Pathways of Technology Transfer from Research to Commercial Application

1
Pathways of Technology Transfer from Research to
Commercial Application

• Workshop 2
• memihkar lemeizam
• 17 June 2008
• Uzi de Haan

2
The entrepreneurial process
Pathways towards Commercialization

• Opportunity
• Sources
• Changes in
• Technology
• Social/
• Demographic
• Regulatory
• Industry
• Economy

Business Plan
Opportunity Discovery

• Performance
• Exit value
• Sales/Growth
• Profits
• Social

Expected value
Assembling resources
Opportunity exploitation
Opportunity Evaluation
Value Creation
Value Appropriation
3
Opportunity Space
Represents all possible entrepreneurial
opportunities A change in one of the dimensions
may create a new opportunity
Value Propositions
4
Pasteurs QuadrantResearch is inspired by
Consideration of Use NO
YES
YES
Quest for Fundamental understanding
NO
Source Stokes, 1997 Pasteurs Quadrant Basic
science and technological innovation
5
Linear versus Dynamic Model ( Stokes)
Linear consequential dependence but
separation Basic Applied
(pre) Operations Use Research
Research Development Versus Dynamic
interactive, reinforcing
Basic Research Applied Research
Issues - On one hand interaction between Basic
and Applied strengthen both - On the other hand
there is a natural tendency that applied
research drives out basic research
6
Survey of Technion Faculty in 2007 (n175)

• 71 is the opinion that the Technion should
  support commercialization of research
• 93 would like to have their inventions patented
  in order to protect their invention
• Only 12 would not disclose their inventions to
  TTO
• But 45 had no heard of the TTO (ISKIT)

7
value creation through knowledge transfer from
public research organizations an
entrepreneurship process view
Opportunity Creation Opportunity
Discovery Opportunity Exploitation
and
Evaluation
Process/Agents
Transfer Recipient
Source Research
Incumbent Firms Start-up Firms Research
Organization Spin-Offs
Research Lab. Researchers
The Gap Pathways
Knowledge/ Invention
Technology Transfer
Transfer object
Effectiveness
8
The US Association of university TT Offices
(AUTM) survey 2004

• 232 US universities surveyed representing 87 of
  RD expenditures
• total RD 41 bln of which 67 federal funds
  and 7 industry
• 16.871 disclosures, 10,517 patents applications,
  3,680 patents issued
• 3,680 patents issued is 2 of total US patents
  issued (but more basic
• patents
• total 4,618 licenses executing
• - 658 ( 14) start-ups ( 91 exclusive)
• - 2,476 ( 54) small companies ( 42
  exclusive)
• - 1,484 ( 32) large companies ( 35
  exclusive)
• total license income 1,5 bln.
• Number of University spinoffs in 2004 462 (
  2,4 per university)
• Funding of spinoffs own money 12
• 
  friendsfamily 21
• angels
  16
• VCs
  19
• SBIR and
  state 15
• Other
  17

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value creation through knowledge transfer from
public research organizations an
entrepreneurship process view
Opportunity Creation Opportunity
Discovery Opportunity Exploitation
and
Evaluation
Transfer Recipient
Source Research
Large Firms Small Firms Research
Organization Spin-Offs

• The Gap
• Logics
• Culture
• Goal-setting
• Time
• Money

Research Lab. Researchers
Knowledge/ Invention
Technology Transfer
Transfer object
Effectiveness
10
Survey of Technion Faculty in 2007 (n175)

• 20 were involved in founding a company in the
  past
• 22 consider starting their a company
• However the main barriers to do so are
• - Lack of Time
• - Lack of funds to demonstrate feasibility
• - Technology commercially not viable (yet)

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The value creation process in high techthe
Time, Money and Uncertainty Gap
Enabling Technologies
Opportunity Creation New Technologies and/or Co
mbinations
Opportunity Discovery
and/or
Expected value
Additional Technologies/ App. research
Opportunity Evaluation
Additional Technologies/ App. research
Time from one year to decennia (e.g. OLED,
Biotech)
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value creation through knowledge transfer from
public research organizations an
entrepreneurship process view
Opportunity Creation Opportunity
Discovery Opportunity Exploitation
and
Evaluation
Transfer Recipient
Pathways Patents-IP Licensing
- Spin-offs Consultancy/projects Joint
Development Contract Research Publications/Confere
nces Graduated Students
Source Research
Incumbent Firms Start-up Firms Research
Organization Spin-Offs
Research Lab. Researchers
Knowledge/ Invention
Technology Transfer
Transfer object
Effectiveness
13
value creation through knowledge transfer from
public research organizations an
entrepreneurship process view
Opportunity Creation Opportunity
Discovery Opportunity Exploitation
and
Evaluation
Transfer Recipient
Patents- IP Licensing US 4,783 licenses in 2004
patent applications 10,517 disclosures16,871 St
art-up US 462 in 2004 (52 with equity)
Source Research
Incumbent Firms Large Small Start-up
Firms Research Organization Spin-Offs
32
Research Lab. Researchers
14
54
Knowledge/ Invention
Technology Transfer
Transfer object
Effectiveness
14

