Transcript - SCIENCE & TECHNOLOGY CENTER IN UKRAINE

Company
LOGO
TECHNOLOGY
COMMERCIALIZATION
IN
UKRAINE
October 2006
PRESENTATION OVERVIEW
• Technology Commercialization Challenges
• Global IPP/USIC Model
• Initiatives for Proliferation Prevention
Projects in Ukraine
COMMERCIALIZATION Of Science and
Technology
CHALLENGES AT A GLANCE
• The process is high-risk, long-term, multi-stage,
and complex.
• You have to deal with a funding gap at the early
engineering and commercialization stage
• In the U.S., the amount of venture capital available
for investments has declined since 2000 “bubble”
• Commercialization investment portfolio
– Only a few “Hits” will generate high revenues
– A number of others will generate smaller revenues
– Most endeavors do not attract outside investment
The Process of Commercialization
•
•
•
•
•
Research and Development
Engineering to a prototype
Raising capital
Manufacturing
Marketing
Research and Development
• There is a large number of scientists and
engineers in Ukraine doing research that they
believe is marketable
• The Science and Technology Center in Ukraine
(STCU) supports a number of research projects,
focusing on those with practical applications
• Partner projects such as IPP focus on efforts
likely to lead to commercialization
Engineering to a
Prototype
• It is necessary to take the results of R&D and
engineer it into a product that can be mass
produced. This takes investment.
• It is important to attract a company and/or an
investor at this stage so that someone familiar
with the market is involved
• For example, the focus of the IPP program is on
Raising Capital
• This is not an easy task
• Large amounts of investment are required
before a product hits the market
• The amount of investment money invested
in science has decreased over the past 5
or so years (at least in the U.S.)
“VALLEY OF DEATH”
“Valley of Death” – funding gap at survival stage
Technology
Creation
$ Cash flow or sales
Idea, R&D
Biz. and Product
Development
Product Dev.
Production
Commercialization
Distribution
Sales
Sales
“Valley of Death”
Time
Cash flow
R&D grants,
Public sector
Ideation
Entrepreneur, Venture Stock owners
angel investors capitalists
Survival
Growth
VENTURE CAPITAL INVESTMENTS (US)
Source: Pricewaterhouse Coopers & National Venture Capital Association
GLOBAL PRIVATE EQUITY 2004
Source: Pricewaterhouse Coopers & National Venture Capital Association
Top 20 Countries Based on
High-Tech Investment (2003)
•
North America
1. USA ($19.54)
2. Canada ($0.81)
•
Western Europe
2. UK ($4.76)
4. France ($1.75)
5. Italy ($1.53)
8. Sweden ($0.82)
11. Germany ($0.76)
12. Ireland ($0.29)
13. Finland ($0.21)
14. Norway ($0.21)
15. Netherlands ($0.19)
16. Denmark ($0.16)
17. Switzerland ($0.16)
19. Spain ($0.15)
•
Asia Pacific
3. Japan ($2.51)
6. Korea ($1.11)
7. China ($1.06)
18. Singapore ($0.16)
•
Middle East & Africa
10. Israel ($0.77)
20. South Africa ($0.13)
How does the United States help with the
Start-up of new Technology Businesses?
