Birkeland Innovation AS Technology Transfer Office at the University of Oslo From idea to business K

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Birkeland Innovation ASTechnology Transfer
Office at the University of OsloFrom idea to
businessKatrine Rese Shadidi SFE, 02.09.08
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Agenda

• Lesson 1
• Project development in Birkeland
• - Evaluation process and IPR
• Project development
• License or business establishment
• Lesson 2
• Two projects - from idea to commercialization

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What is research based innovation?

• To create a product or a service that covers a
  market need and makes a profit.
• To create value from research

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DOFI-evaluation
Novelty search
Inventors agreement
Rejection Dead horse
Rejection 4 mnd
No
No
Team meeting
DOFI Registration
Team meeting
Idea generation meeting
DOFI-meeting with resercher
Yes
Yes
DOFI Evaluation
Yes
Receipt for DOFI
Meeting minute with decition
Accept 4 mnd
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Project/Commercialization fase
Rejection
License agreement
Continnuing evaluation of costs and developent
No
Licensing
Project development
Team meeting with reports to Birkeland leaders
Yes
Pressure tank
Birkeland Leaders
Business establishment
Business establishment
Stiftelses-dokumenter
Decition document mith meeting minutes
Busines plan light with finance
Project development agreement
Business plan
Aksjonæravtale
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The evaluation process and IPR
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The initial evaluation
The scientist deliver a written disclosure of
invention (DOFI) Birkeland gives a receipt to
the inventor with copy to the leader of the
institute. A meeting is set up with the
inventor(s) and a project leader in Birkeland to
get a full knowledge of the technology. Internal
review of the commercial possibilities for the
invention (is it possible to patent the
technology, is there a market willing to pay?)
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Project evaluation
An idea brainstorming with the inventor and a
group at Birkeland can be held to brainstorm on
different product and market possibilities for
the technology. A market survey is done to
confirm market possibilities Decision on whether
Birekeland accepts the project is normally
reached within 6-10 weeks. With a close dialogue
a decision can be reached faster if needed!
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Criterias for obtaining a patent

• Novelty (nyhet)
• Inventive step (oppfinnelseshøyde/non-obvious)
• Industrial applicable
• Reproducible and sufficiently disclosed

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Novelty- and FTO analysis

• Novelty search is done mainly by searching in
  patent databases for similar technologies and
  through publication databases. Search engines
  like google can also be useful.
• FTO (freedom to operate) analysis is done to
  assess whether a technology, although new and
  patentable, will be dependent on a license from a
  patented background technology.

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Market analysis

• The market needs to be identified early.
• With several possible markets one or a few is
  chosen as the first market to enter.
• The customers must be identified. This is often
  not the end user.
• The market size and the profitability of the
  market must be assessed. (what is a reasonable
  market share for your product?)
• A strategy to enter the market is crucial.

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How can we assess a developed market

• Business intelligence reports on specific markets
  often give in depth insights on developed
  markets.
• Interest organizations often give good numbers on
  prevalence in disease cases, or how widely
  distributed a technology is.
• Interviews of potential users gives you a hunch
  of how your product will be perceived in the
  market.

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Tools for Market assessment

• Business intelligence reports are available
  trough websites like Frost and Sullivan and
  Business Insight. They come at a prize, but for
  a business like Birkeland it is a necessary
  investment.
• Every project require that the project leader
  dives into the market and analyze the internet on
  interest organizations and the willingness to pay
  in potential markets. All companies that operate
  in the field are identified. Google is frequently
  used.

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Tools for Market assesment cont.

• Companies that do business in the field of
  interest are analyzed for profitability. In the
  case of a license technology the business
  development department in companies of interest
  are contacted.
• The initial contact is often done early on. Even
  before we decide to take the project in or do a
  patent application.

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How can we assess an non-develped marked

• In cases where a technology is opening a new
  market, the market assessment is made much more
  difficult
• You have to make assumptions.
• Can your emerging market be compared to an
  existing market?
• Will it take over an existing market?
• Will it expand an existing market in a measurable
  way?
• Find out what you can about comparable markets.
  

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Project development
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Project development
Identify necessary technology development to
establish proof of concept Develop patent
examples Identify industrial partners and
understand their needs and strategies Develop
the project to meet industrial priorities. Develo
p a business plan
Continnuing evaluation of costs and developent
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Proof of concept

• An invention is very often disclosed to Birkeland
  when it is still just an idea, before it has been
  developed into a technology.
• To patent a technology you need to have some
  proof that it works and has the effect you
  anticipate. You also need to demonstrate the
  function of the technology in each setting you
  want to claim its use.
• A drug that you want to patent for use in
  different diseases must be shown to function an
  all the diseases claimed.
• If you want to patent a new class of chemicals
  you need to show that a big selection of
  chemicals in this particular class has similar
  effects in the matter.

