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Living Labs�Capacity Building Program�

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No #8101033752.

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Program Structure

MACRO level

MESO & MICRO levels

Living Lab Approach and Stakeholders Ecosystem Management

Module 1.1

Governance Models

Module 1.2

How to set up a Living Lab and�define a common Vision

Module 1.3

Defining the roles�within the Living Lab

Module 1.4

Business Models

Module 1.5

Open Innovation legal aspects and IPR

Module 1.6

Design Thinking and�the Living Lab Integrative Process

Module 2.1

Empathise and Define

Module 2.2

Ideation and Co-design with users

Module 2.3

Prototyping and Testing the solutions

Module 2.4

Implementation and

Scale up

Module 2.5

Evaluating performance

Module 2.6

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A quick review of Module 1.5

A business model describes the rationale of how an organization creates, delivers, and captures value.

Österwalder, A. & Pigneur Y.,

Business Model Generation, 2010.

https://www.strategyzer.com/canvas/business-model-canvas

Business Model Canvas

What is the specific VALUE PROPOSITION

of your LL?

Who are the USERS and what kind of

RELATIONSHIPS does your LL propose to the users?

Through what CHANNELS users can get access

to your services and activities?

What are the key ACTIVITIES and RESOURCES

of your LL?

Who are your key PARTNERS?

What are your main REVENUE sources?

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A quick review of Module 1.5

LIAISON: Business Model for the Living Labs developed by Juan A. Bertolin

Based on the work of: https://leanstack.com, https://strategyzer.com, https://socialleancanvas.com

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Open Innovation and

Intellectual Property Rights (IPR)

Module 1.6

Photos in this document are taken from the open-license creative space Unsplash

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Contents: Module 1.6

What is Open Innovation

Definition & Concept
Key principles
Living Labs & Open Innovation (OI)
OI Types & Benefits

IPR basics

Concept & Types
Protection of Intellectual Property
IP Types & Licences
Living Labs and IPR

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What is Open Innovation?

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Definition

Open Innovation is purposeful inflows and outflows of knowledge to accelerate innovation internally while also expanding the markets�for the external use of innovation.

Chesbrough, 2003.

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Open Innovation concept

Image source: https://rewaise.eu/living-labs/

The concept of Open Innovation initially came from business and then spread across different fields. The traditional type of innovation – so-called closed innovation – is characterised by the emergence and development of new ideas within the organization or “corporate limits”. So, it’s closed because the ideas are growing only internally. This could limit the quality of solutions due to a lack of different perspectives and “fresh” external points of view.

Open Innovation aims to solve this issue and brings diversity and openness in the organization’s solutions going beyond the corporate’s limits. The basic premise of Open Innovation, is to open up the innovation process to all active players so that knowledge can circulate more freely and be transformed into sustainable solutions.

According to the European Commission, “innovation can no longer be the result of predefined and isolated activities but rather the outcome of a complex co-creation process that involves knowledge flows and absorptive capacities from all actors involved across the entire economic and social environment”.

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Key principles

Marques, 2014.

Image source: https://www.lead-innovation.com/en/insights/english-blog/open-innovation-vs.-closed-innovation

Closed Innovation

Open Innovation

Some key principles of Closed Innovation

All the smart people work in our organization.
To profit from R&D we have to discover, develop and supply everything ourselves.
Only if we discover it, will we manage to get it to market first.
If our organization is the first to commercialize an innovation, we will beat our rivals.
If we create the most and best ideas in our industry, we will win.
If we have full control over the innovation process our rivals will not be able to profit from our innovative ideas.

Some key principles of Open innovation

Not all the smart people work in our organization.
External R&D can create value for our organization.
Internal R&D is needed to grasp that value.
We have to be involved in basic research to benefit from it, but the discovery does not have to be ours.
If we make better use of external and internal ideas and unify the knowledge created, we will win.
We should optimize the results of our organization, combining the sale or licensing of our innovation with nthe purchase of external innovation processes whenever they are more efficient and economic.

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Types of Open Innovation (OI)

Acquisitions

Merges

Licensing-in

Minority-equity investment

R&D contracts

Licensing-out

Divestments

Spinning off

Outside-in / inbound OI

Inside-out / outbound OI

Bogers, Chesbrough, Moedas, 2018.

European Commission, Open Innovation, 2015.

