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Raw Material Scarcity and Overproduction in the Food Industry Suresh D. Sharma
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A work like Industrializing Innovation is not something that is completed in one’s spare time. It takes long days and nights spent away from family and friends and becomes an obsession.
Over all of this time, there was one constant. We could depend upon our spouses to support our own personal innovation ecosystem. It was not always easy to tolerate us. Long calls that overran meals, discussion on esoteric subjects, and the occasional ranting became normal. All was tolerated and some even encouraged.
We could not have completed this work without you. It is dedicated with equal love and understanding to Lata Sharma and Joyce Meyer, our better halves for many years. We are very fortunate.
Suresh K. Sharma
Karl E. Meyer
Preface
Industrializing Innovation
At first glance, Industrializing Innovation is oxymoron.
On a closer look, Industrializing Innovation can begin to make a lot of sense. There are a tremendous amount of innovative ideas and products being developed. We see many emerge. But so much more wait on the shelves of institutions. Today, there is an innovation logjam in our universities, large corporations. Innovations that could change healthcare, energy, or any number of the ills of the world are failing to come into the economy at large because of limitations built into our current innovation ecosystems or from the narrow geographies of those innovation ecosystems. Even within successful startup communities, there are limits in the ability to successfully commercialize innovation.
In this book, we start with an examination of something we call the innovation logjam. We then look into how to solve it, and then we examine ways to spread innovation everywhere.
An Innovation Logjam?
We use a handheld computer that has unimaginable power and nearly ubiquitous connectivity to a world-spanning network. We may use it to watch cat videos and argue with people we call friends that we cannot recall meeting, but it is not possible to argue that there has been no innovation. And that is not what we propose. Rather, we discuss the difference between the rate at which we are discovering new and innovative things and the rate at which these things are made into the useful and life-changing products like the smartphone or the software on it. The difference is larger than most people think, driven by many factors that we discuss in the first part of the book. We spend billions on research just in public money. Yet, innovation all too frequently comes down to people meeting in a coffee shop and ideas dying for lack of funding.
Presenting a problem without a solution makes good cryptography but a poor answer in the real world. In part II, we discuss how to establish the innovation infrastructure than can enable innovation. We discuss ways to be better at developing viable ideas into startups, startups into product, and product into growth, using mechanisms that have been proven in the legacy innovation ecosystems of today.
Finally, we discuss how to spread innovation globally, into parts of advanced economies and developing economies. We focus on the concrete steps to make innovation happen and enable invention that can change localities and industries.
There is a huge canon of work about how to think innovative thoughts. They suggest many methods of making that lightning of invention strike in the mind of the innovator. This is not a book about making that lightning strike. We could not hope to equal all those works. Rather, we focus on what we know – how to take that idea into a product and change the world.
What Differentiates This Book
We believe that understanding the innovation process must start with observation. We use existing data as well as our latest understanding of behavioral psychology and behavioral economics. Data has no emotions, but it has soul, and we view the data from the unique perspective of our years of experience. We draw upon authors’ research and studies done over the past 6 years: as former large corporate veterans, as entrepreneur, and as industry mentors to several institutions globally. This coupled with their intimate engagements with numerous innovation hubs over the past 25 years point to new findings. These include recent insights into emerging trends relating to about 3000 (and counting) private and public incubators and accelerators and other similar efforts in large universities and corporations.
The new patterns from this large data set have a soul that tells us how they can flourish. If scaled properly and done right, this can form a basis to new launch platforms to commercialize ideas, inventions, and innovations to unleash next industrial revolution and bring unforeseen economic prosperity. These lessons can be adapted and applied to reinvent existing communities, large corporations, and universities.
Who This Book Is For
We have tried to package this work into a succinct but multidimensional treatise for entrepreneurs, investors, industry mentors, leaders in university systems, and policymakers to establish, enhance, and enrich the twenty-first-century innovation hubs.
Fundamentally, this book is for people who want new ways to identify the right entrepreneurial DNA, new business models to invest venture capital, and new methods to construct or makeover existing ecosystems. We have constructed the work to be relevant to all practitioners and creators of innovation.
Expert Case Studies to Enrich the Content
We are thankful to a large number of very esteemed contributors – who are worldrenowned or unique in their fields of specialization – for sharing their perspectives in the form of special write-up and/or a case study. These have been suitably crossreferenced in the text and placed as an Appendix to the book. Selecting a few representative ones was a very difficult task. We have tried to capture the entire spectrum of policies, locations, industry verticals, levels of maturity, uniqueness, business models, and other characteristics as best we could. We were certainly unable to do justice to all by not been able to include all – given the format and context.
It is a sign of the hunger for information in this space that we received an overwhelming response from those who wanted to share their insights. This vast body of experience-based input enriched our content and lends a unique multiplier effect to our readers.
We sincerely acknowledge their support and have, respectively, attributed it to them at the place of their write-up in the book. Further, a brief bio-profile of the contributing authors has been placed at the end along with Acknowledgments.
Go with the Flow: Reading Tips
As a reader, you should find it free to jump between different chapters and go back and forth without losing the real flow of the book’s core message. We have tried to design the structure and write the content in a very modular way as far as possible.
The key fact to keep in mind is that only by understanding the innovation logjam clearly can we dispassionately address the drives causing that backlog. By understanding the causes, we can take the actions to streamline future innovation pipeline. With innovation flowing more smoothly, we can usher in a new golden age of innovation. That age is not just on the horizon but virtually here.
The Next Industrial Revolution: The Time Is Now
It is time to industrialize innovation. Just like “Land Grant Universities” enabled the USA’s industrial leadership in the last century, today, we believe a number of independent innovation hubs can catapult humanity into a new era of the twenty-first-century society that is cleaner, sustainable, and economically more prosperous than ever before. Similar reforms must happen in large corporations for them to lead globally.
To continuously improve the innovation output, additional contemporary material is planned to be updated on the book’s website: http://www. IndustrializingInnovation.com/
Atlanta, GA, USA Suresh K. Sharma Karl E. Meyer
Acknowledgments
When we told our friends and supporters that we were considering writing a book, we heard the quote “It takes a village to raise a child, but it takes a crazy person to want to write a book.” In those early days, we did not realize how true those words were.
Of course, it is impossible to acknowledge all who have contributed to the pool of knowledge that went into the making of this work. We have acknowledged a few here, but we are certain that we have missed many. To those that we have omitted, we sincerely apologize.
We would first like to acknowledge all those who directly contributed supplementary essays – relative to domain knowledge of their choice and expertise and to a selected topic of their choice that fills the gaps in the overall book’s content – thus making it very rich. These have also been duly referenced, acknowledged, and placed at a special appendix to the book:
• Dr. Donald Chambers, Associate Director of Entrepreneurship at the University of Georgia, Terry College of Business, has been a constant source of several insights and knowledge for us throughout this process. He and this team’s pioneering work on innovations in SMEs, especially in a small town with a large anchor university, combined with his own earlier hands-on industry operating experience added credible value to help us identify the building blocks of entrepreneurial success as well as architect the concept of next-generation “Innovation Hubs.”
