1 University of Southern California School of Engineering Technology Transfer Center Accessing NASA Technology Innovation Ken Dozier NASA Far West RTTC 10/23/02

2 University of Southern California School of Engineering Technology Transfer Center Organization History 1967 NIAC Started 1976 Subsidized Information Searches 1982 Information Services Expanded, RISS Launched 1984 Affiliate Network Starts 1991 Affiliate Network Expands 1992 USC Selected as RTTC 1994 Wins TRP Award 1997 ETTC Formed Far West Mid - Continent Southeast Mid-WestNortheast Mid-Atlantic Since 1967, USC has been developing Primary Market Research for NASA in the area of Technology Transfer. B01-003

3 University of Southern California School of Engineering Technology Transfer Center “When the Rate of Change Outside is Greater Than the Rate of Change Inside, The End Is In Sight” Jack Welch, Chairmen General Electric The Future

4 University of Southern California School of Engineering Technology Transfer Center “ According to Silicon Valley CEO’s, 60 % of the high-tech items they manufacture today did not exist 10 months ago” Lon Hatamiya, Secretary - California Trade and Commerce Agency Velocity “Startups are now expected to go public within 6-18 months after venture investment” Donna Jensen, Founder and CEO of startups.com

5 University of Southern California School of Engineering Technology Transfer Center “where... The ENIAC is equipped with 18,000 vacuum tubes and weighs 30 tons, computer in the the future may have only 1,000 vacuum tubes and weigh only 1.5 tons” - Popular Mechanics, 1949 “I predict the internet... Will go spectacularly supernova and in 1996 catastrophically collapse ” - Bob Metcalfe, 3COM founder and inventor, 1995 “This ‘Telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us” - Western Union, Internal memo, 1876 “The problem with television is that the people must sit and keep their eyes glued on a screen; The average American family hasn’t time for it” - New York Times, 1949 “There is no reason anyone would want a computer in their home” - Ken Olson, president and founder, Digital Equipment Corp., 1977 “Man will never reach the moon, regardless of all future scientific advances” Lee De Forest, Radio Pioneer, 1957 The Future

6 University of Southern California School of Engineering Technology Transfer Center What is Knowledge ? TruthKnowledgeBelief Universal No Debate Effect Social Converge on debate Cause Personal Diverge on debate Cause 10 Philosophical Mistakes (Adler 85)

7 University of Southern California School of Engineering Technology Transfer Center 1 st Perspective Knowledge is a New Kind of Asset –The foundation of industrialized economy is shifting from natural resources to intellectual assets (Hansen 99) (Davis 98) –Knowledge assets are viewed as factors of production that may be more important than traditional resources of capital, labor and land. (Davis 98) –Converging technologies and rapid innovations can transform markets Overnight. Administrative systems no longer provide the underpinnings of value creation. (Teece 98) –Reward goes to those who are good a sensing and seizing opportunities. Dynamic capabilities are most likely to be resident in firms that are highly entrepreneurial. (Teece 98)

8 University of Southern California School of Engineering Technology Transfer Center Global Competition Source: The world Competitiveness Yearbook IMD International 3 Finland 4 Luxembourg 5 Netherlands 6 Hong Kong 7 Ireland 8 Sweden 9 Canada 10 Switzerland

9 University of Southern California School of Engineering Technology Transfer Center Industry Clusters (ERI/McGraw Hill,”America’s Clusters”,1996)

10 University of Southern California School of Engineering Technology Transfer Center The Evolution of Industry (ERI/McGraw Hill,”America’s Clusters”,1996)

11 University of Southern California School of Engineering Technology Transfer Center Clusters Gus Koehler, USC B01-043

12 University of Southern California School of Engineering Technology Transfer Center Clusters Gus Koehler, USC B01-044

13 University of Southern California School of Engineering Technology Transfer Center Clusters Gus Koehler, USC B01-045

14 University of Southern California School of Engineering Technology Transfer Center Clusters Gus Koehler, USC B01-046

15 University of Southern California School of Engineering Technology Transfer Center 2nd Perspective Entrepreneurship Super Normal Wealth Creator –Business Environments Have Become Hypercompetitive because of the High Magnitude and Velocity of Interfirm Rivalries (D’Aveni, 94) –Innovations in Products, Services, Business Processes, and Organizational Designs are Creating Dramatic Discontinuities in Product- Market Spaces and Disrupting the Traditional Approaches to Competitive Strategies and Business Conduct (Christensen, 97) –In the Short Run, Entrepreneurial Firms Reaps Supernormal Returns (Create Wealth) as Established Incumbents and Rivals Seek to Understand the Competitive Disruptions in their Market Space.(Christensen 97) –Thus Competition Occurs in the Form of a Series of Market Disruption Moves by New Entrants or Entrepreneurial Firms and Efforts by Incumbents and Rivals to Shape Their Response Actions (Young et al 96)

16 University of Southern California School of Engineering Technology Transfer Center Make & Sell vs Sense & Respond Incubators and Science Parks created to bridge gap between development and commercialization Chart Source: Corporate Information Systems, Applegate Venture: Niche markets, public trading (pull) Federal Agencies, SBIR: Mission Based, Linear (push) Universities: Curiosity Based, emerging, (push) Chabol (large companies) hierarchy, products based, (push)

