1 Impact from Innovation Managers’ Association Meeting 8 October 2008 Rod Hill PVC, Industry Engagement and Commercialisation The Commercialisation Challenge

2 Role of Technology Transfer Offices (IE&C) May be part of the application for financial support:  Client identification and engagement strategy  Contract terms Recording of invention and copyright disclosures; Assessment of invention and copyrightable work:  Novel, non-obvious, useful; Negotiation with patent, trademark and copyright offices to obtain appropriate legal protection:  Provisional, PCT and National Phase Advice on invention transfer to end user:  Assistance with Business Plan development  Identification and securing of financial backing necessary to convert to a product or process – Proof of Concept;  Searching for, and engaging with licensees – VC, company  Assistance with creation of spin-out companies Ensuring the innovation achieves the maximum benefit for business and society

3 ‘Hub and Spoke’ Model for IE&C Spokes (Business Development Managers in Faculties): Mapping of IP-research landscape (mostly within the Faculty) Development of commercial opportunities with companies Identification of BD opportunities with researchers Development of business plans Early negotiation of contract terms with companies Hub (‘Central’ Group in Bldg 75): Broad university IP&C strategy and policy development Facilitating complex cross-discipline interactions Management & advice on complex commercial deals Major client engagement Development and management of CRM systems Oversight of quality and implementation of policy With lots of overlap and mutual support

4 IE&C Organisational & Functional Chart Teamwork, with some overlapping coordination Focus on cross-Faculty engagement Strong linkages with BDMs and ADRs Strategic Relationships Quality Transactions

5 Linking Strategy to Structure and Action Clayton Precinct (& Mktg Comms) Industry Engagement BDMs Links to Monash’s (and Precinct’s) capabilities and strengths – ‘Path to Market’ Research Partnerships BDMs Involvement of external research partners, CRCs, etc (when appropriate) BDMs Major deals, alliances & JVs Quality commercial negotiation, deal closure and investment policies and procedures Operations (& Finance) BDMs High quality IE&C operational processes and data management – ‘Easy to Deal With’ Depts, Schools, Faculties, Institutes BDMs Excellent research and project management systems Intellectual Property BDMsMajor deals, alliances & JVs Protection and management of the innovation, and developing commercialisation strategy Major deals, alliances & JVs Investment Policy BDMs Major funds-raising and spin outs Industry Engagement Major deals, alliances & JVs BDMsCustomer relationship management (CRM), including forming alliances, MoUs, JVs etc Impact from Innovation IE&C & BDM Group RolesWhat we Need Clayton Precinct Industry Engagement BDMs Understanding of the sector/market needs and defining the Value Proposition Market Intell.

6 Recent Major Revenues to Inventing Institutions Monash IVF (Monash): ~$100M Gardasil (UQ): ~$80M Carbon Energy (CSIRO): ~$50M

7 Commercialisation: Major Impacts Monash IVF - ~$100M of realised equity in 2007 and ~$100M from royalties over 20 years Metabolic – progressively sold down from 2003 to 2007, yielding $13.0M Acrux – revenue from share sales $287K and from royalties $355K from 2005 to 2007 Equity – value of the University’s share portfolio (15 Companies) at 23 Sept 2008 was $3.5M

8 Monash Spin-outs – Last 5 years

9 IE&C Commercialisation Achievements – 2008 MIH: Cortical - further $1.3 Million cap raising and improved shareholder position for Monash Pathway - 5% equity position, IP License and research agreement ($300K) - $10M raised from VCs Ofidium - equity transaction and participation in further capital raising - $6M Other: Circadian - cancer vaccine project review and extension (ARC Linkage) - $1.4M Australian Stem Cell Centre - key account management - numerous agreement extensions (> $1M) Water Harvesting Technologies – contract and licence for storm water management ($1.25M) Darval sponsored research agreement - $420k Viagen - research contract - $200k Diagnotech - contract extension - $250K Norwood Immunology - key account management - various MNHS Faculty - Multiple research contracts for ($2M+) Management of ~13 CRC engagements for the Unjversity ($7.8M in 2007) Proof of Concept Fund ($150K pa) Trans Tasman Commercialisation Fund ($30M Westscheme and $1.25M DIIRD)

10 Major Actions ‘On Foot’  Novo Nordisk - strategic commercialisation alliance for protein purification (~$3M);  Pfizer Animal Health ARC linkage agreement finalisation ($400K)  Glutamic Acid Decarboxylase - novel neurological therapeutics commercialisation;  IBM - Bachelor of Business Program ($1.4M from industry partners), plus in-house professional development;  EOI to Diversity and Structural Adjustment Fund – IBM, Visy & other major industries in the Services Sector ($400K from the Fund, $1.0M from the Industry partners);  Rio Tinto - Sustainable Mining Dwelling (total = $1.7M), and Computational Tectonics;  Myer Foundation - Monash as Host Organisation for ClimateWorks ($5.2M from Myer and negotiations with Potter Foundation – total $13M);  Visy Industries - Career Pathways for Young Employees in Manufacturing ($103K), plus discussion on C-trading and philanthropy;  Chalco – research projects ($2.3M), plus discussions on establishing a major presence in the Clayton Precinct.

