1. World Bank, ME & LDA seminar
Peter Lindholm
Organising and operating technology commercialisation
World Bank, ME & LDA seminar
Riga June 9th 2004

2. Summary A few key words Issues Necessary ingredients The inno model
Expected outputs

3. 1 - A few key words
Commercialisation has little to do with scientific excellence, it is about money
More than one Beneficiary (researchers, institutions, local authorities, State)
Commercialisation is about skills
No magic “Graal” in this business

4. Patent Exploitation
“A patent is an article of trade, not an academic award”
Systematic selection of ideas and inventions aiming to assess exploitability
Only inventions with believed potential to successfully compete on the market are supported
Out of these the most promising projects are singled out and concentrated upon
One reason is:
only 20% of all claimed patents are subject to Intellectual
Property Rights (IPR) and are effectively in use.
25 % state of the art => no patent
5 % unrealisable
10 % other solution
10 % not marketable
30 % patentable but not in use
Exploitability is the decisive factor for activities. If an invention is not exploitable even on a long-term perspective there is no use to research its patentability.

5. 2 - Issues
Evaluating the existing potential of « objects » to be commercialised?
Willingness of players to enter into a strong commercialisation process
Availability of resources and competences to start the process

6. Value creation through the innovation lifecycle
R&D Organisations
Course of
exploitation
Capital inflow from
exploited research
(added funds for further research)
Research Projects
> Spin-outs
> Start-ups
> Licensing
Intellectual Property
“Archives” = Negative Inflow

7. 3 - Necessary Ingredients (1)
A portfolio of many researchers to ensure a permanent deal-flow of innovations
Experience shows that a minimum of researchers is needed to sustain a proper commercialisation team

8. 3 - Necessary Ingredients (2)
A strong consensus between the different stakeholders
Commercialisation of public research is a complex process that often « hearts » researchers’ culture. Gaining support from researchers, heads of departments, chancellors is an absolute necessity

9. 3 - Necessary Ingredients (3)
Agree on measurable targets
Turnover
Start-ups
Growth of existing companies
Joint-ventures
Research contracts

10. 3 - Necessary Ingredients (4)
Time
Time to find out what can be commercialised and under which form
Time to convince researcher to participate actively in the process
Time to find customers
Time to close deals

11. 3 - Necessary Ingredients (5)
Attract Competences
Commercialisation implies a team of efficient, fast, flexible and very motivated individuals with inter-cultural skills
Need of enough people to cover all commercial aspects
Capacities to speak to research teams AND international companies

12. 3 - Necessary Ingredients (6)
Proactivity
Visit all R&D teams
Create trust
Maintain continuous links
Focus on group of R&D teams willing and able to enter the process
Attract the other teams with a case by case approach

13. 3 - Necessary Ingredients (7)
Stop « Fairy Tailing »
The stock on the shelf is rarely of high value
Other research teams do similar things
Companies do not always look for state of the art research, they search for technologies immediately usable

14. 4 – The inno Model (1) Establishing a commercialisation company
A Private-Public-Partnership organised between all stakeholders
A business plan as for a start-up
Enough starting capital to start the process
Recruiting highly skilled, highly motivated staff

15. 4 – The inno Model (2) Being liable for results
Agree on goals with the different stakeholders (R&d teams, R&D institutions, Regional Authorities)
Being monitored and measured on a continuous basis
Adapt strategy according to needs

16. 4 – The inno Model (3) Searching for a critical mass of research
Creating a venture between local R&D organisations to ensure a critical mass of researchers allowing a continuous deal-flow and ensuring the commercialisation team has enough opportunities
Estimation 2000: circa 2500 researchers in Latvia

17. 4 – The inno Model (4) « Right of First Refusal »
Any research with commercial potential is presented to the team
The team is allowed to take or leave
If not taking, the R&D team is free to use it as they wish

18. Innovation Evaluation
Innovation value is determined through a dual-screening process
Invention
1st
“rough” screening
2nd
“detailed” screening
Patent /
Exploitation
“Gut feeling”
Experience
Early indicators
Exploitation screening
Market research / Market studies
Research / Exploring potential industrial partners
Feasibility studies
Calculations
Determination of the price on the market
Survey and verification of exploitation possibilities
Patentability screening
Patent research national / international
Determining the novelty value of the invention

19. Example of a “Votum” Introduction into the area of the invention
Task and Advantages / Disadvantages
Market Analysis and Exploitation possibilities
IPR (Industrial Property Rights / Costs)
Licensing possibilities
Recommendation

20. 4 – The inno Model (5) Managing the process Proactive visits to teams
Continuous presence on the field
Searching for clients across the world
Asking R&D teams to respond to detected needs
Consider non-patentable results

21. 4 – The inno Model (6) Money Sufficient starting capital
Continuous search for additional funds (EU, State, VCs, etc.)
Establishing a pre-seed fund to prepare good projects for the market
Protect properly the IP
Continuously look for sustainability

22. 4 – The inno Model (7) Developing Centres of Excellence
Based on market needs, favouring the creation of new centres of excellence in horizontal research fields
Entering Framework Six Projects (IPs & NoEs)

23. 4 – The inno Model (8) Being international
Benchmark research offers towards other European teams
Establish links with customers based on needs and not location
Create networks across Europe

24. 4 – The inno Model (9) A few examples
Mecklenburg-Vorpommern (2500 researchers in 9 organisations)
FZK Nuclear Centre Baden-Würtenberg (2.000 researchers)
MBDS Sophia Antipolis (1 researcher)
Lower Austria (Management of ERDF innovation Funds)

25. 5 – Expected Outputs (1) Generate income for Researchers
Research teams
Research Institutions
The investors (public & private of the PPP)

26. 5 – Expected Outputs (2) Develop entrepreneurial spirit to
Help researchers becoming more opened to the usage of their work
Favour the creation of a large number of start-ups

27. 5 – Expected Outputs (3)
Facilitate the development of the National Innovation System
Help Latvian firms able and willing to access innovations
Help clarifying the dilemma between basic research versus innovation & technology

28. 5 – Expected Outputs (4) Create a strong image
Helps attracting resources
Supports the growth of the Region
Makes the Region feel more competitive
Attracts demands from local business community