Transcript Slide 1

Navigating R&D
Commercialization
14 October 2009
Proposal Writing Workshops Project
Higher Council for Science and Technology
Kirsten Armstrong
[email protected] or [email protected]
Background and
Introductions
Meet Workshop Participants
• Introduce yourself
– Name
– Organization
– Field of research
– Experience with commercialization
– What do you hope to learn in today’s
workshop?
USAID Jordan Economic
Development Program (SABEQ)
Workshop Objectives
• Understand the process of R&D
commercialization
• Learn tips and techniques to increase
success and shorten timelines
• Broaden participant knowledge so that you
may in turn teach the key points of the
workshop at your home organization
USAID Jordan Economic
Development Program (SABEQ)
Agenda
Time
9:45-10:15
Length
30 min.
10:15-10:45
30 min.
10:45-11:15
30 min.
11:15-11:45
30 min.
11:45-12:45
60 min.
12:45-13:15
30 min.
13:15-13:45
30 min.
Module
Background and introductions
-Meet workshop participants
-Review workshop objectives
R&D commercialization: Who and What
-Define R&D commercialization and its importance
-Discuss the actors and roles in R&D commercialization
Presenter
K. Armstrong and
participants
Overview of technology lifecycle
-Discuss how technology is generated
Break
K. Armstrong
R&D commercialization process
-Discuss the steps and subtasks in the R&D
commercialization process
Lessons learned from experts
-Guest speakers will discuss challenges and barriers to
commercialization, and present tips and techniques for
improving commercialization success
Break (snacks)
K. Armstrong
13:45-15:15 60-90 min. Case study
-Participants will complete a practical exercise
15:15
K. Armstrong
Invitation by HCST
Ms. Penelope Shihab
General Manager, MONOJO
Invitation by HCST
Participants
Closing remarks
USAID Jordan Economic
Development Program (SABEQ)
Rules of Engagement
• Your participation is essential
• This is a learning environment
– Ask questions
– Share experiences
– Offer suggestions
• Request clarifications of
– Idioms/terminology/acronyms
• English
• U.S. government
• S&T policy
USAID Jordan Economic
Development Program (SABEQ)
R&D Commercialization:
Who and What
The World is Flat
• “I tested out…my ‘coefficient of flatness,’ the
notion that the flatter one’s country is—that is the
fewer natural resources it has—the better off it will
be in a flat world. The ideal country in a flat world
is the one with no natural resources, because
countries with no natural resources tend to dig
inside themselves. They try to tap the energy,
entrepreneurship, creativity, and intelligence of
their own people—men and women—rather than
drill an oil well.”
USAID Jordan Economic
Development Program (SABEQ)
Source: Thomas L. Friedman, The World is Flat: A Brief History of the Twenty-First Century, 3rd edition, New York: Picador, 2007, pp. 358.
Why is University Research Valuable?
•
•
•
•
It enlarges and enhances our body of knowledge
It trains future scientists and engineers
It also has economic impact
University research produces discoveries and
technologies that have practical application
• Research outputs have the potential to solve
some of our hardest problems
USAID Jordan Economic
Development Program (SABEQ)
Definition
• R&D commercialization is the process of
taking a research idea and bringing it to
market
– The goal of commercialization is to extract
value from intellectual capital
As countries transform from manufacturing- and service-based
economies to knowledge economies, releasing the value of research
and development through commercialization is a significant boost.
USAID Jordan Economic
Development Program (SABEQ)
Importance of
Commercialization
• Commercialization is important to
developing economies in particular
– It has the potential to create revenue streams
for researchers and universities
– It has the potential to create new businesses
and new jobs
– It also has the potential to improve some of
the problems Jordan is facing
• Examples: water, energy, environment
USAID Jordan Economic
Development Program (SABEQ)
EXERCISE
• Describe a research commercialization
success story
• Describe an unsuccessful research
commercialization effort
• What were the differentiators?
USAID Jordan Economic
Development Program (SABEQ)
Measures of Commercialization
• Invention disclosures
• Patenting activity
– Applications
– Grants
• Licenses
– Number executed
– Revenues
• New companies (start-ups)
USAID Jordan Economic
Development Program (SABEQ)
Patenting Activity by
Jordanian Innovators
Patents registered in Jordan a
-Registered to Jordanians b
U.S. patents granted to Jordanians
U.S. patent applications filed by Jordanians, but
not yet granted c
European patents granted to Jordanians
International registrations
2486
240
9
9
84
40
Notes:
a 1948 to January 2009.
b This is an approximate number as nationality is not always clear.
c Since 2001.