11 Industry Engagement and Commercialisation Office

12 First Impressions – from 6 Months at Monash Some Challenges to Consider Lots of great research But mostly done in isolation of the rest of the university Lots of great innovation But an undeveloped sense of how to protect and take it to market Huge outputs of information Without systems for its collection and dissemination Great potential to deliver multidisciplinary innovation But stymied by possessiveness and fear of dilution of rewards A desire to do everything When critical mass, world-class and differentiation call for focus Great pride in what is being done But not enough confidence and commitment to “sell” it A passionate commitment to academic freedom When this may not always be in the best interest of the university In summary: Staff work in Monash, rather than for Monash

13 IE&C Strategy – Key Messages Understand what are Monash’s Research Strengths and Differentiated Value Proposition; Match these strengths to specific business and societal needs; Acknowledge the importance of enduring relationships, and set up systems to support this; Draw resources from across the University (and externally) to maximise the value proposition for industry; Facilitate the adoption of the University’s innovation Build a culture that seeks to deliver impact rather than revenue per se; Industry Engagement ‘Commercialisation’

14 Achieved Through a Movement From: Transaction to Relationship Opportunistic to Targeted Push to Pull Individual to Team Project to Program ‘Research Group’ to University Revenue to Impact

15 Strategy 1: Thinking about things differently

Seeing things differently From this: To this:

Prioritising Investment Differently  The emerging technologies, processes, social norms that are going to change the game  The future needs of customers and stakeholders, and how these needs should be addressed  The drivers for Departments, Schools or Faculties in the future Roadmaps and Positioning Analyses help in making the right decisions about …

18 Recent Actions by Monash (1) Creation of new positions: –PVC Industry Engagement and Commercialisation –Director, Industry Engagement –Manager, Clayton Precinct Project –Extra administration and contracting support in the Central Office (x2) –Additional Faculty-based BDM’s (x5-7) Redefinition of the strategy, roles and functions of the IE&C Group Revamping of the IP and Commercialisation Advisory Committee and the innovation protection process Review of Research Contracts policy and practices within Monash

19 Recent Actions by Monash (2) New strategic approach to large-company engagement - Key Account Management New ARC Linkage Program strategy (with Research Office) New Costing Model developed (with FiRM) Assistance with Faculty-based market analysis and strategic planning Leadership of Clayton Innovation Precinct strategy development

20 Issues on the Boil Recruitment of new BDMs Research contract policy and guidelines review Template NDAs, MTAs, Contracts Clayton Precinct Engagement Strategy Capabilities Review and link to priority Sectors CRC investment strategy Customer Relationship Database Development of strategic customer relationships with: Rio Tinto, IBM, GE, Chalco, Myer, VISY, etc

21 Cross-collaboration Relationships

22 Case Studies 1.Science + IT:  Started as a proposal to Rio Tinto (and BHPB) for structural tectonics in Geosciences  Significant value-adding from IT in data mining and risk management 2.IT + BusEco + Education:  Started as a proposal to IBM for Services Science research  Ending up with a focus on internships and professional development, and organisational optimisation 3.IT + BusEco + Education:  Started as a proposal by IRT for minerals railway technology  Expanded to include roads (MUARC) and system optimisation (IT and BusECo)

23 Related Capabilities Monash Medical Centre Faculty of Business Economics Faculty of Art & Design Monash Sustainability Institute John Monash Science School Electron Microscopy Centre Climate Modelling & Adaption Biomedical Imaging Centre of Policy Studies Information Technology Antibody Production Australian Stem Cell Centre Faculty of Arts Enhancing Collaboration – New Horizons (HEEF) New Horizons Platforms Skills Shortage Challenge Value-added Niche Manufacturing Ageing & Disease Economic & Environmental Sustainability Light Manufacturing Health & Wellbeing Impact Domains Education & Training Green Chemistry Regenerative Medicine (antibodies, stem cells) Nano-sciences High Performance Computing Engineering Modelling & Simulation Biomaterials Science & Engineering CoE in Light Metal Design Light Metals Flagship Facilitated by Co-location with CSIRO e-Research IP Management & Commercialisation Industry Linkages Australian Synchrotron Melbourne Centre for Nanofabrication Cross-disciplinary Networks within the Precinct and Internationally SME Engagement Centre for Electromaterials Science

24 Collaboration with Faculties Attendance of Deans/ADRs at CIPAC meetings Encouraging applications for PoC and TTCF funding Help with induction of new BDM cohort – ‘mentors’ Support for the cross-Faculty role of BDMs Inclusion of IE&C in capability review & priority setting Decisions on priority customers for strategic engagement Establishment of Sector/Faculty Advisory Groups, with strong industry representation Attendance at IE&C seminars

25 Practical Strategies for Industry Engagement Establish Sector/Faculty Advisory Groups with industry representation; Work with these groups and IE&C to help define strengths and differentiated value proposition; Use this to define a whole-of-system strategy for engagement with key companies and/or Govt stakeholders; Leverage/facilitate industry support with ARC Linkage Grants; Use Institutes, Centres & CRCs as multidisciplinary gateways; Contribute to Research, Technology and Innovation Initiatives (e.g., TCAP, ASIRC, NanoVic, VCAMM); Work hard on research partnerships with CSIRO (e.g., Flagship Collaboration Fund) and other research agencies; Use BDMs, Central Office and CIPAC for BD&C and IP advice; Use PoC and TTCF for source of funds to bridge the “Valley of Death”

26 Discussion