1. Background regarding a Proof-of-Concept program for developmental research on OIST IP Expanded comments are included in Notes at the bottom of the slides The program is managed in the Technology Licensing Section Presented for discussion at the Faculty Council meeting Feb 16 2015 R. Baughman Proof-of Concept Program

2. Denichiro “Denny” Otsuga, Ph.D. Registered Technology Transfer Professional Okinawa Institute of Science and Technology Proof of Concept Program Planning Proposal (Part 1/3)

3. What is a Proof of Concept (POC) Program? A process designed to enhance the commercial value of intellectual property/technology through focused milestone based applied research experiments InstitutionGrant SizesInitial Funding Control/Source Program Cycle Massachusetts Institute of Technology (The Deshpande Center) Phase 1 Ignition Grants Up to 50K USD Phase 2 Innovation Grants Up to 250K USD Internal/ Philanthropic donation ($17.5M USD) 2 proposal rounds per year University of California, San Diego (The von Liebig Center) Seed Funding Up to 75K USD Internal/ Philanthropic donation ($10M USD) 1-2 proposal rounds per year

4. Proof of Concept (POC) at OIST Why is POC needed?  Most intellectual properties/technologies are very early-stage and require further development for technology transfer What is the goal?  Enhance commercialization of OIST technology through: Industry Collaboration, Licensing, Start-ups, and/or early decision to abandon intellectual property to conserve resources Who is involved with POC?  Inventors of OIST technology, OIST Technology Licensing Section and external business entities When and How is a POC program implemented at OIST?  Pilot POC Program launch in 2015  Detailed implementation plan that builds on this concept document is due Q1 2015

5. Technology Licensing Process & Framework 1. Scouting 発明発掘 2.Disclosure 発明開示 3. Evaluation 発明評価 4. Filing 特許出願 5. Marketing ﾏｰｹﾃｨﾝ ｸﾞ 6. Licensing 実施許諾 7. Prosecution 特許管理 8. POC 実証試験

6. Proposed Management Structure for OIST POC Program Project management POC Program Manager Request for Proposal (RFP) based projects OIST External NEDO, JST, OPG, Industry, etc. Budget management Contract Research Organizations (CROs) for testing OIST Internal POC Program - SMEs - CROs Small & Medium-sized Enterprises (SMEs) for prototyping External Coordinator Internal Coordinator Business Development Section

7. Proposed Key Factors of OIST POC Program Applicants (POC Project Lead) RequirementsFunding Post-doctoral fellows, Research Scientists of STG, and PhD students nearing graduation or end of contract Proposal must be based on IP disclosed to TLS Proposal review must include external professionals Applicant must be approved by Faculty of Unit Phase 1: Up to 5 million yen total, duration 1-1.5 years Phase 2 : Up to 25 million yen total, duration 2-3 years Funding Source OIST internal budget (TLS budget) After Phase 2, external funding sources will fund the project

8. Proposed process of POC program RFP/Pre-ProposalGrantFull Proposal Pre-Review & Consultation Review by Committee  Request for Proposal is issued up to 2 times/year  Pre-proposal up to 5 pages focused on commercial needs and solution  POC Manager and TLS/BDS coordinators will be available to consult with the applicants to suggest edits/modifications  Proposal must be based on IP disclosed to TLS  Written permission by the Faculty Unit in the lab is required  Proposed work should be conducted in separate designated space such as the Lab 3  External professionals must be involved  Awards are provided as a contract containing specific milestones, from OIST TLS

9. Potential benefits from OIST POC Program Commercialization Lab 3 Operation Okinawa R&D Cluster Career EnhancementTLS  Increase number of disclosures  Enhance engagement in technology commercialization process through POC applicants  Increase commercial value of OIST technology  Promote technology transfer  Enhance experience of applicants by providing entrepreneurship opportunities  Increase number of start-up companies based on OIST research and technology  Enhance economic development in Okinawa  Effective utilization of Lab 3 space by startup ventures from POC programs

10. Potential Issues and Proposed Solutions PositionFollow-on FundingEducationSalary Network  Research Scientist of TLS  POC contract principal investigator  TLS covers full salary  Industry equivalent level  Networking support  Network opportunities  Actively seek external funding  Commercialization and Entrepreneurship seminars  Individualized advice/support