• Dr. Jag N. Sheth, Founder and Chairman of the Board of the ICA Institute, a global “futurist,” who has been a mentor to us, and guiding source of light to navigate these uncharted waters without running aground. His inputs have always been timely, relevant, and very potent. Thanks Jag.
• Mr. Sharrieff Mustakeem, Founder and Chairman, MCX Environmental Energy Corporation. Sharrieff gave us insight to a different time and place when innovation flourished and helped us apply it to the here and now.
• Mr. Jim Sterne, an independent global Marketing Advisor and Author of many state-of-the-art books and publications on contemporary “State of the Arts”: he is a pragmatic thought-leader in the world of analytics, and his ability to distill complex issues into readable form was inspiring for us.
• Mr. John Adcox, Founder and CEO, Gramarye Media. John, besides being a talented Author, has been a constant support of our efforts. Gramarye Media is built with the DNA of “incubator from an incubator,” reflecting his personal experience in Flashpoint.
• Dr. Penelope B. Prime, Founding Executive Director of the “Kennesaw State of Poor and Underprivileged” Clinical Professor, Georgia State University. Dr. Prime has the rare insight into China that can only be gained by the long and careful study of its transition to the modern powerhouse. We are intensely grateful for her contribution.
• Lane Desborough, Chief Engineer, Bigfoot Biomedical. Lane is one of those extraordinary people that can change the world. He took the impact of a disease on his son and chose to use that event to make positive change for others.
• Manuel Terranova, CEO, Peaxy, Inc. Manuel has been an inspiration for us. He has proven an ability to be innovative inside and outside of corporate environments. More than that, he has been generous with his time and his gifts.
In addition to those that contributed directly, there were many who contributed their personal effort and brilliance to our work:
• We have had a lifetime of colleagues at GE (General Electric, Inc), SMS (Shared Medical Systems, Inc), and GRA (Georgia Research Alliance), startup accelerators like CREATE-X, Flashpoint, House of Genius, TiE Atlanta, Georgia Tech, and many other ventures large and small. We worked directly for some and with others. We are grateful for all the mentorship, learnings, and advice. Both of the authors have had rich and diverse professional lives that directly resulted from the faith and trust that these valued friends gave:
– Brett Palmer of Wellington, New Zealand. Brett has been an inspiration to be creative, original, and to think globally.
– Bai Blyden, extraordinary individual whose brilliance and diverse background inspires Batman-like heroics.
– David Gamero, a senior student – doing engineering major at Georgia Institute of Technology. Besides his brilliance, David reminds us every day of exactly how old we are.
– Gail Meyer, Retired Teacher. Gail proofread the work, particularly in the painful, early versions where some of the writing was so bad it felt like your brain was being pulled out through your eyes.
– Joyce Meyer, Photographer and Math Tutor. Joyce also proofed the early works. Any errors that may remain are certainly in spite of her strong efforts. – Burton Toole. Burton’s constant humor and drive to be the Big Man on Campus was always on our mind.
• In addition, we thank Dr. KRS Murthy, Loretta Lepore, David Ellis, John Adcox, Mpule Kwelagobe, Abhijoy Gandhi, Don Dudenhoffer, Tim Tang, Mark Froehlich, John Adcox, John Bacon, Susan Shows, Greg Dane, Arul Murugan, Paul Lopez, and Sharrieff Mustakeem for their multifaceted help.
To all of these people, and to that many who were not named, we are grateful. You were our village and our sanity when we were crazy.
After the Fire: China’s Peaceful Economic
The Factory of the World
China Shows the Way to Emerging Markets for E-Commerce.
China Vision – 2025 – A Drive to Lead the World in Innovation
Transition Roadmap – Will It Work
Existing Status – Half Way There
India Story
India’s Missed Historic Opportunity, and Brain Drain
“Jugaad” … Continues in the Meantime
Can Jugaad Morph into India’s Innovation Culture for Future
A Transition Roadmap: Realigning India’s Innovation and Manufacturing Ecosystem
in Constraints, Creativity, Originality and Innovation
Part I
The Innovation Logjam
Chapter 1 Introduction
An Era of Massive Economic Expansion
We are in a Golden Age of innovation…but challenges exist across the board.
There are many works that discuss innovation, disruptive innovation, invention and discovery. Of that great body of work, a large portion of those works will try to tell their readers how they can become more innovative. This is not one of those books. Rather this is a work for the people that want to see the innovation economy work better.
Industrializing Innovation is about solving a problem some people would say that we do not have, the problem of moving innovations swiftly from lab to use. We call this the “innovation logjam”. The innovation logjam has been building for decades. Industrializing innovation is about building a innovation economy that is open to all people, not just those living in Silicon Valley or in the environs of New York City.
As Jim Sterne says in his essay in Appendix 1, “Industrializing Innovation does not mean forcing artisans to become factory workers. It means empowering craftsmen to become artists by mechanizing tedious, repetitive tasks.”1
Industrializing innovation focuses on making the process of bringing innovations forward easier. It means helping people with ideas refine them for greater success. It means reducing the risk for people who wish to invest in ideas. And it means creating the opportunity for innovation in a broader geographic area. It is a disruptive innovation of the innovation industry itself.
As with most works of this nature, we use words like innovation, invention and disruptive innovation as though they had fully understood and agreed to meanings. This is generally not completely true, so for our purposes, we will define them here:
S. K. Sharma, K. E. Meyer, Industrializing Innovation-the Next Revolution, https://doi.org/10.1007/978-3-030-12430-4_1
• Invention is the discovery of basic research. Invention, like the ability to create light by running electricity through a filament in a glass bulb, is not the same as a product. As we discuss later, some 18 years elapsed between the discovery of how to make light with electricity and the innovation of a usable light bulb.
• Innovation is the application of new idea to a problem in a way that changes the way we look at the problem. For innovations to have an impact, they must be made into a business. That business is an essential part of making innovation real. Innovations can change lives. Home health monitoring has made life better for those with chronic disease. Computers have changed the way we look at information. Cell phones have made communications fundamentally different. Each of these innovations started with small companies and people with ideas.
• Disruptive Innovation is the application of innovation to an industry where the innovation disrupts the ability of existing products in that industry to be sold, sometimes at any price. Once a disruptive innovation has taken place, that industry can never be the same again. Students in high school in the 1970’s were taught the use of slide rules for calculations. The electronic calculator fully disrupted the way mathematics was taught and slide rules have disappeared. In the 1980’s 8-track tapes were common in automobiles. The cassette tape, CD and later electronic formats changed the way music was delivered. Each of these disrupted the music industry such that it can never go back.
Innovation has been one of the most fundamental expressions of human creativity. Human creativity has evolved throughout our history. It has led to new inventions and innovations. Inventions are brand new discoveries: new science, new materials and new ideas. Innovations typically blend creativity and improvisation to produce a new and unique functional and economic value for people. For most innovations and inventions, there comes a time when we adopt the changes and the innovation is becomes simply part of our lives. The discovery of new innovations and the creation of products from them is pervasive in the modern world. This casual adoption has revolutionized our world and created a new era of innovation that resulted in massive economic growth. The process of innovation has built upon itself for decades, and the results are mixed.