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Open Innovation

Higher quality of the results due to confrontation of multiples points of view;

Operational and management transparency;

Synergies between industry, public sector and academia;

Increased collaborations between different partners.

Innovation with the ecosystems.

Existing organisational norms favoring closed processes;

IPR management;

Need of additional resources and competences to make OI process work.

Benefits

Challenges

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Benefits for the Energy sector

Inventive users can “speed up the development and proliferation of distributed renewable energy technologies”.

Hyysalo, Juntunen, Freeman, 2013.

Design adapted for users' needs and particular circumstances;
Knowledge sharing;
Opportunity to collaborate in physical and virtual domains (energy modeling);
Increased awareness;
Lower barriers to innovation at national levels, which might cause positive changes in society (less energy poverty and stronger democracy).

Alternative designs that fine tune technology to users’ particular circumstances (i.e., climate vulnerability and available energy technology) can bring the knowledge shared with other users and producers, to increase users’ awareness and engagement and saves time and resources in the product development process for producers.

In addition to improvements in physical energy products and systems, users can also innovate in the virtual domain, especially in energy modeling. In other words, “there are plenty of informed energy users who could serve as lead users and work with energy related companies to promote innovation in the sector”.

Moreover, it lowers the barriers to innovation at national levels, which has the potential to cause positive changes in society, for example, by lessening energy poverty and reinforcing democracy.

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Living Labs and Open Innovation (OI)

Living Lab is a user-centred, open innovation ecosystem based on a systematic user

co-creation approach, integrating research and innovation processes in real-life communities and settings.

ENoLL, 2022.

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Living Labs and Open Innovation (OI)

The Living Lab

brings a common framework for trust building
facilitates and supports the innovation journey
can act as a facilitator or Operator e.g. Innovation Boosters Programme, Switzerland
acts independently and helps to avoid any conflict of interest among the collaborating parties
establishes the ‘Rules of the Game’ through agreements
enables an innovation team to join a community and to share their idea with other people and get valuable feedback, under the protection of the ‘Rules of the Game’.

How are the right people brought together in open innovation? And how do they know that they are the right people for each other? The Living Lab brings a common framework for trust building.

The Living Lab facilitates and supports the innovation journey and is sometimes referred to as the OPERATOR. The LL is independent and helps to avoid any conflict of interest among the collaborating parties, can open up new contacts and financing streams. Likewise, the LL allows the initiators of the idea to embark on the innovation journey on an even ground, just like anyone else, with their own very valuable knowledge, skills and ideas.

The LL enables an innovation team to join a community and to share their idea with other people within the programme and get valuable feedback, under the protection of the Rules of the Game.

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Why do we need Open Innovation

and what is the legal framework?

E-Learning video 1

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Levels of Openness

Unprivileged data on the cloud		Strong copyleft licences (ex. AGPL)
Confidential by contract (ex. NDA)		Copyleft licences (ex. EUPL, CC BY SA, CERN-OHL-S)
Semi-confidential / internal-only by law (ex. personal data)		Weak copyleft licences (ex. LGPL, CERN-OHL-W)
Secret / confidential by law (ex. trade secrets, state-classified)		Permissive licences (ex. Apache, LPPL, CC-BY, CERN-OHL-P)
Qualified secrets by law (ex. attorney-client privilege, state-classified)		Public domain or equiv. (ex. CC0, WTFPL)

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Legal Framework for Open Innovation

Country Laws

Living Lab Governance Rules

Programme or Project ‘Rules of the Game’

Consortium Contracts

Team Contracts

The search for new ideas or solutions has different stages of innovation and modes of collaboration; and different degrees of openness may be applied to these in order to maximise creativity and inventiveness. The more “libre” or open a project is, the more contributors and contributions it might receive. That being said, no one needs to go full disclosure on everything and different moments offer different opportunities for openness or closeness.

The legal framework for Open Innovation is set out mainly through the traditional legal system of Country Laws and local laws. However an additional set of rules and agreements can help to support open innovation. These include, for example, the Governance Rules of the Living Lab, which could be set out in statutes. If the Living Lab is operating within a programme or project, specific rules may apply that are set out in Consortium contracts or other types of team agreements.

