PowerPointPrsentation

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Peter Lindholm Organising and operating
technology commercialisation
World Bank, ME LDA seminar Riga June 9th
2004 p.lindholm_at_inno-group.com
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Summary

• A few key words
• Issues
• Necessary ingredients
• The inno model
• Expected outputs

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1 - A few key words

• Commercialisation has little to do with
  scientific excellence, it is about money
• More than one Beneficiary (researchers,
  institutions, local authorities, State)
• Commercialisation is about skills
• No magic Graal in this business
•  

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Patent Exploitation A patent is an article of
trade, not an academic award

• Systematic selection of ideas and inventions
  aiming to assess exploitability
• Only inventions with believed potential to
  successfully compete on the market are supported
• Out of these the most promising projects are
  singled out and concentrated upon

One reason is
only 20 of all claimed patents are subject to
Intellectual Property Rights (IPR) and are
effectively in use. 25 state of the art gt no
patent 5 unrealisable 10 other
solution 10 not marketable 30 patentable
but not in use

• Exploitability is the decisive factor for
  activities. If an invention is not exploitable
  even on a long-term perspective there is no use
  to research its patentability.

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2 - Issues

• Evaluating the existing potential of  objects 
  to be commercialised?
• Willingness of players to enter into a strong
  commercialisation process
• Availability of resources and competences to
  start the process

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Value creation through the innovation lifecycle
RD Organisations
Course of exploitation
Capital inflow from exploited research (added
funds for further research)
Research Projects
gt Spin-outs gt Start-ups gt Licensing
Intellectual Property
Archives Negative Inflow
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3 - Necessary Ingredients (1)

• A portfolio of many researchers to ensure a
  permanent deal-flow of innovations
• Experience shows that a minimum of 1.000
  researchers is needed to sustain a proper
  commercialisation team

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3 - Necessary Ingredients (2)

• A strong consensus between the different
  stakeholders
• Commercialisation of public research is a complex
  process that often  hearts  researchers
  culture. Gaining support from researchers, heads
  of departments, chancellors is an absolute
  necessity

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3 - Necessary Ingredients (3)

• Agree on measurable targets
• Turnover
• Start-ups
• Growth of existing companies
• Joint-ventures
• Research contracts

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3 - Necessary Ingredients (4)

• Time
• Time to find out what can be commercialised and
  under which form
• Time to convince researcher to participate
  actively in the process
• Time to find customers
• Time to close deals

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3 - Necessary Ingredients (5)

• Attract Competences
• Commercialisation implies a team of efficient,
  fast, flexible and very motivated individuals
  with inter-cultural skills
• Need of enough people to cover all commercial
  aspects
• Capacities to speak to research teams AND
  international companies

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3 - Necessary Ingredients (6)

• Proactivity
• Visit all RD teams
• Create trust
• Maintain continuous links
• Focus on group of RD teams willing and able to
  enter the process
• Attract the other teams with a case by case
  approach

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3 - Necessary Ingredients (7)

• Stop  Fairy Tailing 
• The stock on the shelf is rarely of high value
• Other research teams do similar things
• Companies do not always look for state of the art
  research, they search for technologies
  immediately usable

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4 The inno Model (1)

• Establishing a commercialisation company
• A Private-Public-Partnership organised between
  all stakeholders
• A business plan as for a start-up
• Enough starting capital to start the process
• Recruiting highly skilled, highly motivated staff

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4 The inno Model (2)

• Being liable for results
• Agree on goals with the different stakeholders
  (Rd teams, RD institutions, Regional
  Authorities)
• Being monitored and measured on a continuous
  basis
• Adapt strategy according to needs

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4 The inno Model (3)

• Searching for a critical mass of research
• Creating a venture between local RD
  organisations to ensure a critical mass of
  researchers allowing a continuous deal-flow and
  ensuring the commercialisation team has enough
  opportunities
• Estimation 2000 circa 2500 researchers in Latvia

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4 The inno Model (4)

•  Right of First Refusal 
• Any research with commercial potential is
  presented to the team
• The team is allowed to take or leave
• If not taking, the RD team is free to use it as
  they wish

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Innovation Evaluation

• Innovation value is determined through a
  dual-screening process

Invention
1st rough screening
2nd detailed screening
Patent / Exploitation

• Gut feeling
• Experience
• Early indicators

• Exploitation screening
• Market research / Market studies
• Research / Exploring potential industrial
  partners
• Feasibility studies
• Calculations
• Determination of the price on the market
• Survey and verification of exploitation
  possibilities
• Patentability screening
• Patent research national / international
• Determining the novelty value of the invention

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Example of a Votum
Introduction into the area of the
invention Task and Advantages /
Disadvantages Market Analysis and Exploitation
possibilities IPR (Industrial Property Rights /
Costs) Licensing possibilities Recommendation
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4 The inno Model (5)

• Managing the process
• Proactive visits to teams
• Continuous presence on the field
• Searching for clients across the world
• Asking RD teams to respond to detected needs
• Consider non-patentable results

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4 The inno Model (6)

• Money
• Sufficient starting capital
• Continuous search for additional funds (EU,
  State, VCs, etc.)
• Establishing a pre-seed fund to prepare good
  projects for the market
• Protect properly the IP
• Continuously look for sustainability

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4 The inno Model (7)

• Developing Centres of Excellence
• Based on market needs, favouring the creation of
  new centres of excellence in horizontal research
  fields
• Entering Framework Six Projects (IPs NoEs)

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4 The inno Model (8)

• Being international
• Benchmark research offers towards other European
  teams
• Establish links with customers based on needs and
  not location
• Create networks across Europe

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4 The inno Model (9)

• A few examples
• Mecklenburg-Vorpommern (2500 researchers in 9
  organisations)
• FZK Nuclear Centre Baden-Würtenberg (2.000
  researchers)
• MBDS Sophia Antipolis (1 researcher)
• Lower Austria (Management of ERDF innovation
  Funds)

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5 Expected Outputs (1)

• Generate income for
• Researchers
• Research teams
• Research Institutions
• The investors (public private of the PPP)

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5 Expected Outputs (2)

• Develop entrepreneurial spirit to
• Help researchers becoming more opened to the
  usage of their work
• Favour the creation of a large number of start-ups

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5 Expected Outputs (3)

• Facilitate the development of the National
  Innovation System
• Help Latvian firms able and willing to access
  innovations
• Help clarifying the dilemma between basic
  research versus innovation technology

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5 Expected Outputs (4)

• Create a strong image
• Helps attracting resources
• Supports the growth of the Region
• Makes the Region feel more competitive
• Attracts demands from local business community