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Special Report March 2, 2007, 11:38AM EST

The New Science of Sharing

(page 3 of 3)

Intel established exploratory research labs adjacent to leading research centers such as Berkeley, Cambridge University in Britain, Carnegie Mellon, and the University of Washington. Intel provides the funding and each lab houses 20 Intel employees and 20 university researchers. While each lab has a unique focus—such as ubiquitous computing or distributed storage—the research teams from each lab meet regularly, as Intel has found that some of most promising insights and applications flow from unexpected synergies that arise when teams from different institutions discuss their research.

And rather than wrangle over who gets to control and exploit the fruits of joint research efforts, Intel and its academic partners sign Intel's open collaborative research agreement, which grants nonexclusive rights to all parties. Both sides retain their freedom to engage in further research, develop new products, and partner with other players. Like the pharmaceutical industry, Intel is finding that the benefits of casting a wide net for new ideas and learning rapidly from the external research ecosystem greatly outweigh the advantages gained from keeping the basic scientific research proprietary.

More than Good Manners

The results so far seem to justify Intel's approach. In the four years since the first exploratory lab was launched, research in areas such as polymer storage, micro-electromechanical systems (MEMS), optical switching, inexpensive radio frequency (RF), and mesh networking has matured more quickly than expected. Many ideas have already been transferred downstream toward product development.

In the end, close cooperation with leading universities helps Intel maintain its edge, while spreading the upfront costs of R&D across a much broader research ecosystem. By leveraging its university connections skillfully, Intel gains access to the results produced by the bulk of the research community without sacrificing its ability to exploit the research in the downstream stages of product development.

The bottom line is that sharing knowledge and data in scientific communities is not just good playground etiquette, it's about growth, innovation, and profit. By sharing basic scientific data and collaborating across institutional boundaries, companies like Novartis and Intel are challenging a deeply held belief that early stage R&D activities are best pursued within the confines of secretive laboratories. As a result, both were able to cut costs, accelerate innovation, create more wealth for shareholders, and ultimately help society reap the benefits of scientific research more quickly.

A Better Base

What's more, this logic of sharing doesn't apply only to science. "Just as it's true that a rising tide lifts all boats," says Tim Bray, director of Web technologies at Sun Microsystems (SUNW), "we genuinely believe that radical sharing is a win-win for everyone. Expanding markets create new opportunities." Under the right conditions, the same could be said of most industries, from automobiles to other consumer products.

Of course, companies need to protect critical intellectual property. But they can't collaborate effectively if all of their IP is hidden. Contributing to the scientific commons isn't altruism—it's the best way to build vibrant business ecosystems that harness a shared foundation of knowledge to accelerate growth and innovation.

Don Tapscott, author of Grown Up Digital: How the Net Generation Is Changing Your World, is the founder and chairman of nGenera Insight. Other books he has authored or co-authored include Wikinomics, Paradigm Shift, The Digital Economy, and Growing Up Digital. Anthony D. Williams is an author, researcher and former lecturer at the London School of Economics. He is vice-president and executive editor at New Paradigm and co-author of Wikinomics.

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