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Rules of the Game

The Living Lab can set out the Rules of the Game in several key documents:

Community Manifesto
Terms of Service
Privacy Policy
Code of Conduct

Example from the Energy Living Lab Association (Switzerland)

The LL can develop the rules of the game for many groups of people coming together in open innovation. These are developed in line with the Governance model. Lawyers would say you need contracts and regulations. However, in open innovation RULES to play the GAME are needed and can be facilitated by the Living Lab. Those who want to join the GAME should be able to; those who do not want to, must be able to leave.

In order to have the right people on board, people sharing the same philosophy, fundamental collaboration values should be formulated in the form of a community manifesto: Open innovation is not only about which problem you want to solve, but it is all about MINDSET and how you solve it. The community manifesto should be accepted by every participant joining the Living Lab.

The terms of services provide important clarification on eligibility criteria to the community, on behaviour within the programme and the roles of the various parties and openness standards. The terms of service provides important predictability on how the game can and cannot be played and prevent predatory behavior when sharing knowledge and ideas when multiple teams come together to ideate, co-design and get feedback on their idea.

They may be quite generic and standardised, like instructions or a list of requirements.

The terms of service should be consistent with the values expressed in the community manifesto.

Examples of these documents can be found in the links on the slides.

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Legal Framework – Innovation team

Team or Service agreement
Memorandum of Understanding (MOU)
Contract Agreement
Non-disclosure Agreement

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Example: Community Manifesto

Leadership and Innovation

We seek to encourage the creation of economic activity, innovation and entrepreneurship

2. Collaboration, Openness and Trust

Collaboration is based on trust and the values of our community

3. Engagement and work ethics

We work with all people of goodwill with clarity and reciprocity in our commitments

4. Our values

Our values are trust, courtesy, gender equality, diversity, inclusiveness, respect for people, animals and nature, collaboration, good faith, non-violence (physical and verbal), tolerance and brotherhood between nations. Our values are inspired by the Living Labs movement, as defined by ENoLL

5. Responsibility and sustainability

We are also committed to scientific, technological and technical research and to the energy transition to low-carbon energy, well-being and health of the future

6. Learning and sharing

We share and disseminate our learnings and the results of the new developments and innovations to enable their upscaling throughout Switzerland and internationally

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Example of an Innovative Legal Tool for Open Innovation

The inclusive patent (Van Overwalle, 2014)

Aims to include rather than to exclude others
encompasses the right to enforce sharing behaviour and take non-sharing users to court
a registration patent obtainable at low cost
may meet the needs of both innovator firms and innovator communities
offers a powerful property entitlement to enforce the sharing ethos

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Intellectual Property Rights (IPR) basics

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IPR >> Concept & Types

“Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.”

The Universal Declaration of Human Rights (UDHR), Article 27

Lele, 2017. Online access: https://www.venturecenter.co.in/campaigns/sanitation/know-your-intellectual-property-rights/

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Protection of Intellectual Property

Copyright

Relates to literary and artistic creations such as books, music, paintings, sculptures films and technology-based works.

Copyrighting ensures that your work can’t be used without your permission.

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Protection of Intellectual Property

Industrial Property

Trademarks: unique sign to identify a product or service.
Patents: an exclusive right to an invention introducing a new solution or technique.
Geographical Indications: the product belongs to a specific place.
Industrial designs: marks the uniqueness of design.
Trade Secrets: Proprietary or Confidential information which may be sold or licensed.

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Intellectual Property examples

Examples of the Intellectual property could be inventions (technical, business models, processes), literary and artistic works, symbols, names, diagrams, images, etc.

Economic Rights

Reproduction of the work in various forms
Distributions of copies of the work
Public performance of the work;
Broadcasting or other communication of the work to the public
Translation of the work into other languages
Adaptation of the work

Moral Rights

The right to claim authorship of a work
The right to object to any distortion or modification of a work, or other derogatory action in relation to a work which would be prejudicial to the author’s honor or reputation

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Intellectual Property types

Background IPR

All the knowledge/IP that is relevant to a collaborative venture or open innovation project that is supplied by the partners at the start of the project.
Should be outlined in the team agreement

Foreground IPR

All the knowledge/IP produced within the collaborative venture or open innovation project during the project’s tenure.
are governed by the specific Team Rules agreed upon by the Members of the Innovation Team

Sideground IPR

All the knowledge/IP that is relevant to a collaborative venture or open innovation project, but produced outside the project by any of the partners during the project’s tenure.

