From the Lab to Market ! The Basics! Presentation by Joe Graben, MBA Director – Business & Innovation Assistance Center University of Southern Mississippi $
Four Basic Steps Basic Technology Research: basic principles observed and application formulated (TRL 1-2) 1 Feasibility to basic prototype development and demonstration (TRL 3-7) 2 Prototype proven and productizing begun (TRL 8-9 and beyond) 3 Business model fully developed demonstrating investment potential 4
Step 1 – Basic R&D Basic Technology Research: basic principles observed and application formulated (TRL 1-2) The central element of this step are the sources of basic R&D: Research Universities Federal Labs Nonprofit Research Organizations Major Corporations Typically published papers and many times no patent involved. Most small tech-based businesses not involved in this fundamental level research but look to it for inspiration of potential new applications.
What the heck is a TRL? Technology Readiness Level (TRL) – a measure used by some United States government agencies and many major companies to assess the maturity of evolving technologies (materials, components, devices, etc.) prior to incorporating that technology into a system or subsystem. Generally speaking, when a new technology is first invented or conceptualized, it is not suitable for immediate application. Instead, new technologies are usually subjected to experimentation, refinement, and increasingly realistic testing. Once the technology is sufficiently proven, then it can be incorporated into a system or subsystem. Source:
Step 2 – Feasibility Feasibility to basic prototype development and demonstration (TRL 3-7) The central element of this step is answering the question, “is it an innovation?” An idea may be innovative but that does not make it an innovation. To be an innovation an idea must be developed and put into some level of common practice. (Joe’s definition) To move a technology/idea from the lab to the market one must conceive of some potentially viable application which can be implemented through development of an innovative idea (patent, copyright, trade secret, etc.) SBIR-STTR and other sources of federal funding available to small businesses at this stage.
Step 3 – Productizing Prototype proven and productizing begun (TRL 8-9 and beyond) The central element of this step is addressing market feasibility issues related to technical issues (technical feasibility is proven). Business questions – Yuk! Begin addressing other potential end user and/or customer needs. How best to manufacture the potential innovation. Time to think about issues related to patents, copyrights, trade secrets, etc. Do you license the technology? Large corporate partners? Some potential non SBIR-STTR Phase 3 funding and other sources of federal/state funding available to small businesses at this stage. Also consider large (prime contractors) and other potential strategic business partners. This is something you should have started in Step 2!
Step 4 – Business Model Business model fully developed demonstrating investment potential a technology is not a business! The central element of this step is understanding that: a technology is not a business! VCs and most other potential investors (angels) invest in a business, not a technology! Loans are made to a business, not to a technology! Development of the business model begins in Step 1. Understand Business Readiness Levels. Includes the technology, the business itself, and the market. Federal funding rarely if ever available to small businesses at this step. Welcome to the Market!
Four Basic Steps – Again! Basic Technology Research: basic principles observed and application formulated (TRL 1-2) 1 Typically outside the small business. Feasibility to basic prototype development and demonstration (TRL 3-7) 2 Innovation development funded through SBIR, STTR or similar federal programs Prototype proven and productizing begun (TRL 8-9 and beyond) 3 State seed fund, corporate partners, angel investors. Ph3? Business model fully developed demonstrating investment potential 4 Equity/VC investors and loan programs (public/private).
Last but not least! One more time - A technology is not a business! Begin with the End in mind! In “From the Lab to Market!” that would be the Market! Keep Step 4 in mind as you start from Step 1. $
To learn more about how the MS-FAST Program can help your company compete in the federal SBIR/STTR programs contact: Joe Graben, MBA Director – USM/BIAC Phone: (228) "This U.S. Small Business Administration (SBA) Cooperative Agreement is partially funded by the SBA. SBA's funding is not an endorsement of any products, opinions, or services. All SBA funded programs are extended to the public on a nondiscriminatory basis."