Today’s world has been undergoing an evolutionary cycle of almost 30 years. This cycle has spanned the time in modern history of industrialization and digitization that has been revolutionized by digital technologies. The very process of realizing innovations into commercial products through startups and startup ecosystems itself has reached a point where the change we are adopting to be part of our lives is the process of innovation. This is the innovation economy, where the process of creating innovations is itself an industry. It is also an industry with a problem. Innovations are being invented everywhere, but the ecosystems to support turning them into startups is constricted and limited to narrow geographies. It suffers from a logjam.
The Innovation Logjam
What is the innovation logjam? What are the drivers that made it happen? Is it getting better or worse? These are the topics that are discussed in this chapter and rest of Part I. Without understanding what causes the innovation log jam, it would not make sense to analyze and suggest measures to improve our life going forward.
A real logjam is caused by logs floating down stream in a river. In the age before log trucks, trees would be cut down and stripped of their branches and then simply thrown into the river. Sawmills would be positioned down river, sometimes just before the river emptied into a lake or the ocean. Floating logs down a river to a sawmill was a cheap and easy way to move them and was one of the most common means of transport. The sawmill would collect the logs and cut them into lumber for houses and other uses. Frequently, a log would get stuck on its way down stream. It would catch another log and another and so on. Over time, the logs would build up and dam the river. Breaking a logjam before it became too large was extremely important. Waiting too long would result in a flood when the logjam eventually broke. This flood would wash away towns and sawmills.
The innovation logjam is defined as an inability to turn innovation into products at a speed at least equal to the rate that innovations are discovered. This means that innovations build up, like the logs in a logjam, as more are added. Unlike the historic logjams, they do not burst and wipe out a town – instead they simply sink away and possibly disappear from sight forever.
Many people would take issue with the concept that innovation is not emerging quickly enough from universities and industry. They will point to advances like smart phones and smart watches. They will suggest crypto currencies and social media as key sign posts of innovation. And those that point to these things are correct – they are advances. But are we using the advances from technology at the same rate that we are developing these advances? The data says otherwise:
• Thousands of patents per year are granted to universities. At the same time, many thousands of patents already managed by those universities expire with their only result of their existence being to block further development in that area.
• From a distance, our ability to innovate looks great, but the hard numbers tell a different story: the rapidly growing startup community – touted to be the fountainhead of innovation – seriously suffers from a lack of suitable ecosystems to unleash their full potential. In 2017, out of the approximately 500,000 small businesses and new ventures that were launched, about 300,000 of them were technology-centric cutting across all industry verticals. Typically, only about 10% of these get funded i.e., have access to venture capital. According to the National Venture Capital Association (NVCA) data, only 1 out of the 600 software startups, and 1 out of 3600 hardware companies that get Venture Capital funding last more than 5 years. Overall, this means a shocking 0.1% or less of all entrepreneurial ideas grow to become sustainable business enterprises.2
2 National Venture Capital Association (NVCA) (2018) 2018 NVCA Yearbook.
• Corporations routinely die from an inability to keep pace with innovations in their fields. Many of these corporations have libraries of-changing innovations as assets. Had the corporation been able to leverage those innovations, they might have been able to save themselves.
• While in areas like London, Silicon Valley and New York where a legacy innovation ecosystem exists, technology is developed to solve the problems of residents and innovation is fundamentally altering the economies of the people. Outside of those areas, people with innovative ideas often cannot successfully create businesses from the ideas. The industries of areas without innovation ecosystems less likely to be enhanced with technology.
• For several decades, building successfully new enterprises has always been viewed as a ‘work of art’ or ‘craftsmanship’. Though the innovation ecosystems are beginning to mature a lot but even then, only about 20,000 startups can go through some level of mentoring in various dedicated facilities. Those facilities are known variously as incubators or accelerators. The capacity of these facilities is not enough and it only in very narrow geographies. Further, only a very tiny number of those that get funded by Venture Capital firms. The ones that are funded tend to be concentrated in those same selected locations. Many others lack capital and gradually starve and die before becoming profitable.
• Venture Capital firms invest billions of dollars per year into new technologies but are drawing away from early stage investments. As they do so, it becomes more and more difficult for the next generation of technology to gain traction. The innovation ecosystems themselves need to innovate further to unlock full commercial potential.
How can we improve our ability to harness more of the potential? How can we deploy venture capital more efficiently?
The Paradox of Industrializing Innovation
The data shows the innovation industry as it is currently constructed cannot use innovations as quickly as it can produce them. The innovation pipeline is not operating efficiently. The innovation industry has difficulty understanding and applying the lessons learned into execution of the innovation process. This process – from entrepreneurs to enterprises is still very challenging. Since we have been building the innovation economy for 40 years, we ought to be better at it. Yet we still find ourselves asking: what are the essential traits in successful founders? How can we improve success rates for startups? How can we reduce the risk to investors? Why is this still so difficult?
The mass innovation of new products should be easier. Many groups have engaged in the process of authentic customer discovery. Books have been written iterative and rapid prototyping models. Many works have been written about how to use startup capital efficiently and profitably. What is missing is an understanding of
the core foundational plumbing and its various dimensions. To massively distribute the innovation economy, it is essential that we understand not how to innovate, but how to transform innovation into productive ventures. Not how to create one venture, but how to include the creation of ventures into the machinery of our society. As societies, we have become masters of creating technology everywhere. We create new inventions in every major urban area. We have not mastered leveraging that technology outside of a few areas. Even in those areas, their ability to support people to participating in new ventures may be saturated.
In the medieval world, products were designed and crafted by artisans and guild masters. Each product was unique, even if the craftsperson had made 100 similar ones before it. The process was limited in geography to areas where people that made those things gathered. The quantity of items produced was limited by the number of people in those areas admitted to the guild. The entire process of making things was hard to replicate from one area to another and harder still to change.
In the modern world, new products are built piece by piece on assembly lines. The modern process relies on workers that are experts in aspects of the process rather than the entire process. The modern assembly process scales to produce more at a single location or working together over many locations. The process can be easily be moved and can be scaled to provide as many of a product as desired.
Currently, new and innovative ventures are built like the products in medieval times. Each one is crafted by artisans, each one unique. And some amount of uniqueness is necessary. After all, these are innovative ventures, so they are unlikely to be exactly alike. But the uniqueness should only be in those areas where that uniqueness is necessarily part of the innovation. Most of the remainder of how that new innovation happens is complex and difficult but it can be handed by people that are experts on that aspect of the process.
The ubiquitous nature of the internet means that Innovation is limited to a small set of geographies. It is simply not possible to bring all innovation to a single place and expect all new technology to flow from there. To enable the creation of innovative product, we must learn from the modern world. To industrialize, we must distribute. To produce innovation on a mass scale, we must build the equivalent of innovation factories. Those factories can be placed where the people live that know the problems that need to be solved. We believe that the innovation industry is going to build new enterprises that create new jobs to uplift many more hundreds of millions of people from poverty.
We propose a process to build those innovation structures, these “not factories”. These can work with the people that have innovative ideas. This structure, which we call an “Innovation Hub” is designed to help innovators develop ideas if they are worth development, to drop them if they are not and to understand better what makes the difference. The Innovation Hub removes from innovators the burden of the routine aspects of creating successful startups. Instead, the Innovation Hub focuses on the assembly-line aspects of innovation. Like those assembly lines, the focus is repeatability, quality and scale. It is industrial in that the process scales. It is industrializing innovation.
