New ventures

1

Commercialisation of Public Sector Research
means

• New ventures
• More efficiency
• More jobs
• More exports

2
Focus of Study
Spinoffs Publishing Collaboration Technology
Transfer
Licensing People Clusters, Innovation
Platforms Innovation Forums
3

• The prize

• The gap
• Bridging the gap

4
The Prize

• 200 Cochlears, ResMeds, Gropeps, Vision Systems
  Radiatas
• 100,000 new jobs
• 20 billion exports

5
Key Success Factors

• National vision and leadership
• Research quality
• Intellectual property management
• Business environment / receptors
• Capital availability

6

• 1976 Montreal Olympics
• 1 Silver 4 Bronze
• Thirty-second in the medal tally

Sporting Goal Time/Support
2000 Sydney Olympics 16 Gold 25 Silver 17
Bronze Fourth in the medal tally
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Early Stages of Commercialisation

• Pre-seed Proof of concept (product concept
  confirmed)
• Seed Business concept (prototypes and
  management team formed )
• Start-up Business established (product
  development, staffing, initial marketing)

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The Gap
9
Innovation Progression
Development / Marketing Cost Risk
The Gap
Technical Risk
Product Development
Concept Development
Technology Development
Idea
Pre-Seed
Seed
Start Up
Test Evaluation
Decision to Invest in Production
Product Launch
10
Bridging the GapKey Strategies

• 1. Improve information exchange
• 2. Confidence to commercialise
• 3. Incentives for success
• 4. Facilitate international development

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Key Strategies

• 1. Improve Information Access
• Trade fair
• Access to quality research outcomes

• 2. Confidence to Commercialise
• Commercialisation sabbaticals
• Commercialisation forum
• Business awareness for researchers
• Science awareness for business managers

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Key Strategies

• 3. Incentives for Success
• Offer a greater range of incentives
• Reduce tax disincentives
• Pre-seed funding
• 4. Facilitate International Development
• Promote innovative Australia
• Offshore business centre

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Create A Compelling Future

• We have the basis for the future
• World class Science base
• History of ingenuity but not international
  business development
• An imperative to change exists

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Australia(ns) Can Make It !

• 1850 First Mechanical Refrigeration (Harrison)
• 1880 First Electric Drill (Arnot)
• 1905 Thrust Bearing (Michell)
• 1925 Latex Gloves (Eric Ansell)
• 1935 Penicillin (Florey)
• 1952 Atomic Absorption Spectrometer(Walsh)
• 1965 Inflatable aircraft Escape slides (Grant)
• 1970 New generation Steering Systems (Bishop)
• 1980s Bionic Ear (Clark/Cochlear)
• 1990s Sleep Disorder devices (Resmed/UNSW)
• Radiata technology (Macquarie/CSIRO)

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Create A Compelling Future

• We have the basis for the future
• Increase the profile of success stories and role
  models

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Create Role Models

• Vision for Australia
• People as an asset
• Role models

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Create A Compelling Future

• We have the basis for the future
• Create Role Models
• Set a Target

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Set A Target

• Match the Best - Bridge The Gap
• Australian activity in this area needs to
  increase by a factor of 10 to win the prize.
• 200 new successful exporters emerging over a
  decade needs thousands of research projects,
  500m early stage capital and 10 years of
  patience and consistent policy.
• The required scale of research activity exists -
  this is not the primary problem.

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We need to bridge the gap by

• Improving information exchange
• Giving the confidence to commercialise
• Providing incentives for success
• Facilitating international development

21
Acceleration is possible

• The present study addresses new business start
  ups which require 10-15 years for scale to be
  reached and a few successes from many starts.
• Public policy has the option, at the same time as
  dramatically increasing start up activity, to
  also accelerate existing businesses who will help
  bridge the gap even more quickly.
• Some simple, zero cost to revenue, options are
  available.

22
To achieve the prize of

• 200 Cochlears, ResMeds, Gropeps, Vision
  Systems Radiatas
• 100,000 new jobs
• 20 billion exports

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Benchmarking Against USA
LICENSING SURVEY FINANCIAL YEAR 1999
S
COTTISH
A
U
SSOCIATION OF
NIVERSITY
TECHNOLOGY
1998
SAMPLE
M
ANAGERS
(USA
C
)
AND
ANADA
per institute
Caltech
Stanford
per institute
RD Funding
142m
150m
500m
50m
Disclosures
63
150
250
58
19
50
73
Patents issued
New
20
162
10
licences/agreements
Licences in play
43
380
37m
incl.
Licence income
4.5m
2m
10m equity
27
Startups
2
20
3
(usually 10)
26
CSIRO
27
DSTO
28
Universities