Evaluation of Innovation

Project evaluation can and should be viewed as an opportunity to

compare and contrast all projects across the firm- those that are part of
ongoing operations and those that are part of the portfolio of
innovation projects.
Need for Evaluation of Innovation
1. Identification of most innovative idea for the company
2. Ensures the middle management in sharing the new idea
3. Ensures review of complex ideas by appropriate authority.
4. Multiple ideas can be reviewed
5. Helps to improve the idea
6. Value for money.
Integration of risks in Innovation
1. Market uncertainties
a. Commercial high technology products
b. Institutional high technology products
2. Technological uncertainties
Types of risks

1. Innovation process risks

2. Innovation product risks
3. Supply uncertainities
Factors influencing economic effectiveness of
Innovation
1. Industry maturity
2. Customer needs and expectations
3. Demand
4. Technological opportunities
5. Attractiveness for Investments
6. Intensity of competitions
7. Company size
8. Export orientation
Stage gate process of Innovation
Legal aspects of Innovation
• Intellectual property of Innovations
Innovations has become an on going concern for business managers,
economists and international policy makers. IPR is one of the strongest
of the tools available to stimulate and channel innovation, but the
relationship of intellectual property and innovation is still poorly
understood.
Key dimensions regarding IPR and Innovation
1. Process and contribution of IP rights to Innovation
2. Measurement of innovation performance
3. Organization of IP systems
4. IP users
5. IP use varies across different fields
6. IP influence on markets and Innovation diffusion
7. IP policies as part of Innovation policy
Importance of Intellectual Property rights
1. Providing guarantees regarding the quality and safety of products
2. Enabling indirect exploitation
3. Cost free mechanism
4. Dissemination of technical information
5. Facilitating technology transfer
6. Open source relies on IPR
7. Enhance profitability
8. To face competition
9. Collateral to obtain financing
Tools of intellectual property to protect
innovations
1. Patents
2. Copyrights
3. Trade marks
4. Trade secrets
patents
A patent is a temporary legal right granted by the government as a
reward for a unique invention, giving the inventor the right to exclude
others from using the invention.
Importance of patent
1. A patent gives one the right to exclude others from making the
product
2. As a patent gives exclusivity
3. It gives the right to initiate legal action against anyone that is
making or selling.
4. One can earn money from licensing or selling the invention to
others
5. It gives priority over third party wanting to register their patents in
countries that do not require registration
Importance of a patent
6. Patents are generally related to functional and the technical aspects
of products and processes
7. Most patents are generally concerned with incremental
improvements in known technology
8. Patents protect the technology
Rights of a patentee
1. Exploitation of the patent
2. Licensing the patent to another
3. Assigning a patent to another
4. Surrendering the patent
5. Suing for infringement of the patent
Trade Marks
Trade marks come into picture where use of patents are limited,
especially the less technology intensive industries. Trade marks offer
one of the few methods of differentiating a company products.
Restrictions of trade marks
1. Be distinctive
2. Not be deceptive
3. Not cause confusion with previous trademarks
Principles of trade marks
1. Distinctive
2. Non descriptive word
3. Not a geographical name
4. Mark must not be deceptive
Types of trade marks
1. Non conventional trademarks
a. colour trademark
b. sound trademark
c. shape of goods, packaging
d. trade dress
2. Motion trademarks
3. Service marks
4. Collective Mark
5. Certification mark
6. Well known marks
Importance of trade mark
1. Recognition
2. Association
3. Investment
4. Protection
5. Set company apart from competitors
6. Effective marketing tool
Copyrights
A temporary right giving control over the use of an original work of
authorship- texts, graphics, plastics musical pieces, dramatic works,
movies, audio programme or visual creations.
Importance of copyright
1. Public record
2. Right to sue for copyright infringement
3. Prima facie evidence
4. Damages
5. Protection against importation of infringing material
Types of work covered under copyright
1. Literary works
2. Dramatic work
3. Musical work
4. Artistic work
5. Cinematographic film
6. Sound recordings
Statutory rights by copyright
1. Statutory rights
2. Economic rights
3. Moral rights
4. Copyright is a negative right
Trade secrets
There are certain business activities and processes that are not
patented, copyrighted or trademarked. They call this as trade secrets.
Features of trade secrets
1. Trade secrets can cover information that is not patentable
2. Trade secrets must be secret
3. Trade secrets are of potentially indefinite duration
4. Trade secrets can be non exclusive
5. Trade secrets can be reverse engineered,
Importance of trade secrets
1. Only option for non patentable
2. Gives competitive advantage for long term
3. No official advantage for long term
4. No official prosecution costs or maintenance fees.
Tools to protect trade secrets
1. Employment agreement
2. Trade secret policy
3. Non disclosure agreements
4. Adequate documentation
5. Security systems