Postground IPR

All the knowledge/IP that is relevant to a collaborative venture or open innovation project that is produced by any of the partners after the project ends.

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Why should we consider IPR?

To encourage investment of skills, time, finance, and other resources into innovative and creative activities to promote the social, economic, scientific, and cultural development of our society.
To provide legal protection to intellectual creations preventing the authors from unauthorised use of their creative results.
To facilitate fair trading.
To give recognition to the efforts of creators.
To promote creativity, co-creation and dissemination of innovative solutions.

Chesbrough, 2003.

The primary function of intellectual property rights (IPRs) is to protect and stimulate the development and distribution of new products and the provision of new services based on the creation and exploitation of inventions, trademarks, designs, creative content, or other intangible assets.

The various reasons behind granting protection to intellectual property through the enactment of suitable Intellectual Property (IP) laws are as following: to encourage investment of skills, time, finance, and other resources into innovative and creative activities to promote the social, economic, scientific, and cultural development of our society; to provide legal protection to intellectual creations preventing the authors from unauthorised use of their creative results; to facilitate fair trading; to give recognition to the efforts of creators; to promote creativity, co-creation and dissemination of innovative solutions.

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IPR >> Benefits & Challenges

Protects results of the intellectual property from unauthorised use.

Gives a competitive advantage over other similar organisations.

Enhances the value of an organization and opens opportunities for collaboration and exchanges.

Helps to attract stakeholders and creates your Living Lab’s additional value.

Need to assign efforts, time, and costs for getting IPR protection including legal costs etc.

Even after getting the intellectual property right, you might still face some difficulties in curbing the copying and unauthorised use of your work.

IP rights aren’t absolute. There are certain limitations and conditions imposed by law on the exercise of these rights (such as a limited period of protection and compulsory licensing provisions) in the interests of the general public.

Benefits

Challenges

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Living Labs and IPR

The Living Lab should consider the following potential requirements:

A data management plan for each of its projects
A fair distribution of benefits and burden
Provision of details of the technical and organizational to safeguard the rights and freedoms of the participants
Collaborative agreements in place to organize the IP of project outcomes
User agreements/consents with each individual user in the Living Lab

Adapted from ENoLL self-assessment survey

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Open Innovation an IPR

Expert opinion

E-Learning video 2

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IPR Licenses

Standard Licenses

Creative Commons:

for creative works; providing finer control over how they can be used. 6 different licenses all including the attribution condition.

Open Data Commons:

specifically designed for databases and datasets. Two different licenses both including the attribution condition.

Public Domain:

waiver of copyright interests and database rights (CC0 and PDDL).

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IP Licenses >> Creative Commons

Attribution	CC BY	Distribute, copy, modify, and build upon work by giving credit
Attribution-Share Alike	CC BY-SA	Distribute, copy, modify, and build upon work by giving credit and using the same license terms for the new creation
Attribution-NoDerivatives	CC BY-ND	Distribute (commercially/non-commercially) without any change or modification by giving credit
Attribution-NonCommercial	CC BY-NC	Distribute, copy, modify, and build upon work, non-commercially, by giving credit
Attribution-Noncommercial-Share Alike	CC BY-NC-SA	Distribute, copy, modify, and build upon work by giving credit, non-commercially and using the same license terms for the new creation
Attribution-Noncommercial-No Derivatives	CC BY-NC-ND	Download and share work (non-commercially) without any changes by giving credit

Creative Commons 4.0 Licenses

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OI and Open source licences

Expert opinion

E-Learning video 3

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When should we consider legal aspects, IPR and openness?

Problem Phase

Creating a MOU/team agreement

Ethics application

Publications / Presentations / Reports

Co-design

Prototyping, testing

& Development

Market data collection & analysis

Knowledge Transfer / Dissemination

Solution Phase

Ideation

Key points when to consider legal aspects

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Module 1.6 in a nutshell

Being the innovation intermediaries and coordinating different stakeholders, Living Labs could significantly benefit from the Open Innovation.

Open Innovation has been proven to have multiple benefits specifically for the Climate and Energy transition.

IPR has different types and fields of application: the Living Labs could choose according to their specific projects and results.

Open source licenses could help to launch projects in the fields of sustainable urban development and energy transition.

