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Chapter 9

Managing the Research Function

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D ecision Mak ing

P lanning

O rganizing

Leading

C ontro lling

Managem ent Functions

R esearch

D esign

Production

Q uality

Marketing

Project Managem ent

Managing Technology

Tim e Managem ent

E thics

C areer

Personal Technology

Managing Engineering and Technology

Advanced Organizer

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Chapter Objectives

• Explain product and technology life cycles

• Examine the nature of research• Discuss the nature of creativity• Describe the legal means to protect

a person’s ideas

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Product Life Cycle

• Identification of need (consumer)• Product planning (marketing analysis,

feasibility)• Product research• Product design• Production• Product evaluation• Product use & logistic support

(consumer)

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Technology Life Cycle

TechnologyDevelopment

ApplicationLaunch

ApplicationGrowth

MatureTechnology

Substitution/Obsolescence

Time

Market Volume

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Nature of R&D

Our hope is that there will be full employment, and that the production of goods and services will serve to raise our standard of living…Surely we will not get there by standing still, merely by making the same things we made before and selling them at the same or higher prices. We will not get ahead in international trade unless we offer new and more attractive and cheaper products…There must be a stream of new scientific knowledge to turn the wheels of private and public enterprise.

--Vannevar Bush, 1945

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Nature of R&D

• Research: systematic, intensive study directed toward fuller scientific knowledge of the subject studied.– Basic research is devoted to achieving a fuller

knowledge or understanding of the subject under study

– Applied research is directed toward the practical application of knowledge

• Development is the systematic use of scientific knowledge directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.

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Estimated R&D expenditures and share of world total, by region: 2002

Science and Engineering Indicators 2008

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Total R&D share of GDP 1981–2006

SOURCE: Organization for Economic Co-operation and Development, Main Science and Technology Indicators (2006). Science and Engineering Indicators 2008

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Nondefense R&D share of GDP 1981–2006

SOURCE: Organization for Economic Co-operation and Development, Main Science and Technology Indicators (2006). Science and Engineering Indicators 2008

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National R&D by funding sector 1953–2006

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Federal R&D budget authority, by budget function: 1980–2008

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National R&D by performing sector 1953–2006

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National R&D expenditures, by character of work, and basic research, by performer and

source of funds: 2006

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New Product Strategies

• First-to-market• Follow-the-leader• Me-too• Application engineering

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Reasons for Corporate Research to Fail

• Not applicable• Not enough patience• Failure in technology transfer

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Selecting R&D Projects

• 60 ideas • 12 worthy of preliminary evaluation• 6 potential products• 3 prototypes• 2 products for full production & marketing• 1 product with market success

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Initial Screening

• Checklist

• Simple payback time

• Net Present Worth

• Maximum expenditure justifiedEmj = Fc Ft P

= Pcommercial success Ptech. success NPW

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Initial Screening

(Checklist) – Technical factors – Research direction and balance– Timing of R&D and market development – Stability of the potential market – Position factor – Market growth factors for the product– Marketability and compatibility – Producibility– Financial factors – Patentability & need for continuing defensive research

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Initial Screening Process

• Prepare the Matrix– Criteria– Reference Concept– Weightings

• Rate Concepts– Scale (+ – 0) or (1–5)– Compare to Reference Concept or Values

• Rank Concepts– Sum Weighted Scores

• Combine and Improve– Remove Bad Features– Combine Good Qualities

• Select Best Concept– May Be More than One or None– Beware of Average Concepts

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Things to Remember

• The goal of concept selection is not to Select the best concept

• The goal of concept selection is to Develop the best concept

So remember to combine and refine the concepts to develop better ones!

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CREATIVITY

Nature of Creativity:

• Creativity is the ability to produce new and useful ideas through the combination of known principles and components in novel and non-obvious ways.

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Models for problem solving:

• Trial and error.

• Planning/decision-making process (analytical reasoning)

• Creative process

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Creative process

• Preparation– Structure the problem– Collect all available information– Understand relations and effects– Solve sub-problems, and – Explore all possible solutions and combinations

that may lead to a satisfactory solution.• Frustration and incubation• Inspiration or illumination • Verification

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Brainstorming and Other Techniques for Creativity

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Brainstorming

• Modern method for "organized ideation" • First employed in the West by Alex Osborne in 1938 • The essence of brainstorming is a creative

conference, ideally of 8 to 12 people meeting for less than an hour to develop a long list of 50 or more ideas.