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Proof of concept cont.

• To license a technology you need to convince a
  licensee that this is a technology that can solve
  certain problems that the licensee is interested
  in.
• To develop a company based on a technology you
  need to convince the customer that your
  technology solves a certain problem the customer
  is interested in better than the competitors

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How to identify industrial partners and their
needs - License

• Study the product portfolio of potential
  partners.
• Find their annual review
• Find economical data
• Find information about their strategy, in what
  direction do they want to develop their
  portfolio, what markets are they prioritizing?
• Have they been through mergers or acquisitions
  recently? A lot of data is released in public in
  such incidences.
• Contact the potential partners early, find out if
  they could be interested in a technology that
  solves a certain problem. Try to contact the
  right person in the firm. Black box your
  technology.

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How to identify industrial partners and their
needs Business

• Is your business goal to become an attractive
  acquisition candidate or to become a self
  sustained company?
• Find out what you can about potential partners as
  you do in a licensing case, especially their
  values, financial situation and strategies.
• Develop your business so that it fits a need for
  your potential partner(s).
• How is the market you are entering regulated? In
  many cases there are bottlenecks where you need
  strategic partners.

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Ground philosophy

• Bring the real actors in the innovation process
  together The scientist the entrepeneur and the
  investor

Entrepreneur (Eyde)
Science Technology (Birkeland)
Finance Industry (Wallenberg)
Market opportunity
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License or business establishment
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There are two core types of innovationClayton
Christensen, 2000

• Disruptive innovations
• Redefines value proposition
• They under perform established products in
  mainstream markets
• Products based on disruptive technologies are
  typically cheaper, simpler, smaller and
  frequently more convenient to use
• Entrants nearly always win

• Sustaining innovation
• Incremental improvements
• Improve the performance of established products
• Existing players
• Better products for bigger profits
• Incumbents nearly always win

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There are two core types of innovationClayton
Christensen, 2000

• Disruptive innovations
• Redefines value proposition
• They under perform established products in
  mainstream markets
• Products based on disruptive technologies are
  typically cheaper, simpler, smaller and
  frequently more convenient to use
• Entrants nearly always win

• Sustaining innovation
• Incremental improvements
• Improve the performance of established products
• Existing players
• Better products for bigger profits
• Incumbents nearly always win

Start-up company strategy
Licensing strategy to existing industry
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Licensing

• Negotiations of a license agreement with a
  business partner.
• Many negotiables can be in focus of the agreement
  including, but not limited to
• Up front fee
• Royalty
• Minimum royalty
• Know how
• Development
• Field of use
• Exclusivity/non exclusivity
• Patent follow up
• Length of the agreement
• etc

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Business establishment

• The making of a good business plan is the first
  important thing to be done when starting a
  business.
• Birkeland often arrange a pressure tank which
  is an intensive meeting lasting 2-4 full days and
  nights away from the office with different
  resource people where the frame of the business
  plan is made. People attending this meeting are
  people with business, technology and finance
  background to be able to cover all the issues of
  a business plan.

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A business plan usually covers

• The business goal
• - What do you aspire the company to become?
• The business model
• - How will you reach the business goal?
• Defining the product of the business
• - Sometimes the technology makes several products
  possible. Which one(s) will you seek to develop
• Defining critical success factors
• - What has to be in place in order to reach your
  business goal in terms of finance, regulatory
  hurdles, people, other issues that can go wrong?

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A business plan usually covers cont.

• Defining the customers
• - These are often not the end user of the
  product. Do you want to sell to other businesses?
• Defining the market
• - Where and in what contexts will your
  product/technology be used?
• Defining how to enter the market
• - Which type of customers will you go for first?
• Identifying competitors and partners
• - Know the landscape of the market you are
  entering. Does some of the potential partners
  have the ability to acquire your company, do you
  want that?
• Sets a financial plan
• Defines how the organization shall be built up
  and what kind of organization shall be raised

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Business establishment procedure

• Founding convention, The following documents must
  be in place
• Founding documents (from Justice dep.) Sign.
  founders
• register of share holders, share register
• articles of association
• Share holders agreement
• Norwegian registration form for private company
  (Brønnøysundreg.) Sign. steering members
• Account number in the name of the company
• Payment of share capital
• Approval/signature from accountant

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An invention is not necessarily an innovation

• An invention shall describe a process or a
  product that has not been describes before and is
  not obvious
• But an invention is not necessarily an innovation
• An innovation is an invention with a market that
  creates revenue.

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Contact information

• Katrine Rese Shadidi
• Tlf. 22840075 - 95831279
• E mail k.r.shadidi_at_birkeland.uio.no
• www.birkelandinnovation.no