USAID Jordan Economic
Development Program (SABEQ)
Jordan’s Patent Trends
USAID Jordan Economic
Development Program (SABEQ)
Technology Readiness Levels
• Describe the maturity of a technology
using a 1 through 9 scale
• Developed by NASA and adopted by U.S.
Dept. of Defense
• Used to evaluate the risk of incorporating
a new technology into a system
• Can compare technologies
• Provides a common language
USAID Jordan Economic
Development Program (SABEQ)
TRL Definitions
Technology Readiness Level
1. Basic principles observed and reported.
2. Technology concept and/or application
formulated.
3. Analytical and experimental critical function
and/or characteristic proof of concept.
4. Component and/or breadboard validation in
laboratory environment.
5. Component and/or breadboard validation in
relevant environment.
Description
Lowest level of technology readiness. Scientific research begins to be
translated into applied research and development. Examples might
include paper studies of a technology’s basic properties.
Invention begins. Once basic principles are observed, practical
applications can be invented. Applications are speculative and there may
be no proof or detailed analysis to support the assumptions. Examples
are limited to analytic studies.
Active research and development is initiated. This includes analytical
studies and laboratory studies to physically validate analytical predictions
of separate elements of the technology. Examples include components
that are not yet integrated or representative.
Basic technological components are integrated to establish that they will
work together. This is relatively “low fidelity” compared to the eventual
system. Examples include integration of “ad hoc” hardware in the
laboratory.
Fidelity of breadboard technology increases significantly. The basic
technological components are integrated with reasonably realistic
supporting elements so it can be tested in a simulated environment.
Examples include “high fidelity” laboratory integration of components.
USAID Jordan Economic
Development Program (SABEQ)
TRLS Definitions, cont.
Technology Readiness Level
6. System/subsystem model or prototype
demonstration in a relevant environment.
7. System prototype demonstration in an
operational environment.
8. Actual system completed and qualified
through test and demonstration.
9. Actual system proven through successful
mission operations.
Description
Representative model or prototype system, which is well beyond that of
TRL 5, is tested in a relevant environment. Represents a major step up in
a technology’s demonstrated readiness. Examples include testing a
prototype in a high-fidelity laboratory environment or in simulated
operational environment.
Prototype near, or at, planned operational system. Represents a major
step up from TRL 6, requiring demonstration of an actual system
prototype in an operational environment such as an aircraft, vehicle, or
space. Examples include testing the prototype in a test bed aircraft.
Technology has been proven to work in its final form and under expected
conditions. In almost all cases, this TRL represents the end of true system
development. Examples include developmental test and evaluation of the
system in its intended weapon system to determine if it meets design
specifications.
Actual application of the technology in its final form and under mission
conditions, such as those encountered in operational test and evaluation.
Examples include using the system under operational mission conditions.
USAID Jordan Economic
Development Program (SABEQ)
Commercialization Readiness
Level Assessment
Commercial Potential
1
90
High/Low
8
Legend
High/High
7
High
6
5
Medium
4
3
Low/Low
Low
Low/High
2
1
1
2
3
4
5
6
7
8
Commercial Readiness
9
1
0
USAID Jordan Economic
Development Program (SABEQ)
Source: National Aeronautics and Space Administration, “NASA Technology Commercialization Process,” NPR 7500.1, 20 December 2001,
<http://nodis3.gsfc.nasa.gov/displayDir.cfm?Internal_ID=N_PR_7500_0001_&page_name=Chp3>.
National Innovation System
• Structure and organization of a national
innovation system has an important effect
on commercialization
• Definition: the “set of institutions whose
interactions determine the innovative
performance…of national firms.”
USAID Jordan Economic
Development Program (SABEQ)
Source: Richard R. Nelson and Nathan Rosenberg, “Technical Innovation and National Systems,” Richard R. Nelson, ed., National Innovation
Systems: A Comparative Analysis, New York: Oxford University Press, 1993, pp. 3.
Types of Institutional Actors
• Policy development and public
administration
• Industry and its representatives
• Research centers
• Academia
• Entrepreneurship support programs and
technology business incubators
USAID Jordan Economic
Development Program (SABEQ)
Institutional Actors
• Policy development and public
administration
– Provide oversight and funding for research
and development
– Example: Higher Council for Science and
Technology, Ministries
USAID Jordan Economic
Development Program (SABEQ)
Institutional Actors, cont.
• Industry and its representatives
– Profit-motivated and sell end products
– Are large businesses and small and medium
enterprises
– Includes business and professional
associations
• Examples: Amman Chamber of Industry, Jordan
Engineers Association
USAID Jordan Economic
Development Program (SABEQ)
Institutional Actors, cont.