• Suggestions are listed without criticism, one visible idea leads to others.

• At the end of this session participants are asked how the ideas could be combined or improved.

• Organizing, weeding, and prioritizing the ideas produced is a separate, subsequent step.

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Brainstorming

"Tear-down" Approach• Used by two people. • The first person (person A) must disagree with the existing

solution to a problem and suggest another approach; • Next, person B must disagree with both ideas and suggest a

third; • Then person A must suggest yet another solution • This "cycle continues until a useful idea clicks."  "And-also" Method • Person A suggests an improvement on the subject under

study; person B agrees, but suggests a further improvement; this sequential improvement "continues until a sound solution is reached."

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Group technique by W. J. Gordon

• A team explores the underlying concept of the problem.

• The method encourages finding unusual approaches by preventing early closure on the problem.

• A team of six meeting for about a day on a problem.

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"Attribute listing" approach

(for individuals)

• A person lists attributes of an idea or item,

• Then concentrates on one attribute at a time to make improvements in the original idea or item.

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"Forced relationship" approach

(for individuals)

• It tries to generate new ideas by creating a "forced relationship" between two or more usually unrelated ideas or items.

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“Mindmapping”

• Write the main topic in the center. • Think main factors, ideas, concepts, or components

directly related to the main topic.• Concentrate on the sub-headings, and identify

related issues. Additional branches can be added.• Repeat for all sub-headings, and sub-sub-

headings.• Connect related ideas and concepts. Review,

organize, and revise.• Write-up.

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Characteristics of Creative People

• Self-confidence and independence. • Curiosity. • Approach to problems. • Some personal attributes.

– more comfortable with things than people, – have fewer close friends, and are not "joiners." – have broad intellectual interests. – enjoy intellectual games, practical jokes,

creative writing, and are almost always attracted by complexity.

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Providing a Creative Environment

Creative people are most effective in an org. that will

• tolerate idiosyncrasies, • remove as much routine regulation and

reporting as feasible, • provide support personnel and equipment as

required, and• recognize and reward successes.

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Creativity and Innovation

• Invention (the creative process) produces ideas.

• the process of innovation reduced invention to practice and use.

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5 kinds of people needed for

technological innovation • Idea generator - the creative individual• Entrepreneur - the person who "carries the

ball"• Gatekeepers - bring in essential information• Program managers - who manage without

inhibiting• Sponsor or Champion - the person, often in

senior management, who provides financial and moral support

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Protection of Ideas

• Patents

• Copyrights

• Trade secrets, and• Trademarks and other marks

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Patent

• An exclusive property right to an invention

• Issued by the Commissioner of Patents and Trademarks, U.S. Department of Commerce

• Limited to the "claims" of the patent

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Classifications of patents

• Utility

• Design

• Plant

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Utility Patent

• For a process, machine, article of manufacture, composition of material, or any improvement thereof

• For 20 years from date of filing• Cannot be obtained on laws of nature, methods of

doing business, scientific principles, or printed matters

• Conditions to be patentable, the invention must be – new or novel, – useful or have utility, and– non-obvious

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Design Patent

• On new, original, and ornamental design of an article of manufacture

• For a term of 14 years.

• Not concerned with how the article of manufacture was made and how it was constituted, but with how it looks.

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Plant Patent

• For 20 years

• For plants when asexually reproduced,

• With the exception of tuber-propagated plants or plants found in the uncultivated state

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Establishing patent rights

• Conception and • Reduction to practice.

In US, if the first to conceive makes a reasonable, diligent effort to reduce the invention to practice, he or she will receive the patent, even if someone else actually reduces it to practice earlier. In almost all other countries, patents are awarded to the first person to file, rather than the first to conceive.

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Proof of Conception

• A written disclosure of the invention should be made as soon after conception as possible.

• A disclosure's primary purpose is to prove the date of conception where there is question of invention.

• The disclosure should include sufficient description and sketches to describe fully what has been conceived.

• The disclosure should be witnessed by at least two persons who fully understand its content.

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Diligence to “reduce to practice”

To demonstrate diligence to "reduce to practice," a written record of developmental activities should be maintained in a bound notebook.

• Daily entries are encouraged. • Each page should be signed and witnessed in proximity to

the entries on that page. • Each entry should be made in chronological order. • Notebook pages should be consecutively numbered, with all

entries made in ink. • If an error is made in an entry, it should not be erased: it

should be crossed out. • All entries should be made by the inventor in his/her own

handwriting.

