Enabling R&D collaborations from an SME perspective Pierre Meloche Federal Partners in Technology Transfer June

Highlight What are the company`s primary business drivers? What are the company`s technology transfer alternatives? What does a company really want from an R&D lab or university? As a CEO, with whom do I want to tango? What does a CEO look for in a R&D collaboration agreement / license?

What are the company`s primary business drivers? maintain high ROI: be profitable or perish! –increase sales revenue, increase market share, reduce costs, higher contribution margins and higher profits maintain firm`s competitive edge in global markets by: –streamlining existing processes products –finding new business opportunities i.e. large market, double digit growth, scaleable, 35%-40% ROI maintain investor confidence by: –addressing shareholder expectations through higher EPS and higher company valuation –finding affordable capital to finance growth

What are the company`s primary business drivers? (cont’d) maintain client satisfaction through improved products and services by: –addressing the clients’ pain –reducing selling price –adding more functionality –ensuring on-going client support and product maintenance satisfy industry needs with innovative, evolutionary and/or disruptive products

What are the company`s technology transfer alternatives? develop technology in-house acquire technology by either merging with or acquiring another organization collaborate with R&D lab or university a few key considerations: –need first mover advantage –window of opportunity is limited –time is of the essence, –too few $ for development / too long to get to market / too late to market!

What does a company really want from an R&D lab or university? innovative technologies that create complementarity and synergy with existing company products and services finding the WOW factor! finding a technology prototype that is bug-free, allows for rapid development with few surprises and has little draw on working capital access to unique scientific / technical expertise and facilities unfettered access to the technology find a collaborator with the right solution at the right price that will generate profits!

As a CEO, with whom do I want to tango? find a BDO / RO willing to listen to my needs and be understood look for builders (champions) as opposed to process enablers seek out interesting people and people interested in their work – the go getter! expect transparency want someone who exudes trust, respect and commitment

What does a CEO look for in a R&D collaboration agreement / license? wants the good, the bad and the ugly up front! wants a fair deal and avoid getting fleeced for lack of experience and knowledge the devil is in the details! seeks creative, royalty-offset solutions that satisfy both parties

What does a CEO look for in a R&D collaboration agreement / license? (cont’d) its all about Tech Push’n Pull! – engagement from the Lab seeks on-going partner cooperation and presence at product trials and a willingness to speak to potential investors explore creation of a joint technology improvement fund receptive to bundling of technologies – the all inclusive deal! flexibility to parachuting firm`s technology champion into federal lab / university

What does a CEO look for in a R&D collaboration / license? (cont’d) favors regular, proactive two-way communication seeks opportunities for joint presentations / joint publications Is the firm getting its value for the money, i.e. the royalty cheque? Is IRAP present?