1. What can Parliamentarians Do? CPA, London, United Kingdom
Technology Transfer
What can Parliamentarians Do?
CPA, London, United Kingdom
26 July 2011

2. The commercial challenge
How do you get from technical ‘proof of concept’ to broad-scale market penetration?
Technical
‘proof of concept’
£300 bn
Publicly
Funded
Research
Developt &
early market entry
Venture
Capital
Investment
Round(s)
Growth Phase
Acquisition By
Technology
Company
Commercial
Maturity
Broad-Scale
Market
Adoption

3. The market is inefficient
Established technology companies are conflicted: adopting better, cheaper technologies simply cannibalises their existing business.
In developing country market established companies may not exist
Technical
‘proof of concept’
Developt &
early market entry
Growth Phase
Commercial
Maturity
£300 bn
Publicly
Funded
Research
Venture
Capital
Investment
Round(s)
Acquisition
By Tier One
Technology
Company
Broad-Scale
Market
Operation
To Partners’
Benefit

4. There is a critical resource gap
Technology transfer offices do not have the skills and resources to develop an investible commercialisation plan.
Traditional VC model is not to rescue good technologies from bad business plans.
Technical
‘proof of concept’
Developt &
early market entry
Growth Phase
Commercial
Maturity
£300 bn
Publicly
Funded
Research
Venture
Capital
Investment
Round(s)
Acquisition By
Technology
Company
Broad-Scale
Market
Adoption

5. H2O fills the resource gap
Solution 1: harness H2O scouting process to the strategic needs of our Partners to identify best available technologies.
Technical
‘proof of concept’
Needs-driven
technology ID
Scout Best
Available
Technology
To Meet
Need
Developt &
early market entry
Growth Phase
Commercial
Maturity
£300 bn
Publicly
Funded
Research
Venture
Capital
Investment
Round(s)
Acquisition
By Tier One
Technology
Company
Broad-Scale
Market
Adoption

6. H2O fills the resource gap
Solution 2: harness H2O’s team of experienced technology entrepreneurs to our partners’ network to take technologies through ‘proof of value’ and into the market.
Technical
‘proof of concept’
Needs-driven
technology ID
Commercial
‘proof of value’
Developt
& Spinout
Creation
Developt &
early market entry
Growth Phase
Commercial
Maturity
£300 bn
Publicly
Funded
Research
Scout Best
Available
Technology
To Meet
Need
Venture
Capital
Investment
Round(s)
Acquisition By
Technology
Company
Broad-Scale
Market
Adoption

7. What Can Parliamentarians Do? “Roots & Shoots” Model
Technology
Scout
Process
Identify Which Markets to Stimulate
National Level Strategic Thinking
Nurture Commercial “Shoots”
Into Local Markets
Public Support to Leverage Private Investment
£300 bn
Publicly
Funded
Research
Cherry Pick
Best
Technology
To Meet
Need
Establish
NewCo
Around
Best
Technology
Bed Down “Roots” Into
Local Research Base
Translational Research Funding
Technical
‘proof of concept’

8. The opportunity
The world spends iro £300bn on publicly funded research annually; the technology outputs mostly neglected.
Technology transfer system is hugely inefficient
Technology Transfer Offices are grossly under-resourced;
Venture Capital (if available) needs well developed business plans;
Incumbent tech companies (if they exist) view innovation as a risk.
Key limiting factor: experienced technology entrepreneurship
Research Institutions lack the skills and resources to develop high quality commercial propositions from raw technology
Venture Capital will not invest in undeveloped propositions
Challenge to pull the best available technologies through to market
Opportunity to cherry pick the best of the world’s publicly funded research output to meet market needs, unlock financial returns and deliver long-term social impact
Several lines of evidence for under-exploitation.
Value of IP Group / Qinetiq versus commercial R&D spend
Tom Hockaday thinks spinout rate at Oxford (exceptionally well-resourced University) could double with better resourcing.

9. Dr Paul Coleman