Commercialization Context, Strategies

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Commercialization Context, Strategies
Practices
Susan Hayward Director, Strategic
Partnerships NRC Commercialization
Branch November 4th, 2004
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What does the Government mean by
Commercialization?

"Canada is developing an environment in which
ideas flowing from scientific discovery are being
generated at an unprecedented rate. Now we must
focus on bringing these ideas to market to
realizing their commercial potential. That is
what will drive our economy forward, increasing
investment and employment. 2004 Federal Budget
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Building on Experience

• Since 1916, part of NRCs mandate has been to
  engage Canadian industry promote new
  technologies, and adapt to changing needs of the
  business community
• International communities have developed a
  variety of strategies to ramp up their
  competitiveness
• Canada leads in R D, but lags in translating
  that investment in to strong global companies
• Success is complex, and requires bringing
  together all players to provide effective support
  to help SMEs grow and develop to compete in
  todays economic environment

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The Context
Market
Technology

• The Technology life cycle focuses on the
  development of science and technological
  applications through research, prototype and
  production. A commercial product does not result
  unless/until there is a market receptor.

• The commercialization life cycle focuses on the
  needs of existing and potential customers.
  Commercialization identifies target market
  segments, value propositions, and functional
  relevance from the customers point of view.

Commercializing technology products creates wealth
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Linear or Iterative?
Survival Continuous Growth and Diversification
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A Focus on Wealth Creation
Impact on productivity growth and wealth creation
Disruptive Technologies New Product
Introduction New Company Creation
Incremental Technologies Product
Diversification Company Acceleration
Incremental Customers Channel Diversification Mark
et Expansion
Impact on productivity growth and wealth creation
Balancing Creation with Diffusion
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Commercialization Framework
Source based on Dr. Randy Goldsmith, Oklahoma
Technology Commercialization Centre with
modifications proposed by Acorn Growth Companies.
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Commercialization Framework
Source based on Dr. Randy Goldsmith, Oklahoma
Technology Commercialization Centre with
modifications proposed by Acorn Growth Companies.
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Canada A Small Business Economy

• Canadian SMEs face some similar but many
  different challenges than US SMEs.
• Proximity to markets
• Technology cluster maturity
• Size of the domestic market
• Access to capital
• Experienced, qualified people

• Canadian entrepreneurs are just as productive as
  US entrepreneurs. But since Canada has
  proportionately more micro-businesses than the
  United States, we have a greater opportunity to
  benefit from productivity increases in our SME
  sector and, therefore, more reasons to remove any
  barriers to them.
• The Path to Prosperity, CFIB 2002

Moving to a knowledge-based economy
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Evolution Roadmap to Economic Impact
Technology Diffusion
Economic impact and wealth creation only happens
when there is Technology Diffusion. Often small
businesses dont recognize what they need to
evolve from one stage to another because the mix
of skills, resources and financing change.
Technology Adoption
Economic Impact
Technology Transfer
Technology Concepts
Technology
Applications
Products
Source based on Dr. Randy Goldsmith, Oklahoma
Technology Commercialization Centre with
modifications proposed by Acorn Growth Companies.
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Canadas Innovation Map
365 Technical Centres Univ. Universities SCs Spe
cialized Centre FREs Federal Research
Establishments PREs Provincial Research
Establishments

5 Univ. 15 SCs 10 FREs 7 PREs

6 Univ. 18 SCs 11 FREs 14 PREs

Nunavut
3 Univ. 8 SCs 3 FREs 4 PREs
Newfoundland Labrador
Northwest Territories
Yukon
Atlantic Provinces
Quebec
Manitoba

British Columbia
Alberta
14 Univ. 18 SCs 10 FREs 7 PREs
Ontario

Saskatchewan

4 Univ. 30 SCs 18 FREs 5 PREs
13 Univ. 24 SCs 39 FREs 14 PREs

4 Univ. 20 SCs 8 FREs 8 PREs

2 Univ. 11 SCs 5 FREs 4 PREs
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NRC An Engine for Commercialization

• Links people, capital, resources and ideas
• Actively engaged in technology
  commercialization
• Strengths of its research institutes
• Partnerships, international research networks,
  linkages

• 700 million budget
• 150 million in revenue
• 100 million in contributions to Canadian
  businesses through IRAP
• 20 institutes coast to coast
• 55 new company spin-offs since 1998
• 65 patents issued 2002-03
• 95 incubating companies
• 4000 employees
• Over 1200 guest workers annually
• Over 304 active license agreements

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NRC reaches across a wide spectrum
NRCs evolving Technology expertise is reaching
toward the market from traditional research.
Science
Integrated Disciplines
Applications
Products / Services
Technologies

• Astronomy
• Biology
• Chemistry
• Mathematics
• Physics

Engineering Computer science Medicine Architecture
Nanotechnology Genomics Photonics Biomedical Envir
onmental Aquaculture Agriculture Oceanography
Manufacturing Construction Soil
remediation Bio-diagnostics Water
remediation Fuel cells Software
Wind tunnel Maritime testing facility Technology
licensing CPRC CSTT
NRC has developed strong client links
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Collaborative Agreements

• 2002-2003 462 formal international agreements
  with 388 partners
• 2002-2003 326 new collaborative agreements with
  Canadian partners
• Currently, NRC has 1,021 active collaborations
  with a total lifetime value of almost 286
  million an 8.7 increase over 2001-2002

National
International
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Patents and Licenses
Patents

• Active portfolio of 642 patents
• 193 patent applications/66 issued patents in
  02/03
• Sign 40 new licenses every year
• Canadian companies/SMEs and NRC new ventures are
  the majority of new licensees
• A record level of 7.3 million in license
  royalties received in 2002/03
• 342 inventor and innovator award payments to over
  200 persons totaling 2.3 million in 02/03

Licensing Licensing Revenue
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Impact from New Ventures Program

• External
• 532 jobs
• Over 313 million in new investment
• Major socio-economic and scientific impacts
• Strong positive attribution to NRC
• Internal
• Additional commercialization vehicle
• IP revenue for re-investment and awards
• Fosters use of business case thinking to RD
  projects
• Promotes understanding of the entire innovation
  process

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Centres for research commercialization
One possible approach - a unique collaboration
with Federal Partners and other public and
private sector organizations and part of the
anchor to a technology clusters linked to a
research centre and RD partnerships

• Example - Centre for the Commercialization of
  Biomedical Technology at NRC-IBD in Winnipeg
  (under construction)
• Services to be offered by NRC or Partners
• Technology and business analysis
• Market strategy assessment
• National and international mission
• and partnering support
• Technology law and intellectual
• property protection services
• Skills assessment and development
• Investment networking and advice
• Mentoring services

• Image of the Centre for the Commercialization of
  Biomedical Technology (left) and NRC-IBD
  (right).

• Programs to be offered
  through the Centre
• New Entrepreneurs Program
•   Technology Acceleration
• The Tenant Program
• Access to NRC-IRAP

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Together we win!

• Investment in knowledge creation is the
  essential fuel
• Focus on growth of SME base with emphasis on
  accelerating growth of small to medium size
• Create quality employment
• Major economic benefits
• Other social benefits
• Brings us together in common cause
• What it requires
• partnering
• integration
• respect for expertise
• culture / drive to succeed!

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Thank you