• Small Business Innovative Research Program
(SBIR)
• Advanced Technology Program (ATP) of the
National Institute of Standards and Technology
(NIST)
• University technology transfer offices
– Technology licensing to businesses
– Business incubators
• Angel investors, venture capitalists, stock
owners
CHALLENGES IN UKRAINE
• Lack of public resources
– R&D stage
– Commercialization/survival stage (“valley of death” is deeper)
• Lack of venture/private investment resources
– Ukraine is below the radar of global private equity investment in
high-tech
• Domestic high-tech market limited
– Most customers were military in the past
• Lack of tech commercialization expertise and
infrastructure in research institutes (unlike in
Western universities)
US NONPROLIFERATION PROGRAMS:
SUPPORTING UKRAINIAN SCIENTISTS
• STCU
– R&D grants/civilian engagement since
early 1990s
– Compensating for lack of public R&D funds
in Ukraine
– STCU Commercialization program
• CRDF
– R&D grants/civilian engagement
– Next Steps to Market
DOE’s Global IPP PROGRAM:
INDUSTRY PARTNERSHIPS
• Commercialization & industry partnerships focus
• Critical element: US company participates as
industry partner in each project
• Industry partner matches 100% of federal funds
• Industry partner provides business expertise/
direction and brings technology to the market
• US Company provides access to Western
investment resources (80% of global private
equity)
Projects Model
• Three-way partnerships:
– Ukrainian institute, U.S. company, and DOE national
laboratory
• IPP funds FSU scientists’ work
• U.S. companies cost-share government funds by
cash and/or in-kind resources
• National laboratories funded by IPP to validate
the Ukrainian science and technology
technology validation and to help manage the
project
Benefits for Ukrainian scientists
• Access to U.S. business expertise and investment resources
– Invaluable lessons to learn
• Partnerships created with U.S. companies
– Combining Ukrainian technological resources with U.S.
entrepreneurial expertise
• Development of technologies, products and services for U.S. and
global markets
– Ukrainian high-tech market is limited
– U.S. companies provide access to their markets and customers
• Working with top U.S. national laboratories in joint tech development
• JOBS, REVENUES, INVESTMENT, NEW JOINT AND OWN
BUSINESSES CREATION
United States Industry Coalition (USIC)
• Association of 150+ U.S. companies
– Multinational corporations – General Electric, Boeing, DuPont,
Halliburton, IBM, Westinghouse, GNF, Nukem, Brush Wellman
– Small innovative businesses
• Advisor to NNSA/DOE’s Initiatives for Proliferation
Prevention Program (IPP)
– IPP project review/monitoring
– Facilitation of technology commercialization
– Public/Congress outreach
• Provides an industry outreach for IPP
– Member companies are industry partners of IPP projects
• Over ten year experience in technology
commercialization and partnerships in the FSU region
COMMERCIALIZATION SUCCESS
• Sustainable civilian
occupations steadily grow
– 2,800 civilian FSU jobs
created/sustained
– 16,000 scientists engaged
by IPP since 1994
Jobs
2,803
3000
2,343
2500
2000
US
1500
500
1,042
869
1000
231
58
– $30M vs. $22.5M IPP
budget in FY03
– $53M vs. $23.8M IPP
budget in FY05
211
176
0
2002
• US+FSU Revenues
surpassed IPP budget
since 2003
FSU
2003
2004
2005
Annual Revenues
Thousands
$35,000
$30,000
$25,000
$30,628
$27,521
$23,945
$20,663
$20,000
US
$17,684
FSU
$15,000
$10,000
$22,511
$6,468
$9,274
$5,000
$0
2002
2003
2004
2005
COMMERCIALIZATION SUCCESS
• Outside investments demonstrate
high competitiveness of
technologies
– $137M invested by the end of
2005
Cumulative Investments
Thousands
$160,000
$136,872
$140,000
• FSU institutes catching on
commercial culture:
– 30 FSU and FSU-US businesses
created/sustained
– Negotiations with customers &
investors; FDA and FSU
certifications; establishing
manufacturing; int. patents; etc.
• 30 % of projects generate
revenues to date
– Many more resulted in other
successful developments
$117,717
$120,000
$106,300
$100,000
$75,800
$80,000
$60,000
$40,000
$37,000
$20,000
$0
2001
2002
2003
2004
2005
Ukrainian Projects Supported by IPP
• 19 Ongoing & Completed Projects in Ukraine
• Examples of Successful Ukrainian Projects
Supported by IPP:
• Welding & Brazing Technologies for Repair of Turbine
Engine Airfoils
• Advanced Grinding Technology for Bio-source Materials
• Advanced Welding & Fabrication Techniques for Al-li Alloys
• Next Generation EB-PVD Apparatus
• Flash-butt Fusion
Welding & Brazing Technologies for
Repair of Turbine Engine Airfoils
• Repair of worn or defective
turbine components made of
nickel-base superalloys is
difficult and expensive
• Innovative technology
reduces repair costs, allows
re-manufacturing of initially
defective, and refurbishment
of used, components
• Manufacturing started.
