Bringing inventors into the development of new
products and services can have a large impact on the economic success of an
area. A paper by Dr. Waleed Khan Afridi delves into a method commercializing
inventions through associated pools in a way that protects the parties involved
as well as gives the best opportunity for eventual manufacturing. He argues
that small inventors should support each other in the development of products
and share some of the financial benefits of the process.
Even though businesses and employees generate a
number of new products or services many of them do not make their way into the
market. The biggest barrier is the cost of development related to the evaluation of marketability,
patentability, and technical feasibility. Even those who traverse the many
steps to putting their product on the market are not guaranteed success making
the risks versus reward difficult.
When new
product ideas are created they can be sent to a pool where they are evaluated
for possibilities. At this point those that are selected can move through
design engineering so that each concept can be evaluated for its marketability,
patentability and technical feasibility. After determining its potential
feasibility and market potential it is developed into a model product.
Of course,
products must be protected through the use of appropriate patents. Once the
patent is created it is possible to move the protected product to interested manufactures
who will seek the right to build, sell, and own the product. Revenues from the
patent make their way back to the person who invented it, the pool that
developed it, and the managers who helped patent it.
The author
advocates a process whereby all interested parties receive some percentage of
the profits. The author doesn’t state this concept but it would appear that
such concepts may work within incubator hubs where entrepreneurs may work together
to develop products and display them to companies that are interested.
Small
firms and entrepreneurs often don’t have much experience in developing products
and moving through the process to commercialization. By having people work in a
group or pool they can hedge their skills and abilities while working together
to create something beneficial. Each incubator could have their own pool that
evaluates and promotes work.
One problem
faced by small investors is the idea of intellectual property theft. The author
highlights a story of an inventor who developed a new windshield wiper and
brought it to the attention of automotive executives. His idea was refused but
then a similar product came out and the inventor had to fight for his
royalties. Trust between inventors and manufactures needs to be maintained if
new ideas are expected to be fostered and forthcoming.
The
manufacturing of ideas is also expensive and many products would simply be
underdeveloped or thrown out in history unless a partnership between those who
invent and those who build is maintained. The development of products through
groups of inventors helps protect them and further collectivize their knowledge
for growth. Likewise the patenting process is easier to navigate in a team due
to its complex and costly structure. Larger organizations are encouraged to
take on some of the best ideas with appropriate protections for all parties
involved.
Afridi, W. (2009). Commercialization strategies and the need
for development of marketplace of ideas. Journal
of Managerial Sciences, 3 (1).