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USPTO patent applications, by region/country:1985–2005

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Patent Counts by Country

Country 2002 2003 2004 2005 2006• U.S. 97125 98590 94129 82586 102267 • Japan 36339 37248 37032 31834 39411 • Germany 11957 12140 11367 9575 10889 • U. Kingdom 4202 4037 3905 3560 4329 • France 4421 4126 3686 3106 3856 • Taiwan 6730 6676 7207 5993 7919 • Canada 3857 3894 3781 3177 4094 • S. Korea 4009 4132 4671 4591 6509• Italy 1962 2022 1946 1591 1899 • Switzerland 1532 1433 1405 1106 1388 • Sweden 1824 1629 1388 1189 1360

http://www.snake.ne.jp/~yama/nph-docomo.cgi/010000A/ http://www.uspto.gov/web/offices/ac/ido/oeip/taf/apat.htm#PartA2_1a

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Companies with Most Patents 2008

IBM 4186 Samsung 3515 Canon 2114 Microsoft 2030 Intel 1776 Matsushita 1745 Toshiba 1609 Fujitsu 1494 Sony 1485 HP 1424

Hitachi1313 Micron

1250 Seiko 1229 GE

912 Fujifilm

869 Ricoh 857 Infineon-G

814 LG

805 TI

757 Honda 747

Siemens-G 724

Hon Hai-T 719

Denso 708 Cisco 704 Broadcom

643 Honeywell

629 Nokia-F

608 Silverbrook-A608 Sharp 603 NEC

547

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Companies with Most Patents 2007

IBM 3125

Samsung 2723

Canon 2047 Matsushita

1972 Intel

1864 Toshiba

1734 Microsoft

1662 Micron

1484 HP

1470 Sony 1454

Siemens 1432

Hitachi 1381

GE1369

Fujitsu 1293

Seiko 1205 Infineon

847 Denso 753 TI

749 Ricoh 727 AT&T 726

LG682

Nokia 679 Honda 677 Fujifilm

660 Sun Micro

658 Koninklijke

654 Sharp 646 Motorola

631 Honeywell

605 DuPont

601

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Companies with Most Patents 2006

IBM 3651

Samsung 2453

Canon 2378 Matsushita

2273 HP

2113 Intel

1962 Sony

1810 Hitachi

1749 Toshiba

1717 Micron

1612

Fujitsu 1513 Microsoft

1463 Seiko 1205 GE

1051 Fuji Photo

918 Infineon

904 Koninklijke

901 TI

884 Siemens

857 Honda 836

Sun Micro 776

Denso 770 NEC

744 LG

695 Ricoh 695 Sharp 692 Kodak 688 Broadcom

660 Cisco 649 Bosch 648

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Top 10 Companies with Patents

2004• IBM

3248• Matsushita

1934• Canon 1805• HP

1775• Micron 1760• Samsung

1604• Intel

1601• Hitachi 1514• Toshiba

1310• Sony 1305

2005o IBM

2941o Canon 1828o HP

1797o Matsushita

1688o Samsung

1641o Micron 1561o Intel

1549o Hitachi 1271o Toshiba

1258o Fujitsu 1154

2006 IBM

3651 Samsung

2453 Canon 2378 Matsushita

2273 HP

2113 Intel

1962 Sony

1810 Hitachi 1749 Toshiba

1717 Micron 1612

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Top 10 Companies with Patents

2001• IBM 3411• NEC 1953• Canon 1877• Micron 1643• Samsung 1450• Matsushita 1440• Sony 1363• Hitachi 1271• Mitsubishi 1184• Fujitsu 1166

2003o IBM

3415o Canon 1992o Hitachi 1893o Matsushita

1786o HP

1759o Micron 1707o Intel

1592o Koninklijke

1353o Samsung

1313o Sony 1311

2002 IBM

3288 Canon 1893 Micron 1833 NEC

1821 Hitachi 1602 Matsushita

1544 Sony

1434 GE

1416 HP

1385 Mitsubishi

1373

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The Patent Scorecard™ 2008 – Universities

1. Univ. of California2. MIT3. Cal. Tech 4. Stanford5. Rice6. Univ. of Texas7. New York University8. University of Central Florida9. Univ. of Wisconsin10. Harvard

http://www.iptoday.com/articles/2008-9-oldach2.asp

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Trademarks and Other Marks

• Trademarks

• Service marks

• Certification marks

• Collective marks

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• A trademark is "used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured or sold by others."