This is a large and complex topic with a large and complex solution. To make this more comprehensible, we break this in to three parts. In the first part we examine the origin and causes of the innovation logjam. In the second part, we discuss how to break through that logjam and build the innovation factory. In the third and final part, we discuss the global spread of innovation ecosystems, including spreading into areas of advanced economies that may not be fully engaged.
Part I – The Innovation Logjam
In the first section of this book, we cover the state of the existing innovation ecosystems. To show the issues, we the discuss different aspects of the prevailing “Innovation Logjam” across our society. We substantiate this assertion and its causes by extensive data and well researched references given at the end of each chapter.
This is a complex problem. To make it comprehensible, it must be broken down. In the first part of Industrializing Innovation, we break this problem into 5 parts:
• In Chap. 1, we introduce the concepts and causes of the innovation logjam. While it may seem to the casual observer that there is too much innovation, much of the innovation that happens remains hidden and undeveloped. There is a gold mine of solved problems that sits un-tapped and unused.
• Many people believe that universities are the answer. In Chap. 2, we discuss the issues University R&D. Many Research and Development (R&D) universities, especially large public and private institutions in USA, are awarded several tens of billions of dollars from various federal agencies like Department of Energy (DOE), Department of Defense (DOD), National Science Foundation (NSF), National Institute of Standards and Technology (NIST), National Institute of Health (NIH), Advanced Research Projects Agency – Energy (ARPA-E), et al., and while our outstanding research faculty and students generate thousands of new patents and intellectual property every year. Only a handful of new startups see the light of the day to successfully develop innovative new products from these inventions.
• Large corporations have mixed records for innovation. In Chap. 3 we discuss innovations in large corporations. Over the last 30 years, both popular culture and financial models in most corporations have changed in ways that do not favor innovation. This has left many corporations struggling. They need to figure out alternate ways to get investment into strategic and long-term transformational processes essential for continuous innovation.
• In Chaps. 4 and 5, we candidly cover the U.S. entrepreneurial and innovation engines. While these have worked well when compared rest of the world in general, there are significant flaws. Capital is inefficiently deployed into ventures to manage risk. Differences exist between the ways Venture Capital firms want their investments to perform and the actions create a sustainable business.
While there are some aspects of Innovation Hubs in existence, they are insufficient to reliably reduce the risk in new ventures. For innovation to drive economic prosperity it must be made more reliable and repeatable. How we address all of this is the next section
Part II – Industrializing Innovation
In Part II, we discuss and draw a roadmap of actions as we translate innovations into commercial enterprises on a mass scale. We give insight in how to unlock full the potential of all entrepreneurs. As part of this, we share our insights from having done startups ourselves – hands-on – as well as from our extensive research of a large number of ecosystems closely watched over the past 6 years. While our focus is U.S., we have also looked at the innovation potential in many other countries. This is the heart of the book: things we can and ought to do to unlock much of the untapped human entrepreneurial potential. Are we ready, and how can we change this game now?
For innovation to be unleashed, for the innovation logjam to be broken the process must shift from a craft-work process that is not methodical into one that is methodical, industrial, and process based. Part II answers the simple question: How do we industrialize innovation?
Part II kicks off with our fundamental understanding of the innovation process. We begin by giving an overview of all the elements that are needed to change the innovation landscape. We start with how to evaluate where a startup is in its lifecycle. We then discuss how the founders and innovators must change themselves before beginning their journey. We move on to the concept of an innovation hub and how to create and classify it. Venture Capital and improving its efficiency is covered next. We then cover innovation in two of the most difficult environments: corporations and universities, and finally wind up with a perspective on changes to innovation itself.
• In Chap. 6, we start by laying out the map of the elements needed to establish and industrialize an innovation ecosystem. We define and establish a mechanism to classify startups from their beginnings to their establishment as a going concern. We cover the attributes of startups in each of these stages and create a profile of the gaps that a startup may have created during its startup process.
• In Chap. 7, we talk about the attributes of the new innovator and founder. Many people have visions of themselves as the sole proprietor of their new venture. For rare individuals and in a simpler world, this will work. For most, people, they must adapt to a different model.
• A key part of industrializing innovation is establishing the equivalent of an innovation factory. This is the “innovation hub”, and the topic of Chap. 8. We go extensively into how to establish the innovation hub and how it supports startups at all stages of the startup continuum. We include methodologies for measuring in and understanding the hub and the innovation ecosystem
• In Chap. 9, we discuss a new operating model for Venture Capital. In the new model, Venture Capital firms can rely more heavily on the Innovation Hub to reduce the risk and improve the success of new ventures. We also cover how to more effectively invest into this new operating model.
• Chaps. 10 and 11 discuss innovation in the corporate and university worlds respectively. In both cases, we offer extensive guides for changing the innovation framework from current methods into models that are adaptable and sustainable.
• Finally, in Chap. 12, we offer perspectives on the changes that are coming to the innovation ecosystem itself.
Part III – Innovation Is Universal – Scaling Innovation Globally
Our examples are drawn mostly from the U.S. innovation ecosystem. However, our experience has been global. The process of fostering innovation has many links to cultural elements, but innovation indeed is universal. There are many lessons that can be adapted globally. Recently released economic data tells us that more than 50% of the world’s population is now “middle class” and technical education has spread far and wide along with the internet.3 Technology is no longer the exclusive province of select areas of peak economies.
Can industrializing innovation be scaled globally? Several of these aspects have been discussed in Part III. We closely studied a wide variety of ongoing similar initiatives in other countries like: Finland, Sweden, UK, China, Singapore, Korea, Japan, India, Middle east and Africa; and found signs of striking similarities.
Poverty has declined dramatically since the 1990’s, but this should not be confused with the world becoming wealthy. Many people on the planet are still economically poor. Areas such as large parts of Africa and India have not yet benefited from the advances of twentieth century industrialization. Almost 1.8 billion people have limited access to electricity. Further, even in most of the advanced economies, there are many areas that can benefit from creative entrepreneurial endeavors. A gap and a global opportunity exist for people that can suitably adapt processes that have worked in analogous ecosystems.
Can Africa – a continent of the rise – but still very greenfield in many ways – leap frog to transform itself to a twenty-first century new continent? How can we make ‘smart city’ projects as true future hubs of innovation? How can countries like Rwanda, UAE, Uganda, and others may be the next centers of innovation? And, last but not the least, how can some of the major developing economies of Brazil, Russia, India and China (BRIC) that have already crossed over to prosperity, or are close to becoming advanced global economies continue to grow further?
3 The Bill and Melinda Gates Foundation. (2018) Goalkeepers Report 2018
In Part III we discuss how to spread innovation beyond the expected areas and into the new and emerging areas both of advanced economies and of areas that are developing.
• In Chap. 13 we cover mechanisms to spread innovation outside of legacy innovation ecosystems. We discuss how to identify geographies that are ripe for building innovation ecosystems. There is also a discussion of integrating those ecosystems into established industries and education but to not have innovation ecosystems, even within an advanced economy.
