February, 2010

The term 'innovation' is the buzz word in today's era of knowledge and technology. Sometimes the term 'innovation' is wrongfully interchanged with the word 'invention'. Invention means creation of an idea while innovation means successful application of idea into practice. Nicolar Tesla was an inventor who spent money to create his invention but was unable to monetize them, whereas Thomson Edison was an innovator who could make money by putting the ideas of Tesla into use. Simply speaking, invention is the conversion of cash into ideas by spending money in fundamental research by a scientist whereas innovation is the conversion of ideas into cash by an entrepreneur. Invention may take place even without an invention, IBM PC which was launched in 1982 is the live example of an innovation bringing revolution in the field of computers without any new invention but merely by licensing technologies from Microsoft and Intel with a completely new marketing model of advertising computers on TV for home use. Similarly launching of iPod is also truly innovative and not very inventive by simply combining the features of mp3 players with aesthetic design and ease of use.

The distinction between the two is well described by Jan Fagerberg in his 2004 article as "An important distinction is normally made between invention and innovation. Invention is the first occurrence of an idea for a new product or process while innovation is the first attempt to carry it out into practice". In the context of intellectual property rights, especially in the Patent Laws 'what is legally and technically important is, the invention and not the innovation'. In order to get a patent, one has to satisfy that the product or the process is new invention (novelty), involving inventive steps and industrial application. An invention though patentable, may or may not be commercially viable. Therefore an innovation process management is a pre requisite in any research and development unit to identify an idea with systematic process for invention disclosure and proof of the concept in order to convert an idea into an invention. However, in order to convert the invention into an innovation, proper market study is required for an appraisal of its commercial viability after taking into consideration the revenue earning and the cost involved in the process of the new invention to be launched as a product.
Innovation in true sense implies commercialization of invention by putting into use the technology derived from the ideas or invention after due diligence and valuation either for captive use in the existing unit or in a new manufacturing facility or by licensing out or sale to the third party. IP leveraging helps business organizations for optimization of the value involved in the related intellectual property by way of different available options of technology transfer in the form of licensing, franchising, joint venture and so on. While the intellectual property rights ipso-facto implies a right to exclude others from the use of newly invented technology by creating a wall or barrier in the form of 'right to exclusion', IP Leveraging is a positive way of allowing the competitors to use the same in consideration of value. IPR, is thus may act, both as a hindrance or as a tool to facilitate transfer of technology.

Thus, there are gaps between invention and innovation and also between invention and investment. ITAG provides a complete solution to bridge such gaps by helping research institutes by a full proof innovation process management and by acting as a catalyst for an effective technology transfer. One of such effort is IP awareness. ITAG coveys its sincere thanks to all the speakers and participants in its second International IPR conference on 'IP Leveraging in software, electronics and green technology' at Bangalore, on January 28-29, 2010.

-Dr. D. R. Agarwal