17 University of Southern California School of Engineering Technology Transfer Center Lottery-Ticket Stocks StocksBull market peak Close Percentage Decline Vitesse Semiconductor$106.13$ % UAL (United Airlines)$ 98.00$ % Charter Communications$ 26.31$ % Calpine$ 56.99$ % Sun Microsystems$ 64.31$ % Flemings$ 37.30$ % AT&T Wireless$ 35.25$ % AMR(American Airlines)$ 43.75$ % Six Flags$ 40.25$ % Charles Schwab$ 50.17$ % Source: Bloomberg News as quoted in the LA Times

18 University of Southern California School of Engineering Technology Transfer Center Developers Drivers Gates “Microsoft”Xerox Jobs “Apple” Xerox Clark “SGI” E&S, Stanford Clark “Netscape”University of Illinois Licensing Wealth

19 University of Southern California School of Engineering Technology Transfer Center Market Redefinition:Radical Change Seven Organizational Change Propositions, Venkatraman 1994

20 University of Southern California School of Engineering Technology Transfer Center RTTC Focus:Discovery Zmud 2001

21 University of Southern California School of Engineering Technology Transfer Center 3rd Perspective Entrepreneurial Firms Represent a New Online Community Network computing, supported by advanced communications infrastructure, can facilitate collaborative entrepreneuralism (Teece 98) Successful business models set themselves apart in their communication design leading to a deconstruction of traditional value chains and the emergence of value Webs. (Lechner 01) The most critical factor for a venture business success is how to implement and commercialize lab-based technology/knowledge/ideas into actual products and/or services (Sung 01) Entrepreneurial firms use knowledge to reshape clusters of assets in distinctive and unique combinations to serve ever changing customer needs. (Teece 98) The key sources of wealth creation at the dawn of the new millennium will lie with new enterprise formation. (Teece 98)

22 University of Southern California School of Engineering Technology Transfer Center Online Community Subscribers Netiquette Self Organized Non-Commercial Culture Community = Set of Agents + Medium Agents = user groups Medium = Internet Communities - Business Models and System Architectures: The Blueprint of MP3.com, Napster and Gnutella Revisited, Lechner

23 University of Southern California School of Engineering Technology Transfer Center Components of a Medium Knowledge Intention Communities - Business Models and System Architectures: The Blueprint of MP3.com, Napster and Gnutella Revisited, Lechner

24 University of Southern California School of Engineering Technology Transfer Center Evidence from Practice Secondary Market Research as practiced by expert communities may be not be producing market knowledge fast enough or broad enough for modern high velocity markets –Market analysis of existing markets was not encouraging A KMS that uses IT to gather primary market information rapidly, facilitates the complex transformation between basic research (IP) and commercialization (Wealth) –Online research for potential markets has changed the lens –MOB/WOB community is rich with profitable SMEs

25 University of Southern California School of Engineering Technology Transfer Center Market Research Repository You can sort or filter you selection Each technology list the available primary marker research we have done.

26 University of Southern California School of Engineering Technology Transfer Center MULTI-CHANNEL SPATIALIZATION SYSTEM FOR AUDIO SIGNALS U.S. patent 5,438,623 (August 1, 1995) PROBLEM ADDRESSED separation of auditory inputs by simulation of different source locations TECHNICAL APPROACH (1) use of synthetic auditory head related transfer function (HRTF) to simulate different virtual spatial source locations for up to five auditory signals; (2) analog-to-digital conversion for noise-free processing with HRTF, and subsequent digital-to-analog conversion for presentation of modified signals to right and left ears POTENTIAL APPLICATIONS teleconferencing, aeronautical communications, virtual reality video games, command and control BENEFITS (1) binaural hearing advantages: substantial improvement (6-8 dB)in signal to noise; faster reaction times, less listening fatigue, increased perception and immersion; (2) less expensive than general purpose 3D audio displays; (3) customizable; (4) user-friendly, not requiring computer interface Docket Example

27 University of Southern California School of Engineering Technology Transfer Center Gather Competitive Intelligence By using the CAP Tools, you can collect industry feedback and potential commercial applications. B01-063

28 University of Southern California School of Engineering Technology Transfer Center The Radar

29 University of Southern California School of Engineering Technology Transfer Center CAP Tools (Explicit) In the CAP, say you need to build a Technology Status Report. Clicking on the link, brings up more information about what is a Technology Status Report (TSR), including an example. Clicking on the details button reveals more information about the TSR.

30 University of Southern California School of Engineering Technology Transfer Center Market Wanted Innovations Real time General Solution (360 sphere) Low Cost Head Orientation Sensitive Set Top Box Sound Card Add in Listener Location Independence

31 University of Southern California School of Engineering Technology Transfer Center MOB/WOB Firm Breakaway –On going profitable south central MOB IT Service Business –Strong Private and Public Network –No Products –Strong business relationship with Microsoft Far West –Assisted with Business Plan –We located Physicist –Located Chip Designers –MOU in process with Taiwan partner for chip fabrication –Assisting with SBIR and STTR to ensure dual use –Prepared mathematical demonstration of algorithm

32 University of Southern California School of Engineering Technology Transfer Center Leveraging Existing Network Breakaway will take lead on SBIR Phase I and Phase II (hopefully) Far West RTTC will support USC School of Engineering will support STTR work. Large Chip manufacturer is monitoring process Large Set Top Box manufacturer is monitoring process VC is monitoring process Investment Bank is monitoring process DoD is monitoring process Time to Market 24 to 36 months

33 University of Southern California School of Engineering Technology Transfer Center Assessing Your Technology Industry Adoption of Technology Executive’s Approach to Technology CEO Not InvolvedCEO Involved Before Technology (Non-Customer Facing) After-Technology (Customer Facing) B CIO Magazine June 2002