White Space Innovation
The Wide Open Spaces of Innovation
White spaces are exactly as they sound. These are indeed those new-to-the-world offerings that have the potential to truly disrupt the category, and potentially, an industry. While these may be the prototypical "innovations," there is one slight problem: incredibly smart people and organizations go decades without creating a single truly white space innovation, if ever. Consider that while there were 615,243 patents issued in the US in 2014, the vast majority of those patents do not come to commercial fruition, let alone become truly viable white space innovations.
White Space Innovation
Defining Characteristics:
These innovations are defined by the fact that they are often radical departures from the established, and may indeed signal a revolutionary change, even if in a small niche. While this revolutionary development may be in a category already established (e.g., biodiesel, computing), the means of creation may be a significant departure from any successful venture before it (e.g., biodiesel from algae in under an hour, quantum processors).
These innovations also have a tendency to have three things in common: long development times, elevated costs, and specialized knowledge. I purposely use the word "tendency" here because there will always be those white space innovations driven by a chance occurrence, or a single genius in a garage somewhere. There will always be those people and organizations that can capture lightning in a jar.
Pros:
- If successful, these innovations define the space in which others will operate
- Early acceptance by market can drive growth and further separation from peers
- Early success may draw in further talent and ideas
- Intellectual Property protections and proprietary technology
- Appealing to venture capital and investors
- Differentiation is unavoidable
Cons:
- Unless a wide technological or developmental moat, competitors will likely follow
- Patent protection only covers so much
- Potential for significant development cost
- Potential for significant development cycle time
- Unreliable pipeline of innovation
- Unsuccessful market entry can prove financially damaging
Best Utilized By:
Any organization that can craft a true white space innovation should utilize it to the fullest, but some organizations are better positioned to create them in the first place. Organizations with a significant in-house braintrust, ample resources, and the financial wherewithal to invest in long-term, potentially fruitless research tend to have the edge in creating these types of sustainability-driven innovations. In many cases, we are talking about large corporations, universities, labs, and the like as being the hotbeds of whitespace innovation, although many small "spin offs" are incubated by these larger enterprises every year.
Examples of White Space Innovation
Pacific Northwest National Laboratory's Work Into Algal and Biomass-Derived Fuels
The PNNL is doing some astounding stuff around biofuels. In one case, seemingly overnight, they produced research about WWII stories of canvas tents being digested in order to find an aggressive fungus to digest rough biomass for efficient use in biofuel creation.
Point Source Power
In a 2013 study, the U.N. found that 6 billion people worldwide have access to mobile phones, a full 1.5 billion more than have access to toilets. Craig Jacobson, Co-Founder of Point Source Power, recognized that many in the world have the need to charge a cell phone, but may be without accessible means to do so. To fill this need, he went about creating a thermal fuel cell with a probe that can be placed into a cooking fire, and which charges either a spare battery or a cell phone directly. It is not only a fascinating development, but one which is built at a bare minimum cost in order to be affordable to those in third world countries.
Please watch the following 3:05 video.
Video: Point Source Power (3:05)
Stonyfield / WikiPearl Edible Packaging
There are a few interesting innovations at play here, but it will remain to be seen if the technology, design, and taste is truly up to the rigors of the supermarket, or if this product will live and die as some sort of novelty. Please review the article titled "Stonyfield tests package-less froyo."