• Can a developing economy advance more quickly in innovation? In Chap. 14, we start a discussion about the challenges and opportunities of working in an economy like the many nations of Africa.
• Smart Cities are viewed by many worldwide as the key element of sparking an innovation economy for an area. In Chap. 15 we talk about the integration of smart cites and innovation hubs as a potentially synergistic relationship. The existence of a smart city does not assure innovation, but it can speed innovation and help develop it.
• China and India are two developing nations that together represent roughly 2.6 Billion people – a third of the world’s population. In Chap. 16 we give a perspective on the spread of innovation into these two economies that are already striving to industrialize. We cover some of the spread of innovation ecosystems into those economies and give options to enhance and enable it further.
Innovation Is Humanity’s Constant Companion
History shows many examples of innovations driving massive economic expansions of game changing proportions every time. However, the process of innovation itself is less understood. In the past it took more than the span human life for these waves of change to occur. Innovation has accelerated and now it is happening within our own life times. Not once, but perhaps a number of times. Hence, it has made it easier to see the underlying drivers of innovation process. It is not a perfect science yet. However, we are far better positioned to innovate faster and for all.
This lack of understanding the drivers of bringing innovation forward is all the more interesting given humanity’s desire and ability to innovate. It is fundamentally ingrained in our evolutionary instincts to survive, sustain and improve our life. The history of the United States of America consistently includes an increasing rate of innovations resulting into useful products faster than ever. Each of these waves of innovation shows a similar trajectory. An innovation is discovered and evolves slowly at first, gaining speed as more minds are brought in to work on the innovation. This initial gradual evolutionary phase accelerates, and the evolution becomes faster and faster. It becomes an organized initiative. The practitioners evolve methods to compare work and communicate improvements. Data drives understanding of the innovation and fuels the improvement. Eventually, the innovation
reaches a level where it proliferates into mass production and adoption. The innovation becomes part of how a society becomes more productive and improves the lives of its people. When the innovation is fundamental, like manufacturing or medicine, it revolutionizes an era.
When we apply this concept of the trajectory of innovation to innovation itself, we get some interesting results. We can see the ideas as still being in its early stages. When we take good look at our own past data and reasonably project the trends into future, we can see an inevitable process of improvement. In general, we avoid prediction in this work and leave the art of creative guessing to others.
As we progress, we will rely on hard data and analysis. Much of the existing work in this area depends upon anecdotal stories or conjectures with a lot of assumptions.4 The most common work in the area of innovation looks at a successful company and attempts to extrapolate the causes of success. This means that the actual availability of hard data is limited. To assist us with this process of extrapolating data, we will frequently use the process of recognizing patterns that cover both success and failure. We will use not only patterns but also anti-patterns.
Where there are gaps in the information, we will use anecdotes. However, we have sought the support of case studies done by some of the very leading global experts in this area. In many cases we have invited them to contribute essays to the book and have included those in the Appendix 1. We have also studied ventures that fail. And, there are so many of them. Failures studied dispassionately can tell a lot more as to what may work better in future.
Further, the authors have worked in the world of fostering innovation for over 30 years at some level. Because of our background, we have combined organizational psychology with economics and technology over many years. We leverage this knowledge to understand that dark space that been ignored.5
We are not trying to create new innovations. This is not a work that attempts to cause spontaneous innovation in the minds of the readers. We are just observers based on where we already. Where we advocate change, it is based on those observations combined learnings from the data.
Clearing the Innovation Logjam
Clearly, it is time to unlock the innovation logjam and foster the right ecosystems that enable breathing life into as many startups as possible.
Just like the Agricultural Revolution or Industrial Revolution – it is time to industrialize the process of innovation itself. We seek to drive new economic growth
4 Sharma, Suresh. The 3rd American Dream, ISBN – 13: 978-1502436733 (Published by CreateSpace Independent Publishing Platform, an Amazon.com company); 2013, and 2014 (2nd Edition)
5 Thaler, Richard H., Misbehaving, ISBN – 978-0-393-08094-0 (Published by W.W. Norton & Company, Inc.); 2015
and bring products to improve quality of life as well. We see spreading innovation as a way to solve problems and bring economic benefits to areas that have great reserves of untapped people and invention. Industrializing Innovation is a way to make innovation inclusive for people who could not afford to participate.
Chapter 2 University Research and Development
An Unbalanced Equation
Research and Development (R&D) and basic research pipelines are choked with high potential disruptive and transformative innovations, but universities are unable to commercialize them.
Research is by its nature not like buying a thing. There is no simple equation that tells us X amount of money will by Y amount of innovation. Yet on aggregate, the amount of money going into the university R&D system produces a surprisingly large output and a surprisingly disappointing amount of results.1, 2, 3, 4, 5, 6, 7 There is no shortage of universities that perform basic R&D. These universities, especially large public and private institutions in the U.S., are awarded several tens of billions of dollars from various federal agencies like Department of Energy (DOE), Department of Defense (DOD), National Science Foundation (NSF), National
1 AAAS (American Association for the Advancement of Sci.) (2018) Historical Trends in Federal R&D, Budget and Policy Program. https://www.aaas.org/page/historical-trends-federal-rd
2 Brookings Institute US R&D: A Troubled Enterprise – Brookings Institute Report. https://www. brookings.edu/blog/the-avenue/2015/05/28/u-s-rd-a-troubled-enterprise/
3 Price Waterhouse Coopers Corporate (2017) spending hits record high but many executives have concerns, https://www.pwc.com/us/en/press-releases/2017/corporate-rd-spending-hits-recordhighs-for-the-top-1000.html, A PwC Research Report
4 LONG, Heather (2016) A Historic Low in USA Startups. CNN Money report summarizes statistical data and primary reasons, http://money.cnn.com/2016/09/08/news/economy/us-startups-near40-year-low/index.html
5 University of Pittsburgh Innovation Institute (2018) Bayh-Dole Act at a glance., https://www. innovation.pitt.edu/resource/bayh-dole-act-at-a-glance/
6 JENSON, Richard A., Startup firms from research in US Universities, Page 273–287, Chap 17, Handbook of Research on Innovation and Entrepreneurship 2011. Library of Congress Control Number: 2010927657, Edgar Elgar Publishing, Inc
7 PAYTAS, Jerry (2011) How many startups can a university support? https://fourtheconomy.com/ how-many-startups-can-university-research-support/ ‘Fourth Economy
S. K. Sharma, K. E. Meyer, Industrializing Innovation-the Next Revolution, https://doi.org/10.1007/978-3-030-12430-4_2
15
Institute of Standards and Technology (NIST), National Institute of Health (NIH), Advanced Research Projects Agency – Energy (ARPA-E), etc., Research faculty and students at these institutions generate thousands of new patents and intellectual property every year. Many have programs to produce new ventures associated with the university. Even with all this, only a handful of new startups will see the light of the day. Most will never successfully develop innovative new products for commercialization.