Living Labs could face the questions of the IPR during co-design, testing, results' publication and scaling up phases of the LLIP.

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OI and IPR >> References

Aquilani, B., Piccarozzi, M., Abbate, T., & Codini, A. (2020). The role of open innovation and value co-creation in the challenging transition from industry 4.0 to society 5.0: Toward a theoretical framework. Sustainability, 12(21), 8943.
Bazilian, M., Rice, A., Rotich, J., Howells, M., DeCarolis, J., Macmillan, M., Brooks, C., Bauer, F., Liebreich, M., (201"). Open source software and crowdsourcing for energy analysis, Energy Pol. 49, 149–153, https://doi.org/10.1016/j.
Bogers, M., Chesbrough, H., Moedas, C., (2018). Open innovation: research, practices, and policies, Calif. Manag. Rev. 60, 5–16, https://doi.org/10.1177/.
Chesbrough, H. W. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business Press.
Chesbrough, H. (2012). Open innovation: Where we've been and where we're going. Research-Technology Management, 55(4), 20-27.
Chesbrough, H. (2003). The logic of open innovation: managing intellectual property. California management review, 45(3), 33-58.
Dahlander, L., Gann, D. M., & Wallin, M. W. (2021). How open is innovation? A retrospective and ideas forward. Research Policy, 50(4), 104218.
Dall-Orsoletta, A., Romero, F., & Ferreira, P. (2022). Open and collaborative innovation for the energy transition: An exploratory study. Technology in Society, 69, 101955.
Edelmann¹, J., & Volchek¹, D. (2010). Open innovation in cross borders-advantages or disadvantages? Strategic options analysis. Frontiers of Open Innovation, 5.
Eppinger, E. (2021). How open innovation practices deliver societal benefits. Sustainability, 13(3), 1431.
European Commission, Open Innovation, Open Science, Open to the World, European Commission - Speech, 2015, https://doi.org/10.2777/552370, 22 June 2015.
Hyysalo, S., Juntunen, J.K., Freeman, S., (2013). User innovation in sustainable home energy technologies, Energy Pol. 55, 490–500, https://doi.org/10.1016/j.
Huizingh, E. K. (2011). Open innovation: State of the art and future perspectives. Technovation, 31(1), 2-9.
Marques, J. P. (2014). Closed versus open innovation: evolution or combination?. International Journal of Business and Management, 9(3), 196.
Peek, G. J., & Troxler, P. (2014, May). City in transition: urban open innovation environments as a radical innovation. In REAL CORP 2014–PLAN IT SMART! Clever Solutions for Smart Cities. Proceedings of 19th International Conference on Urban Planning, Regional Development and Information Society (pp. 151-160). CORP–Competence Center of Urban and Regional Planning.
Pitkänen, O. (2008). Living lab legals. Schumacher, JN. and Veli-Pekka (Eds): European Living Labs, Wissenschaftlicher Verlag, Berlin.
Tekic, A., & Willoughby, K. W. (2020). Configuring intellectual property management strategies in co-creation: a contextual perspective. Innovation, 22(2), 128-159.
Van der Meer, H. (2007). Open innovation–the Dutch treat: challenges in thinking in business models. Creativity and innovation management, 16(2), 192-202.
Van Overwalle, G. (2014). Inventing inclusive patents. From old to new open innovation. Kritika: essays on intellectual property, 1, 206-277.
van Genuchten, E., Calderón González, A., & Mulder, I. (2019). Open innovation strategies for sustainable urban living. Sustainability, 11(12), 3310.

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Intellectual Property

This content (slides, texts, video, audio) is licensed under a Creative Commons Attribution-ShareAlike (CC BY-SA) 4.0 License.

More info

However, the license of the specific external resource(s) referred to in this presentation might differ from CC BY-SA 4.0 license and therefore needs to be checked before remix, adaptation, or other kinds of reuse.

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Thank you for �your attention�

Joëlle Mastelic

Professor HES-SO, President of Energy Living Lab Association,

CH : joelle.mastelic@hevs.ch

Anastasia Ponomareva

Research Associate,

HES-SO, CH : anastasia.ponomareva@hevs.ch

Fiona Zimmermann

Senior Research Associate,

HES-SO, CH : fiona.zimmermann@hevs.ch

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No #8101033752.