• Research centers
– Execute research and development, typically
funded by others
– Example: Royal Scientific Society
• Academia
– Institutions of higher education
– Example: Princess Sumaya University for
Technology
USAID Jordan Economic
Development Program (SABEQ)
Institutional Actors, cont.
• Entrepreneurship support programs and
technology business incubators
– Provide services to entrepreneurs and startups
– Examples: Information & Communication
Technology Business Incubator (iPARK),
Queen Rania Center for Entrepreneurship
USAID Jordan Economic
Development Program (SABEQ)
Roles in Commercialization
Investor
Researcher
Company
End User
Technology
Management
Office
USAID Jordan Economic
Development Program (SABEQ)
Roles, cont.
• Researchers identify the commercial potential of a
technology; initiate commercialization
• Companies will fully commercialize a technology into a
product that can be sold in the market
• End users are the consumers of the fully commercialized
technology
• Investors provide the funding to start or grow a business
to commercialize a technology
• Technology management offices provide a key interface
between researchers and businesses
USAID Jordan Economic
Development Program (SABEQ)
EXERCISE
• Who are the stakeholders for renewable
energy technologies?
• Brainstorm the stakeholders and their
perspectives
USAID Jordan Economic
Development Program (SABEQ)
Overview of
Technology Lifecycle
Linear Model of Innovation
Basic Research
Applied Research
Development
Commercialization
USAID Jordan Economic
Development Program (SABEQ)
Definitions
• Basic research is defined as systematic study directed toward fuller
knowledge or understanding of the fundamental aspects of
phenomena and of observable facts without specific applications
towards processes or products in mind.
• Applied research is defined as systematic study to gain knowledge
or understanding necessary to determine the means by which a
recognized and specific need may be met.
• Development is defined as systematic application of knowledge or
understanding, directed toward the production of useful materials,
devices, and systems or methods, including design, development,
and improvement of prototypes and new processes to meet specific
requirements
USAID Jordan Economic
Development Program (SABEQ)
Source: Office of Management and Budget, Circular A-11, 2008, <http://www.whitehouse.gov/omb/circulars/a11/current_year/s84.pdf>.
Valley of Death
USAID Jordan Economic
Development Program (SABEQ)
Source: U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, “EERE Commercialization and Deployment,”
<http://www1.eere.energy.gov/commercialization/abouttheprogram.html>.
BREAK
R&D Commercialization
Process
R&D Commercialization Process
Select
•
•
•
•
•
•
Evaluate
Protect
Strategy
Finance
Launch
Select the innovation
Evaluate the innovation
Protect the intellectual property
Develop a commercialization strategy
Finance the commercialization
Launch the commercialization
USAID Jordan Economic
Development Program (SABEQ)
Select the Innovation
Select
Evaluate
Protect
Strategy
Finance
Launch
• Identify key innovation from research
results
• Gather documentation
• Communicate intent to commercialize
USAID Jordan Economic
Development Program (SABEQ)
Gather Documentation
• What is the name or title of the innovation?
• What is a description or summary of the
innovation?
• What is novel or unique about the innovation?
• Why is it valuable?
• What are the benefits of the technology?
• What are the advantages over similar
technologies?
USAID Jordan Economic
Development Program (SABEQ)
Evaluate the Innovation
Select
Evaluate
Protect
Strategy
Finance
Launch
• Perform assessments of
– Maturity
– Marketability
– Patentability
USAID Jordan Economic
Development Program (SABEQ)
Marketability
• Examine supply and demand of the end product
• Demand
– Who are the potential buyers of the technology and
what quantities might they purchase?
– How does demand look now and in the future?
• Supply
– Is there a firm(s) that can manufacture and sell the
end product at a price that covers costs and provides
a return?