Restoration repairs of aero
engine parts
Pratt & Whitney / UTC (CT)
E.O. Paton Electric Welding Institute (Kyiv)
Oak Ridge National Laboratory
Advanced Grinding Technology for Bio-Source Materials
• Agricultural/forestry waste can be
converted into consumer and
industrial products
– Fillers for plastics; chemicals; fuel;
electricity; animal feed; fertilizer
• Global demand for bio-source
products surging
– $23 Billion market growing at 9%
per year
• Ukraine plant has expertise in
particulate reduction, analysis and
system design techniques
• Unique grinding & separation
technology for global industrial and
agricultural markets
Pinnacle Technology (KS)
TexMet (Dniepropetrovsk)
NNSA Kansas City Plant
Advanced Welding & Fabrication Techniques for Al-Li Alloys
• Russian, Ukrainian & U.S.
partners will design, analyze,
fabricate prototype aircraft &
launch vehicle components
• Lightweight extruded panels
reduce cost, improve
performance
• Growth in commercial
aerospace design &
manufacturing
• Significant annual sales, dozens
of people employed (numbers
proprietary)
Boeing (CA)
VNIITF (Snezhinsk, RU)
E.O. Paton Institute (Kyiv)
Lawrence Livermore Nat’l Lab
Next Generation EB-PVD Apparatus
• Innovative design improves
commercially-available systems
– Higher deposition rates
– Reduced time & operating
costs
• Ukrainian partner will be able to
compete in global market for
multiple industries
– Aeronautical & gas turbines
– Fuel cells
– X-rays systems
General Electric Company (NY)
E.O. Paton Electric Welding Institute (Kyiv)
EB-PVD Principle
Electron
beam
Condensate
Substrate
Vapour cloud
substance
substance
A
B
Electron
beam
Flash-Butt Fusion (FBF)
• FBF applied in 55,000 km of
pipeline worldwide
• Technology in use for 30+ years
• FBF advantages:
– bonds any metal to any other metal
– uses electric contact rather than
welding rod or flux
– faster welding rates
– strong, high-quality welds
– higher labor productivity
• Oil, gas, chemical pipelines &
storage tanks are primary
market for upgraded FBF
Maverix (FL)
E.O. Paton Electric Welding Institute (Kyiv)
NNSA Kansas City Plant
List of IPP Projects in Ukraine
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ANL-T2-0224-UA
ANL-T2-0229-UA
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ANL-T2-0151-UA
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DOEH-T2-0001-UA
KCP-T2-0219-UA
KCP-T2-0224-UA
KCP-T2-0222A-UA
LBNL-T2-0178-UA
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LLNL-T2-0090-UA
LLNL-T2-0091-UA
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•
•
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LLNL-T2-0113-UA
ORS-T2-204-UA
ORS-T2-211-UA
PNNL-T2-0241-UA
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PNNL-T2-0245-UA
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PNNL-T2-0272-UA
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PNNL-T2-0194-UA
PNNL-T2-0201-UA
SNL-T2-0179-UA
Photonuclear production of radioisotopes
Process Development: Low Cost, Continuous Nano-Scale Purification Technology of
Powdered Carbonaceous Materials for Applications in Electrochemical Energy
Storage Systems and Electroconsolidationｮ Process Technology
The Use of the MAG*SEP Technology for the Decontamination of Milk, Juice, Baby
Food, and Water from the Chernobyl-Affected Zone in the Ukraine
Next Generation EB-PVD Apparatus
Advanced Grinding Technology for Bio-Source Materials
Flash-Butt Welding
Custom Automotive Component Manufacturing
Screening of Botanical and Fungal Species Collected within the Territory of NIS for
Pharmaceutical and Agrochemical Activities
Joining Technologies for Gamma Titanium Aluminide Castings
High Specific Stiffness Shafts and Advanced Bearing Coatings for Gas Turbine
Engines.