• Considerations of commercialization by license of
  IP or by spin-off
• Technology Level
• - not matured yet, too much tacit
  know-how, difficult to transfer
• Industry Level
• - no market yet, even no industry ,
  disruptive technology
• Firm Level
• - no interest, no ACAP, too focused on
  existing technologies
• University Level
• - policy of university - capabilities
  of TTO
• Researcher Level
• - interest in commercialization -
  entrepreneurial orientation
• Regional Level
• - policy and incentives for university
  spin-offs - availability of resources

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value creation through knowledge transfer from
public research organizations an
entrepreneurship process view
Opportunity Creation Opportunity
Discovery Opportunity Exploitation
and
Evaluation
Transfer Recipient
Pathways Patents-IP Licensing
- Spin-offs Consultancy/projects Joint
Development Contract Research Publications/Confere
nces Graduated Students
Source Research
Incumbent Firms Start-up Firms Research
Organization Spin-Offs
Research Lab. Researchers
Knowledge/ Invention
Technology Transfer
Transfer object
Effectiveness
16
Survey of Technion Faculty in 2007 (n175)

• 30 are currently consulting to industry
• 40 are currently involved in industry funded
  research
• 25 has never contact with industry
• 34 once in a while
• 41 frequent contact with industry

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value creation through knowledge transfer from
public research organizations an
entrepreneurship process view
Opportunity Creation Opportunity
Discovery Opportunity Exploitation
and
Evaluation
Transfer Recipient
Pathways Patents-IP Licensing
- Spin-offs Consultancy/projects Joint
Development Contract Research Publications/Confere
nces Graduated Students
Source Research
Incumbent Firms Start-up Firms Research
Organization Spin-Offs
Research Lab. Researchers
Knowledge/ Invention
Technology Transfer
Transfer object
Effectiveness
18

• The Entrepreneurship Club (E Club)

• A student organization committed to fostering
  thinking and discussion on entrepreneurship
• The E club meets every two weeks and provides
  the students a place to meet fellow young
  entrepreneurs and learn from one another
• The club invites speakers from industry to give
  educational talks
• The club includes over 100 students from all
  faculties (both undergraduates and graduates)

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E Club Members Starting Their Own Promising
Start-Ups
a personalized music aggregator, for convenient
listening to music with any media player on any
platform. Lately acquired by Yahoo!
Offering a complete solution for content and
advertising, with contextual, dynamic adverts,
embedded in the mobile content  
Record visitors' every action as they browse a
website to understand visitor behavior and
improve website's usability.
a search engine tool that allow users to search
for information created and referenced by their
own social graph
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1. Although university research represents only
11 of total US research and 2 of total US
patents granted, abt. 20 of industrial products
and processes are the result of academic
research ( basic and general purpose tech.)
(NSF, Mansfield, 1998 Bekkers et al, 2006) 2.
Technology Transfer has multiple goals and
pathways and multiple criteria for
effectiveness. Licensing and patenting is a
relatively small part of knowledge transfer
compared with teaching, conferences,
publications, informal contacts, joint
research, and so is its income compared with
grants and endowments. ( Cohen et al. 2002
AgrawalHenderson, 2002) 3. Patenting and
publishing are not mutual exclusive. Research
shows that patenting and industrial involved
faculty are also proficient in publishing
working with industry has made me a better
researcher Social and human capital of
faculty ( van Looy et al. 2004 Azoulay et
al. 2004 LinBozeman, 2006) 4. Research shows
that bypassing of TTOs in US is quite common. (
33 of patented inventions Markman et al.
2006). Bypassing is less, when TTOs are
more autonomous, agile and proactive.
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5. TTOs , being boundary spanners between
university, faculty and industry (triple
agents) often lack resources with the
competencies needed for their role ( Siegel
et al. 2003 Jensen et al. 2003) 6. Out of a
sample of 128 US TTOs ( Markman et al. 2005)
- 52 were part of the office of the
Provost of Research - 41 were part of a
non-profit research foundation with own
Board and budget - 7 were for profit
private venture extensions 7. Research and a
benchmark of 10 leading TTOs including
UK-Cambridge list following as key success
factors in Technology Transfer (
GregorioShane, 2003 OShea et al. 2005 Report
by Innovation Associates, 2004) 1.
Strong and focused research base 2. Angel
and early-stage capital 3. Academic
leadership and entrepreneurial culture 4.
Entrepreneurship programs 5. Incubators,
research parks and innovation centers 6. No
quick fixes
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8. University knowledge transfer is a complex
process with multiple stakeholders,
conflicting missions and interests, and
contrasting values and cultures. Entrepreneurial
universities like MIT, Stanford, CMU and
Georgia Tech are finding the balance and
synergy between achieving academic excellence
and pursuing technology transfer, resulting in an
increasing attractiveness for innovative
minded faculty and students and for grants
and endowments ( Innovation Associates, 2004
Seashore, 1989)