Building Linkages & Picking Winners A Government Lab Perspective Mike Walker Commercialization Branch, NRC FPTT Annual Meeting Halifax 2004 A Government Lab Perspective Mike Walker Commercialization Branch, NRC FPTT Annual Meeting Halifax 2004

Technology Market The innovation life cycle focuses on the development of science and technologies through research, prototype and production. Innovation does not necessarily generate a commercial product. The commercialization life cycle focuses on the needs of existing and potential customers. Commercialization identifies target market segments, value propositions, and functional relevance from the customer’s point of view. Innovation is Technology-centric Innovation is Technology-centric Commercialization is Market-centric Commercialization is Market-centric

Relevance Relationships Funding Technology Market Collaborations Market Intelligence Market Access Business Skills Interoperability Success depends on Market Relevance Success depends on Market Relevance Success depends on Technology Relevance Success depends on Technology Relevance Funding

Technology Market To transform a “technology” to market success, requires tight integration of the innovation-commercialization functions to overcome the “Functionality Barrier”. “Technology Commercialization” is a misnomer. The Functionality Barrier is overcome when >> technologies are transformed into applications, >> applications into products and services, and >> product and services to target market segments. To transform a “technology” to market success, requires tight integration of the innovation-commercialization functions to overcome the “Functionality Barrier”. “Technology Commercialization” is a misnomer. The Functionality Barrier is overcome when >> technologies are transformed into applications, >> applications into products and services, and >> product and services to target market segments. The Functionality Barrier

Integration & Collaboration To be successful, both the innovation and the commercialization processes need to be considered and balanced. Supporting one at the expense of the other will minimize the economic return on investment and its overall impact. Incremental value will be created when both cycles are integrated and supported. “Strong innovative companies move beyond the simple dichotomy of ‘market pull’ versus ‘technology push’ to embrace both sides of the equation.” Conference Board of Canada “Strong innovative companies move beyond the simple dichotomy of ‘market pull’ versus ‘technology push’ to embrace both sides of the equation.” Conference Board of Canada

Intellectual Property Management ( How Do We Pick the Winners?) Technology Strength Market Potential LOWHIGH LOW Niche Opportunities Abandon Donate Potential stars or High impact licenses and new ventures

Management “flow” of IP Generate IP Protect IP Manage IP Portfolio Develop IP Exploit IP “Tech Transfer”

Collaborative Agreements with Canadian Firms NRC signed 326 new collaborative agreements with Canadian partners in FY 2002/03 Currently, NRC has 1,021 active collaborations with Canadian partners

Industry Partners within NRC Facilities 95 companies now co-located or incubating within NRC facilities. Internal network developed to facilitate access to: –IRAP, CISTI –Business intelligence –Research partnering –Administration services