WIPO/INV/BEI/02/8 SECOND INTERNATIONAL FORUM ON CREATIVITY AND INVENTION A BETTER FUTURE FOR HUMANITY IN THE 21 ST

1. WIPO/INV/BEI/02/8SECOND INTERNATIONAL FORUM ON CREATIVITY AND INVENTION A BETTER FUTURE FOR HUMANITY IN THE 21ST CENTURYBeijing, May 23 - 25, 2002 • WEALTH CREATION THROUGH INVENTION, • INNOVATION AND CREATIVITY • Document presented by Vladimir Yossifov, Director, Division for Infrastructure Services and Innovation Promotion,World Intellectual Property Organization (WIPO), Geneva 1

2. Creativity, Inventions and Innovation Sustained economic growth cannot be achieved through saving or investment, macroeconomic adjustment policy, preferential taxes or subsidies unless these are accompanied by the myriad large and small inventions and discoveries, required to create greater value from natural resources Paul Romer 2

3. Technology, Innovation, Science and Development • Technology is the systematic study of techniques for making and doing things (concerned with the fabrication and use of artifacts) • Science is the systematic attempt to understand and interpret the world (it depends upon the skills of literacy and numeracy) • Technology is as old as mankind, science developed with the development of civilization 3

4. Technology, Innovation, Science and Development • Technological development and innovation is one of the most important factors for economic development • Long-term economic growth is the result of an increase and accumulation of technological knowledge • The contribution of raw materials, and/or labor, has steadily declined in providing that competitive edge to new products 4

5. Technology and Innovation - The Never-ending Spiral • From its beginning, Chinese civilization valued technological skill, e.g. hydraulic engineering, (survival depended on controlling the enriching but destructive floods of the Huang Ho (Yellow River)), the casting of iron, the production of porcelain,the manufacture of brass and paper, silk production, the magnetic compass or the waterpowered mechanical clock • Western knowledge of silk working, the magnetic compass, papermaking, and porcelain were all derived from China (it took centuries before Europeans were able to produce anything of a similar quality) 5

6. Factors and Conditions for an Innovative, Supportive and Enabling Environment • Education • Information and transfer of knowledge • Government policies, including tax policy, supportive legal and regulatory framework • Industrial, technological and R&D infrastructure • Efficient intellectual property system • Recognition & rewards • Company climate and culture • Work force and labor environment • Entrepreneurial spirit • Availability of funds and financial resources 6

7. Creativity, Inventions & Innovation • Countries & companies • policies and priorities • resource commitment • enhancing creativity of staff and people • promoting entrepreneurial spirit • increasing productivity • gaining competitive advantage • generating wealth and improving comfort of life 7

8. Competitive advantage Supportive environment Inventions Innovations Creativity Inventions do not happen created by motivated people 8

9. Creativity and Invention -Challenge to Stability By nature man is torn between: • Security where he seeks shelter • Adventure where he takes risks • Price for each contrasting outcome • Assessed risks • Being creative is risky - higher price, but also higher reward Ideas without risks are useless, while risks without ideas are stupid 9

10. Creativity and Innovation -Challenge for Public Policy Makers • Facilitate rather than regulate • Give companies and entrepreneurs more freedom to experiment • Guarantee a fair share of invention and innovation benefits to inventors and creators • Positive attitude towards failures and risk • To encourage inventors and creators to join efforts with entrepreneurs in developing innovative ideas 10

11. Inventions • Creating something new that did not exist before • New solutions to existing problems • Result of human creativity and curiosity • Successful inventions - demand driven 11

12. Few inventions break-through - pioneering inventions new industries new business new markets Most inventions - incremental development of technology improved quality better performance higher productivity more customer satisfaction reduced cost Inventions 12

13. Innovation and the IP System • 19th century - protection and promotion for inventors-entrepreneurs • 20th century - protection of corporate interests - anonymous inventors • 21th century - increased awareness will result in new empowerment of creative individuals and entrepreneurs 13

14. Innovation • Process - bringing an invention to market and users • Innovation is planned - does not happen by chance • Requires team work and cooperation • inventors and researchers • process, product and design engineers • lawyers and marketing specialists • financial and production managers • sales, advertising and distribution specialists • entrepreneurs 14

15. Innovation • Entrepreneur - play-maker • bring together all those who make innovation a success • Success function of • competitive advantages offered by innovation • social and economic environment open to change and progress • general attitude towards risk, failure, science and technology, invention and innovation 15

16. Entrepreneurs are Characterized by: • Ability to think, take risks and make decisions • Independent, reflect and make their dreams to become reality • Have a sense of inquiry • Do not believe in inhibitions or limitation 16

17. Obstacles to Innovation • Conservative and hierarchical structures hostile to innovation • New ideas threaten the profits of existing products and services • larger organizations tend to apply the NIH factor (NIH=Not Invented Here) to get rid of uninvited innovators (= troublemakers). • Often innovators do not get recognition, "but a R&D effort that fails is never forgotten" • Inventors not able to present ideas in business terms; many do not even see the business benefits of their ideas 17

18. Obstacles to Innovation • Innovators are seen as "irritating viruses" or “troublemakers” in the corporate environment. • Companies ignore innovations when they do not fit into any of their existing business profiles • The budget allocation process is designed to support existing businesses • New ideas are eroded by subtle discouragement rather than by explicit vetoes (application of organizational antibodies to neutralize the irritating viruses): • withholding of funding, • general nay-saying, • subtle signals that it might not be 'career smart' to associate with an innovation project" 18

19. Conclusions • All nations have a wealth of creative and inventive people, with a variety of cultures and experience • One of the best ways to spark great new ideas is to give creators and inventors genuine opportunities to develop their ideas • Universities and R&D organizations to adopt active IP policies to lead the innovation process • Governments and policy makers to encourage and support creation of a climate favorable to invention, creativity and innovation 19

20. Conclusions • Invention will generate benefits if and when it goes through the innovation process to the market place • The innovation process may be long and requires a lot of expertise and resources • Governments should support and promote the creation of support services for innovation • IPRs - a key to converting innovation into new opportunities for successful business • Innovation starts with a dream, and an entrepreneur may convert the dream into action and a real product • The way to success is paved by lessons from failures 20

21. Today’s inventions need to be on the market before tomorrow morning, otherwise others will pick them first • Invention and Innovation need Imagination 21