There are many examples of the way R&D investment can produce valuable research that does not go on to create products. For example1, investment by the US federal government at a federal R&D investment done in non-defense industries over the past 60 years has been about 7 trillion dollars. This largely been granted to universities. On an average this has been a total of about 2% of the federal R&D budget. However, if one was to include defense R&D over the same period of time the percentage of the budget spent rises to about 5.5% of the budget outlay. This is a significant proportion of the entire budget. Likewise, R&D into various life and basic sciences show similar trends – the highest being in health and biomedical research (Figs. 2.1 and 2.2).
While this may seem like a huge amount of money, the overall R&D funding as a percentage of the U.S. federal budget has been consistently declining over past 30 years, especially after the end of the Cold War, generally agreed as 1991. This clearly puts a higher responsibility on the university system to commercialize innovations more efficiently (Fig. 2.3).
Fig. 2.1 Trends in federal R&D funding (non-defense) over past 60 years
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F . 454. ♀-flower in longitudinal section.
F . 455. A seed entire; B in longitudinal section.
Ricinus (Castor-oil) (Figs. 453–455); monœcious; the ♂-flowers, situated in the lower portion of the inflorescence, have 5 perianthleaves and a large number of branched stamens; the ♀-flower has 3–5 perianth-leaves; 3 bifid styles. Leaves peltate, palmately lobed. The seeds (Fig. 455) contain an abundance of fatty oil and large aleurone grains.—Mercurialis (Mercury): the perianth is most frequently 3-merous; in the ♂-flowers 9–12 stamens; in the ♀-flowers most frequently a 2-locular gynœceum.—Phyllanthus: Pr3 + 3, A3, united in some and forming a column in the centre of the flower (Figs. 457, 458); Xylophylla is a section of this genus.— Hura crepitans (Sand-box tree) has a many-carpellate gynœceum, which separates with great violence when ripe.—A drupe is found in Hippomane mancinella (the Mancinil-tree, W. Ind.)—Alchornea (Coelebogyne) ilicifolia is well known on account of its “parthenogenesis”; only the ♀ -plant has been introduced into
Europe, but it nevertheless produces seeds capable of germination; these have generally several embryos.
F . 456–458. Phyllanthus (Xylophylla) angustifolius.
F . 456. Leaf-like branch with flowers (nat. size).
F 457 ♂-flower; and F . 458, ♀-flower (mag.).
Euphorbia (Spurge) has the most reduced flowers, which are borne in a very complicated inflorescence. Each ♂-flower (Fig. 460 B) is naked, and consists of one stamen only (terminal on the axis).
In the closely allied genus Anthostema, a small perianth is situated at the place where, in Euphorbia, there is a joint in the “filament,” (Fig. 461 A). The ♀-flowers (Fig. 460) are naked, with a 3-locular
ovary and 3 bifid styles. (Anthostema has a distinct perianth (Fig. 461 B); in a few Euphorbias traces of a perianth are present). In Euphorbia the ♂ -and ♀ -flowers are grouped into flower-like inflorescences termed “cyathia.” Each cyathium consists of a centrally placed ♀-flower which is first developed, surrounded by 5 groups of ♂-flowers (stamens) placed in a zig-zag, with a centrifugal order of development (Figs. 459, 460 B), that is, in unipared scorpioid cymes; these flowers are surrounded by an involucre of 5 leaves united into a bell-shaped structure (Fig. 459, 1–5) (resembling a calyx); on its edge are placed 4, generally crescent-like, yellow glands, one in each of the intervals, except one, between the lobes of the involucre (shaded in Fig. 459; see also Fig. 460 A). Scale-like thin structures (floral-leaves?) are situated between the ♂-flowers. The ♀-flower has a long stalk, and finally bends down on one side, namely to the place on the edge of the involucre where the gland is not developed. These cyathia are again arranged in an inflorescence which commences as a 3–5-rayed umbellate cyme (pleiochasium), the branches of which ramify dichasially and finally as scorpioid cymes.—Latex, with peculiar-shaped starch-grains, is found in laticiferous cells (especially in the Cactus-like, leafless species.)
F 459 Diagram of an inflorescence (cyathium) of Euphorbia with 3 floral-leaves, m, n, o, supporting other cyathia which are subtended by 2 floral-leaves (bracteoles; m, n) 1–5, the involucral leaves in their order of development; the shaded portions are the crescentic glands.
F . 460. Euphorbia lathyris: A an (entire) inflorescence (cyathium); B the same after the removal of the involucre.
F . 461. Anthostema: ♂- (A) and ♀-(B) flowers; p the perianth; ar the node; o the ovule.
205 genera; more than 3,000 species; especially in the Tropics.—Many are used on account of the oil, and of the pungent (aperient, poisonous, anthelmintic, etc.) properties in the latex or the seeds. O : “Cascarilla-bark” of Croton eluteria; the fatty oil of the seeds of Croton tiglium (Trop. Asia); “Castor oil” from Ricinus communis (Africa, and cultivated in all warm climates throughout the world); the glandular hairs of Mallotus philippinensis (“Kamala”); this also yields a red dye. Gum “Euphorbium” is the hardened (resinous) latex of the Cactus-like Euphorbia resinifera (Morocco). N plants: Manihot utilissima and other species (Maniok, Am.). Their large, farinaceous roots form a very important article of food in the Tropics (Cassava-flour, Tapioca or Brazilian arrowroot). The fresh latex of the root in some species is a powerful poison; but the poisonous properties are diminished by roasting or cooking Caoutchouc is obtained from Siphonia elastica (Trop S Am ) The vegetable tallow of the Chinese tallow-tree (Stillingia sebifera) is used in large quantities in soap factories An indigo-like dye is obtained from Crozophora tinctoria, and is also found in Mercurialis perennis Shellac is obtained from Aleurites laccifera O plants: Acalypha, Croton, Dalechampia. —Hippomane is poisonous.
Order 2. Buxaceæ. This order differs from the Euphorbiaceæ in having the micropyle turned inwards; the ♂-flower has a 4-partite perianth and 4 stamens; the
♀-flower a 6-partite perianth and 3 carpels. Capsule with loculicidal dehiscence, the inner layer being detached elastically from the outer. 30 species. Shrubs without latex and with evergreen leaves Buxus sempervirens (Box) is an ornamental shrub (poisonous); it has a very hard and valuable wood which is used for wood-engraving and carving
F . 462–464. Callitriche stagnalis.
F . 462. ♂-flower with the 2 bracteoles and the solitary stamen.
F . 464. Longitudinal section of the ripe fruit.
Order 3 Callitrichaceæ. Aquatic plants, growing at the bottom of shallow water, with opposite, simple, undivided, entire, exstipulate leaves, which are generally crowded and form a rosette in the apex of the branches. The flowers are unisexual (monœcious) and borne singly in the leaf-axils; they have no perianth,
F 463 ♀-flower
but are provided with two delicate bracteoles; the ♂ -flowers consist of only 1 terminal stamen (Fig. 462); the ♀-flowers of a bicarpellate gynœceum (Fig. 463) which is originally 2-locular, but later on becomes 4-locular, as in the case of the gynœceum of the Labiatæ, by the formation of a false partition-wall; in each loculus there is 1 pendulous ovule with the micropyle turned outwards Fruit a 4partite schizocarp (Fig 464) 25 species Callitriche
Order 4 (?). Empetraceæ. 4 species. Empetrum; E. nigrum (Crowberry) is a heather-like, moorland, evergreen undershrub with linear leaves, having a deep groove closed with hairs, on the under side. The erect ovules show the greatest deviation from the Euphorbiaceæ Diœcious (and ☿); S3, P3; in the ♂ -flower, 3 stamens; in the ♀-flower, a 6–9-locular ovary Fruit a drupe
Family 15. Terebinthinæ.