USAID Jordan Economic
Development Program (SABEQ)
Patentability
• The ability to protect the innovation with a patent
or other intellectual property right
• Patents are issued under certain conditions
– Industrial applicability (utility or usefulness)
– Novelty (no prior art)
– Non-obviousness
• Perform a literature search and patent search
USAID Jordan Economic
Development Program (SABEQ)
Assessments Determine
Commercialization Potential
Maturity
Marketability
Patentability
Commercialization Potential
USAID Jordan Economic
Development Program (SABEQ)
Protect the Intellectual Property
Select
Evaluate
Protect
Strategy
Finance
Launch
• Determine type of protection
• Determine jurisdiction of protection
• File patent application
USAID Jordan Economic
Development Program (SABEQ)
Type of Protection
• Patents
– “the grant of a property right to the inventor”
– Fixed period—20 years in Jordan
• Trademarks
• Copyrights
• Trade secrets
– Technology is not disclosed by its owner
– Use of non-disclosure agreements to maintain
confidentiality
USAID Jordan Economic
Development Program (SABEQ)
Determine Jurisdiction of
Protection
• Intellectual property is regulated at the national
level
– Ministry of Industry and Trade in Jordan
• World Intellectual Property Organization (WIPO)
harmonizes patent law among countries
– Offers an international registration system for
intellectual property, where one application pursues
patent protection in multiple countries
– Jordan is not a signatory to the Patent Cooperation
Treaty
USAID Jordan Economic
Development Program (SABEQ)
File Patent Application
• Patent Law details the procedure for filing a
patent application
– List of documents in Patent Regulations
• File early in the commercialization process
– Patent goes to the party that files first
– Certain events impact patentability, such as first
publication, first use, or first offer for sale
• Filing date is a key piece of information
– Establishes the conditions of novelty and nonobviousness on that date
USAID Jordan Economic
Development Program (SABEQ)
Develop a Commercialization Strategy
Select
•
•
•
•
Evaluate
Protect
Strategy
Finance
Launch
Determine level of researcher involvement
Find collaborators
Determine the path
Write a business plan
USAID Jordan Economic
Development Program (SABEQ)
Find Collaborators
• Identify the people who might be involved
in the commercialization of the technology
– Roles: companies, end users, investors, and
technology management offices
– co-investigators, mentors, and other advisors
– specialists or consultants, such as patent
attorneys
USAID Jordan Economic
Development Program (SABEQ)
License
Startup
Partner
Commercialization
Determine the Path
USAID Jordan Economic
Development Program (SABEQ)
Source: Tony Stanco, National Council of Entrepreneurial Tech Transfer, “Researcher Commercialization Course,” NCET2 Researcher Commercialization Course,
Lecture 1: Commercialization Methods, <http://researchercourse.ncet2backoffice.org/images/powerpoint/tonyncet2researchercommercializationlecture1.pdf>.
Determine the Path, cont.
• Licensing of the technology in exchange for a
fee
– Researcher can continue research
• Forming a startup is a new company for the
purpose of commercializing a technology
• Partnering can take the form of a strategic
alliance or joint venture
– Complementary resources, mutual benefit
USAID Jordan Economic
Development Program (SABEQ)
Business Plan Elements
•
•
•
•
•
•
•
•
•
Executive Summary
Market Analysis
Company Description
Organization & Management
Marketing & Sales Management
Service or Product Line
Funding Request
Financials
Appendix
USAID Jordan Economic
Development Program (SABEQ)
Source: U.S. Small Business Administration, “Write a Business Plan,” <http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.html>.
Finance the Commercialization
Select
Evaluate
Protect
Strategy
Finance
Launch
• Research investors
• Solicit support
USAID Jordan Economic
Development Program (SABEQ)
Research Investors
•
•
•
•
•
•
Business plan competitions
Friends and family
Non-profit grants, government grants
Angel investors
Broker/dealers
Venture capital firms
USAID Jordan Economic
Development Program (SABEQ)
Source: University of Southern California, Stevens Institute for Innovation, “Raising Venture Capital,” <http://stevens.usc.edu/start_raisevc.php>.
Solicit Support
• Present business plan to potential
investors and getting their investment
• Not all investment will come at once
– Multiple rounds of financing
USAID Jordan Economic
Development Program (SABEQ)
Launch the Commercialization
Select
Evaluate
Protect
Strategy
Finance
Launch
• Implement the plan
• Manufacture the end product
• Sell the end product
USAID Jordan Economic
Development Program (SABEQ)
Lessons Learned from
Experts
Guest Speaker
• Ms. Penelope Shihab, General Manager,
MONOJO
– MONOJO specializes in the development,
production and marketing of cell lines and
antibodies
USAID Jordan Economic
Development Program (SABEQ)
BREAK
Case Study
Organize
• Break into 2 or 3 groups by field of
research
• Use the computer lab across the hall for
research, presentation
• Present results to entire group
USAID Jordan Economic
Development Program (SABEQ)
EXERCISE
• Select a [renewable energy] technology with
commercial potential. Answer the following
questions:
–
–
–
–
–
–
What is the innovation? What is the end product?
How mature is it? Is it marketable? Is it patentable?
How will you protect it?
What is the commercialization strategy?
How will you finance it? Who are your investors?
What are your challenges/barriers?
USAID Jordan Economic
Development Program (SABEQ)
Final Remarks
Review Workshop Objectives
• Understand the process of R&D
commercialization
• Learn tips and techniques to increase
success and shorten timelines
• Broaden participant knowledge so that you
may in turn teach the key points of the
workshop at your home organization
USAID Jordan Economic
Development Program (SABEQ)