【正文】 en 5% and 25%. Thus, in my admittedly unscientific sampling, somewhere between 75% and 95% of patented technologies are simply dormant. Rising Costs, Shorter Times An important factor spurring the process of open innovation is the rising cost of technology development in many industries. Case in point: the soaring cost of building a semiconductor fabrication facility, or ―fab.‖ In 2020, Intel Corp. 畢業(yè)論文 Ⅲ － 4 announced two new fabs, one in Arizona and the other in Israel. Each was estimated to cost more than $3 billion. Just 20 years ago, a new fab would have cost about 1% of that. Another example is pharmaceutical drug development. Investment in a successful product has risen to well over $800 million, up more than tenfold from just a decade earlier. Even the consumer products industry is feeling the pressure. Pamp。G estimates that its Always brand of feminine hygiene pads, which cost $10 million to develop a decade ago, would set the pany back anywhere from $20 million to $50 million today, according to Jeff Weedman, who is responsible for external business development at Pamp。G. The rising costs of technology development would imply that only the big will get bigger, with everyone else falling behind. But there‘s a second force at play: the shortening life cycles of new products. In the puter industry during the early 1980s, for example, hard disk drives would typically ship for four to six years, after which a new and better product became available. By the late 1980s, the expected shipping life had fallen to two to three years. By the 1990s, it was just six to nine months. In pharmaceuticals, the expected shipping life of new drugs while they enjoy patent protection has shortened because of longer testing procedures and quicker entry by manufacturers of generics. And in the largest market segments, successful drugs must often contend with a number of rival products. For example, at least five statin prescription drugs are currently being sold, all of them aimed at addressing elevated cholesterol levels and 畢業(yè)論文 Ⅲ － 5 heart disease. As a result of both trends — rising development costs and shorter product life cycles — panies are finding it increasingly difficult to justify investments in innovation. (See ―The Economic Pressures on Innovation.‖) Open business models address both effects. It attacks the cost side of the problem by leveraging external researchanddevelopment resources to save time and money in the innovation process. Consider Pamp。G‘s 6 Pringles Print initiative, through which the pany now offers Pringles with pictures and words printed on each chip. To bring that product to market, Pamp。G found and adapted an ink jet technology that a bakery in Bologna, Italy, used to print messages on cakes and cookies. Pamp。G developed Pringles Print at a fraction of the cost and brought it to market in half the time than it would have taken had the pany done all the work internally. Open business models also attack the revenue side. Pamp。G, for instance, is creating new brands by licensing technologies from other panies around the world, resulting in products like the SpinBrush, a batteryoperated toothbrush, which generated firstyear sales of $200 million. And Pamp。G is also getting money from licensing its technologies to other firms. The bination of leveraged cost and time savings with new revenue opportunities confers powerful advantages for panies willing to open their business models. (See ―The New Business Model of Open Innovation,‖ p. 27.) The development costs of innovation are reduced by the greater use of external technology in a firm‘s own Ramp。D process. This saves time as well as money. And the firm no longer restricts itself to the markets it serves directly. Now it participates in other segments through licensing fees, joint ventures and spinoffs, among other means. These different streams of ine create more overall revenue from the innovation. The result is that innovation bees economically attractive again, even in a world of shorter product life cycles. Open Experiments What can panies do to partake more fully in the benefits of open 畢業(yè)論文 Ⅲ － 6 innovation? The short answer is that they need to develop the ability to experiment with their business models. Developing that capability requires the creation of processes for conducting experiments and for assessing their results. Although that might seem obvious, many panies simply do not have such processes in place. In most anizations, no single person short of the chief executive officer bears responsibility for the business model. Instead, business unit managers (who are usually posted to their jobs for just two to three years) tend to take the business model for granted. For them, running risky experiments in which the payoffs may not emerge for three or more years is not a high priority. Companies also face certain constraints. Many firms, for example, are understandably hesitant to launch experiments that might risk the reputation of an established brand. The same is true for panies with respect to their distribution channels, manufacturing strategies and so on. But some panies have developed tactics to work around such limitations. Consider, for instance, a food manufacturer that is exploring ways to provide healthier but shelfstable foods and snacks in high school vending machines. To experiment with different products without risking any damage to its consumer brand, the manufacturer has created a ―white box‖ brand that is not advertised, is not supported and has no obvious connection to the pany. Similarly, Google Inc., the online search pany, has established a separate Web site () that allows the firm to get consumer feedback on new approaches to user interfaces. Other ways of exploring are through spinning