The diagram of the flower (Figs. 465–467) is the same as in the Gruinales, namely S, P, A2 and G in whorls of 5 (less frequently 3, 4, 6, 8), and the same modifications also occur with the suppression of the petal-stamens, etc. But a ring or sometimes cup-like glandular structure (disc) is found between the andrœcium and the gynœceum (Figs. 465, 466). The flowers similarly are regular, hypogynous, ☿ and polypetalous, though exceptions are found to all these characters: thus, for example, united sepals and petals frequently occur, and, in some orders, unisexual flowers by the suppression of one sex. In most cases the flowers are small, greenish-yellow, and arranged in paniculate inflorescences. The carpels (most frequently 5) are free in a few, but generally united into a multilocular gynœceum; rarely more than 1 or 2 ovules in each loculus. The gynœceum in the Anacardiaceæ is so reduced that it has only 1 fertile loculus with 1 ovule.—The ovules are epitropous, i.e. anatropous with outward-turned raphe (except the Anacardiaceæ).— The majority of the species are trees and shrubs with scattered, often compound (pinnate) leaves without stipules, and as in addition they frequently contain aromatic, especially turpentine-like substances, they assume a certain resemblance to the Walnut trees, and were formerly classed with them mainly on this account. In a series of genera the volatile, scented oils are found in special glands in the bark of the branches and in the leaves, in the latter case
appearing as pellucid dots This family includes several orders which are somewhat difficult to distinguish from each other.
Order 1. Connaraceæ. This order forms the connecting link between Terebinthinæ and Rosifloræ (Spiræa) as well as Leguminosæ, with which they are sometimes classed. The flowers have 5 5-merous whorls; 2 ovules in each loculus; micropyle turned upwards Fruit a follicle, rarely a collection of follicles Seed with aril Shrubs with scattered (most frequently pinnate) leaves, without stipules 170 species Tropical
Order 2. Meliaceæ. Trees and shrubs with scattered, often pinnate leaves without pellucid dots and exstipulate; the leaflets are nearly always entire. Flowers small in paniculate inflorescences. Calyx and corolla 4–5-merous; 2 whorls of stamens; 3–5 carpels in the gynœceum. A very characteristic feature is the union of the filaments into a tube, on the edge of which stipule-like teeth are often found. There are most frequently 2 ovules in the loculi; fruit a capsule with many winged seeds in Swietenia (Mahogany tree; Trop Am ), Cedrela, etc ; berries in others The wood of Cedrela is used for making cigar boxes 550 species; tropical
Order 3. Rutaceæ. Leaves glandular with pellucid dots. The type is the same as that of the family Flowers 4–5-merous. The ovary is most frequently 4–5-grooved. Disc well pronounced, often appearing as a “gynophore.” The majority are shrubs with alternate or opposite, compound, more rarely simple, leaves.
A. The ovary is deeply 2–5-cleft with basal styles which are more or less united; the carpels in some genera are entirely free (groups 1, 2). The fruit is capsular and most frequently dehisces like follicles along the ventral suture or septicidally, so that a horn-like internal layer (endocarp) separates elastically from the external layer.
1. Z . Zanthoxylum; Choisya; Evodia.
2. B . Australia.—Correa.
3. D . Heather-like shrubs; Africa. Diosma, Coleonema, Empleurum and Barosma. O : Barosma crenulata and betulina, “broad Buchu leaves” (B serratifolia and Empleurum serrulatum, “narrow Buchu-leaves”)
F . 465. Ruta. Flower (mag.).
F 466 Ruta Longitudinal section of flower
F 467 Ruta Floral diagram
4. R . Ruta (Figs. 465–467) graveolens is an herbaceous, glaucous, strongly smelling plant with bipinnate leaves and yellow flowers; the terminal flower is 5-merous, the others 4-merous (S. Eur.).—Dictamnus; zygomorphic flower. The individual carpels of the fruit separate from each other, and dehisce like follicles, upon which the internal layer is detached elastically and springs out, carrying the seeds with it Several species are ornamental plants
5. C . American. Flowers often zygomorphic with gamopetalous corolla; stamens 5. Ticorea; Galipea (G. officinalis; S. Am.; “Cortex angosturæ”); Cusparia; Almeidea.
B. The ovary is entire or only slightly grooved; the style is terminal, undivided. The fruit is most frequently a drupe or berry.
6. T . Ptelea; winged fruit. The buds are enclosed in the leaf-sheath. Skimmia; Phellodendron.
F . 468–470. Citrus vulgaris.
F . 468. Branch with compound leaves.
F 469 Transverse section of fruit
F . 470. Flowers (after the removal of the petals)
7. A , O G . Fruit a berry with a leathery external layer.—The most typical flower is found for example in Limonia: S5, P5, A5 + 5, G5 (2–5).—Citrus has 4–5–8-merous flowers, a gamosepalous, dentate calyx, free petals, one whorl of
stamens which are split irregularly into several bundles (Fig. 470). The fruit is a multilocular berry provided with a thick, tough, outer layer. The juicy pulp, which fills up the loculi and envelopes the seeds, is formed from many large-celled, juicy hair-structures which arise on the inner side of the walls of the loculi and by degrees entirely fill them up; the dissepiments remain thin, and form the partitions so easily separating from each other (Fig. 469). The seeds in many instances are remarkable for containing several embryos. The blade of the leaf is separated from the frequently winged stalk by a node (and hence is a compound leaf with only the terminal leaflet developed?) (Fig. 468); in other genera, as Triphasia, there is a fully developed trifoliate leaf. Thorns are frequently developed.— The species of this genus, which is a native of the warmer parts of S. E. Asia, are very hard to separate. The differences are found in the forms of the fruit, the leaves and the leaf-stalks, and in the number of stamens Citrus medica, “Cedrat” (Ind ); C limonum, “Citron,” “Lemon” (introduced into Italy in the 3rd to 4th century). O : the fruits and essential oil of Lemon. C. aurantium from E. Asia, the Orange (introduced into Italy in the 14th century). C. vulgaris (Fig. 468), Bitter Orange (introduced into Europe at the time of the Crusades); the unripe Bitter Oranges, and peel of the Bitter Orange is officinal; it is from the flowers of this species especially that the essence of Neroli is made. C. limetta, C. bergamia, Bergamot; essence of Bergamot is officinal. C. decumana, Pomalo, a native of the Islands of the Pacific. About 780 species; chiefly tropical.
Order 4. Burseraceæ. Fruit a drupe; 1–5 stones. The bark, as well as the other parts, contain strong aromatic resins and balsams, and hence several species are used: the Myrrh tree, Commiphora (Balsamodendron) from Arabia and Africa; O : Myrrha (Commiphora myrrha). Mecca-balsam from C. opobalsamum, Arabia; E. Africa. The Incense-tree (Boswellia) from the same parts of the globe and E. India. The incense of B. carteri is medicinal (Frankincense). The resin (Elemi) of Protium-species is officinal, and is used technically for varnish (S. Am.). Takamahaka-resin from Elaphrium (S. Am.) Protium (Icica); Amyris (1 carpel). 270 species; tropical.
