Innovation that Fits: Moving Beyond the Fads to Choose the RIGHT Innovation Strategy for Your Business

Michael D. Lord, Ph.D.

J. Donald deBethizy, Ph.D.

Jeffrey D. Wager, M.D.

Library of Congress Number: 2004113118

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Dedication

To my family, especially my hard-working and loving parents.

—MDL

To my wife, Cindy, and my children, Heather and Zac.

—JDdeB

To Mai, whose unwavering love, faith, and courage have always been a source of deep inspiration to me.

—JDW

Acknowledgments

Special acknowledgment to my family, colleagues, and friends, who have had to alternately endure my manic expressions and discussions of ideas and then my moody periods of seclusion and writing.

—MDL

I would like to acknowledge the roles of three key people in my career: Dr. Joseph Street, who provided rigorous training in science to form a solid foundation; Dr. Gary Burger, who taught me that management is an important profession; and Dr. Carl Ehman, who showed me the value of transforming science into business. Finally, I would like to acknowledge my co-authors, who have provided valuable insights and influenced my thinking on many levels.

—JDdeB

Special acknowledgments to the entire team at CPP Advisors, whose hard work and commitment to a shared vision have made this book possible, and to my co-authors, who have repeatedly proven the power of teamwork.

—JDW

About the Authors

Michael D. Lord is Director of the Flow Institute and Associate Professor of Strategy and International Business at Wake Forest University, where he teaches strategy and entrepreneurship in the full-time and executive MBA programs at the Babcock Graduate School of Management. Dr. Lord’s research and consulting work focuses on new venture creation, high-tech acquisitions and spinouts, and global venturing. His work on innovation has been featured in a variety of academic and practitioner outlets, including the Harvard Business Review, and he serves as an advisor on innovation strategy to a diverse group of companies, both large and small. Dr. Lord holds a BA with Honors from Harvard University, an MBA from Baylor University, and a Ph.D. in strategic management from the University of North Carolina at Chapel Hill.

J. Donald deBethizy is founder, president, and chief executive officer of Targacept, Inc. Using new computational drug discovery technologies and focusing on novel biological targets, Targacept is developing therapies for numerous central nervous system disorders such as ADHD, Alzheimer’s, anxiety, depression, and pain. Targacept was spun out of R.J. Reynolds Tobacco in 2000, raising record levels of first- and second-round venture financing along the way. Before becoming an entrepreneur, Dr. deBethizy served in the corporate world as vice president of product evaluation and R&D for RJR. For his leadership in founding Targacept, Ernst & Young recognized Dr. deBethizy as an “Emerging Entrepreneur of the Year” in 2002. He holds a Ph.D. and an MS in toxicology from Utah State University and a BS in biology from the University of Maryland.

Jeffrey D. Wager is founder and managing member of CPP Advisors, an innovation-focused advisory and consulting firm. CPP structures and facilitates strategic transactions to support clients’ innovation commercialization needs, including venture investments, licensing deals, partnerships, M&A, and spinouts. Dr. Wager’s advisory and consulting practice focuses on the life sciences and spans the U.S., Europe, and Japan. Previously, he led due diligence and investment management activities for leading venture firms in the U.S. and Japan. Dr. Wager continues to serve as an advisor or board member for many of the organizations he has advised or helped found. He holds an M.D. from Rush University, an MBA from the University of Chicago, and a BS in biology from the University of Illinois.