1. MinHwaLee KOVA Honorary Chairman KAIST Professor DGIST Distinguished Professor

2. Introduction 1985 Founded 1st Korean Venture, Medison 1995 Founded KOVA , First Chairman 1996 Initiated KOSDAQ 1997 Initiated Venture Special Law 2006 Founded Technology Exchange Center , First Chairman 2006 Selected as one of Koreas Top 60 Engineers 2008 Founded Eurasian Network 2009 1st Ombudsman of SME (vice minister) 2009 KAIST Professor, Founded IP-CEO 2010 KOHEA Founder/ First Chairman 2013 KCERN Founder/ Chairman Books CreativeEconomy(2013)etc, 18 Books, 190 patents 3. Advent of Creative Economy 1960 Female Worker 1970 Technician 1980 Salesman 1990 Engineers End of 1990 Ventures 1963~1965 Dispatch Western Germany miners to Vietnam 1988 Seoul Olympics 1995 OECD Registered Fast Follower : Efficiency First Mover : Innovation Big company-based Cost Strategy Failure is final Complex ecosystem Value strategy Failure is way to innovation Trapped to GDP 20,000$? 4. Change in Corporate ValueLICENSEREVENUES (BLNSUS$) COMPONENTSOFS&P500 MARKETVALUE 25% 50% 75% 100% 5 50 100 120 160 Market Capitalization - Real Assets (USA) Market Capitalization - Invisible Asset 1985 Global IP Licensing Revenues 2005 2025 32% 68% 79% 21% $5 $150+ 95% 5% Hundreds of Trillions $ 32% 68% 5. Creative Economys Value Change $45bilion $125bilion 80% is Patents Value 6. Creative Economys Value chain R&D - Production - Marketing C R Customer Relationship I P Intellectual Property Creativity IPs main source is customers needs Key differentiator of Customer Satisfaction is IP IP and CRsVirtuous Shift from knowledge society to IP society: Creative Economy Past : Tech > IP Future : Tech < IP Technology is 6 month and IP is 20 years differentiator 7. Big Smile Curve Frown curve Smile Curve(Tsai,1999) Big Smile Curve R&DIP BrandCR Frown Curve Big Smile Curve ProductionR&D MarketingIP CR Rate of Profit 30% 10% 5% 10% 30% Creative Company Knowledge Company 8. View from Tech to IP IPR view (internationalpatent complex) Tech view (componentassembly) Over 700 components antenna: 7,800~ display:14,000~ modem: 7,000~ power: 14,000~ camera: 4,800~ input device: 6,300~ SW application: 20,000~ Over 70,000 patents Perception change about R&D and patent Patent, production of R&D R&D for patent portfolio 9. Global patent war Anti-Dumping IP-War Source: Korea Intellectual Property Office 10. Creative Economy Paradox Industry Economy Creative Economy Manufacturing Cost = Labor Cost + Material Cost Creation cost = Sales amount R&D Investment Market Capability Innovation Capability Venture ,smaller Big Business , Bigger Creative Economy Paradox! 11. Overcome Creative Economy Paradox and TRIZ TRIZ Separation in Time Separation in Space Separation in Person TRIZ Teoriya ResheniyaIzobretatelskikhZadatch TRIZ Thinking tool for solving contradictory problems 12. Time of Innovation Time of Efficiency Spin- Off Spin- Out M&A Alliance, Licensing Spin-off and WIN-WIN M&A Market Business Separation in Time : Open Innovation Technology Venture 13. Separation in Space : Open Platform App StoreDeveloper Efficiency Space Innovation Space 14. Separation of Human: Intra-venture Efficiency Existing Business Management Organization Innovation New Business In-company Venture New Organization Existing Organization 15. Person Intrapreneur Space Open Platform Separation and Cycle = TRIZ + Taegeuk Time Open Innovation Endless Chaos Polar Opposition Excellency combined Virtuous Cycle Life WIN-WIN 16. Creative Economy 8 Strategies Efficiency Innovation Intrapreneur Venture Activation Open Innovation Open Platform Innovation Market Economic Democratization Cultural Innovation Educational Innovation Society Foundation Power Virtuous Cycle Promotion Fairness 17. IP based Startup 18. Driving Force of Creative Economy 1960 1970 1980 1990 present Efficiency by major company Future2000 2010 Center of Tech Innovation Industry economy IP CEO IP+EntrepreneurshipTech-startup Efficiency Economy Innovation by entrepreneur Creativity, innovation center creative economy IP-based startup Creative Economy Female Worker Technician Salesman Engineers Ventures 19. Conglomerate High-growth Venture Growth Employment Ventureistheanswer! US, Venture Business(4% of total) creates 60% of job UK, Venture Business(6% of total) 54% of job creation The only answer to sustainable growth and job creation 20. USsentrepreneurshipeducation Currently 100 university- based Entrepreneurship Center Spreading Entrepreneurship High- education Entrepreneurship education 80s 300 universities 90s 1050 universities 2000s 16000 universities University Education 1966 Entrepreneurship development NGO Kauffman Foundation establishment 1970s main universities, MBA created 60~70s 1945 HARVARD, first entrepreneurship education Beginning Alumni Startup Number of job Revenue 39,900 5.4 million 2.7 trillion dollar (worlds 5th economy scale) 25,800 3.3 million 1.9 trillion dollar (worlds 9th economy scale) 21. GlobalEntrepreneurshipeducation Suggest all countries to make entrepreneurship education mandatory 2010 Global Education Initiative WEF Suggestion (2009) Resolution to cultivate entrepreneurship by education Elementary and secondary entrepreneurship education is mandatory Olso Agenda (2006) The basic skills of knowledge-based society is entrepreneurship Entrepreneurship activity plan (2004) Lisbon Agenda (2000) The European Foundation for Entrepreneurship Research established EFER(1987) E U World is going to Entrepreneurship Education 22. Survival rate of Venture Average Revenue Rate of added value Sunk Cost Modeling 1.7M$ Venture startups value in Korea? 23. Conditions of Korean Startup by age GEMreport Underdeveloped country economy Middle power country economy Developed country economy Korea Low rate of startup at young age Too much retirees startup 24. Youth startup stimulating Plan 24 0.2Million Million Innovation Necessity Manhood startup experience and capability Youth startup ???????????? Innovative startup increase Necessity startup decrease Core capability of youth startup? 