Order 5. Zygophyllaceæ. The majority have opposite, pinnate leaves with stipules. Leaves without pellucid dots. The filaments have a scale on the inner side. The most important is Guaiacum officinale (West India), the wood (Lignum Vitæ) of which is very hard and heavy, this wood and Gum-guaiacum are officinal. Others have a peculiar repulsive smell and taste: the Creosote shrub (Larrea mexicana) and Zygophyllum simplex. Tribulus terrester is a common weed in S.
Europe. Fagonia. Peganum harmala (South of Russia) yields a red dye. 110 species; especially in the Tropics; several species in sandy deserts. Nitraria.
Order 6. Simarubaceæ. This order is distinguished by the abundance of bitter substances which it contains (Quassine) especially in the bark and the wood. The wood of Quassia amara (Guiana, Antilles) is officinal; Picraena excelsa yields Jamaica Quassia; the bark of Simaruba, Simaba-species and others is used. Ailanthus glandulosa is a garden plant (pinnate leaves, winged fruit). 110 species. Tropical.
Order 7 Ochnaceæ. Flowers diplostemonous, 5-merous The unilocular ovaries, which are individually free, project considerably into the air around the gynobasic style; 1 ovule in each loculus; the fruitlets are drupes Shrubs; leaves alternate, with stipules. Ochna; Ouratea.—160 species; tropical; especially American.
Order 8. Anacardiaceæ. The ovary rarely contains more than 1 ovule, even though there be several loculi and several carpels; in Anacardium all the 10 stamens except one become suppressed Resin passages Anacardium The most peculiar feature is the development of the flower-stalk into a fleshy body about the form and size of a pear (A occidentale from Trop Am and A orientale from E Ind ) which bears the kidney-shaped nut (the so-called “Cashew-nut”) on its apex Mangifera indica (the Mango-tree, from E Ind ) is cultivated in several tropical countries on account of its delicious drupe. Similarly, species of Spondias (S. dulcis, Pacific Islands, S. lutea). Several species of Rhus are ornamental shrubs in this country, for instance, R. typhina (N. Am.), R. cotinus (the Wig-tree, the barren flower-stalks of the panicles being feather-like and hairy); R. toxicodendron (Poisonous Sumach, from N. Am.) is poisonous. Chinese galls are produced by the sting of a leaf-louse (Aphis chinensis) on R. semialata (China), and Japanese wax is from the seeds of R. succedanea (Japan). Considerable quantities of Sumach (R. coriaria) are used in tanning and as a black dye. O : the mastic resin of Pistacia lentiscus (the Mastic-tree, from the Mediterranean). The fruits of Pistacia vera (Syria) are edible; P. terebinthus and others yield turpentine 450 species; tropical
Order 9. Icacinaceæ. Flowers 4–5-merous; haplostemonous; receptacle convex or cup-like surrounding the gynœceum; in the (single) loculus of the ovary, 2 anatropous, pendulous ovules. 200 species; tropical.
Family 16. Aesculinæ.
The essential characters of this family are in the main the same as those of the Terebinthinæ and Gruinales. The flowers are hypogynous, perfect, with free petals, 5-merous (S5, P5, typically A5
+ 5, all of which, however, are not generally developed; in our native orders there are only 7–8 stamens), and most frequently a 3-merous, 3-locular gynœceum (less frequently 2 or 5 carpels with as many loculi). In each loculus there are usually only 1–2 ovules. A deviation from the preceding families is the frequent zygomorphy of the flower, with, as a rule an oblique plane of symmetry (Fig. 471). When a disc is developed it is placed outside the stamens. The majority have no endosperm (Fig. 473).—The members of the family are nearly all trees.
The family is closely allied to the Terebinthinæ, but unlike this it never has aromatic properties, and differs also in the position of the nectary, in the flowers, which are often irregular with a reduction in the number of stamens, and in the ovule which is usually ascending with micropyle pointing downwards (the Terebinthinæ having the micropyle turned upwards), etc. It is also related to Frangulinæ, the Staphyleaceæ being the chief connecting link; but the Æsculinæ generally have compound leaves.
Order 1 Staphyleaceæ. Leaves opposite, often compound Flowers regular, ☿, 5-merous in calyx and corolla, 5-stamened. The stamens are placed outside the nectary. Ovary syncarpous or 2–3-partite with free styles. The capsule is thin, bladder-like, 2–3-locular, opening at the apex, and has several very hard seeds with a shining testa without aril. Endosperm. Staphylea pinnata (S. Europe) and trifoliata (N. Am.) are cultivated in gardens; they have white flowers in pendulous, axillary racemes or panicles. 16 species. Staphylea is found in the Tertiary of N. America.
Order 2 Melianthaceæ. Glaucous shrubs with scattered, pinnate leaves, and large stipules. Melianthus.—8 species; S. Africa.
Order 3. Sapindaceæ. Trees or shrubs, often climbing by tendrils (lianes with anomalous structure of the stem) and with compound leaves. The flowers, in most cases, are small, insignificant, and without scent, and in some polygamous and zygomorphic. S4–5, P4–5, A8 (less frequently 5–10) inside the nectary (disc); ovary generally 3-locular, with 1–2 ovules in each loculus (raphe ventral, micropyle turned downwards). Seed without endosperm, often with an aril. The embryo is often thick and curved (Fig. 473).
F . 471–473. Æsculus hippocastanum.
F 471 Diagram of the flower and of a scorpioid cyme
F . 472. Flower in longitudinal section
F 473 Seed in longitudinal section
Æsculus (Horse-Chestnut). Trees with opposite, digitate, dentate leaves without stipules; the inflorescence is composed of unipared scorpioid cymes arranged in a pyramidal panicle (termed a thyrsus). The flowers are irregular, with an oblique plane of symmetry (through the 4th sepal, Fig. 471); there are 5 sepals, 5 free petals, of which the one lying between S3 and S5 is the smallest (see Fig. 471) and may be absent; stamens 7 (5 + 2), three being suppressed; gynœceum simple, 3-carpellary and 3-locular, with single style; of the two ovules one is ascending, the other descending (Fig. 472).— The fruit is a 3-valvate, sometimes spiny, capsule, with loculicidal dehiscence, the seed having a large hilum, a curved embryo without endosperm and united cotyledons (the radicle lies in a fold of the testa, Fig. 473). Æ. hippocastanum (Greece, Asia), introduced into cultivation about 300 years ago; the majority of the other species, e.g. Æ. pavia, etc., several of which are frequently cultivated in gardens, are from N. America. The flower of the Horse-Chestnut is adapted for bees, whose abdomen touches the anthers or style when visiting the flower. The flowers are protogynous.
The other Sapindaceæ have most frequently 4 sepals, 8 stamens, various fruits (septicidal capsule, nuts with or without wings, schizocarp), etc. Serjania, Cardiospermum, Sapindus, Koelreuteria, etc. (about 118 genera, 970 species).
