; growing exponentially • More than 75 countries represented • Broad range of technical disciplines…chemistry, materials, electrical/electronics, packaging, food, formulation, consumer preferences, health/life sciences, renewable energy and more • Many large organizations are registered as Solution Providers as well as Innovation Seekers What they do • Proprietary Process, project managed by PhDs • Client typically pays an up-front fee of $15K* per RFP with risk sharing “success commission” based on paying Nine Sigma a percentage of the final contract value. • RFPs are sent by e-mail notification each week to registered Solution Providers and Affiliates • Solution Providers are offered a prize for the best solution(s) generally ranging from $5K to $50K * 2007 price figures

5. www.ninesigma.com

6. 3 key take outs • Rapid rate of growth of solver base, primarily through Affiliates. Nine Sigma are actively seeking innovation “hubs” (Innovation Alliance Program) • Large client organisations have had some big successes through Nine Sigma and are expanding their agreements, increasing the number of RFPs • Many of the transactions are between large companies with complementary capabilities and strong IP awareness

7. Background • InnoCentive was started by Eli Lily, in 2001. • InnoCentive connects companies, academic institutions, and non-profit organizations with a global network of more than 145,000 of the world's brightest minds. • Aims to Become the “Google” of the innovation search • Solutions have come from more than 30 countries • Over 550 postings for innovation challenges since starting, 192 awards to date. • Recognition is given to successful solvers on the InnoCentive website • InnoCentive is also innovating the way it markets itself e.g. use of Youtube What they do • Innovation challenges are now segmented into 4 categories; Ideation, Theoretical, Reduction to Practice (RTP), and electronic Request for Partnership (eRFP), • the cash awards for solving challenges are in the range $5,000 to $100,000 (but can be as high as $1m). InnoCentive have so far paid out over $13m in prizes • As with Nine Sigma, there is an initial posting fee which varies according to the type of challenge but is in the range of $6,000 to $15,000. There is also a success fee based on the value of follow-on contract or award value • Innovation Challenges are sent by e-mail to Solvers once a week

8. www.innocentive.com

9. 3 key take outs • Extremely rapid growth (45% per month) of solver base, number of challenges and value of awards • Emphasis on marketing to solvers at least as great as to seekers • InnoCentive are keen to expand their base and are aware that to do this some solvers will need IP support

10. Background • Founded in 1999 • To help technology companies realise value from their Intellectual Property • Privately held, worldwide organization - Offices in USA, Europe & Asia. • Operate largest Global online marketplace for technology transfer. • yet2.com internet presence is a unique resource to facilitate deals – • 120,000+ registered users, 40,000 companies, Network of 12,000+ smaller companies ($10-500m) • 500,000 data points of known solutions • “In-licensing “ and “out-licensing” IP for large companies and SMEs • yet2.com has a network of subject specific consultants around the world and is working with government related organisations e.g. European Technology Network • yet2.com closed 20+ deals last year and completed transactions for 10 F500 companies in Q4 2007. • 71% of deals have been between companies from different industries Whatthey do • Buy-side (Technology Acquisition) • Sourced innovation • Patent acquisition • Sell-side (Licensing / Technology Commercialization) • Technology platforms for non-strategic applications • Leading edge innovations from SMEs • Patent selling • Strategy, Portfolio Analysis, Benchmarking, Deal Facilitation • yet2.com provides consulting support throughout a project and stays engaged in the deal-making process. • yet2.com is very well placed to help companies acquire technology because it also helps clients exploit technology • Typical client rates: • Membership fee $4,000 to $30,000 • Consulting service fee $30,000 to $40,000 • Success fee: % of value to the deal but capped

11. www.yet2.com

12. 3 key take outs • Yet2.com are already a lot bigger than I thought and growing fast • The yet2.com service is predominantly leading to cross-industry deals • Once again, as with Innocentive and Nine Sigma yet2.com are looking for “hubs”

13. Comparison chart * 2007 price figures

14. Summary • This is a globally distributed marketplace which is growing very quickly and delivering results • Until recently, the size of the marketplace itself was a limiting factor, putting off many organisations from engaging in it. • Seems to be approaching a tipping point for many large organisations as the success stories spread • All three Ideagoras are actively looking for “hubs” to connect with SMEs and individuals • There is a large amount of innovation within the business model and offer from each organisation, so expect a lot more change in this area over the next few years