K.U.Leuven Research

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K.U.Leuven Research DevelopmentA model for
exploitation of academic research
K.U.Leuven Research Development Edwin
ZIMMERMANN edwin.zimmermann_at_lrd.kuleuven.be www.ku
leuven.be/lrd
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K.U.Leuven facts figures

• K.U.Leuven
• founded in 1425
• 30.455 students with 12,4 international students
• 16.189 employees
• 1.396 professors 3. 891 researchers
• 2.730 administrative and technical staff
• 8.172 employees at the University Hospital (UZ
  Gasthuisberg)
• Research expenditures (2003 figures)
• 201 million EUR (13,6 compared to 2002)
• of which 40,6 million EUR (20,2) contract
  research through K.U.Leuven RD
• Complete university 14 faculties
• Humanities, Exact Sciences, and Biomedical
  Sciences

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K.U.Leuven RD

• K.U.Leuven Research Development
• founded in 1972
• central multidisciplinary staff of 27 people
• operated as a business unit
• to promote and support knowledge technology
  transfer to the university

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Activities

• Contract Research
• negotiation legal support with respect to
  research contracts between university and
  industry
• Management of Intellectual Property Rights
• an active patent and licensing policy is pursued
• Creation of Spin-off Companies
• professional advice and support is provided to
  academic entrepreneurs
• Promotion of High-Tech Entrepreneurship
• both within university and in region

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Spin-off creation

• Support?
• awareness creation knowledge transfer
• development of business plan
• finding investors Gemma Frisius Fund K.U.Leuven
• finding infrastructure
• university labs, Innovation Incubation Centre,
  science parks
• negotiation legal support
• drafting bylaws, shareholder agreements and
  co-operation agreements
• supporting growth and internationalisation
  process
• participation in Board of Directors
• portfolio management is crucial
• support innovation high-tech entrepreneurship
  through networking and technology clusters

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Gemma Frisius Fund K.U.Leuven

• provides seed capital in the early phases of
  research-based K.U.Leuven spin-off companies
• established in 1997 as a joint venture between
  K.U.Leuven, the KBC group and the Fortis group
• GFF I founded in October 1997
• 12,5 million EUR
• investment limit of 500 KEUR / project
• 10,5 million EUR invested in 15 spin-off
  companies (1997-2004)
• GFF II founded in July 2002
• 12,5 million EUR
• investment limit of 1 MEUR / project
• 2 million EUR invested in 5 spin-off companies
  (2002-2004)
• partners
• K.U.Leuven (20 of capital)
• Two banks KBC Securities (40) and Fortis
  Private Equity (40)

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Gemma Frisius Fund K.U.Leuven

• combining research technology transfer
  expertise of the university with financial and
  investment expertise of financial partners
• not restricted to a specific technology. GFF
  considers every investment opportunity involving
  know-how coming from the K.U.Leuven
• invested amount per year (GFF I II combined)

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Spin-off Creation Process
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Spin-off Creation Process

• LRD Research Divisions
• research divisions embedded in university via
  matrix structure
• virtual organisations in which (groups of)
  researchers (from different faculties or
  departments) can group their applied research,
  commercial-industrial and exploitation
  activities.

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Spin-off Creation Process

• LRD Research Divisions
• important role in the incubation process of a
  spin-off company
• BEFORE START-UP
• first market test within secure environment
  of university, usually through contract research
• smooth transition from research division to
  spin-off company
• technology transfer in exchange for shares
• (usually) investment from (part of) division
  reserves in spin-off company
• AFTER START-UP
• partner for contract research
• input from university researchers gt co-operation
  agreement
• possible use of university lab infrastructure
• but clear distinction in focus and activities
  between research division and spin-off company
  after start-up.

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Spin-off Creation Process

• Incentive mechanism
• Return through shares warrants ? generate
  surplus value on shares
• Two types of shares
• shares for capital investment
• shares for intellectual property (know-how, etc.)
  
• Valuation IP depends on various factors
• IP contracts brought in
• patent portfolio
• time-to-market
• team

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Results

• 60 companies founded over the period 1979-2004
• 25 companies over the period 1979-1997
• 35 companies over the period 1998-2004

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Results

• 51 active spin-off companies (end 2004)
• exploiting university research results
• total turnover of /- 300 million EUR
• gt1500 employees.

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Results

• 12,5 MEUR invested in 20 GFF portfolio
  companies (end 2004)
• 18 active portfolio companies
• 1 successful exit (trade sale)
• 1 divestment

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Spin-off companies

• Engineering
• LMS computer aided dynamic analysis (acoustics,
  vibration, durability)
• Metris reverse engineering 3D quality control
• MEAC microwave energy applications for industry
• Materialise rapid prototyping services
  (stereolithography, etc.)
• Medicim medical imaging solutions to support
  diagnosis and surgery
• etc.
• Micro-Electronics ICT
• ICOS vision and inspection solutions for the
  semiconductor and electronics assembly markets
• AnSem design of analog integrated circuits
• Ubizen provider of managed security solutions
• Eyetronics 3D-image acquisition processing
• Data4S data management, customer behavior
  profiling and pattern detection
• OMP state-of-the-art antenna products designs
• Kimotion EDA-tools for analog chip design
• Hypervision, Epyc, Telraam multimedia
  applications, e-learning

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Spin-off companies

• Biomedical
• Thromb-X biopharmaceuticals for cardiovascular
  diseases technologies of embryonic stem cell
  cultures and transgenesis
• 4AZA Bioscience biopharmaceuticals for immune
  pathologies such as transplantation rejection,
  rheumatoid arthritis and septic shock on the
  basis of new immune-inhibitors
• TiGenix tissue engineering cell-based
  therapies (repair of articular cartilage, bone
  muscle)
• reMYND services tools to support drug
  discovery in Alzheimers disease and
  neuro-degeneration
• RNA-TEC chemical synthesis purification
• AlgoNomics structural bio-informatics
• PharmaDM global enabler of drug discovery
  analytic solutions, based on mining integrated
  chemical, biological and clinical data

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Regional Development

• Partners
• LRD, research centres, city of Leuven, GOM,
  Flanders, etc.
• Infrastructure
• Innovation Incubation Centre
• 2400 m², 15-20 companies
• office production space
• Science Park Haasrode
• 130 ha, 150 companies, /- 6000 jobs
• Arenberg Science Park
• 110.000 m² office lab space
• available from mid-2005 onwards
• state-of-the-art bio-incubator (end 2006)
• UbiCenter (old Philips-site)
• Campus Remy (old Remy-site)

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Networking

• Horizontal Network Leuven.Inc
• network organisation stimulating contacts between
  university, IMEC, high-tech start-ups, innovation
  actors, support activities such as consulting
  agencies and venture capitalists, and established
  companies in the Leuven area.
• Vertical Networks technology clusters
• DSP Valley
• focusing on the design of hardware and software
• technology for digital signal processing
  systems.
• L-SEC (Leuven Security Excellence Consortium)
• international, non-profit network organisation
  dedicated
• to promote the use and advance of e-security.

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Leuven Knowledge Pearl
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CONCLUSION
LRD as a Networked Incubator
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Success Factors

• Success factors for the exploitation of academic
  research results in Leuven
• Basis a critical mass of high quality research
• Integrated approach on research valorisation
  multidisciplinary team high value services
• Clear incentives and policies to encourage
  research groups and departments to actively seek
  knowledge transfer opportunities
• Creation of appropriate entrepreneurial climate
  in a university context
• Legal context with respect to exploitation of
  academic research in Flanders region
• Developing the necessary instruments and networks
  for the further professionalisation of technology
  transfer support