• The trademark is protected by federal statutes and registered with the Patent and Trademark Office.

• "" or the notice "Reg. U.S. Pat. and TM Off." should be used with registered trademarks and "" or "Trademark" with non-registered marks.

Trademarks

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A service mark is associated with services rather than goods.

Certification marks• A certification mark indicates that the marked goods or

services meet standards or services established by the mark's owner, for example, Underwriters Laboratories, Good Housekeeping.

Collective marks• A collective mark identifies members of a group such as an

organization, union, or association, for example, "CPA", used to indicate members of the Society of Certified Public Accountants

Service Marks

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• Starting 11/16/1989, application for mark can be made before any use has taken place.

• Most states have their own trademark law, in addition to the federal law.

Registration of Marks

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Copyrights

• Copyright is a bundle of rights to reproduce, derive, distribute, perform, & display an original creative work.

• A copyright protects expressions, not ideas. A potentially patentable idea expressed in a copyrighted text may be used by others.

• A copyright is a grant, by the United States, to an author for the right to exclude others (for a limited time) from reproducing his/her work.

• A copyright is owned by the individual author except in the case of a “work for hire”, whereby the employer owns the copyright (17 USC 201a-b)

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Types of Copyrights

• Literary works

• Musical works

• Dramatic works

• Choreographic works

• Pictorial works

• Motion Pictures/Videos

• Sound Recordings

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Copyrights

• A copyright generally prevents reproduction of a copyrighted work for the life of the author, plus 70 years.

• “Work for hire” copyright lasts for 120 years from the date of creation, or 95 years from first publication.

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Copyrights

• For works created after 1989, copyright notices are not necessary (although they are recommended).

• The copyright notice has three elements: (1) the copyright symbol , the word "copyright," or the abbreviation "copr."; (2) the year of first publication; and (3) the name of the copyright owner.

• A copyright notice can appear any place in or on the work as long as it can be readily seen.

• Copyright registration is not a condition for protection but is a prerequisite for an infringement suit.

• Copyrighted material is registered with the copyright office at the Library of Congress.

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Trade Secrets • Trade secrets have no precise definition, but to be

protected by the courts, they must be secret, substantial, and valuable.

• The secret can be almost anything as long as it is not generally known in the trade or industry to which it applies.

• A trade secret provides its owner with a competitive advantage. It may be a formula, process, know-how, specifications, pricing information, customer lists, supply sources, merchandising methods, or other business information. It may or may not be protected by other means.

• Trade secrets have no time limitations.

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Comparison of Means of

Protecting Ideas • Many ideas that are protected as trade secrets

cannot be patented. • On the other hand, an item that is patentable can

theoretically be protected as a trade secret. • If the idea can be easily discovered through

reverse engineering, however, a patent is the only practical choice for protection.

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R&D and Business Strategy

Technology strategy should encompass research, product and process development, and manufacturing engineering.

• Base Technologies

• Key Technologies

• Pacing Technologies

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Evaluating R&D Effectiveness

• Ratio of research costs to profits.• Percentage of total earnings due to new

products.• Share of market due to new products • Research costs related to increases in

sales.• Research costs ratio of new and old sales.• Research costs per employee.

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Evaluating R&D Effectiveness

• Ratio of research costs to overhead expenses such as administrative and selling costs.

• Cash flows (continuing evaluation of the pattern of outflows for research expense and actual and projected inflows from resulting revenue).

• Research audits• Weighted averages of costs and objectives • Project profiles

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Support for R&D

• Technician support to carry out repetitive testing and other functions not requiring a graduate engineer or scientist.

• Shop support of mechanics, glassblowers, and carpenters to produce test and research equipment based on researchers' sketches.

• A technical library with technical information specialists conversant in the fields of the company's interest and willing and able to suggest sources to researchers and structure and run searches in the appropriate data bases for them.

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Support for R&D

• Technical publication support, including typing, editing, and graphical support to simplify researchers' production of reports, technical papers, and presentations. 

• A flexible, responsive system for approving and acquiring equipment as needed by researchers. 

• Ample computer facilities conveniently available to researchers, and programming assistance to provide consultation and programming to those researchers not wishing to do it themselves.