25. IP + Entrepreneurship 26. Entrepreneur startup Value Creation Value Distribution Excavating Opportunity Core Capability Motivation Corporate Culture Entrepreneurship is Value creation and distributions virtuous leadership 27. Combination of market and competence (IP and BM) Market opportunity? Capture opportunity others cannot Opportunity everybody can notice X Requirements Core capability IP Differentiated core capability? Differentiated core capability Can we be first? Sufficient condition Market capability BM Capture market opportunity BM Design Construct differentiated capability IP Secure Startup IP + BM ( Rate to succeed ) ( Expected value of success ) Startup = Competence+ Market 28. IP-basedstartup IP-based startup alternative to get through valley of death, IP-based startup policy Funding Easy Hard Development basic Technology Development & Prototype Commercial Production Steps Valley of Death Commercialize Research Project Public area Private area ( Korean experiment) 29. IP Commercialization model IDEA National application PCT application commercialization .. .. .. . . ... . ... . .. .. . . . . .... . . ... .. .. ... ... ..... . ... . .. . . .. ...... .. IP Market/Finance IP creation IP Commercialization IP Startup 30. IP-Based Startup PATENT Startup based on the unutilized IP of universities and research centers Universities can support young startup Government can support young startup START UP Lack of core-competence! Lack of IP utilization Startup based on the existing IP Creation Utilization 31. Korea to IP Power IP Finance IP Utilize IP Market Patent office IP Infra Patent Court 32. IP Startup cases 33. EYE-TRACKING UI (User Interface Improve program) KAIST ITM502 Business Proposal Background Customer pool extended as usage of electronic device spread to all ages Visual degradation extended as usage of electronic device expends Increase of customer needs about relating devices UI improvement EX) al-tool bar, Google tool bar, and etc. Related service usage extended Business Purpose By iris recognition without separate operation customer UI improvement at electronic device - extended font size, adjust screen brightness, auto scroll feature, etc Expend the usage of elders with operation difficulty Improve work environment who has lots of documents 34. KAIST ITM502 Business model Eye Gaze Estimation Device & Estimation Method Mobile Terminate & Control Method EYE TRACKING UI Electronic device screen UI Improve program - Estimate the concentration of the pupils and enlarged screen font - control screen brightness - Provide auto scroll feature - Run menu by blink of eye - run related features such as searching and checking images Expert opinion expected to have high customers complaints about service malfunction, and if there is solution to it, expected to have high frequency between workers and elders so that need to check working accuracy about related patents (Small Business Corporation Northern Gyung-gi branch startup fund review, Ji-hye Jung employee) 35. KAIST ITM502 10 Block Model Cost structure Revenue streams Key resources Channels Key activities Key partners Value proposition Customer relationships Customer segments Value Creation Developers of program and application Program/applicat ion development and maintain Existing webcam selling place Company targeted sales visit Provide online program and application Manage program quality Develop user UI improvement related program continuously Video item command perform program production cost ( ) Screen UI improves as we use the electronic device Program and application developers Webcam manufacturer Extend the font size where user intensively watch Adjust the scroll speed where user intensively watch Adjust the brightness where user intensively watch Run menu with a blink and etc. webcam and program package sales revenue Advertising revenue by application and program users Business user (workers with lots of documents) Manhood and elders who felt the discomfort about small device screen 36. Throwing expression fire extinguisher KAIST ITM502 Current Status and problems Despite the usage of various institution and safety place, sustained fire occurs Hard to extinguish fire when the first extinguish failed at dangerous fire such as oil and explosives Possibility of enlarging the large disaster situation from the military oil and ammunition fire If there is no prime extinguish personnel, auto extinguish is possible and in case of hazard fire, necessity to have ranged extinguish ability 37. Existing fire extinguisher VS KAIST patent compare KAIST Existing Fire extinguisher operation is complicated and need to approach fire. Throwing-type fire extinguisher patent available to do ranged extinguish fire 38. KAIST ITM502 10 Block Model Cost structure Revenue streams Key resources Channels Key activities Key partners Value proposition Customer relationships Customer segments Value Creation Fire extinguisher manufacturer Fire extinguisher certified companies Throwing-type fire extinguisher patent Provide sector Customized throw-type fire extinguisher *capacity, melting point, longitude, and etc. support diversification standards depending on the holding hazard material Fire extinguisher and safe luggage sellers Win-win relationship with client holding facilities that is important to have prime extinguish ability, but hard to place personnel or limited access place Cost to make fire extinguisher Development cost of variety standardized fire extinguisher New development fire extinguisher approval and patent cost Domestic and foreign market development cost Provide early stage fire extinguishing capability Fire extinguisher manufacturer Fire extinguisher certified companies Fire extinguisher purchase company Fire station/Forest Service In case of hazard fire, provide safe prime extinguish method Provide prime extinguish ability in lack of extinguish personnel placement area and area difficult to enter Revenue of selling fire extinguisher civilian and downtown business Fuel managing company Military ammunition and fuel managing facility Military supply warehouse National Emergency Management Agency Etc. 39. minhwalee@kaist.ac.kr Facebook @koreaventure Thank you Min Hwa Lee I hope your better future