Radiation Hardened Telerobotic Dismantling System Development
Welding and Brazing for Repair of Aircraft and Gas Turbine Engine Components
Development of Protective Coating Technologies for Gas Turbine Engine Airfoils
Cost Effective Production of Powder Metallurgy Titanium Components for High
Volume Commercial Applications
Development of a New Lithium Metal Secondary Battery with Polymer Electrolyte
and Cathode Based on Metal Oxides
Development and Commercialization of Straw Fired Boilers of 100-1000 kW in
Ukraine
Empirical Discovery and Development of Crop Protection and Human Health Agents
Commercial Application of Europium for Gamma Irradiation in Ukraine & Russia
Brazing Process Improvement for Stainless Steel Tubes
Marketing Ukrainian Technologies
• Ukrainian technologies are
marketed to U.S. industry
through IPP.
• Marketing vehicle - BISNIS,
U.S. Department of Commerce
• TekhInvest, Ukraine identifies
promising technologies from
Ukrainian institutes
• USIC facilitates interactions
between institute and U.S.
companies
– U.S. company due
diligence
USIC Working through BISNIS
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6.
7.
Amorphous and nanocrystalline tape-wound magnetic cores with high temperature stability of magnetic
characteristics, Melta Ltd.
Plasma surface hardening of flanges of wheels of locomotives, as well as passenger and freight cars, RPE
Topaz Ltd.
Holographic Coding Method to Produce Surface-Relief Holograms Incorporating Image that Is Recorded as a
True Hologram, Spekl
Vortex Bubble Contactor for Intensification of Heat and Mass Transfer in Various Industries, Institute of
Engineering Thermophysics
Ukraine Production of Nanodiamonds and Development of their Application Technologies, Sinta Ltd.
Chitin Adsorbent for Heavy Metals and Radionuclides; Technology for Liquid Industrial Waste
Decontamination, Mycoton-Aglycon, Ltd.
Vehicle-Borne H2-Producing Rechargeable Feeder for Hydrogen-Propulsion Automobile, Scientific Research
Power Engineering Institute of Dnipropetrovs'k National University
8.
Gas-Thermal Jet for Surface Treatment and Coating, Kyiv National Taras Shevchenko University
9.
High Efficiency Photo-Electrochemical Hydrogen Production and Storage Cell, Institute for Problems of
Materials Sciences
Liquid Crystal Alignment Method, Institute of Physics of National Academy of Sciences of Ukraine
Magnetocardiograph - Early Detection Of Ischemic Heart Disease, Kharkiv National University
Superheated Vapor Impregnation of Capillary-Porous Materials, Pridneprovie Cleaner Production Center
Vibrato-Diagnostic Imaging for Security Monitoring / Power Generation from Agricultural Industry Waste /
Flame - Jet Drilling System, Yuzhnoye State Design Office
Copper Scrap Recycling Technology, East Ukrainian National University
Brazing and Diffusion Bonding of Metals to Non-Metals, Frantsevich Institute for Problems in Materials
Science
Advanced Acousto-Optical Modulator for Powerful Laser Radiation, Institute of Physical Optics
Pneumatic Washing & Cleaning Technology for Machinery Parts, National Science Center / High Critical
Current Density Niobium-Titanium (NB-TI) Superconductors, Kharkiv Institute of Physics and Technology
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11.
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14.
15.
16.
17.
Conclusions and Questions
•
International institutions such as the STCU and programs like IPP are
creating new, sustainable jobs for WMD personnel in Ukraine.
•
They are adding new jobs to U.S. and Ukrainian economies
•
IPP & STCU help reduce risk for U.S. high-tech business
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Similar institutions and programs could accomplish the same
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There is a need to attract significant private investment to new technologies
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What role is the government of Ukraine willing to play to add to the current
successes, to attract outside investment, and to lay the foundation for a high
tech economy in Ukraine?
•
To what extent are outside governments and companies willing to continue,
is not increase, the level of support for the commercialization of Ukrainian
science?